SECURITIES & EXCHANGE COMMISSION

                              WASHINGTON, DC, 20459

                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1998
                            COMMISSION FILE # 0-8027

                            WORKSAFE INDUSTRIES INC.

             (Exact name of registrant as specified in its charter)

             NEW YORK                                          11-1874010
(State or other jurisdiction of                             (Employer I.D.#)
 incorporation or organization)

              130 West 10th Street, Huntington Station, N.Y. 11746
              (Address of principal executive offices and zip code)

                                 (516) 427-1802
                           (Issuer's telephone number)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15 (d) of the  Exchange Act during the past 12 months (or for such shorter
period that the  registrant  was required to file such  reports) and (2)has been
subject to such filing requirements for the past 90 days.

                           YES _X_                     NO ___

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.

         Class                             Outstanding at December 31, 1998

         (Common Stock, par value                   1,683,079
          $.12 per share)


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                         PART I - FINANCIAL INFORMATION
                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                                      December 31,     June 30,
                                                         1998            1998
                  ASSETS                              (Unaudited)

CURRENT ASSETS:
         Cash                                         $    59,137    $   223,125
         Accounts receivable - (less allowance
           for doubtful accounts of $26,800 at
           December 31, 1998 and $46,250 at
           June 30, 1998)                               3,312,333      3,393,608

         Inventories - (note 2 and note 6)              4,552,627      5,757,777

         Other current assets - (note 6)                2,900,872        692,595

         Net assets of discontinued operations          1,928,547      4,890,196

                  TOTAL CURRENT ASSETS                 12,753,516     14,957,301

PROPERTY, PLANT AND EQUIPMENT, net                      2,181,716      2,276,677

EXCESS OF COST OVER NET ASSETS ACQUIRED                   414,829        426,229
OTHER ASSETS                                              126,423         24,794

                  TOTAL ASSETS                        $15,476,484    $17,685,001







See accompanying notes.




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                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                                   December 31,      June 30,
                                                      1998             1998
                                                   (Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
         Loans payable - (note 6)                  $  8,002,243    $  8,189,842
         Current maturities of long-term debt           248,979         277,628
         Accounts payable                             3,106,167       4,384,580
         Accrued expenses                               301,962         395,860

                  TOTAL CURRENT LIABILITIES          11,659,351      13,247,910


LONG-TERM DEBT, less current maturities                 428,529         538,283

                  TOTAL LIABILITIES                  12,087,880      13,786,193

SHAREHOLDERS' EQUITY
         Preferred stock; $.01 par value;
           authorized 1,000,000 shares;
           no shares outstanding                             --              --
         Common stock, $.12 par value;
           authorized - 20,000,000  shares, issued
           and outstanding 1,683,079 shares
           in December 1998 and in June 1998            201,970         201,970
         Additional paid-in capital                   9,807,708       9,807,708
         (Deficit)                                   (6,621,074)     (6,110,870)

                  TOTAL SHAREHOLDERS' EQUITY          3,388,604       3,898,808



TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY         $ 15,476,484    $ 17,685,001




See accompanying notes.


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                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT

                                                Three Months Ended December 31,
                                                     1998            1997
                                                  (Unaudited)    (Unaudited)

Net sales from continuing operations              $ 5,936,398    $ 6,010,137

Cost of sales                                       5,095,129      4,831,565

Gross profit                                          841,269      1,178,572

Selling, general & administrative expenses            746,560        808,844

Interest expense, net                                 121,244        143,708

Other income, net                                      (2,524)       (13,033)

Net (loss) income from continuing operations          (24,011)       239,053

Net (loss) from discontinued operations              (735,342)      (203,717)

Net gain from sale of discontinued operations         532,972             --

Net (loss) income                                    (226,381)        35,336

Opening (deficit)                                  (6,394,693)    (5,584,970)

Closing (deficit)                                 $(6,621,074)   $(5,549,634)

Income/(loss) per common share-
  Basic and diluted
  (Loss)/income from continuing operations        $      (.01)   $       .14
  (Loss) from discontinued operations                    (.44)          (.12)
  Gain from sale of discontinued operations               .32             --
  Net (loss) income                               $      (.13)   $       .02

Weighted average number of
  common shares outstanding
  Basic and diluted                                 1,683,079      1,683,079


