decision reinstating the union at the Grotto Bay Hotel.

And BIU chief Mr. Ottiwell Simmons claims it will be costly for some hotels to continue failing to recognise the union.

But Labour and Home Affairs Minister the Hon. Irving Pearman insists the matter will not affect other employers.

The Trades Disputes Tribunal reinstated union representation and mandatory tipping at Grotto Bay on Monday.

The decision followed a summer of discontent at Grotto Bay climaxing in a three-day stoppage by workers.

Mr. Simmons says the decision will have far-reaching effects on other businesses where the union has been decertified, such as the Palm Reef Hotel, the Mermaid Beach Club, the Pink Beach Club and the Bermuda Bakery.

But Mr. Pearman said the issues put before the Trades Disputes Tribunal were "very specific to Grotto Bay''.

The BIU president said he was disappointed with Mr. Pearman's statement and that it could prove expensive for those businesses involved. He said: "It is against the law. Mr. Pearman knows that. He knows that the employers are not supposed to discontinue checking off dues and decertify unions.

"The union belongs to the workers and not the employers. The workers decide whether they have the union. It is the workers' right.'' Mr. Simmons said Mr. Pearman was taking the side of the employers. "I am very sorry that the Minister should make such a damaging remark. It is not only damaging, it is expensive. He is saying that each case will have to go to a hearing on the same issue, which is an absolute waste of money.'' But Mr. Pearman stood by his remarks. "The way I understand the law is that the terms and conditions put before the tribunal were specific to Grotto Bay,'' he said.

"One can take a view that it's broader than that, but that is their opinion.

My opinion is that it is a specific decision on that particular hotel.

"It may be that there are similar circumstances in other places. It is up to the individuals involved to proceed on to a hearing or to discuss the matter with the parties involved. I am just pleased that the parties have found it as a vehicle to avoid confrontation in the market place.'' Mermaid Beach Club owner and general manager Mr. Brian Alkon said: "Otti is blowing smoke. What happens in St. George's and Bailey's Bay has nothing to do with the Gold Coast on South Shore.'' General manager at the Palm Reef Ms Bridget Marshall agreed. "It is just a veiled threat,'' she said. "In fact it is not really veiled. I just do not like this thuggery tactic.

"We are not members of the Hotel Employers Association or the Bermuda Employers. We do not come under that umbrella. I do not know why he lumped us in with it.'' Ms Marshall stressed that the hotel does operate a gratuities system for its employees.

Only the Bermuda Bakery was unsure of the position. Owner Mr. Earl Fithian said: "We have not had the opportunity to look at the ruling.'' Meanwhile, the BIU president has come under fire from executive vice-president of the Hotel Employers of Bermuda, Mr. John Harvey, for petitions being collected by union officials over gratuity increases in a 1991-4 contract settlement.

There is some argument over the interpretation of a report prepared by Prof.

Ronald Haughton.

Mr. Simmons said increases should be paid to workers which could cost hotels tens of thousands of dollars. The petitions will be presented to the HEB and copies made for Government.

He said: "I am hoping that this will have the desired effect on the employers. It is simply giving the people their money back. The Haughton Report is quite clear as far as I am concerned. It said the people should get the gratuity increases throughout the life of the award.'' But Mr. Harvey attacked Mr. Simmons saying he was simply trying to cause industrial discontent. "I do not think he has been forthright with the hotel membership. He knew full well that the gratuities were not retroactive. And he is on record stating that. We have not received any petitions.'' Mr. Harvey said he believed Mr. Simmons was attempting to take the matter to court.

He added: "Mr. Simmons is simply trying to muddy the waters and cause unnecessary unpleasantness in the industry.

"This week he has been jumping for joy over the Grotto Bay decision and telling people they have to abide by a board decision. Then with this other board decision he chooses to go the other way.''