Government and blue collar workers has come down on the employers' side, The Royal Gazette can reveal.

And last night Bermuda Industrial Union leader Derrick Burgess said he was "very disappointed'' at the result from arbitrator Canon James Francis -- which is binding on both parties.

Mr. Burgess said: "The workers are very disappointed in the arbitrator because he did not rule on the facts presented to him....I'm sure he did not go over the union's evidence.'' The arbitrator backed Government's insistence that this year's 2.98 percent pay award should be paid to all employees.

The BIU wanted a variable rate, with more going to lower-paid workers and less to those further up the scale.

Mr. Burgess said the BIU had presented evidence that the norm had been that everybody got a flat rate dollar increase -- but insisted that had been ignored by the arbitrator.

He was speaking after he revealed the results to a meeting of members at the BIU's Hamilton headquarters last night.

He added: "This means nine categories in the agreement will not get any improvement -- in fact, they will go backwards because they have not kept pace with the standard of living.'' The deal is the last in a three-year pact between Government and its front-line workforce.

The arbitration process brought chaos to some Government services at the end of September when employees downed tools to attend the arbitration meeting -- despite a warning they would not be paid for the time they spent off the job.