Hospital looks set to be averted after the two parties involved in the dispute made progress in mediation talks this week.

A number of nurses were said to be furious at the appointment of an expatriate to a programme management position two weeks ago.

Some staff contacted the Bermuda Public Service Association threatening industrial action unless talks were held.

Last night, BPSA chiefs were remaining tight-lipped about how the talks, held on Friday, Monday and yesterday, had progressed.

But a Bermuda Hospitals Board spokeswoman confirmed that it looked like some sort of agreement had been reached.

"We met with the mediator on Friday and Monday and I understand the BPSA met with him today,'' she said.

"We have put together a framework for an agreement and, if all things go well we hope to be able to announce a settlement tomorrow.'' Yesterday BPSA General Secretary Edward Ball Jr. would only confirm that talks were still in progress.

A "misunderstanding'' prompted Airport postal workers to walk off the job on Monday.

Mr. Ball yesterday confirmed that workers at the Airport's Airmail Facility left their posts over a disagreement regarding overtime pay.

"They were off for about two or three hours,'' he explained. "There was a mix-up as to who was entitled to receive overtime from two different shifts.'' Hamilton postal workers were reportedly offered overtime work at the Airport before the Airmail Facility's in-house staff.

Mr. Ball chalked the whole thing up to a misunderstanding which was quickly addressed by officials.

"We were assured that it will not happen again.''