they are ready to sign a workers contract with the Bermuda Industrial Union.

The go-ahead decision effectively splits the Hotel Employers of Bermuda (HEB), the negotiating arm of the hotel industry.

Sonesta Beach Hotel, the two Princess properties, Marriott Castle Harbour Resort and Trusthouse Forte's Belmont Hotel and Harmony Club said they wanted to sign the contract.

Together the properties represent 68 percent of the hotel rooms in the 20-member HEB.

The Elbow Beach Hotel, which broke from the HEB last week, remains the only large property not to signal willingness to sign the agreement.

Hoteliers at large properties yesterday indicated their decision to sign the deal was based on recognition of the union as a fact of life in Bermuda's hotel business.

It is understood the smaller properties see their current no-contract status with the union as an opportunity to break away from the union.

Their thinking is bolstered by a recent Disputes Board ruling that found no collective bargaining agreement existing between the BIU and Grotto Bay.

One hotelier last night expressed disagreement with the position.

"The fact that there is no collective bargaining agreement does not mean there is no BIU,'' he said.

"They may think they're free of the union and that if they don't sign they're going have freedom to run their hotels. But anytime the workers want the union back in it'll be in.'' Until yesterday afternoon, the HEB maintained a united front in demanding changes in legislation before signing on to the hotel workers contract mediated by American professor Ronald Haughton.

Its major criticism is a clause in the Labour Relations Amendment Act that says an existing contract will remain in force if the two sides "fail to conclude a new agreement.'' Yesterday, HEB executive officer Mr. John Harvey indicated the HEB would continue pushing for legislative changes. A written critique of the legislation has been sent to the Minister of Labour and Home Affairs.

It is believed the decision by the large hotels came after meetings which saw basic differences on the issue aired.

"It's a very emotional issue,'' one hotelier said. "We think the union is a big part of our culture and we don't think we have the right to mess around with it. That's where the small properties are making a mistake.'' Sonesta director Mr. David Boyd said his hotel would sign the Haughton contract because the union exists in the hotel.

"It was never Sonesta's intention to try and work without the union at this hotel, nor do I think it ever will be,'' he said. "The union represents our workers.''