arbitration has won support from the whole community -- and deservedly so.

The fact that the dispute -- which could otherwise have escalated into a disastrous strike involving the whole Island -- was referred to compulsory arbitration under the Trade Disputes Act is good and bad.

It is always better, as Home Affairs Minister Paula Cox said yesterday, for both sides in a labour dispute to come to the table voluntarily. But because one side or the other can refuse to do so, it is vital for Government to have the ability to settle disputes itself before they wreck the economy.

The essential lesson to be learned is that there is rarely a winner in a strike, no matter which side comes out on top. Nowhere is Winston Churchill's statement that "jaw jaw is better than war war'' truer than on the battlefield of labour relations.

So far, the legislation has worked and Ms Cox deserves credit for using it so firmly. At best, it is unfortunate that the BIU's members brought at least some of the Island's essential services to a halt for most of the day. This was a blemish for the union, which seemed otherwise to be winning in terms of public relations in this dispute.

However, there are a number of issues involved in this dispute and it is still not clear exactly which, if either side, is in the right. Both have made errors of judgment as they made their way to this point. That is why arbitration is so vital; the tribunal needs to first determine all the facts and then make a decision on who is in the right.

Ms Cox's announcement to this newspaper that she now intends to make the code of conduct for businesses legally binding will undoubtedly spark heavy debate in the months to come.

While there is much in the code which is commendable, it is dangerous in a business world which is changing every day to take too much flexibility away from management.

There is every risk that enshrining the code in law could do just that. The danger is that not only will bad managers be caught, and that's good, but innovative businesses will be deterred from making decisions and changing practices which could benefit their employees and the community at large.

That's bad.

Yesterday's editorial was incorrect when it stated that Bermuda College vice president for Academic and Student Affairs Dr. Donald Peters circulated his controversial memorandum to College Board of Governors chairman Randolph Horton. Dr. Peters in fact stated in the memorandum that he had discussed his concerns with Mr. Horton and with the deputy chairman of the board.