Nearly 30 redundancy-threatened employees are tomorrow expected to learn their fate after Premier Ewart Brown's plan to shake up the North American Tourism Office overcame a legal block.

So far only one person is said to have found alternative employment since Dr. Brown announced the controversial appointment of US firm Sales Focus to replace long-serving Bermudians in July.

The remaining 27 or so have been continuing to work in an atmosphere of fear while hoping the courts would put a block on the Premier's proposal, according to one staff member who spoke to The Royal Gazette last night.

However, those hopes were dashed this week when Bermuda Public Services Union revealed it had dropped its push for a judicial review — clearing the way for Dr. Brown's outsourcing scheme.

Lawyers had previously said they were extremely confident the union would win its case because Government broke its contractual agreement by failing to hold consultation before the appointment of Sales Focus.

They pointed to Permanent Secretary Cherie Whitter's comment to staff that the Ministry of Tourism and Transport had been planning the move for months but the Premier kept it quiet because: "Unfortunately, that is the way Government works."

But legal sources say it was unlikely Government could have received anything more than a slap on the wrist anyway because it had rushed through the binding contract with Sales Focus before BPSU managed to put the injunction in place.

And BPSU boss Armell Thomas confirmed yesterday that the union had accepted Justice Kawaley's advice to settle the issue out of court.

Mr. Thomas said the short-lived court case had at least given the union time to thrash out a deal with Government, that redundancy packages had now been put together for staff and that "most staff members were able to secure jobs elsewhere".

The employee who spoke to this newspaper said things were not so positive, with the only jobs available being two as business development managers and several in administration and marketing.

Dr. Brown previously said staff members returning to Bermuda would be offered jobs in Government, but the staff member told us: "No one at all has been given a job in Bermuda.

"There are very few jobs available. It's very unlikely people will find jobs immediately.

"We have been working since the day of the announcement on July 8. People are still conducting business as per usual. The atmosphere is one of fear, hostility, unsettling.

"People still don't know. It's been two solid months. Twenty-seven people still don't know. Come this Friday there will be the first announcement of who gets what job.

"Most people have to return to Bermuda within 60 days from the last day of their job. Out of all the employees, a small percentage are married to Americans and can stay.

"Everybody else has to return to Bermuda with no promise of any employment: picking up their lives, putting their kids into a new school in the middle of a school year, finding a home.

"Staff were absolutely shocked that the injunction was lifted.

"We had heard rumours but it was confirmed in the newspaper. We feel that the Government has put pressure on the union and the union has just collapsed."

Mr. Thomas said the union had initiated action in response to Government's failure to follow the correct process. He acknowledged some staff were unhappy with the redundancy packages but said the union had got the best deal possible.

"This all could have been solved if only they had dialogued earlier," he said.