As the last agreement signed between the unions (led by MSRTC Kamgar Sangh) and the corporation expired three years ago, the unions have served a notice on MSRTC for immediate implementation of the new pay scales.

An MSRTC spokesperson said the unions are demanding a package deal of Rs 180 crore, which the management will find difficult to give. Last year, the workers received an interim relief of Rs 36 crore from the corporation and a bonus of Rs 2,000, Rs 500 less than what other government employees got. ``We had agreed to the bonus knowing the corporation's financial condition, but not signing a proper agreement will not do,'' said Shivaji Chavan, president of the Sangh.

The MSRTC has been reeling under huge losses for the last five years. With an annual lossaveraging around Rs 150 crore, its accumulated losses came to Rs 521 crore on March 31 this year. Though a large number of measures have been taken by the management to stop the slide, the MSRTC budget for 1999-2000 has predicted an accumulated loss of over Rs 750 crore.

If the unions carry out their threat, the stir is likely to hit rural areas hard. With 1.13 lakh employees striking work, over 16,000 buses will go off the roads, leaving commuters in the hands of illegal transporters who operate jeeps, private buses, tempos and six-seater autorickshaws. Ironically, these vehicles already carry nearly 50 lakh passengers daily, more than half the commuters who ride on state transport buses every day.

Meanwhile, the newly appointed chairman of the corporation Girish Bapat has promised the employees he will sign an agreement within three months. ``After due consultation with the chief minister and the transport minister, I will sign the agreement on or before July 15,'' he declared.

Bapat has asked theunions to desist from striking work till then. Meanwhile, negotiations are on between the management and the unions in a bid to resolve the crisis.