staff will finally go ahead at the end of the month -- after company bosses agreed to recognise unionisation.

The 18 staff of the airline voted for unionisation in March. But negotiations between management and the Bermuda Public Service Association failed to get off the ground last month when a management representative demanded that a second ballot should be held.

Management representative Mr. Bob Zell argued that since the original ballot six months previously, two staff members had left and four more workers were taken on. He also claimed that there had been a 50 percent swing against unionisation amongst staff.

The talks ended in stalemate, with BPSA general secretary Ed Ball Jr. blasting airline bosses for trying to scupper the talks and break the collective bargaining agreement.

Mr. Zell was due to return to Bermuda this week to discuss the union issue after consulting with superiors back in the US.

But that trip is no longer necessary after managers finally agreed to accept unionisation.

Yesterday a delighted Mr. Ball was unable to explain the apparent management climbdown and would only confirm that contractual negotiations would now be going ahead at the end of the month.

"We have resolved our differences and we will be reconvening negotiations at the end of the month for a first year contract,'' Mr. Ball said. "I am glad that American Airlines has agreed to resume talks and we look forward to the meeting.'' American Airlines representatives could not be contacted to comment on the latest development last night.

UNIONS UNS