The boss of Bermuda Broadcasting Corporation is refusing to back down over company layoffs, saying his remaining staff should be valuing their jobs in a time of recession.

While management and the station's employees are locked in industrial deadlock, the company's finances are also reportedly in the red. And revenue is deteriorating daily as a programming blackout continues, according to Fernance Perry, BBC board chairman.

Mr. Perry revealed last night he had to borrow $110,000 last week just to make up employees' wages. But he also disclosed the BBC is to invest "millions" in updating its broadcasting equipment.

As television and radio channels remained off-air for the third day running yesterday, Mr. Perry chastised his employees for their walkout. "I'm the employer and they are the employees. If they want to work for the BBC, my advice to them is to go back to work," he said.

Up to 40 staff walked off the job at around 5 p.m. on Thursday in protest at three employees <\!m> a receptionist, messenger and an assistant to programme manager Darlene Ming, being laid off for four months on just a day's notice.

They are also protesting a failure by management to pay them the second part of their Arbitration Award last month, according to Bermuda Industrial Union president Chris Furbert. The second of four instalments, it amounts to $60,000 in back pay for 2004-6.

According to staff, Mr. Perry refused to meet with them until 3.30 p.m. today.

An employee who did not wish to be named said staff are to attend a BIU meeting at 9 a.m.

"We will hear the latest regarding the negotiations, and if the situation hasn't changed by 3.30 p.m. we will have that meeting with Mr. Perry, but in the morning there won't be any work," he said.

"Our solidarity hasn't changed. Everybody realises that for positive change to come, we have to stand united."

Staff are refusing to go back to work until the three laid-off employees are reinstated.

Last night however, Mr. Perry said he would only meet with them after they had returned to work.

"There will be no meeting if they are not back at work tomorrow," he told The Royal Gazette<$> yesterday.

Commenting on the layoffs, he said: "They haven't been dismissed for good, it's just the company needs money. Last week I had to go to the bank and borrow $110,000 to pick up tax and benefits, all to do with the payroll.

"The revenue is not coming in the way it is, therefore I have a shortfall every payday. No business can continue that way."

Asked whether the company was in serious financial difficulty, Mr. Perry said: "Of course it is. It has been for a long time. I have to go round scraping up money to make up. The company has been losing money for the last 16 years.

"But yet these people (the staff), all they ask for is money, money, money. They know the financial position of the company but they will not try to do anything to alleviate the situation."

He said: "I have to do what's right for the business. An employer has the right to lay off people during these economic times.

"I'm not going to allow the employees to dictate to me <\!m> that's been done over the years and they've gotten away with it, and it's time for it to stop."

Asked whether he would fire any staff for the walkout, he said: "No, I don't have to fire them, I just don't have to take them back."

He added: "In this recession if they don't value their jobs, then there is nothing I can do about it.

"If the employees wish to be difficult all I can say is it's unfortunate, because I believe in this company."

He added: "I'm at my wits end right now."

Asked whether the station might have to close for good, Mr. Perry said: "I don't know what to do. I don't know what will happen, I can't predict anything like that.

"I don't want the station to close, because right now we're negotiating with a company in the US."

Board member Rick Richardson has told this newspaper he is off-Island "looking at a major equipment buy on behalf of the BBC board".

Mr. Perry said last night: "Our plan is to renew our plant with all new equipment for radio and television. In this day and age we have to have the modern equipment. It's a lot of automation.

"You could set the thing on automation and it would run by itself, but you still need people," he said.

An engineer is to visit from the US this week "to look at the whole thing and at what is needed".

Asked about the cost, Mr. Perry said: "It runs into the millions."

>He remained "optimistic" last night the management-employee stand-off could be resolved, but added: "The ball is in their court. They were the ones that started it.

"We will have discussions but I'm not budging," he said.

"To give in to them on their conditions, this would be setting a precedent for the future. It would mean management could have no say. I have to stand my ground."

Asked if he had the unanimous backing of the board, Mr. Perry said: "I can't say. I haven't been going round asking who's on my side and who's not, you can't do that."

He added: "The company needs financial help and without the employees, the company is going nowhere.

"The employees are valuable but they have to go the extra mile to help a financially ailing company. If they want to help the company then this is the support that will turn the company around."