they started hiring new staff -- one day after making 26 redundancies.

The firm last night confirmed a young Bermudian was appointed to a new technical position on Wednesday, a day after the 26 accepted severance packages.

Union bosses are already investigating complaints from their members who work at Cable & Wireless.

But a company spokesman denied the move was linked to the firm's current restructuring plan.

And General Manager Colin Little would not comment on allegations from one staff member that the job cuts were just a "bargaining chip'' in the firm's $100 million legal battle with Government.

C&W are fighting against Government protection for new telecoms competitor TBI.

The firm want to lower prices and have issued a writ against Government claiming huge damages for a 25 percent loss of market share since losing their monopoly status last year.

One angry employee told The Royal Gazette : "On the one hand, they say they are losing money and need to sacrifice positions.

"On the other hand, they've started hiring new people. Around 16 to 18 members of the Bermuda Public Services Association opted to take the company's severance package.

"That was on June 30. Then, on July 1, the company notified staff that they had hired a switched service technician.

"Yet there were three technicians who took the redundancy offer. So why let these people go under the pretext of restructuring, which means redundancies, and then turn around and hire for the same or very similar positions?'' It is understood those taking redundancy were offered six weeks' pay for every year of service.

BPSA General Secretary Edward Ball said: "Yes, we have been notified that a new position has been filled at the company.

"We have contacted management to voice our concerns and the matter is still being pursued through the Human Resources department at Cable & Wireless.

"From our perspective, there's always concern that when you downsize any organisation with redundancies, a new position must bear no resemblance to a former position that has been written off the books.

"We have received some complaints from our staff and we are investigating.'' The House of Assembly will discuss the Cable & Wireless Act on Monday -- a technical bill designed to help the firm compete more evenly with TBI.

Staff hired after job cuts And the debate is now set to centre on the latest controversy and claims the job cuts were a bargaining tool in the fight with Government.

Telecommunications Minister Sen. E.T. (Bob) Richards said last night: "Why Cable & Wireless hire for certain positions is up to them and this is the first I have heard of it.

"I don't know anything about this particular matter and I'm not going to speculate as to what's behind it.'' A spokesman for Cable & Wireless said: "We have certainly employed a young Bermudian communications technician to replace someone who left the company.

"But this is not connected with the current restructuring.'' UNIONS UNS HOUSE OF ASSEMBLY HOA