over by another firm.

And last night both sides of the dispute involving Paget Dry Cleaners and Hamilton Valcleaners claimed they were in the right.

The war of words broke out after a general membership meeting of the Bermuda Industrial Union on Wednesday.

The Bermuda Industrial Union claim businessman Stephen Thomson, owner of Just Shirts launderers and dry cleaners, who took over the two shops, is union-busting.

And, according to a report in The Workers' Voice, members will meet again this Wednesday to discuss action against Mr. Thomson's businesses, which also includes Mailboxes Unlimited.

The report said Mr. Thomson ignored a collective agreement with the BIU, forced workers at the two shops to sign an agreement waiving the collective agreement, and that he was guilty of "a blatant violation of workers' rights''.

Other allegations were that Mr. Thomson had cut staff pay rates for most of the staff and fired a shop steward.

And The Workers' Voice article warned that if an agreement with the union was not reached, "members have vowed to `take action' against Mr. Thomson which would be felt by each and every company with which Mr. Thomson is associated''.

Mr. Thomson's four firms are listed beneath the headline "Target Companies''.

Last night, BIU president Derrick Burgess declined to comment on what action might be taken against the firms.

But Mr. Thomson said he had not taken over the company, just the shops, and the 22 employees had already been laid off by the old owners.

He said: "We asked if they would like a job with us and said here are our conditions. It's a new company, it's nothing to do with the old company. They just happen to be on the same sites.'' He added: "All the employees had been terminated -- they had no jobs. I was in the process of buying the equipment and I thought it would be kinder and nicer to try and take them on.

"Twenty-two of the 22 employees came along and signed up. We are not a union business, although several of them are still members of the BIU.'' And he said he had taken advice from two law firms and their opinion was that the BIU's threats were a violation of the Labour Act.

He added: "It would appear it would be illegal to threaten boycotting a company before they have even approached us about becoming unionised.'' And he claimed a collective agreement said to be in force had never been signed.

He said that because of the position of the workers, he could not have fired a shop steward as all the workers were already unemployed.

But he added one of the 22, a shop steward under the previous owners who worked as an assembler/packager, had been laid off due to a seasonal downturn in business.

"We had two people doing one person's job. We went to the one who had been there the least amount of time and said we were sorry. But we said we would bring her back as soon as we got busier.'' Mr. Thomson admitted some staff salaries had been cut -- but about half of the staff taken on had received pay increases.

"I contend that the wages and benefits packages are in excess of any other dry cleaners on the Island,'' he added.

Union row "That's why no-one in our other businesses have ever been interested in the union. It can't offer them better than us and it costs employees money.'' But Mr. Burgess insisted that a collective agreement was in force in the two shops.

He said: "The employees were forced to sign a document or they would have no job. You don't do that to people.

"People should be able to see their advisors about documents -- they shouldn't be asked to sign like that. It's totally wrong.'' Mr. Burgess added: "He is taking these workers back almost seven percent. I am not aware if anyone has had increases.'' He declined to comment on Mr. Thomson's legal advice on any possible boycott action.

He added: "If he thinks a boycott would be illegal, he is at liberty to do what he wants to do. We don't take illegal actions -- we never do.''