Velenje - The strike at Gorenje, a home appliances manufacturer owned by Chinese group Hisense, which was scheduled for Thursday has been cancelled as the two sides reached agreement on two of several strike demands, Hisense Europe said in a press release on Wednesday.

Hisense Europe and the in-house SKEI trade union reached an agreement on this year's holiday allowance to stand at EUR 1,400 net. SKEI initially demanded EUR 1,500.

They also reached an agreement on the amount of funds allocated for one of the regular allowances Gorenje workers receive with their monthly wages, knows as KOP.

It was agreed that the KOP fund will be determined in talks on the social council and will not be pegged to the company's business results.

Eligibility criteria for the allowance remain unchanged. However, if a boss awards an above-average KOP or does not award it at all, they must provide an explanation.

The other strike demands will be discussed on the social council and with the works' council as part of talks to overhaul Gorenje's collective bargaining agreement, which are expected to start before the end of June.

When announcing the strike earlier this week, SKEI demanded an end to violations of the collective agreement, a 40% rise in the allowance for working a sixth day and an agreement on performance bonuses which are based on business results by 31 July.