Union boss Armell Thomas last night backed down from attacking Government's dealings with its HIP staff and issued an unreserved apology.

Mr. Thomas said his comments about the Health Insurance Plan in a press conference last week — which provoked outrage from Health Minister Nelson Bascome — had been based on a miscommunication.

He had expressed anger about what he described as possible job losses to outsourcing and said a contractual consultation clause had not been followed.

Yesterday, he revealed Bermuda Public Services Union's ongoing row with Government had caused him to speak emotionally rather than rationally.

In a statement released last night, Mr. Thomas said: "Within the last few days I made statements criticising Government. These statements related to the outsourcing of several Government services, including the claims processing at HIP and the possible loss of jobs and potential hardships for our members. "It now appears that the information shared with our office is representative of miscommunication between the parties — the union and the employers as it pertains to the lack of enforcing the pre and post consultation clause in the collective agreement.

"As a consequence, I unreservedly apologise to Government and to all whom I may have offended with my intemperate remarks. I am passionate in my efforts to protect the members of BPSU and, possibly as a consequence of recent events, my emotional response prevailed over a more rational approach.

"It is my hope that the Bermuda Public Services Union shall shortly have discussions that deepen mutual respect between the Government and the BPSU, and we can forge ahead collaboratively to the benefit of the public and our members that we serve."

At last Thursday's press conference, Mr. Thomas said HIP staff had been told an American company, Apollo, had been hired to run the department and their jobs were being contracted out.

It followed a meeting between Mr. Thomas, BPSU general secretary Ed Ball had with staff the previous day.

Mr. Thomas told the press conference: "What is the Government looking for from us? If it's war, I will give them war. It's going to be really nasty."

Shortly after, Mr. Bascome hit back by saying the Ministry had met staff to explain a new automation process which was being implemented.

Mr. Bascome said the new system would require the retention of all permanent staff and increase staff levels. He said that claims processing would be outsourced, but the union had not expressed concern as that would not impact permanent staff.

The following day, Mr. Bascome made a Ministerial statement in the House of Assembly, saying the union had shown an "incredibly irresponsible display of leadership".