Bermuda Industrial Union's sincerity about wanting to improve relations between the two parties.

And he asked whether the negotiating team of the union was willing to take any responsibility for the deteriorating relationship.

In a fiery exchange at times, Mr. Shawe spent the day cross-examining BIU hotel division president Mr. Herbert Bascome before the Essential Industries Disputes Settlement Board.

Mr. Bascome, on Thursday, stressed both sides must get serious about improving their relationship for the sake of Bermuda's hotel industry and Bermudians.

He gave examples of how unionised staff at the Southampton Princess, where he is chief shop steward, have attempted to improve conditions between management and staff and increase productivity.

Giving one example, Mr. Bascome said unionised staff had called for and offered to pay for comprehensive medical insurance which included coverage for doctor's visits and home visits. He pointed out that such a plan was recommended by the Hobgood Award and management had it.

But Mr. Shawe noted the expense of such insurance coverage and questioned whether other employees would agree to pay more for it.

Mr. Shawe also asked whether the union initially agreed to the Hobgood Award then later rejected it.

"Mr. Hobgood promised us he would not deviate from this (1988-1991) collective bargaining agreement,'' Mr. Bascome said. "He said it (the award) would be in line with it.

"But the two did not even come close. So he did not keep his word to us.'' Mr. Bascome said when the union explained the award to its general membership, they unanimously voted against it.

Mr. Shawe asked if any responsibility was laid on the union negotiating team.

Mr. Bascome said the team fulfilled its responsibility by going to the membership.

When asked if he thought the union's rejection of the award led to the "deterioration of the relationship between the union and HEB, Mr. Bascome said: "No, the deterioration between the BIU and HEB started when they terminated this collective bargaining agreement in February, when they stopped taking our union dues. That showed the feeling of the employers toward the workers.'' Mr. Shawe asked whether the union was also denying responsibility for the "strike'' in July.

Mr. Bascome said the union never called a strike, " The Royal Gazette called the strike''.

Mr. Shawe also questioned Mr. Bascome at length on sick leave, absenteeism, the gratuity system recommended by the Hobgood Award and meetings leading up to the Hobgood Award.

As the hearing adjourned yesterday until November 9 -- due to other commitments by Mr. Shawe and some board members -- Mr. Simmons reminded the board that the union was asking retroactive pay for its workers dated back to February 25, 1991, the day after the old agreement expired.

Mr. Shawe pointed out the HEB is proposing retroactive pay dating back to May 24, 1991 as recommended by the Hobgood Award.

Mr. Stephen Shawe.