hotels.

And the Bermuda Industrial Union and Hotel Employers of Bermuda Collective Bargaining Agreement was settled without third party intervention for the first time in nearly two decades.

The deal also marked the coming of age of the new spirit of cooperation between unions and management, as they work together to set the stage for tourism recovery.

HEB president Norm Mastalir, general manager of the Fairmont Southampton Princess hotel, said there was a togetherness which had enabled the accord to be reached.

He said there was now respect between the parties which enabled lines of communication to be maintained and compromises reached.

"I think it is an exciting new concept and programme that is going to help us move forward,'' he said.

"The tourism industry is on the right road, we are making little gains every day but it is going to be a tough thing to accomplish. We have to celebrate successes and we will build on them.'' Yesterday at the BIU headquarters, union officials and hoteliers gathered to formally sign the agreement.

The deal covers conditions of work and benefits, including wages and a pledge to work toward a gain sharing scheme within the industry.

BIU president Derrick Burgess said the affinity between the two sides would help tackle some issues facing the industry.

"It is good when both sides recognise we have a problem and recognise we have got to work together to put it right,'' he said.

Both parties acknowledged the need to raise standards within the industry to giving better service to vacationers. In addition, they hope the collective bargaining agreement will help avoid industrial trouble.

"Everybody is working together to get back to the level it should be at -- the level we had in the '60s and '70s, I believe we can get there,'' said Mr.

Burgess.

"We know we have to change here, it is a challenge.'' The union leader added that years ago, Bermuda tourism was in competition on its own, but now had to compete with the world.

HEB director John Harvey paid tribute to the contribution of all parties concerned.

All smiles: BIU president Derrick Burgess, left, and John Harvey, right, share a joke during yesterday's signing.