The Bermuda Public Services Union marched on Parliament today to announce it has called off its strike threat and opted instead to take its pay dispute with Government to voluntary arbitration.

Earlier this month union president Armell Thomas had warned his members would “close down the whole island” if Government doesn’t back down as the BPSU issued a 21-day strike notice which had been due to come into affect on Tuesday.

However with Government likely to have halted that by referring the dispute to binding arbitration, the unions opted for voluntary arbitration - which allows it to nominate one of the three arbitrators.

The union was met on the steps by Labour Minister David Burch following the peaceful protest.

The BPSU is pushing for a 5.1 percent rise but have been offered four percent, which is slightly higher than inflation, running at 3.6 percent according to the latest figures from December. However, one percent of that rise will be subtracted for pensions, giving a below inflation award.

Earlier today, the Government put out a statement saying the only unresolved issue in the current negotiations is the salary award for the third year of the current three-year agreement.

The statement said: “Over the first two years of this agreement, the salary award was 4.5 percent and 4.0 percent respectively for a combined uplift of 8.7 percent.

“To complete the third year of the contract, Government has offered 4.0 percent, and should the offer be accepted, it will bring the total salary adjustment over the life of the three-year agreement to 13 percent.”

* See the full story, pictures and reaction in tomorrow's Royal Gazette.