China Railway Tunnel Group has allocated 300,000 yuan ($48,000) to pay compensations to residents in a village in Yunnan province for losses stemming from a conflict with its workers, Xinhua News Agency reported on Friday.

On Feb 12, two of the company's workers were involved in a fight with eight residents of Yancun village in the province's Funing county when they were riding a motorcycle in the village, Xinhua quoted a statement from the county's publicity department as saying.

One of the workers was injured in the conflict, it said.

It added that two more workers were injured the next day when a group of nearly 100 employees, who are building a rail line in the county, went to the village to demand an explanation.

The workers' retaliatory actions damaged 57 houses and other properties in the village, according to the statement.

After local authorities intervened, managers from the company apologized for the damages and decided to compensate the villagers.

The two sides have also reached an agreement on the compensation amount for the other damaged properties, the report said.

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