and service conditions should be maintained, The management also put forward a 20-point proposal for re-opening the factory. It is interesting to note thai the first point in the management's proposal was that the union would not pursue the matter of forming a co-operative The other main points are: complete rationalisation of manpower through voluntary retirement scheme; wage freeze for next five years; reduction of retirement age; factory to be reopened in a phased manner. The management's proposals aim at reduction of manpower and curtailment of existing privileges of workers. It can be easily understood that there is a wide gulf between the two proposals. The union was to be forced to abandon the proposal of running the company through a co-operative. There was hard bargaining between the two parties, but no settlement could be arrived at. The state government did not come to the rescue of the workers. Thus a deadlock has been created over the question of the reopening of the -factory and the fate of about one thousand workers is uncertain.