The key figures in a dispute which sparked an Island-wide strike last month began their Supreme Court case yesterday - and the outcome could affect union recognition throughout Bermuda.

BAS-Serco is challenging a Government tribunal decision two years ago which ruled that union members could form one bargaining unit and the non-union members another - effectively creating two bargaining units.

A majority of BAS-Serco's fire-fighting department, which now numbers 18, opted out of the union in February, 2001.

Last month Bermuda Industrial Union (BIU) workers went on strike in support of six BIU colleagues at BAS-Serco who said the company had ignored their demands for a new pay deal. That issue was settled later in February.

Yesterday BAS-Serco lawyer Alan Dunch began the company's case for clarification of the law before Assistant Justice Philip Storr.

In a transcript of his brief obtained by The Royal Gazette he said the tribunal's decision to split the bargaining units in two had "given rise to understandable confusion and concern on the part of employers generally and in particular, the specific employer involved, BAS-Serco" and flew in the face of common sense and business realities.

The decision also violated the Trade Union Act 1965 and the 1998 Amendment Act, argued Mr. Dunch.

He said he wanted a clarification to make it clear to employers, unions and government what the procedure is for any further de-certification ballots in Bermuda.

Section 30P of the Amendment Act required that de-certification be approved by more than 50 percent of those who vote, he said.

Mr. Dunch said the union had originally argued that only those in the union could vote but had changed to saying that Serco's position was a threat to freedom of association under the Constitution.

He said in the original certification ballot in 1996, 13 out of 18 workers had voted in favour of union recognition. Mr. Dunch said: "Some were members of the union, others were not."

Mr. Dunch said the union had said it acted for all workers at Serco - regardless of whether they were union members or not.

Attempts in the House of Assembly in March, 1998 to insert a clause into the Amendment Act barring non-union members from taking part in de-certification ballots had failed, said Mr. Dunch.

But he said when eight Serco employees had written to the Ministry of Labour in January 2001 saying they no longer wished to be represented by the union, the BIU had argued that non-union members could not take part in a de-certification ballot.

Mr. Dunch said: "There was no suggestion, however, that the non-union members did not comprise part of the bargaining unit."

He said the Minister at the time took the view the two sides could not agree on who could vote in the ballot so had referred the issue to the tribunal which gave the split decision.

Yesterday's Supreme Court hearing was adjourned and will continue today.

BIU lawyer Delroy Duncan could not be reached for comment yesterday.