COMMUNITY activist Raymond Russell is to sue Government regarding claims the Cabinet Office has consistently turned a blind-eye to the Bermuda Industrial Union (BIU) dipping into a fund established for elderly, sick and disabled members and using the money to pay its running expenses and officers' salaries.

Members' dues saw the fund grow to more than $22 million but despite the many needy cases in existence, only a small portion of that money has been given to those in need over the past ten years, said Mr. Russell.

"Most of that money has gone towards salaries - which are in excess of $1 million per year - and expenses," he said. "If the BIU was filled with decent people, they would have set it aside for the workers. But they knew they were dealing with functional illiterates and could take advantage of them.

"Government has allowed them to do that and Government needs to be sued. I will be taking legal action against the Minister of Labour & Home Affairs, Terry Lister, and the Registrar General, Marlene Christopher, in regards to the BIU for circumvention of the 1965 Trade Union Act in regard to Section 11."

According to Mr. Russell, Section 11 of the Act reads, in part, as follows:

"With respect to the registration of a trade union and of the rules thereof, the following provisions have effect:

(i) that having regard to the constitution of the trade union, the principle purposes of the trade union are statutory purposes and (ii) that the provisions of this section and of any regulations made under this act with respect to registration have been complied with."

Activist Mr. Russell said that members paid $10 a week in dues and, if unable to work, received either a lump sum of $2000 or $50 per week.

"The Union's not living up to its responsibility to its members. I was so sure the Progressive Labour Party would do the right thing, but they've done worse than the United Bermuda Party.

"Out of $22,442,429, they've only paid $390,805 over a period of ten years. What's left for people if $9 out of the $10 they pay is going to BIU salaries? The bulk of the income dues comes from people who they've treated like stepchildren. Bermuda's hotels have had five vicious months, no money was given to any of our workers."

Mr. Russell cited many examples of hotel workers who had been refused payment or ignored by the BIU after they had taken ill.

"There's a 56-year-old women, a young woman, who will never work again. She went to the Union and no one would even talk to her. They told her there was no superannuation fund. These workers pay $10 a week in dues and expect when anyone is sick, (the BIU will) pay out but when someone's sick (the BIU) hopes they don't call. I know a woman who spent 30 years working at a hotel, got sick and died. Her family had to call and beg the Union for assistance.

"And there are six now that I know of, in hotels who should not be working but they are because they need the money; room attendants who work and are bending up and down doing the lifting and bending over. It's all dangerous work. It's (female workers) who made the Union strong, and most of the people who are suffering are women.

"The BIU should be living up to its responsibilities. It's just about (trying to) control people through doing that type of thing. They've got people in a bad shape who shouldn't be working but they need the money. We have 1,800 hotel members who have put $700,000 in. There was a loss of business to the hotel and the biggest contributors to the fund are the ones suffering. This is something worthy that's being done on their behalf. All (the BIU and Government) have to do is follow the Act. We need to have a union for hotel workers that is apart from the Union. These are people who are taking advantage of poor workers."

Mr. Russell added that one look at the BIU's financial statements should have been enough to tip its accountants off that something was awry.

"When (the BIU) had 5,800 members and we lost 1,400, they increased the staff by 20 percent. It was totally unnecessary. They just fired Calvin Smith from the Credit Union and the BIU hired him as a research officer. Why do we need a research officer or an education officer? All that money (is) going into salaries. I know that Terry Lister, when he was working for (the accounting firm of ) Deloitte & Touche, was signing off on the financial statements knowing that they weren't right. And it had to be the same for the Registrar General. I took the Union to court before so they know I'm crazy like that. Once I'm in court, I don't have to win the case but (every little action) changes things. Many laws (might one day) change if I go to court."