Talks aimed at thrashing out a new deal for hotel workers have gone into mediation after unions and management could not agree.

The Bermuda Industrial Union is to meet with Government assistant labour relations officer Neville Darrell on Friday in a bid to seek a solution to the new collective bargaining agreement.

BIU president Derrick Burgess said he was hopeful the mediation process would be successful.

The mediation comes after talks between The Hotel Employers of Bermuda (HEB) and the Hotel, Night Club and Restaurant Division of the Bermuda Industrial Union tried to hammer out a new collective bargaining agreement to replace the current one which expired in February.

But direct negotiations have ceased and both sides are now in mediation.

The sticking point is understood to be over the issue of when hotels can begin laying off staff in relation to occupancy.

Mr. Burgess said: "We are hopeful that something will come out of it, if you are not then you are wasting your time.'' And he said he hoped they could come to a "Bermudian solution''.

"We seem to be going overseas for everything, it is about time we started looking from within to work out a solution.'' Hotel representatives apparently want a higher percentage of occupancy to be the limit while unions want the bar lowered.

It is understood that the hotel owners want the occupancy level at which layoffs can begin to be raised from 70 percent to 75 percent.

Sources said another sticking point is said to be the length of maternity leave, which the hotel owners want to cut.

It is also believed that the two sides have been unable to agree on an increase in the base wage or how much the mandatory gratuity for tipped workers should be increased.

Labour Relations Officer Glenn Fubler declined to discuss the matter and referred inquiries to Labour Minister Maxwell Burgess who could not be reached for comment yesterday.

HEB chief executive officer John Harvey nor BIU president Derrick Burgess have agreed to make no further public statements unless they mutually agree to do otherwise.

Mr. Burgess said it was encouraging that hope of a settlement existed but said it would be inappropriate for him to comment until mediation had finished.