has been accused of racism.

And the senior shop steward has told general manager William Shoaf that staff are unaware of who may have circulated a memo alleging that he made negative comments about black people during the World Conference of Mayors in November.

The woman -- who asked not to be named -- said she was upset at the allegations and knew of no one who witnessed the incident.

"No we don't know about the incident,'' she said. "It may have happened, but none of the staff know about it. It would have been brought to my attention.'' She added: "He explained to me that he would never have acted that way. He doesn't seem racist to me. He speaks to everybody.'' On Thursday Mr. Shoaf responded to the allegations by denying that he would make "such inflammatory comments''.

The memo alleges that Mr. Shoaf derided an ethnic art and clothing exhibition that was being set up in the hotel foyer, then ordered that it be taken down.

He was alleged to have said: "The next thing you know they'll be walking through the foyer in their gowns and frying chicken outside.'' Last week Mr. Shoaf said the memo writer had "wildly embellished'' the situation and that he had only found the stalls and art was being put up without his permission.

He later allowed the art to stay but had the clothing removed because vendors had not received permission prior to the event.

Last night the shop steward said: "He is the type of man that I can go directly to and he finds time for me. He is not a racist and it did not come from us, the workers.'' She added: "I was very upset when I learned of it on Friday. It makes it look like it was Elbow Beach workers and it's not.'' DISCRIMINATION DIS