By Lorraine Orlandi

MEXICO CITY, Jan 12 (Reuters) - A Mexican rights activist arrested on what supporters said were false charges engineered by powerful businessmen was suddenly released on Thursday as international pressure mounted on his behalf.

A surprised and somewhat giddy Martin Barrios, 33, walked out of jail in central Mexico's Puebla state, apparently exonerated of attempted blackmail charges brought last month by the head of a local textile factory where Barrios had helped workers file labor complaints.

By Ashok B Sharma

URRACO, Yoro.- Demanding the reinstatement of three coworkers, respect for the Collective Bargaining Agreement, and an end to the persecution of its president, the Sindicato de Trabajadores de la Empresa Americana de Exportación y Ameribi (SITRAAMERIBI), stopped working yesterday, for an indefinite period, at the Birichichi banana plantation.

The 176 unionized workers, carrying posters and clubs, are outside the main entrance of the farm, which is a subsidiary of the Tela Railroad Company. They aim to prevent company executives and 80 contract workers from entering.

Lawyers for Wal-Mart were able to write their own settlement agreement with the federal government's Employment Standards Administration (ESA) after having been cited for allegations that the company violated child labor laws written in 1938, according to the Inspector General at the Labor Department.