By Ishara M Gamage
June 16, 2010 (LBO) - Sri Lanka's troubled Dankotuwa Porcelain which has been struggling with high labour costs and was mulling liquidation has reached a deal with trade unions, an official said.
Chairman Sunil Wijesinghe said unions have agreed for a collective agreement under Sri Lanka's labour laws.
Dankotuwa was to decide on whether to liquidate or proceed on June 16 as rising domestic costs made it difficult to compete in international market.
The firm said in a stock exchange filing earlier that it had difficulties in servicing debt and had talks with an investor who wanted a wage deal with workers first.
At the time agreement had not been reached with unions and the firm was mulling liquidation to repay debts.
Now that a wage deal had been reached the board of the firm will start talks with the investor, he said.
source - www.lbo.lk
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