The Bermuda Industrial Union has a two-page document detailing its stance on the fallout from the Berkeley Institute wrangle between Government and Pro-Active pinned up in a local bar.

The undated document, on BIU headed paper and titled YOU SHOULD KNOW THE FACTS!!!!, appears to have been issued before the completion of the school and before the behind-closed-doors arbitration process. It is reproduced here:

• Union Asset Holdings Limited ("UAH"), a wholly owned subsidiary of The Bermuda Industrial Union ("BIU"), on the 4th June 2001 pledged and made itself responsible as Surety up to the amount of $6.8 million for the due and timely completion by PROACTIVE MANAGEMENT SYSTEMS LIMITED ("PAMS") of its obligations as Contractor for the building of the second senior secondary school at Berkeley Road, Pembroke.

• Since the commencement of the building works, UAH has made up for the shortfall in funds available to PAMS by injecting approximately $4 million in cash into the project. These funds have been provided as a consequence of the highly arbitrary approach which has been taken by the Ministry of Works and Engineering in meeting PAMS' various monthly applications for payment.

• The decision to award the construction contract to PAMS and the decision by the BIU to support the project was the direct result of the stated intention and desire by various Government Ministers at the time to support the principle of black economic empowerment and redistribution of economic opportunities in Bermuda. This was also consistent with the close relationship which is deemed to exist between a LABOUR Government and the largest Bermudian LABOUR UNION within the context of one LABOUR MOVEMENT.

• It was always understood that PAMS had neither a large asset base nor significant credit within established banking circles and that, in order for the project to result in success, the CONSISTENT AND UNWAVERING SUPPORT OF GOVERNMENT was essential.

• From the outset it was clear that certain individuals within the establishment of Bermuda, within the construction industry and within the senior civil service at the Ministry of Works and Engineering OPPOSED the awarding of the contract to PAMS.

• SOMERS CONSTRUCTION CO. LTD, an organisation which has a poor history of respect for the right of workers to organise and to collectively bargain, was favoured by these same individuals and a campaign to vilify and denigrate PAMS was launched in the media.

• For several months, PAMS complained of attempts from within the civil service to "sabotage" the project. Many of these complaints were made in writing to the Premier and to other Cabinet Ministers. Despite private assurances from the Premier and Ministers that these complaints and concerns would be dealt with, the very existence of these complaints have been publicly denied by the Government.

• The Berkeley project was, from the beginning, riddled with design and engineering flaws which the PLP Government inherited from the UBP Government whose idea it was in the first place to create this second senior secondary school. These engineering flaws, in addition to a woefully inadequate and incorrect Bill of Quantities, resulted in millions of dollars' worth of changes, modifications, extra works and corrective action.

• The foregoing led up to the Settlement Agreement between Government and PAMS which was concluded on the 20th February, 2004 and which PROMISED the payment of a further $13 million to PAMS, not all of which has been paid as agreed.

• THE SETTLEMENT AGREEMENT of February 2004 WAS NOT A 'BAILOUT' OR A 'RESCUE' OF PAMS. This was a LEGITIMATE CLAIM for $21 million, of which PAMS wrote off up to $8 million of its entitlement in the interests of moving forward amicably. This agreement was also FULLY NEGOTIATED BETWEEN PROFESSIONAL CONSULTANTS acting for both sides and represented the cost and value of extra work and materials. PAMS was entitled to reimbursement.

• Under the Settlement Agreement the parties agreed to meet on a monthly basis to schedule the completion of the project as events arose. Despite several written requests by PAMS, Government's advisers and senior civil servants refused to meet. There was NOT ONE SUBSTANTIVE MEETING OF THE PARTIES since the Settlement Agreement of February 20th 2004.

• In fact, Cabinet Secretary and Head of the Civil Service JOHN DRINKWATER expressly ordered that a meeting of the parties and their advisers should take place on the 28th June 2004 "without fail". Consultants for PAMS and UAH were flown in over that weekend in order to attend the meeting which was ABRUPTLY CANCELLED by senior civil servants in breach of the order made by Mr. Drinkwater in the presence of the Premier.

• On the 24th August, 2004, in a meeting called by Government to "clarify one or two things" the Minister of Works and Engineering and Housing Ashfield DeVent handed to PAMS a letter claiming to terminate PAMS' contract.

• There is every indication and complete confidence that this so-called "termination" will be deemed unlawful in a future arbitration and that PAMS will recover substantial damages as a consequence of this unlawful action by Government.

• Since the "termination" by the Government of the contract with ProActive, despite the fact that the work has been over 80% completed, Government has engaged in what can only be described as secretive negotiations with SOMERS CONSTRUCTION CO. and other entities for the completion of the works.

• UAH and ultimately the BIU may be called on to foot the bill to the extent of $6.8 million (together with the $4 million already advanced.)

• YET, GOVERNMENT HAS CONSISTENTLY IGNORED THE RIGHTS OF UAH AS SURETY TO EITHER COMPLETE THE WORK ITSELF OR AT LEAST TO RECEIVE DETAILED INFORMATION AND FULL DISCLOSURE REGARDING WHAT IS BEING ARRANGED.

• Government is also refusing to honour CERTIFIED PROCESS PAYMENTS DUE TO PAMS for work done and materials during the months of July and August. Payment of these funds would have covered PAMS' obligations to its workers in respect of SEVERANCE AND REDUNDANCY PAY AND OTHER BENEFITS, which payments Government has refused to meet directly to the jeopardy of our members.

• Government has failed to return to UAH, as holder of a Debenture with PAMS, machinery and equipment which is the property of UAH and which could be earning income on a daily basis.

• THESE ARE DIRECT ASSAULTS ON THE FINANCIAL SECURITY OF THE BERMUDA INDUSTRIAL UNION AND CONSTITUTE A BACKDOOR ATTEMPT TO BANKRUPT THE BIU AND TO REVERSE MANY DECADES OF STRUGGLE AND DEVELOPMENT.