"If government continues to be adamant on its stand of not fulfilling demands of lifeguards, we will occupy entire Panaji. The strike would be extended to all the labour unions. There will be industrial breakdown," All India Trade Union Congress (AITUC) leader Suhas Naik told PTI.
Around 600 lifeguards have struck the work since December 29 demanding regularisation of services and hike in wages.
Naik said the meeting of all the labour unions would be called on Monday to empathise with the striking lifeguards.
"We will occupy entire Panaji. If we have to resort to major strike then the onus would lie on chief minister Laxmikant Parsekar," Naik said.
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He said state Tourism Minister Dilip Parulekar was "prevented" by Parsekar from giving a written assurance to lifeguards on fulfilment of their demands.
Naik said the contract signed between Drishti and the government had expired on December 31, 2015 and the company has no locus standi to guard the beaches.
Earlier in the day, Parsekar refused to step into the matter, saying the issue is between the company (Drishti) and the lifeguards.
Meanwhile, Drishti Lifesaving Services today announced a fresh recruitment of lifeguards.
"As a standard policy, Goan youths will be given preference in the selection process," the company stated in a release.
"Drishti Lifesaving has also issued notices to their existing lifeguards currently on strike to return to work. Drishti hopes that they shall resume duty at the earliest," it added.