The company is also offering a cash payments to the workers -- ranging between Rs 27,000 and Rs 48,900 -- in lieu of cash settlements pending from January 1995. Union sources said that this could be to appease workers to quietly accept its closure plans for certain "redundant" divisions.

Maitreya V Doshi, managing director, and V Saitta, director operations, represented the company, while the union was represented by E Angre and A Satardekar.

Closure of certain divisions of the company became imminent after the company's efforts to restructure or sell the plant failed. It will also be the first time that workers of the Kurla plant will be given any form of monetary reward since the last five years.

The rewards range from Rs27,300 to Rs 48,900 per employee depending on the number of years an employee has put in the company. The cheques were handed over to the workers last Saturday.

Senior union officials say that this amount is only 75 per cent of the total amount that has been promised to workers and the balance of 25 per cent is slated to be paid to them during Diwali.

Though there were widespread protests from the workers at the plant on Saturday, normal working resumed on Monday.

As per the agreement, they are also to co-operate in the management's attempts to close down redundant units and accept production levels demanded from the management without opposition. They must also accept the cash payments made by the management in lieu of the wage settlements pending from January 1995.

The cash payments to compensate for the pending settlements are as follows: Workers who have completed five years of service will receive about Rs 27,300, between five and 10 years Rs 30,900, 10 and 15 years Rs 34,500, 15 and 20 years Rs38,100, 22 and 25 years Rs 42,000, 25 and 30 years Rs 44,400, 30 and 35 years Rs 46,200 and 35 years and above Rs 48,900.

According to sources close to the company, this is a novel arrangement between the workers and the management for an amicable settlement to turn around the company and fight competition.