refused to sign an agreement with the union.

HEB executive director, Mr. John Harvey has blamed clauses in the Labour Relations Amendment Act 1991 for the latest holdup.

And the Bermuda Industrial Union has refused to get involved in the matter saying that it is between the HEB and the Government.

BIU President Mr. Ottiwell Simmons says the HEB have no choice but to abide by the agreement, by law.

The collective bargaining agreement was expected to be signed this week after months of wrangling, with some hotels banning union involvement in their own talks.

But, in January, the situation seemed to have resolved itself, when both sides grudgingly accepted the contract based on the award by Prof. Ronald Haughton and his Essential Industries Disputes settlement board.

The award provided a four-year settlement with wage rises of five and two percent for 1991 and 1992, respectively, for live-out employees, and 2.5 and two percent for live-in staff.

At the time Mr. Harvey described the settlement as "expensive'' for members of the HEB, but signs were that they would rubber stamp the proposals, this week.

Similarly the BIU had agreed to the settlement although they described it as "disappointing.'' Then, yesterday, after an emergency HEB meeting, Mr. Harvey said that his membership was unwilling to sign the new collective bargaining agreement.

He said that the HEB membership is concerned about clauses in the Act which will mean that any new collective agreement will bind its member hotels forever. He said that provision was not agreeable.

Mr. Harvey said: "Our position on this subject was shared with both the BIU and the Minister of Labour and Home Affairs, and hopefully it can be resolved in the not-to-distant future.'' Mr. Harvey stressed that the HEB decision does not alter or hinder the previous decision to adhere to the Haughton Board's award and said that employees within the hotel industry "will in no way be affected.'' But the BIU President Mr. Simmons was adamant last night that the union's hotel division would play no part in the latest development after agreeing to the Haughton award.

Mr. Simmons said: "As far as we are concerned the HEB is legally bound to operate under that agreement.

"Mr. Harvey has spoken to me and made some mention of this but we have received no official notification of any decision.

"I have nothing further to say about this disagreement because it is between the HEB and the Government.''