A deal was finally reached between The Bermuda Electric Light Company (Belco) and its workers union, avoiding a showdown before an arbitration panel.

Belco and the Electricity Supply Trade Union (ESTU) were at odds for months, but with an arbitration process about to get underway an agreement was suddenly reached.

A union source who spoke on the condition of anonymity said: "Some of the membership felt the reason Belco came forward with this last ditch effort was because there was information they might have been required to give up at arbitration that they would not have been willing to give up."

On March 14 the ESTU voted unanimously to give its employer a 21-day strike notice. In the end a work stoppage wasn't necessary.

At the last hour Belco came forward with an offer to circumvent arbitration, according to the source.

The company's proposal was taken back to the membership and it was voted on and accepted.

Linda Smith spokesperson for the utility company confirmed the information yesterday and offered a joint statement, written in conjunction with the workers union.

"Belco and the ESTU averted arbitration by reconciling their differences and agreeing a way forward that was mutually beneficial. The resolution allowed the finalisation of a new two-year Collective Agreement."