his union won a reprieve over the $100,000-a-day fines and seizure of assets ordered by the Chief Justice.

"The union has been victorious,'' he told a cheering crowd outside the Supreme Court.

But it is understood the reprieve will not cover action already taken by sequestrators.

This would include the freezing of union bank accounts -- making it difficult for the Bermuda Industrial Union to pay members.

The BIU yesterday won in its fight for a stay of execution of a sequestration writ, pending an appeal.

Chief Justice the Hon. Sir James Astwood granted the application, to take immediate effect.

It gives the BIU breathing space until the outcome of its Court of Appeal fight against the writ.

Yesterday's ruling followed more than three hours of legal arguments at the Supreme Court.

Around 30 union supporters, including Mr. Simmons, packed the public gallery.

Hundreds who had marched in a pageant of colour from the BIU headquarters remained outside amid mounting tension and expectation.

The sequestration order had been granted by the Chief Justice for an alleged union breach of an injunction ordering Government employees to stop illegal striking.

Lawyer Mr. Julian Hall MP, representing the BIU, yesterday took the Chief Justice to task for issuing the sequestration order.

He said the order clearly amounted to finding the union in contempt of court for breach of an injunction.

Yet that finding had been made ex parte -- without the BIU being present to contest it.

The specific offences allegedly committed were never stated to the union, said Mr. Hall.

It was a fundamental flouting of natural justice, he claimed.

And he told the Chief Justice: "You made a finding of criminal contempt. You then proceeded to impose a punishment for criminal contempt.'' Mr. Hall said the writ put authority to run the union's financial affairs away from membership and elected officers and into the hands of four sequestrators.

It would lead to the crippling of the union, he claimed.

"These individuals have already supplied banks with a copy of the order and frozen all the union's accounts, making it quite impossible for the union to pay staff today.'' Mr. Hall went on to accuse the Attorney General's chambers of a major procedural error in issuing the injunctions.

He said two injuctions were slapped on the BIU, containing different wording.

Both were signed by the Chief Justice.

One was served on the union's general secretary Ms Molly Burgess on June 29, but was improperly drafted, claimed Mr. Hall.

The second was slapped on Mr. Simmons on July 1 -- this time containing additional wording to advise the union of its liability to sequestration.

Although now correctly drafted, the extra wording had been added after Sir James' had signed the order, said Mr. Hall.

Mr. Hall accused the Attorney General of altering official documents.

Solicitor General Mr. Barrie Meade, for the Attorney General's chambers, said the injunction and sequestration writ were provisional orders.

It was, therefore, procedurally correct for them to be made ex parte. "This court has the power to decide on civil matters ex parte in cases of urgency or where great damage may arise.'' The BIU had had the opportunity to contest the orders, but decided against.

Mr. Meade said the injunctions had been correctly drafted. The extra wording had been merely an endorsement on a copy of the original order.

He accused Mr. Hall of putting up a "smokescreen'' to hide the invalidity of his case.

Mr. Meade also said the sequestration order meant union finances were in good hands.

Earlier, hundreds of people lined up behind Mr. Simmons for the march on the Supreme Court.

Men, women, and children, sang "We Shall Overcome'' as they strode to a thumping drum beat, some waving banners.

The peaceful procession was greeted by a clenched fist salute from Mr. Hall.

The crowds outside the Supreme Court were later joined by drummers, and Mr.

Simmons demonstrated his own ability with the drums following the court decision.

A union spokesman estimated 1,000 people joined the march. Police put the figure at around 500.

Pickets yesterday stayed away for the first time during the industrial action.

Striking generally remained sporadic, mirroring that of previous days. A 30 percent normal bus service operated, with officials predicting a full one at the weekend.

More Sea-Land Construction workers returned to the prison site, and all hotel workers reported for work. The Bermuda Hospitals Board, meanwhile, said it would be considering legal action against the BIU on Monday.

The Bermuda Telephone Company issued an injunction after being repeatedly hit by walkouts. But Mr. Simmons said the return to work deicision would make the court action superfluous.

Most other businesses reported good turnouts of staff. PHOTO MAKING A POINT -- Lawyer Mr. Julian Hall MP confers with BIU president Mr. Simmons before yesterday's tense Supreme Court hearing. RIGHT BEHIND YOU -- Bermuda Industrial Union president Mr. Ottiwell Simmons led up to 1,000 union supporters on a peaceful march to the Sessions House yesterday. MAKING A POINT -- Lawyer Mr. Julian Hall MP confers with BIU president Mr. Simmons before yesterday's tense Supreme Court hearing.