Bermuda Industrial Union has given Continental Airlines until Wednesday to improve its pay deal for axed staff or face arbitration.

President Chris Furbert yesterday said the union remained unhappy about the back pay – owed as a result of a collectively bargained increase which should have come into play last July – offered as part of the deal following the loss of 13 jobs in Bermuda.

Continental's offer also includes severance pay, extended travel privileges, and medical insurance and notice pay until the end of this month.

Mr. Furbert said the union had initially set Continental a deadline of 4 p.m. yesterday to come back with a better back pay offer, but due to problems with an e-mail system had extended the deadline to 10 a.m. on Wednesday.

"We are doing everything we can to resolve this issue," Mr. Furbert told a press conference at BIU headquarters.

Regarding the mood among staff, he added: "They are still very dejected at what the employer has done to them after serving them (Continental) faithfully."

All 13 of Continental's jobs on the Island are said to have been outsourced to Sovereign Flight Operations, with local employees not being given the chance to be kept on. The union claims the decision was taken without consultation, even though it won a ballot last year to represent Continental workers at the airport and the ticket office in Hamilton. Continental argues discussions had been ongoing since last year.

About 20 or 30 members of BIU's general council and Continental employees protested against the airline at L. F. Wade International Airport on Wednesday.