An arbitration between the Bermuda Telephone Company and union leaders have been scrapped.

And instead the independent board of inquiry set up to look at management practices at the firm will now also carry out an investigation into the strike.

The talks, called for following a four-day unofficial walk-out by about 200 workers last month in protest at the suspension of a colleague, were due to be held on Monday.

Last night Home Affairs Minister Quinton Edness said having the board look into the dispute "would be a much neater way of settling the matter''.

The announcement follows confusion over how the arbitration talks would be organised. BTC management claimed they had not been told the date and there was a question mark over which board would preside over the negotiations.

Mr. Edness said: "I would have preferred to have waited until I had written confirmation of acceptance from both parties before I made this announcement but, now that you have the story, I shall make a statement.

"The board of inquiry has now been broadened to look into the dispute as well as the broader issue of labour/management relations in BTC.

"I believe this is a much neater way of settling this matter. The board of inquiry, which is binding, is not designed to be punitive but will look into the matters with a view to helping both parties improve labour relations in the future.

"Both parties have confirmed that they are agreed to be bound by the decision that comes from the inquiry pertaining to the dispute. I have had written confirmation from one party and verbal confirmation from the other.'' UNIONS UNS BUSINESS BUC