workers at the Bermuda Telephone Company have voted overwhelmingly to ban all overtime.

The Royal Gazette has learned the decision was taken at a meeting on Wednesday night, when 97 out of about 240 workers -- members of the Bermuda Industrial Union's Telco division -- voted over 75 percent in favour of banning all work over 40 hours per week. Eight members voted against the overtime ban while 12 abstained.

It is understood negotiations have bogged down over the issue of wages. Telco and the union have been without a formal contract since March of 1996, and an interim contract expired at the end of the year.

Telco -- which last year hauled-in an $11.7-million profit -- initially offered its workers a 2.5-percent wage hike, while the union staked out its position at 3.8 percent. The term of the contract is unknown.

The sides have met 43 times since the beginning of the year and narrowed the gap somewhat, with the company offering 2.7 percent and the union asking for 3.3 percent.

Sources indicated however the talks broke down on July 3 after Telco representatives walked out the negotiations.

Telco spokesperson Karla Lacey-Minors yesterday scotched reports of impending labour trouble and told The Royal Gazette reports of an overtime ban were "incorrect.''