Hotel had continued, the Acting Labour and Home Affairs Minister said yesterday.

But the Hon. Michael Winfield maintained Government only mediated Friday's settlement of the two-day affair, and did not wield a stick over the head of hotel management or the Bermuda Industrial Union.

"I commend the way both sides overcame their emotions to solve the problem,'' Sen. Winfield told The Royal Gazette .

After trouble last summer, "the signal Bermuda was sending was that here at the beginning of the season we had labour disruptions again. We faced serious consequences,'' including the likely closure of the 298-unit Paget hotel.

Long-threatened job action began on Thursday when a group of workers disrupted breakfast in the main dining room, which they occupied along with the kitchen until about 8 p.m.

On Friday, the hotel locked out 35 employees involved in the disruption. Those turned away set up a picket line that most others did not try to cross.

But starting at noon, hotel managing director Mr. John Jefferis and BIU president Mr. Ottiwell Simmons MP met for nearly ten hours with Labour Ministry officials before striking a deal to end the hotel strife.

In a statement released late on Friday night, Sen. Winfield said the two sides agreed the Essential Industries Disputes Settlement Board would convene as soon as possible "to address all areas in dispute.'' It is hoped the board will be convened within three weeks, Sen. Winfield said yesterday, adding he believed it was "the intent of both parties'' that its ruling will be binding. Management and the union have also agreed to meet regularly through the Labour Ministry to see what they can resolve without arbitration.

Elbow Beach workers resumed their regular schedules on Saturday, and management will resume deduction of union dues and credit union fees from workers' paycheques.

Cancellation of the union dues check-off -- which would have cost the BIU more than $8,000 a month -- sparked the strike threat. Mr. Simmons said the survival of the BIU was at stake.

Sen. Winfield dismissed a question as to whether the hotel still wished to split with the BIU as "counter-productive.'' Mr. Jefferis and Mr. Simmons had little to say yesterday about the agreement.

Both said comments should come from Government.

"I'm very pleased that the hotel is open,'' Mr. Jefferis said.

Mr. Simmons said he was pleased workers were back on the job. "I'm hoping that this is the beginning of the end of some of what I consider the unnecessary problems we've been having,'' he said.

The BIU has called a meeting at 3.30 p.m. on Thursday to update Elbow Beach workers, Mr. Simmons said.

The hotel and union representatives were in separate rooms for much of Friday's marathon session, with Labour Ministry officials shuttling back and forth, Sen. Winfield said.

"There were moments when I was extremely concerned,'' he said. "There were moments when people were tired and irritated.'' Labour and Home Affairs Minister the Hon. Irving Pearman was to return to the Island last night.