Axed Continental Airlines staff "reluctantly" reached an agreement with their former employer, according to Bermuda Industrial Union President, Chris Furbert.

So a BIU general membership meeting planned for 10 a.m. today was cancelled and Mr. Furbert said further information about the agreement would be revealed in a press conference.

Problems began in September this year when Bermuda-based Continental staff were sent letters informing them of their redundancy effective October 6. The 13 positions were outsourced to another company, said to be Sovereign Flight Operations without offering the Bermudian employees a chance to be kept on.

According to a spokesperson for the airline, the choice to outsource the jobs was due to the financial crisis and that the decision was part of a global move to downsize.

The union was upset the decision was taken without consultation when it won a ballot last year to represent Continental workers, though a spokesperson for the airline said discussions had been ongoing since last year.

A further sticking point was the difference in backpay.

According to Labour Minister, Senator David Burch the staff wanted a three percent increase starting from July 1, 2007 and 3.5 percent for July 1, 2008, while the airline was offering 2 percent for both years.

Last night Mr. Furbert said he could not elaborate on what yesterday's agreement contained, adding only that: "The staff and the management have reluctantly come to an agreement therefore the meeting has been cancelled."

During a press conference yesterday afternoon Sen. Burch said the difference in backpay deals was about $400 and that there was nothing he could legally do to change the offer.

"The terms and conditions that were offered by Continental Airlines to the 13 staff members goes over and beyond that which is required by the Employment Act.

"Consistent with settlements worldwide, the airline has offered two percent in 2007 and two percent in July 2008. The Union is asking for three percent and 3.5 percent.

"The disagreement surrounds one percent and 1.5 percent. In reality the dollar value of this is about $400.

"So to be clear, Continental originally gave notice of employment termination effective October 6, 2008. They offered two weeks pay in lieu of notice and statutory redundancy pay as well as pay for any unused, accrued vacation.

"In the absence of a Collective Bargaining Agreement – there is no legal mechanism to force Continental to provide redundancy benefits beyond the Employment Act."

The Minister added that discussions between the union and the airlines would continue, but because of the intended BIU meeting, transportation for the PGA Grand Slam Tournament was rearranged.

In a press release from the Premier's press secretary, Glenn Jones, last night, the public was encouraged to use motorbikes — which park at lot B at Mid Ocean Club — rather than cars. And those with cars will park at Smith's Parish Council Field and Marsden Methodist Church before 9 a.m. in order to board shuttle buses.

Parking at Shelly Bay for the public and the Government Quarry for volunteers will be closed because of the lack of public buses and a private transport company would be employed for runs midmorning.

There was no word last night whether or not these conditions would continue for today following the meeting cancellation.