be "unwise and illegal''.

The warning came after a decision by Bermuda Industrial Union members to take action if they are not paid tips they say are owed to them.

They are unhappy with a ruling by the Essential Industries Disputes Settlement Board that they should not get tip increases for 1992.

Mr. John Harvey, chief executive officer of the Hotel Employers of Bermuda, said he was "saddened by the threat of industrial action''.

The hotels were simply sticking to the award handed down by the board, he said.

"Both the HEB and the Bermuda Industrial Union participated in the hearings and are obliged by law to abide by the findings.

"Any action by the BIU designed to damage the hotel industry is unwise and illegal.

"If I am to believe the comments attributed to BIU president Mr. Ottiwell Simmons in today's Royal Gazette , then I can only conclude that he did not fully inform the hotel employees of all the circumstances and events which caused the board to make its ruling.''