Watch factory to pay more

Most of the workers at a well-known Japanese company in Guangzhou, Guangdong province, that shut down last week have signed contracts to leave the company of their own accord after mediation from local labor department and trade unions by Monday noon.

After mediation, the Japanese watchmaker Citizen agreed to give workers severance pay plus two months' salary as compensation. It will also pay the workers' social security, according to a statement on Monday from the Huadu District Bureau of Labor and Social Security.

Previously, Citizen had agreed to pay its employees only severance plus one month of salary, as compensation, the statement said.