Plans for Bermuda Industrial Union members to work shorter hours for the same pay have been condemned as "not rooted in economic reality" by a business organisation.

Bermuda Employers' Council president William DeSilva, Jr. warned that cutting the working week would either hit services hard or land the taxpayer with a heavy overtime bill.

Shadow Finance Minister Grant Gibbons has also criticised the plans, citing concerns that it could make Bermuda less economically competitive.

The BIU agreed at a mass meeting yesterday to reduce the working week from 37 hours to 35 for members employed within Works and Engineering, Marine and Ports Services, the bus service and the postal service among others.

The plans, which will now be put before Finance Minister Paula Cox for consideration, would give them the equivalent of an almost 5.7 percent pay rise.

BIU President Derrick Burgess said: "A 35-hour working week is normal in Bermuda for Government workers, banks and office workers. The civil servants have been on a 35-hour week since the 1980s and we want to be in conformity with them.

"If the civil servants are working a shorter week than their subordinates, that doesn't bode well.

"The benefits of a reduced week will be that the workers will have more time with their families. It should also relieve some stress and help with sickness levels.

Asked whether services would be affected, he said: "I hope not. There are ways that it can be managed so no-one will be impacted in a negative way by the reduced working week."

The union has been working on the proposal for around ten months as part of a the collective bargaining process.

Government and union representatives have already reached a "tentative agreement", Mr. Burgess said, and if the proposal is given the green light by the Minister of Finance it will commence from January 1, 2007.

Mr. DeSilva warned that the shorter week would inevitably require overtime payments to be made in order to maintain the same level of service.

"It's a myth that the working week can be reduced without a reduction in service or an increase in cost," he said.

He pointed out the problems in France after the 35-hour working week was introduced in 1998. The National Assembly voted last year to relax the rule after the shorter week was deemed to be making the economy uncompetitive.

"Other issues would also have an impact in Bermuda as a reduction in the working hours would raise expectations in the work force in general," said Mr. DeSilva.

"While Bermuda is another world it's not a fantasy world. It is still subject to economic realities and I would question whether this proposal is rooted in economic reality."

Dr. Gibbons said: "I realise that the BIU's job is to get the best deal for its members but I recall that when France reduced its working week to 35 hours it was seen to be a mistake because it affected the whole country and its ability to be cost-competitive. I believe they are now planning to increase it again.

"Bermuda has been seen in some cases as pricing itself out of the market. We need to be competitive and I don't see a move of this sort helping."

Minister of Finance Paula Cox said: "The Joint Task Force of Government and the BIU have reviewed the issues and have requested the opportunity to make a formal presentation to me as the Minister of Finance as to the proposal within the next couple of weeks and to proffer their recommendations and the rationale.

"If the recommendations are not accepted by the Government then a framework for resolving the issue is prescribed which could entail the issue being referred to arbitration immediately. However at this juncture in the absence of the presentation and briefing by the Joint Task Force it would be inappropriate for me to pre-empt the presentation and any decision that will ultimately be made by the Government.

Minister of Labour, Home Affairs and Public Safety Randolph Horton said that the public should not be concerned about a less competitive workforce.

"What is more important than anything is a high level of productivity. If you get 35 hours of good solid productivity that's important.

This has come after long discussions between the BIU and the Government team, and the BIU co-operated fully with the task force. It was argued that the Bermuda Public Services Union workers put in 35 hours and that should be offered to the BIU," he said.

He added that the proposals will be taken into consideration in the Government's plans to make it mandatory for businesses to pay overtime to employees.

These plans ? which were thrown out by the Senate last year amid concerns about the potential economic impact ? are set to be discussed with the Labour Advisory Council in the near future.