Bermuda Telephone Company workers downed tools yesterday morning after the firm refused to pay an annual performance bonus — but the row was settled by late afternoon.

Bermuda Industrial Union president Chris Furbert called an urgent 4 p.m. press conference to discuss the grievance but received an "eleventh hour" phone call from a senior BTC manager shortly beforehand which resolved the matter.

He shared the news with the media and scores of workers at BIU headquarters in Hamilton, telling his members: "In the last ten minutes things have changed.

"Management's decision is to go ahead and give the staff the incentive pay that they have been getting for the last 24 years. You should clap."

His announcement was greeted with loud clapping and cheering from those packed into the main hall.

Two hours later, BTC acting CEO Edgar Dill released a statement in which he said the company experienced an "illegal work stoppage" by the BIU and Bermuda Public Services Union but was returning to normal service.

"The issue at hand was whether or not BTC had the right to cease payment of a discretionary bonus," he said. "Following discussions with our union partners, an agreement was reached in which BTC agreed to pay a reduced portion of the bonuses in favour of our commitment to service our customers and the community at large.

"Nevertheless, BTC retains the right to categorise bonuses as a discretionary management option."

At the BIU press conference, Mr. Furbert — who was joined on stage by members of the BPSU's executive committee — said management and workers had reached an impasse on the issue before the phone call.

He said the press conference was initially "going to take a different approach".

The decision on the bonus affects about 155 workers — 120 BIU members and 35 BPSU members. Mr. Furbert said the bonus was based on a performance appraisal system that had been in place for six years.

"Prior to that, it was a gift at Christmas time for 18 years," he said. "Each staff member has the appraisal twice a year. If you meet the MR — the minimum requirement — you are entitled to have a bonus."

He said the amount started at about two percent of a staff member's salary and was on a sliding scale.

Asked whether workers had gone on strike yesterday morning, Mr. Furbert said: "I know the media likes to talk about industrial action."

He said union members decided to have an 8 a.m. meeting with their president, union representatives and members of the BPSU — and that Mr. Dill was invited.

"If you want to call that a strike or a work stoppage... they had a discussion that ultimately led to some other stuff."

He said there had been a "true show of solidarity" between BIU and BPSU members working at BTC. "This hopefully today will improve the relationship going forward."

Meanwhile, it emerged yesterday that workers at the government quarry in Bailey's Bay held a sit-down on Thursday morning.

Mr. Furbert could give The Royal Gazette few details but said the matter was resolved after George Scott and Graham Nesbitt, from the union, got involved.

A source told this newspaper that about 30 workers downed tools at 7.30 a.m. and went back to work at midday. The source said they were unhappy at being told they needed certification in electrical and mechanical trades and claimed the depot foreman was promoted before getting certified.

The quarry services Works and Engineering vehicles; no one at the Ministry could be reached for comment last night.

Talks between the BIU and quarry management are understood to be ongoing.