Government yesterday failed in a bid to overturn a ruling blocking Premier Ewart Brown's plan to kick long-serving Bermudians out of the North American Tourism Office.

Following an hour-long court hearing, Government was unsuccessful with its application to throw out an injunction preventing it moving ahead with the outsourcing of the operation to US firm Sales Focus.

However, as the contract with Sales Focus was signed shortly before Bermuda Public Services Union took legal action against Government, it may only be a stay of execution for the workers.

The injunction was put in place when BPSU began seeking a judicial review in July, claiming that Government broke its contractual agreement by not holding consultation before the appointment of Sales Focus.

Permanent Secretary Cherie Whitter has told staff the Ministry of Tourism and Transport had been planning the move for months but the Premier had kept it quiet because: "Unfortunately, that is the way Government works."

However, BPSU says if it had been consulted it may have been able to suggest alternatives to redundancies, which workers say will split families and leave them precious little time to find new homes, jobs and schools for their children on the Island.

BPSU lawyer Richard Horseman told The Royal Gazette after yesterday's hearing: "The Government filed an application to set aside the injunction based on technical grounds. That application was refused. The matter is being sent to a full hearing.

"It showed we had an arguable case."

He said both sides were hoping to expedite the hearing, and a date would likely be set for the end of September. It is expected to last two days.

At one stage, the Premier's Press Secretary Glenn Jones said just eight people faced being laid off, but this was dismissed as spin by BPSU, which claimed the number could be anything up to 20. Later, Mr. Jones said he was unable to say what the expected number of redundancies was.

Staff have also attacked Mr. Jones and Dr. Brown's suggestion they would be able to get jobs with Sales Focus, pointing out that most of them do not have the necessary working permits commonly known as green cards.