Labour on the Hamilton docks accounts for about the same portion of costs as it does in US ports, last week's docks inquiry concluded.

But the report suggested some changes in the way labour operates, including the introduction of "flex time'' to extend operating hours and the creation of a secondary force of casual labour.

Local port workers have enjoyed rates of wage growth in excess of Bermuda averages and the consumer price index, the report said. But labour accounted for about 70 percent of the cost of moving a container through the docks -- about the same or slightly lower than in the US.

The rules governing labour on the docks are different to those established with the International Longshoremen's Association in the US -- most significantly in the guarantee of a full week's pay to dock workers represented by the Bermuda Industrial Union.

In Hamilton, workers generally return to the same task every day in exchange for a guarantee of 40 hours of pay each week for all men regardless of the availability of work.

The ILA members can be assigned to any job they are qualified for, and have only a four to eight hour guarantee, depending on the situation and the job.

"Only select ILA men at a few ports have a guaranteed annual income,'' the Hamilton Docks Inquiry report stated.

The report did not recommend that Bermuda adopt the ILA system. But it suggested that a new "second tier'' of casual dock labourers be created.

These would form a pool of apprentice labour from which replacements for the port workers could be drawn.

It also suggested the hours of operation of the docks could be extended without having to pay double time by introducing "flex time'' -- which would have to be negotiated between management and the BIU.

The system would allow some workers to start at eight and others at nine, for instance, and would avoid a complete shut-down for lunch and would keep the docks open for an extra hour.

But productivity for loading and unloading fully containerised ships was on par with ILA productivity, it said.

When loading or unloading ships, the local dockers have a smaller stevedoring gang than the ILA, which has two gang sizes depending on the size of the ship.

But in general, the report said, BIU port workers' rules were more flexible and vacations were longer. Bermuda port workers received sick and compassionate leaves that ILA workers did not get at all.

The report also recommended : The new warehouse away from the docks should be manned by unionised port workers.

Containers should be moved from the docks to the warehouse by unionised port workers.

Changes in work rules to permit working in the rain "with safety the primary consideration to all.'' Dock shutdowns during rain has been a major source of frustration to dock operators and shippers who say dock workers work in the rain in other countries.

Regular operational planning sessions on the docks should incorporate greater labour participation.