See accompanying notes

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                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT


                                                   Six Months Ended December 31,
                                                      1998            1997
                                                   (Unaudited)     (Unaudited)

Net sales from continuing operations               $ 11,604,334    $ 11,288,123

Cost of sales                                         9,875,883       9,086,084

Gross profit                                          1,728,451       2,202,039

Selling, general & administrative expenses            1,546,097       1,595,951

Interest expense, net                                   251,968         265,913

Other income, net                                       (15,175)        (29,616)

Net (loss) income from continuing operations            (54,439)        369,791

Net(loss) from discontinued operations                 (988,737)       (297,040)

Gain from sale of discontinued operations               532,972              --

Net (loss) income                                      (510,204)         72,751

Opening (deficit)                                    (6,110,870)     (5,622,385)

Closing (deficit)                                  $ (6,621,074)   $ (5,549,634)

Income/(loss) per common share-
  Basic and diluted
 (Loss)/income from continuing operations                 $(.03)           $.22
 (Loss) from discontinued operations                       (.59)           (.18)
  Gain from sale of discontinued operations                 .32              --
  Net(loss)/income                                        $(.30)           $.04

Weighted average number of
  common shares outstanding
  Basic                                               1,683,079       1,683,079
  Diluted                                             1,683,079       1,699,779

See accompanying notes.



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                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                         Six Months Ended December 31
                                                             1998             1997
                                                          (Unaudited)      (Unaudited)
<S>                                                      <C>             <C>         
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net (loss)/income from continuing operations           $    (54,439)   $    369,791
  Adjustments to reconcile net (loss) income 
    from continuing operations to net cash effect
    of operating activities:
       Depreciation and amortization                          132,640         113,970

  Net changes in operating assets and liabilities:
                Accounts receivable                            81,275        (409,270)
                Inventories                                 1,205,150      (1,318,029)
                Other current assets                           95,437        (128,685)
                Other assets                                    3,371          46,846
                Accounts payable                           (1,438,792)        518,889
                Accrued expenses                             (178,898)       (168,178)
                    Net cash (used in)
                      operating activities of
                      continuing operations                  (154,256)       (974,666)

CASH FLOWS FROM INVESTING ACTIVITIES:
         Capital expenditures                                 (71,421)       (140,415)

CASH FLOWS FROM FINANCING ACTIVITIES:
         Repayments of long-term debt                        (138,403)       (136,693)
         Borrowings under line of credit agreement         16,866,542      17,073,244
         Repayments under line of credit agreement        (17,054,141)    (15,370,577)

         Net cash (used in) provided from financing
         activities of continuing operations                 (326,002)      1,565,974

NET cash (used in) provided by continuing operations         (551,679)        450,893
NET cash provided by (used in) discontinued operations        387,691        (477,565)
NET decrease in cash                                         (163,988)        (26,672)

CASH, beginning of period                                     223,125         112,258
CASH, end of period                                      $     59,137    $     85,586

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
   Cash paid during the period for:
     Interest                                            $    522,636    $    387,374
     Income taxes                                        $        962    $      5,680
</TABLE>


See accompanying notes.


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                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.   Basis of Presentation

In  the  opinion  of  the  management,   the  accompanying  unaudited  condensed
consolidated  financial  statements of Worksafe  Industries  Inc.  ("Worksafe"),
formerly Eastco Industrial Safety Corp., contain all adjustments  (consisting of
only normal  accruals)  necessary  to present  fairly the  consolidated  balance
sheets as of  December  31,  1998 and June 30,  1998  (audited)  and the related
statements of operations  and deficit and cash flows for each of the three month
and six month periods ended December 31, 1998 and 1997.

The results of operations for the three and six month periods ended December 31,
1998 and 1997 are not necessarily indicative of the results for the entire year.

The attached summarized  financial  information does not include all disclosures
required to be included in a complete  set of financial  statements  prepared in
conformity with generally accepted accounting principles.  Such disclosures were
included with the consolidated financial statements of Worksafe at June 30, 1998
and included in its annual report on Form 10-K. Such  statements  should be read
in conjunction with the data herein.

