Hotel management and the BIU reached an agreement to end a two-day labour disruption after nearly ten hours of talks.

"Bermudians, workers, and the hotel are all winners in this situation,'' said Acting Labour and Home Affairs Minister the Hon. Michael Winfield, who mediated the talks with Labour Relations Officer Mr. Edwin Wilson.

The workers will resume their regular schedule today and hotel management will resume deduction of Bermuda Industrial Union dues from their paycheques.

Recent cancellation of the dues check-off -- which cost the BIU more than $8,000 a month -- sparked the strike threat at the Paget hotel.

Elbow Beach managing director Mr. John Jefferis and BIU president Mr. Ottiwell Simmons MP sat down with officials at noon at Stonington Beach Hotel. They broke only once and emerged with an agreement at about 10 p.m.

Government's Essential Industries Disputes Settlement Board is to convene as soon as possible to resolve outstanding issues, and the two sides are to begin "regular meetings'' assisted by the ministry.

The deal came at the end of a day when Elbow Beach management turned the tables on protesting workers by locking them out.

Staff arrived at Elbow Beach and met a phalanx of Police and hotel security.

They had names of 35 workers who would not be allowed in.

Those turned away set up a picket line at the main gate on South Shore Road.

Most other workers did not try to cross.

But Mr. Jefferis said about 100 workers were let in to serve guests. They were helped by a number of replacement workers he described as "Bermudian volunteers.'' Mr. Jefferis did not deny reports that managers from at least one other Wyndham Resorts property had flown to the Island to lend a hand.

"I think we've got things in good shape,'' Mr. Jefferis said. The hotel's 600 guests "have dreams and they spent a lot of money, and it's up to us to make sure those dreams come true.'' In contrast to Thursday, breakfast in the dining room was peaceful. A day earlier, about 80 workers launched their long-threatened job action by disrupting breakfast and occupying the kitchen and main dining room until they went home about 8 p.m.

The dispute began in February when Elbow Beach management sought to cut its ties with the Bermuda Industrial Union and offer a new deal to its 300 workers.

Guests interviewed by The Royal Gazette yesterday had few complaints. Meals and drinks were served, and linen was changed, they said. Only room service was lacking.

But some guests were disgusted when drivers of five Public Transportation Board buses refused to pick them up for a chartered tour of Hamilton.

Mr. Glenn Wilcox, president of Wilcox World Travel and Tours in Asheville, North Carolina, said he led about 100 clients to the nearest bus stop on South Shore Road after drivers refused to enter the hotel property at 9:30 a.m.

But after Mr. Simmons spoke to drivers, they would not allow the visitors to board at the bus stop either. The buses returned to the PTB.

The union chief then appealed to the visitors, offering to lead them into Elbow Beach to confront Mr. Jefferis. "Once we get an agreement, you get a bus,'' he told them.

"We're just bargaining chips,'' shouted one of the frustrated visitors. "I want to go to Hamilton,'' said Mr. George Ledford of Asheville. "I couldn't care less what dispute they have. They can work that out themselves.'' Mr. Simmons told reporters the drivers were showing sympathy for the hotel workers, but PTB director Mr. Herman Basden said they were confused and intimidated.

"Things got a little hot,'' Mr. Basden said. The drivers were "rather timid of going across the picket line.'' As for picking up guests outside the hotel, they "wanted further assurance that what they were doing was right.'' "It was not a sympathy strike or anything like that.'' Drivers did not have to cross the picket line, but should have picked up visitors for the charter tours at the nearest stop, said Mr. Basden, who would not say whether the drivers would be disciplined.

In another incident about 8.30 a.m., Mr. Simmons accosted a visitor crossing the picket line who he mistook for a hotel worker.

"Don't break the line,'' Mr. Simmons repeatedly told the man, who was riding a rented cycle.

The man appeared confused until Police and hotel security alerted Mr. Simmons the man was a visitor. The union chief apologised. "I didn't know you were a tourist,'' he said.

About 10 workers carried placards and walked the picket line while about another 50 milled around nearby. They did not obstruct taxis and other vehicles that passed through.

There was a large number of Police, both in uniforms and plain clothes, around and inside the hotel. Police would not say how many.

"I was shocked out of my shoes today to see such a Police presence,'' Mr.

Simmons said. "I'm now satisfied Bermuda is a Police state. It's almost like a Gestapo.'' Summonses were issued to the five BIU officials cited for trespassing at Elbow Beach on Thursday. They are to appear in plea court on Monday.

Mr. Simmons repeated his charge the hotel owners were breaking the law, and called on the Bermudian public to say: "Enough is enough.'' LOCKED OUT -- Elbow Beach Hotel staff picket at the edge of the South Shore Road property yesterday. When they showed up for work, they met a wall of Police and hotel security.

OUTSIDE LOOKING IN -- Elbow Beach management turned the tables yesterday and locked out workers who protested on Thursday. Here, BIU president Mr. Ottiwell Simmons MP is confronted by hotel food and beverage director Mr. Stanley Ray (left) and security director Mr. Raymond Smith.