Controversial labour legislation brought in to safeguard the hotel industry from industrial strife could be scrapped.

Labour Minister the Hon. Irving Pearman said yesterday the future of the Labour Relations Amendment Act 1991 (Essential Industries) was under review.

The matter was being discussed by the Labour Advisory Council.

Mr. Pearman hinted at possible repeal of the Act during yesterday's Budget debate in the House of Assembly on the estimates of his Ministry.

But he dropped no clues as to whether the Act would be replaced by other legislation.

Later he explained to The Royal Gazette the difficulties surrounding the legislation, and the dilemma facing Government.

He said both the Hotel Employers of Bermuda and the Bermuda Industrial Union agreed the Act was not working.

But neither side was in favour of dropping it.

"That is industrial relations in Bermuda for you,'' said Mr. Pearman.

He explained the small HEB hotels opposed the Act, believing it would bond them forever to the BIU.

For this reason, they had refused to come to the negotiating table during the current round of hotel contract talks.

"It is a real concern to me, and should be of concern to the community,'' Mr.

Pearman told MPs yesterday.

Mr. Pearman told The Royal Gazette he believed the interpretation of the law by the smaller properties was incorrect.

His legal advisors, he said, had informed him the Act would not bind the properties in perpetuity to the BIU.

Mr. Pearman said the future of the legislation was on the agenda of the Labour Advisory Council.

Personally, he had no problem with scrapping the legislation if it was a stumbling block to labour relations. But Mr. Pearman declined to predict whether it would be repealed.

It was in June 1991, MPs passed the legislation which made hotels an essential industry.

The legislation enabled a Labour Minister, as a last resort, to refer disputes to an independent board for settlements.

It barred industrial action by employers and employees once referral had been made.

At the time the Bill was passed, the then Labour Minister the Hon. Sir John Sharpe said the legislation offered hotel workers a process to resolve differences without resorting to industrial action and consequent loss of pay.

It would also benefit hoteliers.