Xaar staff in China resign over alleged "unfair treatment"

Xaar has confirmed that all staff at its China office have resigned over "unfair treatment" of themselves and customers, allegations the manufacturer refutes.

Seven staff and two contractors have left the company with immediate effect after raising their concerns last month.

They alleged that Xaar's pricing and shipment policies had created an unfair market, issues the manufacturer has investigated.

Ian Dinwoodie, chief executive of Xaar, said the staff held the belief that certain products were being sold to other regions at a lower price than China, something that has "no grounding whatsoever".

Upon completion of its investigation, Xaar said there was "no evidence" to substantiate the allegations, a conclusion rejected by the company's staff.

According to the inkjet manufacturer, its supply channels are unlikely to be affected by the changes as sales and distribution are handled by an independent trading company.

According to Dinwoodie, Xaar is implementing short-term measures with UK-based staff relocating to China for several months from next week.

An update of the company's longer' term arrangements will be provided with its 2011 results announcment on 20 March.