A labour dispute which stopped production at a Dockyard perfume factory was settled amicably on Friday, The Royal Gazette has been told.

Workers at the Royall Lyme factory at Ireland Island stopped working on Wednesday after some members of staff said they believed a glue used to bind labels to the perfume bottles was making them ill.

The factory's 12 employees had been gluing the labels to the bottles by hand for several weeks after an automated labeller broke down.

Work ground to a standstill for two days as workers squared off with manager Seamus Nester claiming the glue was harming their health and even called in officers from Health and Safety and Labour Relations.

But after Health and Safety Officer Doris Foley visited the factory Thursday she said she found no evidence of any health violations or harmful effects related to the glue.

Friday, a Labour Relations officer met with Mr. Nester and staff to discuss the problems at the factory which became thorny late last week.

Mr. Nester told The Royal Gazette the mediation was very successful and production went back on line at noon Friday.

"We had a couple of issues but we've resolved them," Mr. Nester said. "The girls are back at work and they've agreed the glue is non-toxic."

Mr. Nester said he regretted that the situation had spun out of control and was happy to see the employees back at work.

"Since I came out here in January, all I've really wanted was to get together a proper staff," Mr. Nester said. "All I ask is that they come in and perform their work and we keep the factory running. Up until this time, things had been running very smoothly."

Having a Labour Relations officer visit Friday was helpful in getting everyone talking again, he added.

"I think we are all agreed now."