says it is only temporary.

And the PLP MP says the union will continue to fight for its members despite its financial worries.

He admitted yesterday that, for the first time in recent history, the union was overdrawn.

That meant it was unable to pay benefits that its members had relied on in the past.

Mr. Simmons said: "We are having problems but it's nothing to do with the recession or any inefficiency in management. It has been caused by the employers.'' But he remained adamant that the union would continue to support those members as much as possible and would not be moved from its offices if that was threatened.

"If they come in and try to move us we will occupy the offices. We will continue to fight for the rights of the workers of Bermuda.'' Mr. Simmons said that the BIU had in the past invested money "in buildings'' which its creditors could not touch, but it now faced a cash flow problem.

The BIU president said that the actions of employers, mainly the hotels, had starved the union of much-needed cash. And the situation had not been helped defending expensive court cases.

Many of the cash problems arose in February, 1991, when 20 members of the Hotel Employers of Bermuda discontinued to operate the "check-off'' system by which union dues were deducted from workers' wages.

This continued for a period of six weeks during which time Mr. Simmons estimated that the union lost $120,000. And because of the financial strain that it would have caused those members to take the money in a lump sum it could not be regained.

Since then the Palm Reef, Grotto Bay and Mermaid hotels have stopped check-offs completely, with a similar threat from the Pink Beach Hotel.

Check-off is a system which employees can choose before starting work. Mr.

Simmons said that agreement is bound by law and if it was stopped it should be at the request of the employees and not the employer. He said: "It is part of the law. The employers are recklessly going along without any regard for the law and I am sure they know it.'' Problems increased when hotels closed down or businesses went bust because, again it meant union dues were not being paid, he added.

Mr. Simmons said: "It's a hell of a lot of money out of the union. We still have our staff to pay, and the electricity and telephone bills. We have lost all that money but still have the same overheads.'' The union was also forced to send some of its distressed members to social services because it was unable to pay financial benefits.

"We all pay for social services out of our tax so our members should use them.'' "The employers have effectively starved us of cash for the time being. Sooner or later the employers and the Government will see that it is not in their interests to come over here and wreck the union.

"We are here to help this community and to give some stability in hard times.

We encourage our members to produce and assist employers in making their profits.

"We are not just here to defend ourselves and organise strikes. They may ruin us financially for a short time but we will not be defeated.''