Dockers are set to resume working overtime hours today after Labour and Home Affairs Minister Paula Cox referred the current dispute to arbitration.

But a fresh round of disruptions could be on the cards shortly if workers and Stevedoring Services management cannot reach a settlement when the arbitration talks start next Monday.

The two parties met again yesterday afternoon -- but relations between the two sides have hit such a low that both groups were kept in separate rooms, communicating through an intermediary labour relations officer.

It was believed that a resolution would be reached at some point yesterday after Bermuda Industrial Union leader Derrick Burgess declared that the two sides were not that far apart.

But at the close of the afternoon session both parties remained divided on several key issues of a new collective agreement -- which should have been renewed in March.

And that was the signal for Ms Cox to step in and order both sides to defer the matter to arbitration.

Last night Ms Cox confirmed that a resolution had not been reached.

She added that, with the matter now effectively on hold, staff would be expected to stop all forms of industrial action for the time being.

But the Minister refused to be drawn on whether or not she believed the overtime ban was illegal. As an essential service, dockworkers are required to give 21 days notice before they take any form of industrial action.

"A letter to refer the matter to permanent arbitration has now been drafted,'' Ms Cox said.

"There had been discussions and it looked hopeful but at the end of the day there wasn't a mutual agreement.'' When asked if she believed the action was illegal the Minister replied: "I think I don't have any views which I am prepared to articulate at this time.'' Last night neither party was prepared to reveal what prompted the overtime ban, which kicked in last weekend.

Stevedoring president Michael Lohan could not be reached throughout the evening.

And when Mr. Burgess was contacted at home he refused to answer any questions unless they were put in writing. He then revealed that he did not have a fax machine at home and it was therefore impossible for The Royal Gazette to get any written questions to him.

The ban caused massive disruptions at the docks and delays to wholesalers waiting for produce to be unloaded from incoming vessels.

But last night's announcement will be welcomed by Bermuda Electric Light Company officials who are expecting a massive delivery of equipment to arrive later this week.