The Police pay negotiation crisis deepened at the weekend with a stalemate on talks.

Now the dispute is set to go to arbitration after officers formally rejected Government's offer.

The news came after a crunch meeting of more than 150 members of the Police Association on Friday.

But Police Association boss Sgt. Michael Jackman said a possible "sick-out'' protest by officers on the May 24 holiday was not discussed.

And Shadow Home Affairs and Public Safety Minister Michael Dunkley warned the long-running row would not only damage morale but hit recruitment to the understrength force.

Government's latest offer on basic pay is 2.98 percent in the first of the next two years, with 2.5 percent in the second year.

Home Affairs and Public Safety Minister Paula Cox said yesterday: "These rates must be seen against the backdrop of inflation in Bermuda having been steady at about two percent for some years now.'' But it is understood Police Association members voted to write to the Government to officially turn down the contract offer, based on the Mowbray Report on Police pay and conditions -- commissioned by the former UBP Government.

Sgt. Jackman said his members had rejected the whole package, although there were some parts which they were in agreement with.

And he added: "There was no discussion about the withdrawal of labour on May 24.'' Pay talks reach stalemate Ms Cox said: "I am disappointed that the Bermuda Police Association has rejected the Government's offer in our current negotiations.'' But she added: "The only outstanding issue of any substance now is that Government proposes to pay the increased premium we have been discussing in steps, beginning on October 1 1997, while the Police Association wants it to be fully effective from that date.'' And she insisted: "The Government believes, however, that it is acting in accordance with the recommendations of the Mowbray Report.'' Ms Cox added: "Labour negotiations are just that -- negotiations. Neither side is likely to emerge from negotiations with their every wish fulfilled.

"The process of trying to effect a settlement will continue, but not in the public domain.'' Officers have been offered the less-than-three percent increase, together with a "combined allowance'' of between six and ten percent to cover unsociable hours and the standing force rule that watches form up 15 minutes before shifts are due to start -- recommendations in line with the Mowbray Report.

But Government wants the allowance phased in over four years -- which officers have branded "unacceptable. Government is also refusing to backdate a recommendation for extra annual leave to December, 1997, when the last pay deal expired, and are sticking to the line that the extra days should be added on only from January this year. Ms Cox said: "This package offers a backdated premium to Policemen up to the rank of Chief Inspector.

"This premium is largest at the bottom end of the scale and would mean something just over $1100 for constables.

"The premium would rise to the full amount recommended in the Mowbray Report by October 1, 2000.'' And Ms Cox added Government had axed the Mowbray recommendation that Police officers should not be allowed to take second jobs which she said "would hurt many Policemen considerably'' if it was to be implemented.

She said: "Policemen would be allowed such employment, subject to suitable rules developed by the Commissioner.'' Mr. Dunkley, however, blasted Ms Cox for failing to report on the Police crisis to the House of Assembly last Friday.

And he said: "There is no doubt there is a shortage of manpower and there are concerns about contracts. I would have thought when they grandstanded four Ministers with statements on Friday that the Minister would have been one of them.'' Mr. Dunkley added: "People are living in fear, not only because of the crime situation and the traffic situation. There is no enforcement of our laws all round -- and I'm not blaming the Police for that in any way. Being 30-50 people short is not helping and they're having to pull people from here to there and back again.'' Mr. Dunkley added that even if the recruitment drive to sign Bermudians up as part of the thin blue line was successful, the results would not be seen for some time.

Paula Cox