CORRECTED-UPDATE 1-General Motors' S.Africa plant still closed as strike continues

Mon Jul 7, 2014 5:50am EDT

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(Corrects to show strike at suppliers, not at GM plant)

* GM says has enough inventories for medium term

* No impact at Mercedes Benz, full production at Toyota

CAPE TOWN, July 7 (Reuters) - Workers at components factories supplying General Motors' South African plant remained on strike on Monday but the auto maker said it had sufficient inventory for both domestic and export customers for the medium term.

Over 200,000 members of the National Union of Metalworkers of South Africa (NUMSA) stopped work last week demanding salary hikes of up to 15 percent, in a strike that will further hurt the ailing economy.

NUMSA has rejected an updated 10 percent offer from employers' group Steel and Engineering Industry Federation of Southern Africa.

"The strike in the metal and engineering sector has impacted upon supply of components to our production line, resulting in our line not being operational since July 3," GM spokeswoman Denise Van Huyssteen said. "To date we have lost three days of production."

Mercedes Benz said there had been no impact so far at its local operations, while Toyota said it was still at "full production".

The NUMSA strike comes hot on the heels of another five-month work stoppage by miners in the platinum sector that choked output in the key industry.

The union wants any wage hike agreement to apply for a year only but companies want a three-year deal. (Reporting Wendell Roelf; Writing by Helen Nyambura-Mwaura; Editing by Stella Mapenzauswa)

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