Saturday, January 02, 2010

SABMiller Strike in South Africa Set to Spread to Beer

SABMiller Strike In South Africa Set To Spread To Beer

Dow Jones
December 31, 2009: 03:01 AM ET

JOHANNESBURG -(Dow Jones)- SABMiller PLC's (SAB.JO) beer division in South Africa has been handed a strike notice as a walkout over pay at the brewer's soft drinks unit looks set to escalate, a labor union said Thursday.

A seven-day notice to strike at South African Breweries Ltd. and three other bottlers of Coca-Cola Co. (KO) products in the country expires Jan. 6, after which workers will be able to picket and stage demonstrations, the Food and Allied Workers' Union said.

The union said that from the same date Coca-Cola workers worldwide, under the umbrella of the International Union of Food and Allied Workers Associations, will also mount actions in support of striking workers at SABMiller's Amalgamated Beverage Industries Ltd., one of the largest producers and distributors of Coca-Cola brands in the southern hemisphere.

Workers at ABI launched a strike Dec. 22 to press demands including a 9.5% pay increase, a 45-hour working week and overtime pay. ABI has offered a wage and benefits increase amounting to an 8.3% raise and has said there is an acceptance in principle of a 45-hour week and that work on Saturday's would be for overtime pay.

SAB, founded in 1895 and the root company of SABMiller, produces beers including Castle Lager, Carling Black Label, Miller Genuine Draft and Grolsch.

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@ dowjones.com

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