would allow middle managers to join trade unions. Shadow Labour Minister Michael Dunkley warned yesterday the legislation -- passed early on Saturday morning during an all-night session of the House of Assembly -- could scare off potential overseas investors from Bermuda.

He added: "Two of our main trading partners -- the US and Canada -- have specific legislation prohibiting supervisors and managers from joining a union.

"This law will make us less competitive and lead to more conflict -- businesses might steer clear of that and look at other jurisdictions which don't have this kind of legislation.'' The Trade Union Amendment Act allows managers to seek collective bargaining through a union.

Managers, however, will have to form a separate bargaining units from the ordinary workers. Previously, white collar workers could join a union -- but could not be represented by them on a collective bargaining basis.

The bill was passed by the House along with 11 other pieces of legislation as the Progressive Labour Party Government's year ended with a marathon session.

Three bills aimed at meeting international standards on money laundering and tax evasion were passed with unanimous support during the session, as was a new Banking Act. Stories: Pages 5-8