Namibia Dairies and the Namibia Food and Allied Workers Union (NAFAU) reached a settlement agreement in the dispute over salaries and conditions of employment on Monday. Workers started illegal strikes last week and Monday morning after hearing the would not get bonuses, because the income dropped in 2005. A comprehensive agreement was reached addressing all matters in dispute. The parties also agreed to withdraw their application for the appointment of a conciliation board as an agreement was reached on salaries and conditions of employment. The illegal work stoppage caused a temporarily backlog of deliveries from the Windhoek plant. A member of the O&L group, Namibia Dairies was established in 1997 through a merger between Bonmilk and Rietfontein Dairies. The company has a staff compliment of 369 permanent employees, according to the company’s spokesperson Patrick Hashingola.