The nurses dispute went to permanent arbitration yesterday.

The hearing was set up after mediation between the Bermuda Public Services Union and the Bermuda Hospitals Board (BHB) failed to hammer out an agreement.

Last month nurses issued a 21-day strike notice. They are upset about pay and working conditions.

The permanent arbitration panel is chaired by Senator Alf Oughton and its solution will be binding. The other panel members are lawyer Keren Lomas and former and Tourism Director Gary Phillips.

Labour, Home Affairs and Public Safety Permanent Secretary Robert Horton said: "We don't anticipate it will be a lengthy process. We are optimistic a resolution will be reached very quickly."

He said there had been many meetings between the two sides to resolve the dispute but there were still outstanding issues.