2.   Inventories of Continuing Operations 

                                              December 31,        June 30,
                                                 1998               1998

     Raw materials                            $1,418,766         $1,579,096
     Work-in-process                             623,188            802,011
     Finished goods                            2,510,673          3,376,670
     Total                                    $4,552,627         $5,757,777

3.   Litigation

Worksafe is a party to various asbestos  lawsuits alleging damages from exposure
to asbestos products sold by Worksafe. Refer to Part II, Other Information, Item
I "Legal  Proceedings"  in this  form  10-Q as well as  Worksafe's  Form 10-Q of
September  30,  1998  and  Note 11 to the June  30,  1998  Audited  Consolidated
Financial Statements regarding the asbestos litigation.

4.   Net Income Per Common Share

In accordance with Statement of Financial Accounting Standards ("SFAS") No. 128,
"Earnings Per Share",  basic  earnings per common share amounts were computed by
dividing  net  earnings  by  the  weighted   average  number  of  common  shares
outstanding, excluding any potential dilution. Diluted earnings per common share
amounts are computed by reflecting potential dilution from the exercise of stock
options.  As there were no  dilutive  securities  for the  quarter and six month
ended December 31, 1998, no reconciliation  is presented  herein.  There were no
shares of common stock subject to stock options  included in the  computation of
diluted  earnings per share for the quarter and $16,700 for the six months ended
December 31, 1997.


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<PAGE>


5.   Comprehensive Income

     In the first  quarter  of  fiscal  1999,  Worksafe  adopted  SFAS No.  130,
"Reporting Comprehensive Income", which requires companies to report all changes
in equity during a period, except those resulting from investments by owners and
distributions to owners,  in a financial  statement for the period in which they
are  recognized.  Comprehensive  income  is the  total  of net  income  and  all
non-owner changes in equity (or other  comprehensive  income) such as unrealized
gains/losses  on securities  available-for-sale,  foreign  currency  translation
adjustments and minimum pension liability adjustments. Comprehensive income must
be reported  on the face of the annual  financial  statements  or in the case of
interim  reporting,  in the  footnotes  to the  financial  statements.  For  the
quarters  ended December 31, 1998 and 1997,  Worksafe's  operations did not give
rise to items includible in comprehensive income which were not already included
in net income. Therefore, Worksafe's comprehensive income is the same as its net
income for all periods presented.

6.   Discontinued Operations

Effective December 31, 1998,  Worksafe sold certain assets,  including inventory
of $1,494,000  and certain fixed assets of its  distribution  division to Arbill
Industries,  Inc.  ("Arbill").  As a result  of this  transaction,  the  Company
reported a gain of  approximately  $533,000,  after related costs, in the second
quarter  ended  December  31,  1998.  The  purchase  price for these  assets was
approximately $2,494,000,  not including payments for rent, open receivables and
miscellaneous other items. The proceeds of the transaction,  which were received
in January 1999,  except for $315,000  which will be paid over eighteen  months,
were used to reduce Worksafe's loans payable to Congress Financial  Corporation.
As a result of this  transaction,  the  operating  results of this division have
been classified as discontinued operations.

Summarized Financial Information for the Discontinued Operations is as follows:

                            Three Months Ended            Six Months Ended
                               December 31,                 December 31,

                          1998           1997           1998           1997

Net sales              $ 1,908,440    $ 2,093,289    $ 4,240,767    $ 4,524,544
Cost of sales            1,737,082      1,777,096      3,671,046      3,740,303
Gross profit               171,358        316,173        569,721        784,241
Expenses                   906,700        519,910      1,558,458      1,081,281
Net (loss)             $  (735,342)   $  (203,717)   $  (988,737)   $  (297,040)



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                    WORKSAFE INDUSTRIES INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
           FINANCIAL CONDITION AND CONSOLIDATED RESULTS OF OPERATIONS


Continuing Operations

Worksafe's  continuing  operations  now consist  entirely  of its  manufacturing
segment which produces disposable and reusable industrial apparel and protective
knit gloves.  Worksafe  maintains  facilities for  warehousing and production in
Puerto Rico, Alabama, Mexico (a contractor),  Texas,  California,  Louisiana and
Minnesota.

The accompanying  financial  statements have been restated to reflect the former
distribution  division as a discontinued  operation and Management's  Discussion
and Analysis discusses only the continuing  operations.  Worksafe sold its right
to the "Eastco" trade name and logo to Arbill  Industries,  Inc. and has changed
its name and its NASDAQ and Boston Stock Exchange stock ticket symbols, WRKS and
WSF, respectively, to reflect this change.

