statement saying they would not sign a new contract with the Bermuda Industrial Union.

The Hon. Irving Pearman said he was shocked 13 members of the Hotel Employers of Bermuda issued the statement that in effect said they want "no labour legislation on the books at all.

"This shocks me, surprises me and embarrasses me,'' he said. The late afternoon statement by the HEB said small properties would not sign the deal "while bound by current legislation.'' Officer Mr. John Harvey said the HEB was prepared to accept all terms and conditions of a contract mediated by American professor Ronald Haughton and "to continue their working relationship with the BIU.

"However, at this time, they are not prepared to sign a new collective bargaining agreement with the BIU while bound by the current labour legislation.'' The HEB's main argument is aimed at a clause in 1991 labour legislation that would lock them into a relationship with the union forever.

The clause says any existing HEB-BIU contract will remain in force if the two sides "fail to conclude a new agreement.'' Yesterday, Mr. Paul Leseur of Lantana Colony Club stressed the no-sign decision was tied wholly to the legislation.

"We have no dispute with the Haughton award or the union but with Government legislation passed in 1991 over our objections,'' he said.

The small properties last week complained directly to Labour Minister Mr.

Pearman that the 1991 Labour Relations Act was unreasonable.

Mr. Pearman said he was miffed that the organisation issued its statement without notification "when every effort is being made by this Ministry to resolve their problems.'' Although it is unclear just what last week's meeting accomplished, it is clear the two sides parted without an understanding of what to do next.

Mr. Pearman said had not received a specific request from the hoteliers. "I heard their concerns and discussed them but they've not come with any specifics as to what they would want us to consider,'' he said.

"They have not asked us for specific amendments to the 1991 labour legislation. Surely, they would have communicated with me on that very point.'' The Minister's words contradicted hotelier's thinking that the matter was now in his hands.

Yesterday morning Mr. Leseur said: "The ball is really in the Minister's court.'' The HEB statement yesterday was issued as large hotel owners are preparing to sign the new deal.

Their group, which group includes the Sonesta and Princess properties, last month said they were willing to forgo their concerns about the 1991 legislation.