And the Progressive Labour Party's first major crisis in Government is being coordinated by one of its own MPs -- Bermuda Industrial Union president Derrick Burgess.

Premier Jennifer Smith called an emergency Cabinet meeting on Thursday to discuss the possibility of an all-out strike by Bermuda's public workers.

The unrest centres on a promotion dispute at Hamilton Docks.

Dockworkers have gone on strike alert after a foreman was controversially promoted.

Mr. Burgess said the promotion was not based on "seniority''.

And he said the promoted individual even stepped aside, claiming his move up was "not proper'', only for Stevedoring Services to over-rule the decision and refuse to promote another man.

Mr. Burgess added: "It was contrary to the collective bargaining agreement and contrary to custom and practice.

"We have an issue that is brewing on the docks that could become a major dispute in the Country.'' The industrial strife comes just days after an illegal walkout on the docks in a rift over a suspended worker.

That row will eventually be settled by arbitration but the fresh dispute threatens to spill over into other sectors of Bermuda's economy.

And Mr. Burgess said other branches of the BIU were prepared to strike in solidarity with the dockworkers.

"This union is all about inclusion,'' he added. "It's a democratic union. We have a motto: `United we stand, divided we fall'.'' It is not known if or when other BIU divisions will be asked to hold strike votes.

Asked if Bermuda was now facing a general strike, Mr. Burgess said: "No comment.'' The last Island-wide strike took place in 1992 when workers walked off their jobs in support of striking employees at Bermuda Forwarders Ltd. That strike ended following a court order.

The only general strike in Bermuda's history took place in 1981 as a result of a labour dispute at King Edward VII Memorial Hospital.

Stevedoring Services president Michael Lohan did not want to comment when contacted on Thursday.

But a source told The Royal Gazette on Thursday: "I heard about the possibility of a general strike this morning.'' It is understood the docks dispute took a turn for the worse after workers were briefed by BIU first vice president Chris Furbert on Thursday morning.

The dockworkers then marched over to BIU headquarters on Union Street to meet Mr. Burgess.

Mr. Burgess convened a special press conference that afternoon, at the same time as the emergency Cabinet meeting.

New Education Minister Milton Scott, human resources manager for Stevedoring Services, excused himself from the meeting on the basis of a conflict of interest.

Docks row could widen Home Affairs Minister Paula Cox said she would be keeping a watchful eye on how events unfolded between the two sides.

She remained optimistic a "win-win'' compromise could be achieved, but pointed out the good of the Country had to come before personal interests.

"If the interests of the Country are going to be harmed, then we'll have to take some action,'' she said.