Labour Minister the Hon. Irving Pearman's decision to refer the row to a board of inquiry has provoked anger.

The Hotel Employers of Bermuda (HEB) argues the Essential Industries Disputes Settlement Board has already ruled in its favour.

Hoteliers say the board did not order them to pay workers for 1992 gratuities.

This has been fiercely disputed, however, by the Bermuda Industrial Union.

Yesterday some HEB members met to discuss the proposed April 19 hearing into the dispute.

HEB president Mr. Roger Borsink said hoteliers could challenge Mr. Pearman's referral in court, and decide not to attend the hearing.

"That is certainly one option, but it's one of about ten we are discussing,'' he said. "Obviously we have to make a decision fairly soon.'' HEB lawyer Mr. Alan Dunch last night said: "We are continuing correspondence with Mr. Pearman's Ministry. I hope we can persuade him to withdraw the reference.''