Employees at Carlsberg's brewery in Nepal have won higher wages and improved working conditions after talks with the Danish brewing giant ended a two-week dispute.

Gorka Brewery, the largest in Nepal, has reopened after negotiations between the company's management and Maoist-affiliated trade unions.

Workers had demanded better pay and working conditions for the brewery's 150 seasonal employees. However, Carlsberg, alongside venture partner the Khetan family, closed the brewery after the unions had "threatened" the company's management, a Carlsberg spokesman said today (4 July).

"We have always said that we are ready to negotiate but not when we are threatened - and that's the reason we closed the brewery," the spokesman told just-drinks.

He added: "About half - around 70 - of the seasonal workers have been transferred to new, permanent positions and their salaries have been raised a little. The workers used to have better conditions that most local companies - now they have significantly better terms."

The spokesman declined to say how much the agreement would cost the venture, in which Carlsberg owns a 50% stake. He insisted that the shutdown had not affected supplies, as existing stock had met demand.