Bermuda Industrial Union president Chris Furbert yesterday accused Continental Airlines of "disrespect" over the way it has handled the axing of 13 jobs on the Island.

Mr. Furbert said at a press conference that the union would be encouraging its members to boycott the airline and would "do what we can to make sure Continental does not fly to this country".

But last night, Government reacted quickly to lessen the potential damage to the Island's relationship with the airline company. Acting Tourism Minister Elvin James called Mr. Furbert's comments "most unfortunate" and said the department highly values it relationship with all airline companies.

Continental has enraged the BIU by outsourcing all 13 of its jobs on the Island to another company, said to be Sovereign Flight Operations, without offering local employees the chance to be kept on.

It is claimed the decision was taken without consultation with the BIU, which won a ballot last year to represent Continental workers at L.F. Wade International Airport and the ticket office in Hamilton, although last night a spokesperson for the airline said discussions had been on-going since last year.

The two sides have since been trying to negotiate a maiden agreement without success and the Department of Labour was brought in to mediate.

"What the BIU finds very disrespectful is that Continental Airlines made the decision to outsource without informing the BIU," said Mr. Furbert. "At the last mediation meeting held on September 7 there was no mention of outsourcing. The way we found out about outsourcing was a letter on September 10.

"Mr. Furbert said the worst insult was that workers expected their last official day to be Monday but were told by Continental staff on Sunday not to bother showing up the next morning.

"They basically asked for the keys and said from their point of view they were terminated. They came in like hit persons. It was very, very, very disrespectful."

Some staff members not in work on Sunday found out from four taxi drivers sent to deliver letters to their homes.

Dorothy Peniston, 69, of St. George's, who had notched up almost ten years as an airport sales agent with Continental, said: "I was very angry and very sad and disappointed that they could treat us like this.

"I went to work every day for Continental. I enjoyed working for the company and I'm very, very disappointed in how they handled this situation."

Mr. Furbert said he found it astonishing in 2008 that an employer who was a guest in this country could treat staff that way, adding that it was a "sad day for labour relations".

"This union will not tolerate that kind of behaviour from any employer," he said. 'If the employer thinks they are going to disrespect us by doing what they do, this organisation will not take this lying down."

He pointed out that Eastern Airlines was run out of Bermuda about 30 years ago due to its "anti-union behaviour". "I'm not saying we want to do that with Continental but we want them to operate fairly. We will encourage our members not to fly Continental.

"We will ensure to do what we can to make sure Continental does not fly to this country. If they are not going to operate fairly, we won't accept that."

The BIU's general council was due to meet at noon yesterday to decide a course of action. Mr. Furbert said the union would be pushing for members to get a retroactive pay rise dating back to July 2007 which they had never received.

He said Continental promised the increase after staff went without wages during a financial crisis for the airline in 2005.

Mr. Furbert shared a letter with the media sent by Continental Airlines on May 17 last year promising a two percent increase on July 1, 2007 and July 1, 2008. The BIU asked for three per cent and 3.5 percent.

The BIU chief also criticised Labour Minister David Burch for not meeting with him yesterday morning on the issue. Somebody should have found the time this morning to come to the BIU," said Mr. Furbert. "To me, it's not acceptable."

A Continental spokesperson said last night that all flights were running between New York and Bermuda as normal.

She added:"We have been working with the union since the Spring of 2007 on an agreement for employees in Bermuda and during the course of consultation we have offered several fair proposals, which included extended travel privileges, all of which were rejected by the BIU."

Said Minister of Labour, Home Affairs and Housing, Senator David Burch: "We are just as concerned as the president of the BIU about the loss of jobs at Continental Airlines.

"I have spent the entire afternoon in meetings both with the Council of the BIU and internally trying to resolve the impasse. Discussions directly with Continental Airlines will continue (this) morning."

In a statement yesterday evening, acting Tourism Minister Elvin James said: "The Bermuda Department of Tourism highly values all of its relationships wih its air partners, including Continental Airlines."

Referring specifically to Mr. Furbert's 'boycott' remarks, Mr. James added: "Such comments issued today by the BIU president are most unfortunate, as Continental not only services the wider population of the Island, but international gateways that are vital to the success of Bermuda tourism.

"We clearly understand that these are very challenging times in the global economy and we hope the best interest of the workers and the country can be simultaneously achieved."