The latest round of talks between the Dunlop management and the representatives of the employees' union on February 14 failed to resolve the deadlock at the company's Chennai plant.

Meanwhile, the Tamil Nadu government, the mediator, has decided to arrange another round of meetings after February 24, 2002, to resolve the issue.

M Sankara Narayanan, joint commissioner, labour department, said: "Talks between union representatives and the Dunlop management were inconclusive as the management demanded some sacrifice relating to wages and a reduction in the workforce. Union representatives did not agree to that".

He said the management wanted to cut the workforce to 1000 from the present strength of around 1800 in Chennai by offering a voluntary retirement scheme (VRS). It also sought a reduction in wages for all employees.

"Union representatives were demanding payment of back-wages (that is, wages not paid during normal production days). To this, the management expressed its inability to pump-in more money before the BIFR (Board for Industrial and Financial Reconstruction) pronounces its final order", he added.

Dunlop Employees Union (DEU) officials said the management did not specify the details of the VRS package and offered a flat wage of Rs 2,500 per employee until the BIFR comes up with its final pronouncement. "We are not opposing the VRS. But, we would like to know the details of the scheme before accepting it," they said.

Union officials claimed back-wages were due for more than 13 months, including the period between January- September 2001.

With the talks remaining inconclusive, DEU representatives were hoping for the final BIFR pronouncement.

Top Dunlop officials earlier said the promoter had expressed his unwillingness to pump in more money before obtaining a firm commitment from the employees. The promoter had invested Rs 26 crore in fresh equity investment and another Rs 6 crore in material purchase in February 2000, they added.