A dispute between mill workers and mill management could be heading for a stalemate according to a report from the Hindu Business Line.

Workers demanding higher wages have threatened to go on strike next week if their demands for a wage rise are not met, but the report states that many of the managers are prepared to sit out the strike action rather than buckle to the pressure of a compromise.

The Joint Action Council (JAC) of textile trade unions has called for the indefinite strike blaming mill managers for not meeting them to discuss the workers demands despite the demands being aired through the textile workers' unions 18 months ago.

However, many managers feel that the workers demands for higher wages have come at the wrong time, as the industry faces the threat of cheap foreign goods entering the market in the next two months and the government's refusal to drop the power rates which form a major cost in the production of cotton yarn.