Industrial action by Bermuda Housing Corporation (BHC) staff has been averted after the union withdrew its 21-day strike notice on Friday.

But last night BHC General Manager Raymonde Dill said performance-related pay, one of the key bones of contention in the dispute, would have to be considered further down the line.

He said: "I think personally that performance based compensation is inevitable, especially that the economy gets tighter and tighter so the demand for efficiency and productivity gets greater and greater.

"It's inevitable but at the moment the housing corporation staff are not happy having such methodology."

Bermuda Public Service Association general secretary Ed Ball said members were not in favour of performance based pay.

He said: "Everyone recognises 9/11 but employers don't have to distant or condescending. To get buy-in you have to listen to people."

He said the union was in favour of productivity and efficiency.

"If management don't do performance appraisals or you don't know how to speak to staff to get them to buy in and if you disrespect policies and procedures there can be no efficiency even if there was performance related pay."

Mr. Ball praised the way acting manager Jerry Robinson handled the talks while Mr. Dill was away from the Island.

"All matters were settled. Jerry Robinson the acting manager did a superb job.

"Staff were very pleased with his sensitivity over human resource matters."

He said staff, who number between 20 and 25, had been worried by ambiguous terms and conditions and what their specific roles were. "There are a number of issues which have to be concluded before pay talks can begin." Workers had complained of low morale and rude management when they issued the strike notice last month.