sparked a brief wildcat walkout by unionised telephone operators.

It is understood the operators -- members of the Bermuda Industrial Union -- left their posts earlier in the morning after an undisclosed conflict with a member of BTC management.

The operators -- en masse -- then marched to BIU offices on Union Street for an emergency meeting.

By the end of the working day, however, management and the union were declaring labour peace, saying all sides were talking and the "breakdown in procedure'' which had orginally sparked the walkout had been resolved.

Union President Derrick Burgess attributed the walkout to a "lack of communication,'' and Telco claimed a "misunderstanding'' had led to the action.

While BTC and the operators have settled their differences, the same cannot be said about contract negotiations with BTC technical staff, who voted overwhelmingly to ban all overtime work.

Both sides met yesterday morning, said Mr. Burgess, in a meeting described as "a good exchange of views'' and "not confrontational.'' Sources have told The Royal Gazette the two sides have met 43 times in an effort to agree on wages.

At the last meeting on July 3, BTC management reportedly walked out of the negotiations, a story confirmed yesterday by Mr. Burgess.

"But the main thing is everyone is back around the table and working to settle our differences,'' he said.

Mr. Burgess meanwhile said he was hopeful the issue would be settled soon.

About 240 technical staff have been without a contract since March, 1996, and an interim contract expired at the end of last year.

BTC -- which last year earned $11.7 million in profits -- initially offered its workers a 2.5 percent wage hike. The union countered with a demand for 3.8 percent.

The gap has narrowed somewhat since then, with the company offering 2.7 percent and the union asking for a 3.3 percent wage hike.