last night.

For the two sides locked in confrontation over union recognition at two dry-cleaning shops thrashed out a last-minute agreement last night.

The news came only hours after Bermuda Industrial Union members rejected a peace plan proposed by businessman Stephen Thomson, owner of Hamilton Val Cleaners and Paget Dry Cleaners.

Mr. Thomson offered a ballot on union recognition in the two shops -- on condition they were balloted with workers at his two other firms, laundry and dry-cleaners Just Shirts and Mailboxes Unlimited.

But late last night, Mr. Thomson dropped the condition after hours of talks brokered by Labour and Home Affairs Minister Quinton Edness and his team.

The 11th-hour deal will safeguard the futures of the 20-plus workers at the two shops, which were threatened with closure yesterday.

And it also means that bus and ferry services, as well as garbage collection, will start to return to normal today.

And this morning the new deal will be put to BIU members by BIU president Mr.

Burgess -- with a recommendation to accept.

A delighted Mr. Burgess said: "After you fight a long battle and you get a little success anybody would feel pretty elated.

"We will put it to the members and I think it will be okay. We don't expect any problems.

"And once members ratify the deal, everything will get back to normal as soon as possible.'' Mr. Edness said: "I am extremely happy for this Country -- extremely happy.'' He added: "Thanks and a great deal of credit is due to both sides -- to Mr.

Thomson and his advisors, who have worked with us in a spirit of cooperation and to Mr. Burgess and his officials at the BIU for their patience and cooperation in bringing a settlement to this matter. It couldn't have been done without that.'' Mr. Edness added that a list of employees at the two firms will be drawn up this morning and passed over to the BIU.

He said: "Mr. Thomson has agreed to meet with a small committee of the BIU after that in order to finalise the details, should this prove necessary.'' And Mr. Edness asked for employers to act with restraint towards workers who joined in the three-day protest.

He said: "On behalf of the Government, I am asking all employers who had staff leave work to participate in demonstrations not to subject them to any reprisals -- by reprisals, I mean suspensions or sackings.

"I'm asking employers to do that in the interests of the Country so the Country can return to normal as quickly as possible.'' Mr. Edness paid tribute to Ministry Permanent Secretary John Drinkwater for his role in settling the dispute, as well as Director of Labour and Training Edwin Wilson and Labour Relations Officer Glenn Fubler.

Peace breaks out It is understood that the Bermuda Hotel Association and Garry Madeiros of the Bermuda Employers' Council were also instrumental in the peace effort.

The peace announcement came only hours after Richard Hector, lawyer for Mr.

Thomson, warned that if the original deal was not accepted, the two shops at the centre of the row would be shut down.

Shadow Labour and Home Affairs Minister Alex Scott backed Mr. Endess' call for no victimisation of workers who took action.

He said: "From my information, there was considerable pressure from the business community. I don't think Mr. Thomson had the broad support of employer group -- I guess that suggests indirectly that the position taken by the union was a reasonable one.'' And Mr. Scott said: "It's unfortunate it had to take place at all. All the signs have been there... .that we really needed to to put all our energies into getting our industrial relations back on course.'' Earlier yesterday, the future looked bleak as Mr. Burgess said that the offer was not acceptable to members.

He accused Mr. Thomson of trying to "stack the deck'' by bringing his other employees into the dispute.

The row broke out on Tuesday after unionised workers walked off the job on Tuesday after the row over union recognition erupted at Hamilton docks and spread to other union divisions.