A strike at the Xinavane Sugar company in Maputo province has ended after the company and the workers signed an agreement following intervention by the sugar workers’ union and by the provincial Labour Mediation and Arbitration Centre.

According to a press release from the Labour Ministry here Monday, the strike, in pursuit of a demand for a 26 per cent wage increase, broke out last Monday, and involved 120 workers, from the cane transport sector.

After lengthy negotiations, the company agreed Thursday to increase the wages of this group of workers by just five per cent. Their monthly wage packet will thus rise from 11,074.5 meticais (about 156 US dollars at current exchange rates) to 11,628.22 meticais.

In addition, the company agreed to pay all its 459 workers, most of them casual workers, an extra three per cent “sugar campaign allowance” every month.

The workers and management also agreed to strengthen mechanisms for “permanent dialogue”, said the statement.

The Ministry claimed that the mediation and arbitration service, set up in 2009 to find extra-judicial solutions to labour disputes, had proved its value by reducing the number of strikes or other forms of instability in the labour market.