Workers at a major island car dealership yesterday downed tools in a dispute over pay.

Staff in the service area and paint shop at Hamilton’s Bermuda Motors stopped work around 1pm after management refused to reinstate a 2 per cent backdated pay rise, according to a source.

The source said that a pay rise of 2 per cent for both 2015 and 2016 had been rescinded — with only a single 2 per cent increase left on the table.

The source added: “They withdrew one of them and that’s what caused the dispute.

“They have been fighting this for a long time now.”

The staff involved in the dispute are all unionised.

Krishna King, Bermuda Motors’ general manager, said yesterday he was hopeful the dispute would be resolved.

He added: “Bermuda Motors can confirm there was a work stoppage by some staff just after midday today.

And he insisted: “Management has not refused to reinstate any back pay. All relevant employees received a backdated pay increase of 2 per cent last year and a further increase of 2 per cent this year which was also backdated.

“We are pleased to say no customers were inconvenienced by the stoppage.”

Mr King said management and union representatives will meet this morning to “resolve any outstanding issues”.

Bermuda Motors sells and services a range of top-selling marques including BMW, Ford, Kia, Lexus, Mini and Toyota, as well as commercial vehicles and motorbikes.