LIMA, Sept 8 (Reuters) - Workers at iron miner Shougang Hierro Peru, a unit of China's Shougang Group , returned to work on Monday after a three-week strike that curbed production, a union leader said.
The labor ministry resolved the dispute by mandating a 4.70 soles ($1.65) per day wage increase, lower than the 9 soles hike workers demanded and slightly higher than the 4 soles increase the company was offering, union leader Julio Ortiz said.
The work stoppage led Shougang to declare force majeure on its shipments because production was affected. Force majeure enables a company to cancel its contractual obligations due to uncontrollable events.
Shougang produced 6.7 million tonnes of iron from its mine in Peru's southern Ica region in 2013, according to government figures.
$1=2.855 soles Reporting By Teresa Cespedes; editing by Andrew Hay