and improper hirings and firings at Grotto Bay Hotel, the Senate was told yesterday.

The Hon. Michael Winfield, the Government leader in the Senate, said the probe is being conducted by the Minister of Home Affairs.

Sen. Alex Scott, the PLP leader in the Senate, asked for an update on the Grotto Bay situation and asked Government to closely monitor what is happening in the hotel industry.

"The fact that many of the hotels elect to break the relationship with the Bermuda Industrial Union does not speak well to our collective interest,'' he said.

Earlier, Sen. Scott complained at least two Bermudians were removed from their posts at Grotto Bay in recent months and replaced by a contract worker.

Sen. Scott also claimed a contract worker said he would have "all the niggers'' in the Grotto Bay dining room replaced by his non-Bermudian friends.