Results of Operations

Net sales for the three  months  ended  December  31,  1998 were  $5,937,000  as
compared to $6,010,000  for the three months ended December 31, 1997, a decrease
of 1.2%. Net sales for the six months ended  December 31, 1998 were  $11,604,000
compared with sales for the period ended  December 31, 1997 of  $11,288,000,  an
increase of 2.8%.

The overall  decrease in sales in this  quarter was mainly due to lower sales in
Puerto Rico.  In  addition,  due to a major  vendor's  raw  material  production
problem,  Worksafe was unable to produce finished  products to meet its customer
demand, thereby temporarily increasing its back order position. Glove sales were
up 2.9% for the quarter.

Worksafe's gross margin decreased to 14.2% for the second quarter of fiscal 1999
from 19.6% for the second  quarter in fiscal  1998 and the gross  margin for the
six months ended December 31, 1998 decreased to 14.9% from 19.5% for the similar
period in the prior year.  These  reductions are the  continuing  results of the
competitive  environment  in the  marketplace.  In a continued  effort to offset
lower margin levels,  Worksafe  increased  production  levels in Mexico at lower
costs for products previously produced in Alabama and Puerto Rico for both basic
and non-basic disposable industrial apparel.

Selling,  general and administrative expenses for the quarter ended December 31,
1998 were  approximately  $747,000 (or 12.6% of sales) compared to approximately
$809,000 (or 13.5% of sales) for the same period last year.  These  expenses for
the six months ended December 31, 1998 were  approximately  $1,546,000 (or 13.3%
of sales) as compared to  approximately  $1,596,000  (or 14.1% of sales) for the
same period in the prior year. These decreases as a percentage of sales were due
to continuing cost reductions.



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<PAGE>


Interest  expense was  approximately  $121,000 for the second  quarter of fiscal
1999, a decrease of  approximately  $23,000 when compared to the same quarter of
fiscal 1998. For the six months ended December 31, 1998 the interest expense was
approximately  $252,000 compared to approximately $266,000 in the same period in
the prior  year.  These  decreases  were  principally  due to the lower  average
borrowings from Congress Financial Corporation for the manufacturing division.

Liquidity and Capital Resource

Worksafe  had  working  capital   inclusive  of  net  assets  from  discontinued
operations  as of December 31, 1998 of  approximately  $1,094,000 as compared to
approximately  $1,709,000  as  of  June  30,  1998.  A  substantial  portion  of
Worksafe's  working  capital  consists  of  inventory,  which was  approximately
$4,553,000   and  $5,758,000  as  of  December  31,  1998  and  June  30,  1998,
respectively.  The distribution division sold to Arbill was required to maintain
substantial  inventories of its numerous  products in order to meet the needs of
customers  who required  products on short  notice.  Although the  manufacturing
division maintains a minimum level of inventory for its basic products, its back
order  position will keep  inventory at lower levels,  thereby having a positive
effect on liquidity. Worksafe believes that its current working capital position
will be sufficient to satisfy its needs for the remainder of the current  fiscal
year.

The amounts  outstanding under Worksafe's loan agreement with Congress Financial
Corporation at December 31 and June 30, 1998 were  approximately  $8,002,000 and
$8,190,000,  respectively.  The Company had $37,000  available  for borrowing at
December 31, 1998.

Net cash used in operating  activities was principally a result of a decrease in
accounts payable and accrued expenses,  which was partially offset by a decrease
in inventories.  Cash flows used in investing activities was for the purchase of
property,  plant and  equipment.  Cash flows used in financing  activities  were
principally from Worksafe's loan agreement with Congress Financial  Corporation.
During January 1999,  Worksafe  received  proceeds from Arbill of  approximately
$2.1 million which was used to reduce its loan with Congress.

At the present time, Worksafe,  together with a variety of defendants,  is party
to various  asbestos-related  lawsuits involving a number of plaintiffs alleging
damages from exposure to asbestos products sold by Worksafe. Worksafe may become
a party to additional  asbestos-related  actions in the future. Worksafe is also
party to other non-asbestos-related  litigation.  Worksafe cannot, at this time,
determine  the outcome of these  uncertainties.  To date,  Worksafe's  insurance
coverage has been adequate and Worksafe's costs relative to asbestos  litigation
has not been material.

