Unions representing almost 1,000 Government blue collar workers have gone into mediation after rejecting a pay and conditions offer.

The Labour Relations Officer was called in around two weeks ago in a bid to seek a solution.

Bermuda Industrial Union leader Derrick Burgess said last week that he was hopeful a breakthrough can be made, but refused to into details about the offer.

The staff are mainly from Works and Engineering, but also include Marine and Ports, Wedco and the Public Transportation Board.

If both sides can't reach an agreement, Labour and Home Affairs Minister Terry Lister may refer the dispute to arbitration.

"I don't want to say too much as we are in negotiations and it is delicate right now. But I am the eternal optimist," said Mr. Burgess.

If negotiations go to arbitration, staff and employers normally agree beforehand to accept the outcome, added Mr, Burgess.

Government's Department of Communication and Information said last week: "Talks are still underway and there is no comment to make."