Hotel's controversial split from the Bermuda Industrial Union this week.

But a discussion between Mr. Pearman and managing director of Pink Beach, Mr.

W.A. (Toppy) Cowen has not swayed the resolve of the hotel to move away from collective bargaining.

Mr. Cowen has introduced new management contracts for the hotel's employees and says only eight members of the 104 staff have failed to sign.

He said: "Of that eight only two are full-time and one of them is the chief shop steward. I am over the moon with the reaction of the staff.

"The people who have not signed will not receive the pay increases of five percent, which has been back-dated today.'' Mr. Cowen offered the bonus for staff who signed the contracts. But he denied it was a bribe.

He stressed that all of the staff at the hotel had been awarded a Christmas bonus in their pay this week.

Mr. Cowen added: "I would hope this will mean we can get on with running the hotel now. We have lots of ideas we want to employ which will be helped by the co-operation of the staff.

"It is going to mean that we can move forward and try to attract the numbers of visitors that we have been able to attract recently.'' Concerning his discussion with the Minister of Labour, Mr. Cowen said that he explained the hotel's position to Mr. Pearman.

"He reminded me of a few things that were necessary. However, it has not changed our direction.'' BIU President Mr. Ottiwell Simmons was last night unavailable for comment.