bank farmed out a contract for maintenance and cleaning to a Bermudian company, BAS-Serco Ltd.

BAS-Serco will take up the contract for facilities management on April 2, 2001.

Employees will be offered severance packages and the option to transfer to a position with BAS-Serco. Bank of Butterfield's president and Chief Executive Officer, Calum Johnston, said in a press release: "We appreciate the hard work of our premises staff, and we are doing everything we can to help them through the transition.'' Mr. Johnston, a Scot, added: "We have decided to outsource our facilities management function to support the bank's key corporate objectives of reducing costs, improving processes and focusing on our core strengths.

We selected BAS-Serco for its considerable experience and expertise in managing large facilities such as ours.'' BAS-Serco will take over all responsibilities related to the bank's cleaning and maintenance of its premises in Bermuda.

The change will affect the five "premises management'' positions in the bank, which is one of the Island's largest employers.

BAS-Serco was founded in 1997 as a joint venture between Bermuda Aviation Services and Serco Management Services Inc to serve the growing need in Bermuda for outsourcing services, the company said. Mr. Johnston has been cutting costs at the bank since his arrival and has been credited for helping profits soar. The bank, which is the second largest on the Island after Bank of Bermuda, announced last month it had started looking for a replacement for Mr. Johnston, whose contract is up in 2002.