Bermuda Broadcasting Company workers staged a three hour `sit-out' yesterday after anger over the lack of a collective bargaining agreement for three years boiled over.

Around 15 workers, out of a total workforce of 50, downed tools in the afternoon and protested in the foyer area of the Fort Hill, Devonshire offices.

Programming was not affected by the action.

"Talks broke off over wages," said a shop steward, who did not want to be named. She added that there were other issues which had not been addressed by management.

"They (management) have been holding out and we want some immediate answers."

But company chief executive Rick Richardson said that wage increases were out of the question because the company was losing money, adding that programming piracy had been draining the BBC of much needed revenue.

He told The Royal Gazette that the action was unexpected: "I was there five minutes before they walked out and I had no idea."

After a one hour meeting with staff members, Mr. Richardson explained that the company had not been able to increase wages because of adverse economic conditions and a long running dispute over programming rights with local cable company, CableVision.

"Each year we agree on a number of clauses in the agreement. We agree on everything except wage increases," Mr. Richardson said. "And we don't agree on that because we have not had the ability to pay. The company has been losing money especially on television."

He said his company had been losing money for years because its exclusive rights agreements were not being respected by CableVision.

"I'm blaming the overall state of the bottom line which is affected a great deal by our copyright dispute," he told The Royal Gazette.

"But I hasten to add that while other companies - that are in much better shape - lay people off, we have not done that."

He said advertisers and sponsors had long complained that they couldn't justify paying for programming which was being duplicated on CableVision.

And some had already made the decision that their advertising dollars are better spent on radio. Mr. Richardson also cited the fact that Government pulled the plug on a $1.6 million sponsorship arrangement for the children's television programme Sesame Street because it was duplicated on CableVision.

The dispute with CableVision has been ongoing for at least the last 13 years. Mr. Richardson said that he is hopeful that a resolution will be found soon. And, he said, union representatives and his staff had been kept abreast of developments.

"I basically explained this is what we've been through. But we've guaranteed them full employment," he said of yesterday's meeting.

"What we said to the staff is that we have to have a resolution to these critical issues because they impact on the company's ability to earn and the company's ability to reinvest."

He said some alternatives to a wage increase, such as an employee share ownership programme, had been brought up during the meeting.

"We will do whatever we can to first of all conclude an agreement and secondly to better communicate the issues to the staff."

Another alternative was to cut services, he said. But he warned "you can't cut services and keep all your workers".

The dispute with CableVision was being brokered by the Telecommunications department, and he said a resolution should come "hopefully very soon".

"CableVision has stated recently that they will acknowledge exclusive rights agreements. That was the first recognition that those who own the product have a right to exploit the product in the way they choose."

He said the company will then be looking at compensation and damages. "That's what's on the table and will be on the table because there have been damages... We are happy with Government's efforts now but we have been crying this for years."

Mr. Richardson added that the meeting went "very well. I thought there was a good exchange."

There had been little adverse impact on the day's work as a result of the sit down, he said. "I think the staff did it at an appropriate time. There were 15 people there and we have 50 staff."

The Bermuda Industrial Union (BIU) were caught off guard by the workers' action. A three person delegation arrived at the company's headquarters minutes before the end of the meeting with Mr. Richardson.

BIU general secretary Molly Burgess said that the staff had agreed to meet with Fernance Perry, one of the BBC's major shareholders to discuss their grievances further.