settle the industrial dispute at Bermuda Telephone Company.

A local arbitrator will now be assigned to the job of mediating between union representatives and BTC executives in a series of meetings at the Labour Relations Office in Hamilton.

Mr. Edness authorised the peacemaking procedure after an emergency meeting with Director of Labour and Training Edwin Wilson and Labour Relations Officer Glen Fubler.

But senior figures at BTC insisted last night that they had still not been told of the union's decision to reject a deal to break the dispute.

The company had offered to issue a written warning to Vonda Burgess, the worker whose two-day suspension triggered a four-day unofficial strike, and consider the matter closed.

Bermuda Industrial Union leaders asked for arbitration after putting the offer to around 75 BTC workers, who rejected the deal on Tuesday night.

But BTC assistant vice-president Karla Lacey-Minors said: "We have received no official notification from anyone about what's happening.'' Union officials held talks with the Labour Relations Office yesterday, who in turn contacted the Minister responsible, Mr. Edness.

He told The Royal Gazette : "I have had a meeting with Mr. Wilson and Mr.

Fubler and we have concluded that we will send this matter to arbitration.

"The paperwork is being prepared now, although I can't say specifically when the two sides will sit down together.

"One of our local arbitrators will be given the task and we are now in the process of trying to select that arbitrator and get the fine details concluded.

"We have a good number of trained local arbitrators who are capable of doing this work. We are in the process of choosing one for this very important job.

"Again, I don't know exactly where the venue will be but I would expect the talks to take place in the Labour and Training Office on Reid Street.'' The controversial walkout by 200 staff was sparked by the decision to suspend Ms Burgess on March 16, for leaving her post.

BIU leaders claimed BTC executives had not followed proper grievance procedures and failed to issue a warning before the suspension.

They also said 100 workers who took an hour off to protest to the BIU should have been paid for the time they missed.

But the pay issue was never discussed during a week of talks between BTC chiefs and union representatives.

And now the union will have to give 21 days' notice of any more industrial action, once the arbitration procedure gets underway.

Chris Furbert, the BIU's first vice president, said after Tuesday's union meeting: "The workers didn't accept what management had on the table.

"That was a written warning for the lady who was suspended for two days.

"She doesn't deserve that and we are not prepared to accept that. The next step will probably be arbitration.'' UNIONS UNS BUSINESS BUC