climbdown by department bosses in their dispute with unionised workers.

But he has also emphasised he is confident that a resolution to the disputes will be reached before staff begin planned strike action in two weeks time.

Bermuda Industrial Union bosses served a 21-day strike notice on Labour and Home Affairs Minister Paula Cox last week. If no compromise can be reached in the dispute, which concerns disciplinary procedures against three workers, staff, including trash collectors, could stop work.

Last night Mr. Scott said his department was still in the process of preparing a response to the strike notice which will be forwarded to Ms Cox.

He said he was confident that disagreements concerning one staff member who failed his probation period were in the process of being settled.

But he said the other two incidents, in which one worker was sacked following an alleged assault and another disciplined for making offensive remarks, were "very serious''.

Govt. will not back down "We are still in the process of getting back to the Minister but basically we will make sure that she is fully briefed as to the details from the Government's side,'' he said.

"One person has failed his probation period and the union was asking that we sit down with them and discuss it. We are prepared to do that but we also want to point out that the nature of a probation period is that, if you fail to measure up to expectations, it's not something that can be negotiated.

"But the other two incidents are far more serious and that's what we will be pointing out to the Minister.

"One incident involved a worker who said, in full earshot of a Canadian contract worker, `don't you know we kill Canadians in Bermuda and get away with it?'.

"That was deemed to be unacceptable and the moment I heard it I judged it the same way.

"This is not an isolated incident. This young man behaved in a way which warranted disciplinary action and that's what was done. We are somewhat surprised that the union is taking up this cause because his colleagues also thought his response was inappropriate.

"The final matter goes back four or five years when a union member was injured on the job and he's still recurring medical expenses due to that injury.

"We feel that we can work our way through this but they are serious incidents and we don't want to be seen to be turning a blind eye.'' UNIONS UNS