A strike planned by 22,000 workers at Egypt's largest state-owned textile factory has been called off after the government agreed to their demands - but has prompted other Egyptian textile and clothing workers to threaten similar walk-outs.

The protest by workers at the Egypt Weaving and Textile Company (EWTC) in Mahalla city was cancelled over the weekend following successful negotiations to increase monthly meal allowances from EGP120 (US$20) to EGP210 (US$35).

Monthly incentives are also to be raised to 200% for workers, 125% for assistants, 100% for shift supervisors and 25% for general managers, according to newspaper reports in Cairo.

However, EWTC workers' successful demands have led to threats from workers at the Kafr Al-Dawar, Seta, Al-Sayouf and Industrial Silk to go on strike if they do not get the same raises.

Meanwhile, profit distribution discussions at EWTC have been postponed until a general assembly of the state-run Holding Company for Cotton, Spinning and Textiles can be held to debate the issue.

Last month the Cairo-based El Nasr Clothing & Textile Co (Kabo) said an ongoing strike by workers had lost the company EGP4m (US$672,000) in production and disrupted exports worth EGP3m.