Public transport services have been scrapped for tomorrow as the dispute over sacked hotel workers rumbles on to a third day.

Services were thrown into chaos today when hundreds of unionised workers marched in a show of support for the ten staff who were made redundant from the Fairmont Hamilton Princess hotel last month.

And tonight a Transport Ministry spokesman confirmed that bus and ferry services had been cancelled tomorrow after Public Transport Department staff said they would not be showing up for work.

The dispute erupted on Tuesday when Fairmont Hamilton Princess staff downed tools.

The industrial action escalated this morning when staff at the resort’s sister hotel, the Fairmont Southampton, voted to walk off the job. Unionised hotel workers marked that decision with the first of several marches through the streets of Hamilton at lunchtime.

Although Labour and Home Affairs Minister Michael Fahy sent the dispute to an arbitration panel at the weekend, the two sides last night appeared to still be locked in a stalemate. The Bermuda Industrial Union has said it would not take part in any arbitration talks until the sacked staff have been reinstated.

The BIU put on a second show of strength in this afternoon, with members from all union divisions — including transport workers — called in for another protest march. An estimated 500 workers marched through the City in another show of solidarity at around 4pm.

Ferry services were cancelled for much of this afternoon to allow staff to take part in the marches, and bus drivers also downed tools to attend the protest. The Central Terminal ticket booth was closed for several hours, although it is understood staff had returned to work by late this afternoon.

Following the lunchtime protest, BIU president Chris Furbert said: “The march was a result of a meeting that we had this morning. Members from both hotel properties and all our general council members met this morning and decided enough was enough and decided to ask me to put a call out to the entire union membership to come up to Union Square as soon as they could make it.

“We are anticipating that in the next hour or two we should get many more members of the BIU to come here and get behind the members of the Fairmont Southampton and Hamilton Princess.”

Mr Furbert said he did not know how services will be affected by any further marches, but said he hoped that school buses would continue to operate.

“We will do what we can about what services we’re going to provide this afternoon,” he said.

“I’m hoping that I can at least encourage them to take the schoolchildren home as well as make sure we take care of the five o’clock commuters. I’m not guaranteeing the commuter side but I think they will be there for the schoolchildren.”

Hundreds of union members took part in the lunchtime march through Hamilton, which caused traffic along Front Street to be diverted.

Marching ten abreast, the ranks of workers stopped outside the Cabinet Office and the offices of Workforce Development, where an arbitration hearing into the dispute got underway this morning.

The BIU claims that management did not follow “normal process” when carrying out the redundancies of staff, which including three bar porters. And Mr Furbert yesterday reiterated the union’s position that it would not attend any arbitration hearing — and hotel staff will not return to work — until the bar porters have been reinstated.

“The significance of stopping on Front Street at the Cabinet office was to send a clear message to the Government,” Mr Furbert said.

“When we stopped at the second building we weren’t sure where the hearing was being held this morning because there was a preliminary hearing being held in our absence.

“I advised the chairman that I don’t think he should go ahead with the hearing in light of the BIU having the issues right now with everything not being turned back to normal, and he told me under no uncertain terms that at 9.30 he was appointed by the Minister and they were going to go ahead and make some decisions in our absence and I respectfully advised him that I don’t think he should do that.

“We have determined that we are not going to be involved in the arbitration process until things have returned back to normal, which means you put the bar porters back to work. Our members will then cease and desist from what they’re doing — any industrial action — and then the parties can go ahead and be involved in the arbitration process.”

Labour and Home Affairs Minister Michael Fahy later suggested that the union was softening in its position.

“As it relates to the BIU/Fairmont disputes, at this time, I can advise that earlier this afternoon the parties came together with a view to discussing the matter in accordance with the arbitration process,” the Minister said

“We will continue to do our due diligence to monitor the situation and follow the guidelines set out under the Labour Relations Act 1975 to ensure that we come to some form of resolution that benefits all concerned.”

Commenting on the afternoon of marches and disruptions, Senator Fahy — who has previously criticised Fairmont Management for failing to consult with the union over the dismissals — said he “recognised the rights of workers to demonstrate in solidarity for their cause”.

But he added: “We must be mindful that there are mechanisms in place which allow for the proper protocols to be followed so that it doesn’t result in a disruption of services to the public.”

Calling the state of tourism in Bermuda “precarious”, Sen Fahy said: “We must be mindful of the current state of our economy and the hospitality industry.”

He said the BIU’s principal objection was the lack of consultation by Fairmont in dismissing the workers, and cautioned that it wasn’t his role to get involved in their negotiations.

But Mr Furbert later confirmed that the union was still boycotting the arbitration process, claiming that, while it may be going ahead, the union was not taking part.

In a later statement, Sen Fahy said: “The parties simply met to discuss a way forward — the BIU has not engaged in the arbitration process.”

Shadow Minister of Home Affairs Walter H. Roban said he was disappointed that the dispute couldn’t be resolved in a more amicable manner.

“The decision by the Fairmont Hamilton Princess to disregard the collective bargaining agreement and make positions redundant without required consultation with the Bermuda Industrial Union is unfortunate.

“Unions play a key role in our society; protecting employees from mistreatment, abuse or intolerable working conditions. We recognise that the BIU has taken this action to ensure that not only will the terms of Collective Bargaining Agreement be adhered to, but also so that the hard fought rights of workers are not rolled backwards.

“Businesses must respect and adhere to their contracts. The Government must act without fear or favour to their business friends. The Bermuda Industrial Union has cooperated with the OBA government and the business community, accepting salary cuts and reductions in working hours as seen by the historic memorandum of understanding signed with Government workers.

“Let us work together for the good of all Bermudians and resolve this matter quickly and fairly.”