Bermuda headquarters yesterday chanting: "We want our grats back!'' And Bermuda Industrial Union president Mr. Ottiwell Simmons MP warned HEB head Mr. John Harvey: "If the hotels don't pay them back, of course, we will have to take the matter much further.

"We will take it as far as we have to take it.'' Mr. Harvey stepped outside his King Street offices to accept a 1,000-signature petition from Hotels Division chief shop steward Mr. Herbie Bascome.

"I've got something for you too,'' Mr. Harvey said amid cries of protest from union members.

He handed out sheets of paper containing the "facts surrounding the outstanding issues as it relates to gratuities''.

He said he hoped shop stewards would share the information with hotel workers.

"In our view, this issue has been resolved,'' Mr. Harvey said. But Mr.

Simmons said: "The matter is clearly not resolved. And it will not be until all the workers in the hotel industry come to their senses and take action to get justice.'' Commenting on the HEB's list of facts, Mr. Simmons said, "They are definitely not telling the truth.'' The hoteliers' said two Government boards have sat to hear the gratuity dispute, and each reached the same decision: that they can use service charge increases to offset wage increases and operating costs through 1994.

"The HEB members are not illegally or otherwise withholding any portion of employee gratuities and any suggestion to that effect is false and counter-productive,'' Mr. Harvey stated.

He added: "Employees are encouraged to use good judgment in 1994, particularly when they are being persuaded to take action which could do irreparable damage to Bermuda's number-one industry -- tourism.'' Mr. Harvey had worried on Monday when he heard the march was on that the BIU was stirring up trouble just as the high season was approaching.

MARCH FOR MONEY -- Standing outside HEB offices on King Street, some 30 hotel shop stewards, with BIU president Mr. Ottiwell Simmons MP at the fore, demand gratuities which they claim hoteliers have withheld.