Factory dispute over for now

A PAY dispute which led to a four-day strike by employees at the Japanese-owned Canon Zhuhai factory was ''temporarily settled'', but negotiations are continuing, company chairman Mr Shoshiro Nakayama said.

Workers went on strike after being told they would get a seven per cent pay rise. They were demanding a 30 to 50 per cent increase.

Mr Nakayama said workers had agreed to resume work while negotiations continued, but he refused to say when a decision would be made.

A Zhuhai Labours Bureau official said salaries paid by the factory met levels set by the Chinese Government for foreign investors.

He said workers at Canon Zhuhai earned ''about 30 to 50 per cent more than local state-run enterprises''.

He said other workers in Zhuhai were earning about 400 yuan (HK$540) a month compared to 600 yuan paid to Canon employees.