Industrial Union called a strike against the Island's hotels.

"All hotels in Bermuda are on strike, and all hotel workers in Bermuda are on strike,'' BIU president Mr. Ottiwell Simmons MP said after emerging from a meeting with about 300 hotel workers.

Today will test how many of about 3,000 BIU hotel workers stay away from their jobs. Picket lines would be up as early as 5.30 a.m., Mr. Simmons said, adding that "20, at least'' hotels would be hit.

All but one worker at yesterday's meeting supported the strike call, and the entire membership was "obligated from this meeting to join the picket lines,'' Mr. Simmons said.

Mr. Stephen Barker of Princess Hotels said the Hotel Employers of Bermuda were "reviewing our options,'' and had "sought legal advice''. He encouraged workers to "use their good judgment'' and report to work.

The strike call came on the eve of the US Memorial Day holiday weekend, with the Island's hotels full.

And it came hours after owners of Bermuda's eight largest hotels emerged unhappy from a meeting with Government where their pleas for tax breaks were largely refused.

Mr. John Marriott of Host Marriott in Washington, D.C., and Mr. Paul Sonnabend of Sonesta International Hotel Corp. in Boston were among the top hoteliers in Bermuda yesterday to hear the strike news firsthand.

"I'm not excited about it,'' Mr. Marriott told The Royal Gazette . "I think it's a bad idea.'' "I think it's extremely unfortunate,'' Mr. Sonnabend said. "I can't see it helping them in the long run. Labour unrest is just likely to cost people jobs.'' Mr. Marriott said the hotels had collectively asked for $8 million in tax relief from Government, but said Finance Minister the Hon. David Saul yesterday offered them $100,000.

"I'm p***ed,'' he said. "Unless we get some help, some support from Government, my recommendation would be to close after the season is over.'' The 402-room Marriott's Castle Harbour Resort was losing $2.5 million a year, he said. While the meeting with Dr. Saul was his immediate reason for feeling that the Marriott should close, the latest strike call "doesn't help,'' he said.

"It's terrible timing for the hotels and the industry and the people of the Island. This is the busiest weekend of the year. They're cutting off their nose to spite their face.'' But Mr. Simmons told reporters the strike call was a "last resort'' in response to hoteliers keeping more than an alleged $1 million in tips which he said belonged to workers.

It could last indefinitely, he said. "We'll be striking on Friday, Saturday, Sunday, Monday, Tuesday, Wednesday, Thursday -- this is a forever strike, until the matter is resolved.'' Tips are built into the bills at the Island's major hotels. The dispute relates to the workers' share of increased tips charged to guests.

The BIU and the HEB have been before the Essential Industries Dispute Settlement Board three times since 1992 over gratuities.

Most recently, in April, the board endorsed the two earlier rulings of the board, "denying increased gratuity payments for the year 1992-93''.

Despite that, Mr. Simmons yesterday insisted that none of the three boards had ruled against the BIU on the tips issue, and he scolded the media for reporting otherwise.

"This is one of the biggest crimes that has ever been committed on the Island,'' he said. "I've reported this matter to the Police. The Police should go and investigate.'' Mr. Simmons also complained the HEB had yet to sign the collective agreement with the union which is set to expire later this year.

Meanwhile, both Princess Hotels and the Marriott issued statements to employees yesterday denying they had withheld gratuities and saying they were willing to sign the collective agreement.

"It is indeed disturbing that a minority of individuals within the Bermuda Industrial Union could mislead its membership and precipitate action which could damage our economy and the livelihood of so many,'' Princess regional vice-president Mr. Stephen Barker said in a news release.

Mr. John Harvey, executive director of the HEB, said he was "shocked'' by the strike call.

"I'm very disappointed, having gone through three exercises in resolving these issues, that our employees have chosen to take this action,'' he said.

"Our industry is full and we're just trying to recover from years of low occupancies.

The issue about signing the collective agreement was "a smokescreen,'' he said. Large hotels were willing to sign, while small ones were not because of concerns about being bound to the BIU forever. But all the hotels were abiding by the contract and would continue to, he said.

"I hope that most of our employees will use good judgment and come to work,'' he said.

Mr. Harvey said he felt any strike would be illegal.

Labour and Home Affairs Minister the Hon. Irving Pearman, who met late last night with the HEB in an effort to avoid a strike, would not comment on whether the strike was legal.

"Obviously, I'm disappointed,'' he said. "I shall be working to see if I can continue to help the parties to reach a solution.'' Under the Trade Disputes Act 1992, Mr. Pearman could today refer the matter to a Trade Disputes Tribunal, making any continued strike action illegal. "There is that possibility,'' he said last night.

Tourism Minister the Hon. C.V. (Jim) Woolridge, reached in Boston, said any strike would do "very serious damage to our major industry, just when we're struggling to come up with a good summer''.

A State Farm Insurance convention had 600 rooms booked at the Southampton Princess for six weeks in June and July, Mr. Woolridge said. "I hope if it is a work stoppage that it will be a very short token one, rather than one that is prolonged.'' Dr. Saul said his meeting yesterday with Bermuda hotel owners was one of a series. No final offer on relief to hoteliers was made, said Dr. Saul, who expressed mild surprise at Mr. Marriott's remarks.