under a labour party government.

Thus yesterday was a special day for the labour movement as the rest of the Government's term should be an era in which Government policy is more worker friendly than it was under the United Bermuda Party.

To some extent, this has happened already; the recognition of a managers' union, reported in Saturday's paper, is a first for Bermuda.

The failure of the Government to win passage of an amendment to the Trade Union Amendment Act which would allow workers and managers to join the same union does not mean the issue has gone away; it can be forced through next year.

In other areas, Government has time to develop more legislative changes and to create policies which lead to more harmonious labour relations. Equal pay for equal work and the prevention of exploitation of workers -- both local and foreign -- would all make for a better working environment.

There have been other notable achievements this year -- most importantly the quick and peaceful settlement of the new hotel contract which avoided a potentially disastrous summer of discontent.

But there have also been a series of problems on the labour scene which do not bode well for the future. Continuing problems on the docks, the "blue flu'' in the Police Service, problems among support staff at the hospital, walk-outs at Sonesta Beach Hotel ...the list goes on.

Home Affairs Minister Paula Cox seems to have had some success in containing the disputes; where necessary she has sent the warring parties to arbitration.

But a policy of containment is one thing, a new era of improved labour relations is quite another.

These brushfire disputes seem to put the lie to the idea that a Progressive Labour Party Government could be an honest broker between the unions and the employers as employers would see labour side's better and the unions would be less likely to walk out at the slightest provocation.

The unions do not seem to have embraced wholeheartedly the challenge facing Bermuda -- the Island will, if it is not careful, price itself out of every business market, not only in tourism, where we are already over-priced, but also in the provision of services to international business.

The prices of real estate, construction and food and services are all high in Bermuda and all act as a disincentive to investment, both by local businesses and by overseas investors. So does a "nine to five'' mentality in which staff believe they are entitled to a wage no matter how poor the quality of work or service.

There are structural problems which are out of Bermuda's control -- high air fares and the high cost of importing goods all add to the cost of doing business in Bermuda. But high labour costs also hurt the Island's ability to compete. And continual disputes in different areas of the economy also give Bermuda a bad name as the Country which cannot get its act together.

Management has a role to play as well. Archaic methods of management which fail to involve employees or give them a stake in the success of a business can doom a business to failure as well. So too can failure to train or to honestly assess employee performance.

Over the next 12 months, efforts by unions and managements to follow the proper grievance procedures, the introduction of better management practices and a commitment to make Bermuda a more competitive place would make next year's Labour Day one to truly celebrate.