In 1980-81, ITI and four other public enterprises experienced serious labour trouble for almost six months. The strike and lockout took place over the issue of parity with BHEL wages. The case provides an account of the strike and lockout as experienced by ITI. Information about the global telecom industry is provided since ITI has a monopoly in India. The industry information enables one to make judgements about productivity matters and thus aids in formulating an IR strategy.