Two dry-cleaning firms shut down after a wildcat strike over a union ballot yesterday re-opened under new ownership.

About half of the 20-plus employees at Hamilton Valcleaners and Paget Dry Cleaners have been re-employed by new owner Raymond Davis -- with a promise to re-employ the rest as business picks up.

Mr. Davis added that he was happy for his staff to be Bermuda Industrial Union members and for them to have union representation -- at the core of the dispute which led to the shops' closure.

He said: "I have had a long history with the union -- I think we are going to have a good relationship.'' Mr. Davis said yesterday that he had started out in the laundry business ten years ago.

He said: "This is very near to the kind of business I have been doing. One of the things I was hoping to do as a launderer was create a synergy with dry-cleaning.'' Bermuda Industrial Union president Derrick Burgess yesterday confirmed he had been in talks with Mr. Davis.

Mr. Davis hit the headlines recently when it was revealed he was suffering business troubles which left him $2 million in debt.

But he said yesterday he was confident that he would be able to put his troubles behind him and run the two shops successfully.

He added: "Most of the problems I had were more of a legal quagmire -- which always complicates matters. The problems were more legal than due to any lack of financial muscle.'' The two shops closed following a strike over union recognition after previous owner Stephen Thomson took over in February. The row led to three days of disruption in March which crippled bus, ferry and garbage collection services.

About 1,000 Bermuda Industrial Union members marched on the House of Assembly and Mr. Thomson's Mailboxes Unlimited was picketed, as well as the two dry-cleaners. Mr. Thomson also owns Just Shirts launderers.

The row was sparked after Mr. Thomson took over the two shops, which had been unionised -- but all the employees had been laid off before he bought the fixtures and fittings.

He later re-employed the former staff in new companies under the same conditions as his other businesses, which included a no collective bargaining clause.

The three days of disruption began after dockworkers refused to handle cargo claimed to be associated with Mr. Thomson's businesses -- a claim later proved wrong -- and the dispute spread.

The strike ended when Mr. Thomson agreed to a ballot -- but talks stalled over the number of employees eligible to vote and the two shops were closed.

Both Mr. Thomson's lawyers and Labour and Home Affairs Minister Quinton Edness pointed out that there was nothing illegal in the businessman's actions.

But Mr. Edness vowed to introduce legislation allowing employees the legal right to hold ballots on union recognition and de-recognition.