THE reclusive owner of the Timex Corporation, Norwegian Fred Olsen,

last night broke his silence about the bitter dispute in Dundee --

calling on workers who yesterday rejected the company's back-to-work

proposals to ''go home and think again''.

Mr Olsen, who had been visiting the Dundee plant to be briefed on

latest developments, said that the Amalgamated Engineering and

Electrical Union had ''a bit more selling to do'' with the proposals.

''We've made a deal with the union, it's up to them,'' he said.

Meanwhile, the sacked Timex workers are ready to escalate their

campaign in an effort to get their jobs back.

They took only 30 minutes to reject unanimously the company offer

aimed at settling the dispute, many later describing the package as

insulting and humiliating.

Timex president Peter Hall said at the plant that he was disappointed

by the decision. He believed the company was making a significant step

towards ending a bitter conflict. He said the ball was now firmly in the

union court.

Mr Olsen claimed that the Dundee factory had been loss-making for 10

years and that to achieve ''a positive bottom line'' the company had

tried to replace watches with other products such as the Sinclair

Computer and the 3-D camera to keep the factory open.

''We failed in many of them. We now seemed to have built up a niche

making electronic boards for other people.''

Mr Olsen said that the company would not leave Dundee and that it

would honour its current workforce. He added: ''We have good people here

who are really pitching in and they are willing to do all jobs.''

He also dismissed speculation that Mr Hall might be replaced. ''There

will be no change,'' he said.

Yesterday's rejection left the STUC in a difficult position as it had

believed that a formula allowing a return to work might have been

achieved.

The STUC said later that it fully understood the defiance of the

workers, and would seek talks with the union to discuss how the campaign

should now move forward at home and abroad.

Assistant secretary of the STUC Richard Leonard said it had hoped that

after months of intransigence by Timex management, talks could have

resulted in an offer acceptable to the sacked workers.

Details of the company's proposals were outlined to the 343 workers

who have been picketing the plant for 18 weeks by Mr Jimmy Airlie, a

member of the AEEU's executive council.

At a news conference later, he explained that in the talks with Timex,

the company had stated its final position, which was to adopt a

world-class manufacturing capacity in Dundee, and introduce the changes

involved in such a concept.

Mr Airlie said: ''I made it clear that as a union we were for

world-class manufacturing -- but you can't have world-class

manufacturing on third world wages.''

Later, he described the company's measures as draconian and said it

would mean a wage cut of 27% for some workers, a two-year wage freeze,

loss of

bonus, and assessment of their ability by Timex.

''We recognised that our members would be deeply hostile to cuts in

their benefits and wages,'' he said. ''Our members are determined to

continue the dispute and are making it clear that they will go as long

as necessary.

''This dispute will not go away unless there is ultimately a

negotiated settlement.''

Mr Airlie admitted the company and the union were now in an entrenched

position.

There was a tremendous gap between the company's demands, and what his

members were prepared to accept.

Convener of shop stewards John Kidd added later that the workers would

take their case to the US, Denmark and Germany, where companies dealing

with Timex would be approached in an effort to continue the call for a

boycott of its products.

''There is a new level of anger as a result of this offer, and this

will be channelled into bringing new pressure on the company,'' he said.

Vice-convener Charlie Malone described the package as ''the worst kind

of insult'' and said the attitude of the sacked workers had hardened.

Heavy picketing at the plant is expected again next Monday, and a

demonstration is being planed in Dundee on June 19.

The SNP said last night it fully supported the workers, calling for a

boycott of Timex products.

Labour's Scottish Affairs spokesman Henry McLeish, described the

company package as a ''sweatshop offer'' and called for an early

resolution to the dispute.

Mr Hall denied that the deal put to the workers was insulting and said

the conditions offered were identical to those which exist within Timex

today.

If the sacked workers had returned, they would have been offered the

same pay as new employees at the plant.

He said the company recognised the realities of the bitterness of the

conflict and made provision for redundancy payments for those sacked

workers who did not wish to return.

Mr Hall said Timex had been in Dundee for almost half a

century and ''we have no intention of being driven off by a vast

number of Militant supporters.''

POLICE made several arrests in Dundee last night after a policeman and

a female picket were knocked down and injured near the Timex factory.

The officer and the woman were taken to Dundee Royal Infirmary and

released after treatment for bruising.

A police spokesman said occupants of a vehicle had been arrested and a

report was being sent to the procurator-fiscal.

The offer

THE package offered by Timex and accepted by the alternative workforce

of about 290 hourlypaid employees entailed:

A twoyear wage freeze.

A reduction in company contributions to the pension scheme.

Scrapping payment of a bonus of one week's wages.

Lower sick pay and longer qualifying periods for sick pay.

Ending canteen subsidies, which would mean some meal prices doubling.