sweeping overhaul of Bermuda's labour laws.

And the best way forward is to have a legally binding and wide-ranging industrial relations code.

This would clearly spell out the ground rules of behaviour for management and union camps.

A signpost to better times was set up yesterday by the Island's leading labour lawyer Mr. Alan Dunch.

He said it was crucial for Government to rethink labour legislation, and adopt labour codes such as those in Canada and the US.

These covered the full spectrum of labour relations, including grievance procedures, strike ballots, and recognition of unions.

"It is clear we have reached an impasse, because mutual trust, respect, and confidence between management and labour does not exist,'' declared Mr. Dunch.

"That is very sad, but it's the reality, and as things currently stand I don't see that position likely to improve. The bottom line is Government needs to wake up and at last put a proper code in place.'' Mr. Dunch, stressing he backed properly run unions, also said labour relations needed to be on a more even playing field.

It was clear the Bermuda Industrial Union had the upper hand at present.

But yesterday Labour Minister the Hon. Irving Pearman said a comprehensive code was not a high priority with Government -- although it had not been ruled out.

The subject had been raised at the recent industrial relations "national retreat''.

"The consensus was not to have legally binding X,Y, Z's in labour relations.

It just does not work,'' said Mr. Pearman.

"The relationship between an employer and employee needs to be an agreement, not a legal instrument.'' Mr. Pearman said legal enforcement prevented flexibility in labour relations, and destroyed creative thinking. It would also pave the way for labour courts "three to four years'' behind with their cases.

Said Mr. Dunch: "My major concern about industrial relations is that the necessary ingredient of mutual respect, confidence and trust between management and labour seems to have disappeared.

"I think the difficulty we have now is that there is an inability on the part of management and labour to talk seriously and with consequence, simply because no side enters into discussion with any confidence that the discussions will prove fruitful.'' That would only end if a proper legal framework and proper ground rules were established within which talks could be held and conclusions reached, he said.

Mr. Dunch, trained in law in Canada, said the current Trade Union Act and Labour Relations Act were "completely outdated'' and needed to be reviewed.

Recent legislation giving birth to the Trade Disputes Tribunal and essential industries disputes settlement board were "kneejerk and reactionary'' measures and neither would ever prove effective.

"What I think needs to happen is a recognition that current legislative framework is unworkable.

"We need to sit down and devise a comprehensive statutory framework which will govern the future conduct of industrial relations in all businesses.

"Bermuda is hopelessly behind the times in terms of industrial relations law.

The sooner the politicians recognise that, and the politicians with input of both management and labour sit down to devise a new schematic framework, the better the Island will be.

"To allow the current situation to continue to perpetuate is inevitably going to result in continuing friction, unresolved dilemmas, and ultimately the kind of strife the Country witnessed two weeks ago at Elbow Beach.''