Telecom giant Cable & Wireless are holding crisis talks with union chiefs to thrash out how many jobs will be axed in a company shake-up.

The emergency meetings will be held with senior members of the Bermuda Public Services Association next week.

And the firm's general manager was staying tight-lipped last night about how many staff might lose their jobs as part of the downsizing programme.

Colin Little, speaking to The Royal Gazette after addressing Hamilton Rotary Club, said: "We are now having discussions with the BPSA.

"We are still discussing numbers with them and there are further meetings planned in the next week.'' Cable & Wireless are taking legal action against Government after losing their exclusive right to provide Bermuda with an overseas telephone service.

Finance Minister Grant Gibbons revealed last month Government was facing a claim for almost $100 million in damages.

Dr. Gibbons also accused company bosses of threatening job cuts in a bid to regain their full-market share -- after competition was opened up and TeleBermuda International was allowed in.

C&W managers said some staff would lose their jobs because the firm had lost about 25 percent of the long-distance market to TBI.

BPSA general secretary Edward Ball claimed last month that employees were being "held to ransom'' because of the company's row with Government.

He also said the firm had not revealed how many positions might be scrapped.

Referring to the proposed job cuts, Mr. Little said: "We have already made mention of those in terms of restructuring our organisation.

"There was a statement some weeks ago and there will be future announcements.'' And he would not confirm the exact level of compensation C&W were claiming from Government, adding: "The monetary value is in the hands of our lawyers at the moment, so I'm not prepared to disclose that amount at this stage.'' But Mr. Little said C&W managers were already considering what benefits to give loyal customers once a "transitional'' period banning them from making price cuts comes to an end.

He said that period -- to allow TBI to gain a foothold here -- had never been defined.

And Mr. Little claimed C&W gave the Telecommunications Commission at least eight customer initiatives last summer but had still not been given a response.

"Firstly, we have never raised our international direct dial phone rates in living memory,'' he said.

"In fact, we have a consistent record of reducing our international rates in recent years, the most recent occasion being reductions of up to 25 percent to over 80 countries in November 1996.

"What has transpired in effect is that the very regulations which were in place to prevent us from increasing our rates as a monopoly are being used to prevent us from reducing those same rates in order to compete effectively with the new player.'' He added that C&W, who had been in Bermuda for more than 107 years, had spent $20 million on improvements in the last three years and employed 110 Bermudians out of a staff of 114.

He also claimed that a 90-cent economy rate call to the US meant 27 cents would go to the Bermuda Telephone Company and 35 cents would be passed on to AT&T.

"There's a lot of cross subsidisation on this Island,'' he said.

"That's why international rates were high for some time and other markets in the world are already addressing that.''