Island's hotels if Government does not force the Grotto Bay Beach Hotel to reintroduce the mandatory gratuity system.

And yesterday the Hotel Employers of Bermuda criticised the move, saying it was unfair to bring its members into the dispute when Grotto Bay had already left the organisation.

BIU president Mr. Ottiwell Simmons sent the threat in a letter to Home Affairs Minister the Hon. Irving Pearman last week.

Mr. Pearman confirmed yesterday he had received a letter from the BIU and was planning to meet with the union this week. He did not reveal the contents of the letter. Mr. Simmons could not be reached for comment.

But a copy of the letter obtained by The Royal Gazette states that the BIU will take industrial action in other hotels around the Island if Government does not force Grotto Bay to comply with the Essential Industries Disputes Settlement Board's ruling.

Board chairman Mr. Ronald Houghton ruled the hotel should reinstate the pay scales and the mandatory 15 percent gratuity, which it replaced on January 1 with improved basic wages and free tipping in an bid to improve occupancies.

The hotel, which refused to take part in the board hearings, has also refused to obey the ruling. Government has said it is up to the union to seek enforcement of the rulings from the courts.

Mr. Simmons' letter, dated April 16, said Grotto Bay had defied the March 27 ruling and the hotel's employees were being deprived of their rights.

"Additionally, the Grotto Bay management are refusing to cooperate with the union shop stewards and union officials,'' he said. "In this regard, shop stewards are not able to file or have grievances addressed by management.

"The union general secretary has been refused permission to meet with our members at the hotel for the purpose of informing them of the board's findings,'' he said.

"The situation at the Grotto Bay is frustrating and demoralising for people who placed their faith and confidence in the hands of a legally constituted essential industries disputes settlement board.'' He asked that Government take the necessary steps, under the appropriate legislation, to force Grotto Bay to comply with the Board's rulings.

"Failing your ability to find a quick and speedy remedy to this situation, you will leave the union with no other alternative but to call on all union members in the hotel industry to take appropriate industrial actions in order to achieve our constitutional rights -- the compliance with ILO Conventions -- and insist on Grotto Bay management's to abide by the board's findings.'' Mr. Pearman said he could not comment on the contents of the letter until he talked to Mr. Simmons on Friday morning.

HEB executive vice president Mr. John Harvey said it was unfair to draw the HEB into the dispute when Grotto Bay was no longer a member.

"If the BIU is saying it will call on other hotels to support industrial action, they are clearly not in line with the Country and they do it at their peril,'' he said.

"The point is the HEB has no influence with the Grotto Bay and nor do the other hotels. So to put pressure on the Government and to make the hotels suffer in this way is grossly irresponsible.

"The industry is suffering from enough uncertainty as it is and when this is written up in the Press it does not augur well.''