China Staff Resigns At Inkjet Printhead Maker Xaar

[Anonymous]

China Staff Resigns At Inkjet Printhead Maker Xaar

LONDON  Cambridge-based inkjet printer firm Xaar said the staff in its China office had all quit in an argument over unfair treatment.

The seven employees and two contractors, had resigned with immediate effect, Xaar said.The company said that sales order processing and product distribution of its technology into China was handled by an independent trading company, and therefore supply channels were not expected to be affected.

"At this stage the impact of the resignations is not expected to be material to Xaar’s 2012 earnings," it added.The firm said that short term actions to support Xaar’s Chinese customers were being implemented immediately, and an update on the company’s longer term arrangements for China would be provided with its 2011 results announcement on 20 March 2012.

The argument began in December 2011, when Xaar’s China staff said they were suffering unfair treatment of both themselves and some Chinese customers compared to other regions.

This included allegations that Xaar’s pricing and shipment policies had created an unfair market."Xaar has taken the allegations extremely seriously and, having completed a thorough investigation, has found no evidence to substantiate the allegations," the company said.However, the China staff rejected the conclusions of the investigation, and have now resigned.

http://www.proactiveinvestors.co.uk/companies/news/38164/xaars-chinese-office-staff-walk-out-38164.html
Xaar’s Chinese office staff walk out
Inkjet printhead maker Xaar  reported that the entire staff of its representative office in China has walked out, following a dispute over alleged unfair treatment of staff and Chinese customers.

In all, seven employees and two contractors have resigned with immediate effect.The dispute first surfaced in late December, when the staff raised concerns about alleged unfair treatment of them and of some Chinese customers through Xaar’s pricing and shipping policies.

Xaar carried out an investigation, but said it found no evidence to substantiate the claims.The China staff rejected the conclusions of the investigation, and have now resigned, it added.

Sales order processing and product distribution of Xaar’s technology into China is handled by an independent trading company, and therefore supply channels are not expected to be affected.  Also, the resignations are not expected to be material to Xaar’s 2012 earnings.

Short term actions to support Xaar’s Chinese customers are being implemented immediately, and it will update investors on its longer term arrangements for China in its 2011 results announcement in March.

Edison Investment Research also commented on the walk-out, saying: “This is obviously unwelcome news, but direct exposure to China has now fallen to around 12 per cent of sales, from 50 per cent in 2007, and product supply channels are not expected to be affected. Therefore, a repeat of the significant disruptions to business, witnessed in 2006 and 2008, looks unlikely.“

[Author]

January 26, 2012 at 8:05 AM