showdown in its bitter battle over the 15 fired workers, The Royal Gazette learned last night.

The warning is in a letter to company lawyer Mr. Alan Dunch from the Attorney General Mr. Walter Maddocks.

It states Government would fight to the hilt to block a Supreme Court application.

Instead, it wants the drawn-out wrangle settled by the new Trade Disputes Tribunal.

Last night Mr. Dunch branded the letter an "attempt to coerce'' the company from seeking legal redress.

And he blasted Government for not being even-handed over the dispute.

"Candidly what we are dealing with is a game of chess where every time we manoeuvre ourselves into a position of saying checkmate the referee gives our opponent more pieces,'' he said.

"The rules of the game are being changed every time -- unless it is the union coming out on top.'' The controversy has blown up barely 24 hours after Labour Minister the Hon.

John Irving Pearman referred the wrangle to the new tribunal.

Legislation creating the board was rushed through Parliament on the heels of the Island-wide strike -- sparked by the dispute.

The hearing is scheduled for July 21 at the Cathedral Hall.

Bermuda Forwarders is opposed to referring the dispute to the tribunal.

It has announced plans to seek a Supreme Court junction to prevent the tribunal from sitting.

On Tuesday night Mr. Dunch staged talks with company representatives to thrash out a strategy.

"The position is we are still considering how best to move forward,'' he said last night.

"At this stage I anticipate we will not be making a final decision until Friday.'' On Friday the dispute will be noticed in the Official Gazette .

"As and when I become aware of what is being referred to the tribunal we will make a final decision on what steps to take,'' continued Mr. Dunch.

Mr. Dunch said he had written to Mr. Pearman for clarification over what the tribunal would be asked to rule on -- but had received no reply.

"So I, like everybody else, will have to read it in the paper -- a situation I regard as wholly discourteous and quite unsatisfactory, though seemingly typical of the way in which Government has dealt with Bermuda Forwarders from the outset.'' Mr. Dunch went on: "Unfortunately there has been an additional spanner thrown in the works in that I have received this letter from the Attorney General which is effectively an attempt to coerce Bermuda Forwarders into not proceeding before the courts.'' The letter, said Mr. Dunch, told the company Government would "take any and all steps available to resist the matter proceeding before the courts.'' He added: "This flies in the face of all representations that were made to us by Government officials throughout the course of the industrial unrest, but again seems to be typical of Government's attitude towards Bermuda Forwarders.'' Last night Mr. Pearman said he had not received any letter from Mr. Dunch about the tribunal's terms of reference.