accusations of the firm using "cheap labour.'' Mr. Andrew Cooper declined to comment on the allegations by the Bermuda Industrial Union.

The controversy centres on the firm's construction of the new prison at Dockyard.

BIU president Mr. Ottiwell Simmons MP said Sea-Land was employing sub-contractors while laying off its own workforce.

The sub-contractors were being paid below the standard agreed rates, he claimed.

"These are the rates agreed for a particular skill. It is effectively cheap labour.

"We believe the company is taking advantage of a surplus in the labour force due to excessive unemployment.

"We also get the impression people are so frantic they are just crying out for any income of some sort, permitting themselves to be exploited by employers profiting from their skills.'' Mr. Simmons said several meetings had been held with Sea-Land over the issue.

He added the union was also frustrated at trying to get an agreement, which would include rates of pay, negotiated with employers involved in the construction industry.

"The issue of negotiations is being thwarted,'' said Mr. Simmons.

"There are many problems plaguing the industry. I foresee trouble.

"The industry is fraught with dangers, which are snowballing.''