controversial link-up with Colombian Emeralds International.

The Royal Gazette understands salaries are to be slashed to $250 a week before deductions, with the chance to boost earnings through commission.

Now some sales personnel are quitting, while others are considering their positions.

"A lot of people are very upset. For some staff, salaries are being knocked down by a half or a third,'' a company source said. "If you have got a family, how can you survive on $250 before deductions?'' Sources said each sales employee would have to make at least $3,500 per week in sales to benefit from seven percent commission.

"Anything under $3,500 and the employee does not get a cent in commission,'' said a source.

Managing director Thomas Dickinson confirmed "one or two'' staff had departed, but added: "Some people take change very well.'' He said staff stood to reap "tremendous'' benefits through commissions during the on-season -- and not so much at other times.

"They will have to learn to spend money wisely and save for a rainy day.'' Mr. Dickinson said Astwood-Dickinson planned to expand and had started a recruitment drive.

The looming shake-up at Astwood-Dickinson follows a recent announcement that Colombian Emeralds International (CEI) will gain a 40 percent ownership of the Bermuda jewellers.

The deal leaves Mr. Dickinson as majority owner, holding 60 percent of the business.

It is understood Caribbean-based CEI has also applied to the Bermuda Monetary Authority for permission to take funds out of the Island.

But BMA general manager Malcolm Williams declined to comment, saying it was a "personal matter''.

CEI was the first foreign or outside jeweller to expand into Antigua, St.

Lucia, Barbados and Cayman Islands.

The group is privately owned by a handful of individuals, of which Stephen Crane is the majority shareholder.

Recently it emerged that CEI put two of its 50-odd corporations into Chapter 11 bankruptcy following devastation wrought by hurricanes.

"After hurricane activity, it became apparent we should downsize in the US Virgin Islands,'' Mr. Crane told The Royal Gazette during a recent visit to Bermuda.

The filing of Chapter 11 bankruptcy protection under US rules was part of a reorganisation and affected a tiny part of the group's operations, he said.

"Chapter 11 allows you to make a healthy company strong in a difficult situation.'' According to the Daily News in US Virgin Islands -- where CEI has reportedly operated since 1980 -- the company was affected by Hurricane Marilyn.

On Colombian Emeralds' selling style, Mr. Crane said the group advertised a lot and demanded a lot from staff.

"If that's aggressive so be it. We are trying to conduct business to an international standard.'' Mr. Crane was optimistic about Bermuda's ability to rebound from a tourism slump.

"I think Bermuda is conscious of the fact that it needs to readdress tourism.

That's half way to solving the problem.'' Recently Astwood-Dickinson carried an advertisement in The Royal Gazette , stating their main store was closed for renovations and would reopen with a "dazzling new look'' with their partner CEI.

Mr. Dickinson said it was estimated the work would take between eight and ten weeks. Staff had been transferred to the Walker Arcade branch.

"The renovations do not affect the building; they are internal. The two major portions are a new electrical system and a new ceiling.'' Mr. Dickinson said the CEI partnership would lead to staff at the main store being more than doubled to 16.

There would also be two extra staff at the company's other outlets, which included a new jewellery and watch section at HA&E Smith's.

This would bring the total number of extra full-time sales staff to 13.

Mr. Dickinson said a recruitment advertising campaign had attracted a "decent response''.

"We may advertise again,'' he added.

Mr. Dickinson said the partnership with CEI followed a slide in retail industry fortunes since 1990.

He added Astwood-Dickinson had researched CEI -- which has a main office in the Bahamas and a distribution centre in Fort Lauderdale -- before agreeing to a partnership.

"Government would rather see the retail community solve their own problems as opposed to imposing answers. We decided to be proactive and Colombian Emeralds International have the wherewithal, ambition and experience we were seeking.'' According to a CEI publicity brochure, the company has bought emeralds for more than 30 years from the jewellery cutters of Bogota, Colombia.

The brochure adds that CEI are the authorised dealers for many of the world's best-known names in watches.

Mr. Dickinson said the price range for Astwood-Dickinson jewellery would broaden with the partnership.

"We will have more expensive merchandise and more less expensive items.'' Advertisements promoting 50 percent reductions in price for jewellery have been carried in The Royal Gazette over the last few days. The sale is for one week.

Staff, however, are believed to be concerned at developments -- particularly the impact on their pockets.

"A lot of the sales staff are currently in the $400 to 500 bracket, depending on their position,'' a source said. "Now, whether they have been here 20 years or not, they will be on $250 a week.'' Three sales employees are said to have handed in their notice and left on March 29.

A company source said: "The number of employees has been going down and down over the years. One or two are going to see whether the new arrangement is profitable before deciding their future.

"As far as everybody knows pensions are not affected, although nothing had been said in writing.'' The source questioned who was carrying out the renovations and whether CEI staff would be based in Bermuda.

"As far as is known, none of the Colombian Emerald staff will be here on permanent basis.''