Malaysian textile and garment maker Ramatex is to pay Filipino workers at its textile factory in Namibia in US dollars in an attempt to avert industrial action.

The 700 employees had threatened to refuse to work overtime if the request wasn't met.

An employee from the company told The Namibian newspaper that Ramatex had agreed to open bank accounts to deposit their wages, from September onwards.

They will continue, however, to receive overtime pay in Namibian dollars.

Workers had argued they should be paid their monthly US$200 salaries in foreign currency because exchange rate fluctuations had reduced their pay.

The factory depends heavily on overtime work during peak times.