The dispute over the contract for the trouble plagued Berkeley School site is to go to arbitration.

The move follows a meeting between Government and representatives of the Bermuda Industrial Union and Union Asset Holdings (UAH).

The BIU today will hold a general council meeting to discuss the Cabinet Office talks which involved Premier Alex Scott.

Labour Minister Randy Horton said he was “pleased” with developments. And he urged employers to allow 60 members of the BIU general council to attend today's 9.30 a.m. meeting.

The Berkeley dispute centres on the Ministry of Works & Engineering's decision to end Pro-Active Management Systems' contract for the new secondary school.

Legal adviser to the union and Pro-Active Management Systems, Julian Hall, is also advising Union Asset Holdings, a fully owned union subsidiary which provided the completion bond for the project and the contractor Pro-Active.

UAH reserves its right to seek a declaration from the Supreme Court clarifying and establishing whether the Performance Bond is now null and void.

Yesterday's meetings were facilitated by former Registrar of Companies Malcolm Butterfield.

Afterwards, Government, the BIU and UAH released a joint Press statement saying the contract issue - and “other outstanding” matters - would proceed to arbitration.

It was also reported that:

Issues relating to equipment on the site and the outstanding certified payment had been resolved;

Government had agreed to advise UAH of the estimates for completion of the site and to provide ongoing progress reports and accountings so long as it is maintained the bond remains in force;

The BIU remained concerned that it continued to hold obligations under the Performance Bond of June 4, 2001 in regard to the fact that the contract with Pro-Active was terminated before the agreed completion date of September 30, 2004.

The union believes there are other reasons which render the termination unlawful.