Updated

CAPE TOWN (Reuters) - South African police fired a stun grenade and rubber bullets to disperse a crowd of some 200 security guards who protested illegally outside their employer's premises in Cape Town, a police official said on Thursday.

Colonel Andre Traut said seven guards, employed by Stallion Security Consortium, were arrested for participating in the labor dispute and would appear in court soon.

Thursday's incident is the latest involving Stallion security guards, who have been replaced by police to handle security at World Cup stadiums Cape Town and Durban, following wildcat strikes condemned by World Cup organizers.

(Reporting by Wendell Roelf, editing by Jon Bramley)