Year 2000

Worksafe does not believe,  based upon its internal  reviews and other  factors,
that  future  external  and  internal  costs  to be  incurred  relating  to  the
modification of internal-use software for the Year 2000 will have a



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<PAGE>


material  effect on  Worksafe's  results of  operations  or financial  position.
Although Worksafe can not control the efforts of the third parties with which it
interfaces,  it does not currently anticipate that there will be any significant
disruption of its ability to transact business.

Risks and Other Considerations

Reference  is made to  "Risks  and  Other  Considerations"  set forth in Item 7,
Management's  Discussion and Analysis in Worksafe's Form 10-K for the year ended
June 30, 1998, which is incorporated herein by reference thereto.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

During the quarter ended December 31, 1998,  approximately  517 asbestos actions
involving  approximately  918 plaintiffs  were instituted  against  Worksafe and
Puerto Rico Safety Equipment Corporation. All of these actions have been brought
by one firm of  attorneys.  The actions are all pending in the Supreme  Court of
the State of New York  within the City of New York and  involve a  multitude  of
defendants and are either actions, pursuant to standard complaints, for personal
injury or wrongful  death setting forth a number of causes of action each in the
amount of $10,000,000  for  compensatory  damages and  $10,000,000  for punitive
damages.  All of the foregoing  actions have been  submitted to  Worksafe's  and
Puerto Rico Safety Equipment  Corporation's  insurance  carriers for defense.  A
schedule of these cases is annexed hereto as Exhibit 99.06.2.  Reference is also
made to  Worksafe's  Form 10-K for June 30, 1998 and its Form 10-Q for September
30, 1998 regarding asbestos actions against Worksafe.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The  following  items  were  approved  at the  annual  shareholders'  meeting on
December 16, 1998 by the votes as indicated:

A. The  following  directors  were  elected by the votes as indicated to serve a
term continuing through the Annual Meeting following the fiscal year ending June
30,  1999  and  until  the  election  and   qualification  of  their  respective
successors:

                             Against                            For

Alan E. Densen              1,290,960                          4,110
Lawrence Densen             1,290,957                          4,113
Anthony P. Towell           1,290,960                          4,110



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B.  Proposal to approve the  amendment to Article  first of the  Certificate  of
Incorporation to effectuate a change of name to Worksafe Industries Inc.

 FOR:  1,290,706      AGAINST:   4,113         ABSTAIN:    1

C. The appointment of Arthur Andersen,  LLP,  Certified Public  Accountants,  as
independent auditors for the fiscal year ended June 30, 1999 was approved by
the vote as indicated.

 FOR: 1,294,462       AGAINST:   112         ABSTAIN:      4

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

(A)       Exhibits

          3.01.3            Certificate of Amendment to Certificate of
                            Incorporation Filed December 17, 1998

         99.06.0            Schedule of asbestos  actions filed against Worksafe
                            and Puerto Rico Safety Equipment  Corporation during
                            the quarter ended
                            December 31, 1998

(B) On January 26,  1999 a Form 8-K under Item 2 for the sale of certain  assets
of the  registrant's  distribution  business on January 11, 1999,  effective the
close of  business  on  December  31,  1998 and  under  Item 5 with  respect  to
Worksafe's  consummation  of Amendment N. 9 to Worksafe's  financing  agreements
with Congress. A Pro-Forma  Consolidation Balance Sheet as at September 30, 1998
and Pro-Forma  Consolidation Statement of Operations for the year ended June 30,
1998 and three months ended September 30, 1998 were included under Item 7.




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<PAGE>



                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  had July  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

Dated: February 12, 1999

                                                 WORKSAFE INDUSTRIES INC.

                                                 By: /s/ LAWRENCE DENSEN
                                                  LAWRENCE DENSEN, PRESIDENT
                                                  & CHIEF EXECUTIVE OFFICER


                                                By: /s/ ARTHUR J. WASSERSPRING
                                                  ARTHUR J. WASSERSPRING,
                                                  VICE PRESIDENT OF FINANCE/
                                                  CHIEF FINANCIAL OFFICER





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