-- despite rejection of most BIU wage and benefits demands.

But the Hotel Employers of Bermuda have yet to rubber-stamp the settlement.

Yesterday HEB executive vice-president, Mr. John Harvey, tagged Prof. Ronald Haughton's award "expensive''.

"We are losing money and this award does not take that into consideration,'' he said.

A senior union official dubbed the award "disappointing''.

As sources last week indicated, Prof. Haughton awarded respective wage rises of five and two percent for 1991 and 1992 for live-out employees.

Live-in staff have been given hikes of 2.5 percent and two percent over these two years.

And for 1993 and 1994 both categories of workers received respective increases of three and four percent.

The new retroactive settlement runs from May 24, 1991 until February 25, 1995.

Prof. Haughton agreed the William Hobgood award of a five percent rise in 1991 should stand.

Virtually all hoteliers had already implemented this -- despite its rejection by the BIU.

With pensions, Prof. Haughton recommended a freeze for the first two years.

And he ruled employer and employee contributions should rise by two cents per hour for 1993, and three cents for 1994 -- from 15 and 30 cents respectively.

The bulk of the BIU's demands for across-the-board improvements were stamped on by Prof. Haughton and his Essential Industries Disputes Settlement Board.

These included boosts in severance pay, rest days, tipping, reinstatement and lay-off deals, allowances for uniform and equipment, overtime, and vacations.

A redefinition of part-time employees was also dismissed.

And Prof. Haughton ruled out double time pay for laundry staff at the Sonesta Beach Hotel.

He also scotched the union's bid for Southampton Princess function porters to be placed in the "non-tipped'' bracket.

In addition, Prof. Haughton ruled the new deal would only apply to the 21 HEB hotels -- not to Pink Beach, Grotto Bay, and other hotels which had resigned membership since the start of contract talks.

There were some victories, however.

Hotels were directed to pay back union dues they failed to deduct, and maximum sick day entitlement was increased.

The board also agreed that live-in suspended employees should be fed and housed while off work.

The Bermuda Industrial Union's hotels division yesterday staged a two-hour meeting over the deal.

Several hundred members packed the BIU's headquarters to hear all Prof.

Haughton's awards.

BIU president Mr. Ottiwell Simmons is off the Island for two weeks, and general secretary Ms Molly Burgess chaired the meeting.

Afterwards, she said: "The settlement was accepted in its entirety. We have accepted it unanimously.'' Ms Burgess said unionised workers appreciated the ruling was binding.

"It is the law, and we have to work with the law. There was no secret ballot because it was not thought necessary.

"We have always abided by hearings, and this is no exception. I hope the HEB will accept it.'' Ms Burgess claimed the BIU had rejected the 1991 William Hobgood Award because "there had not been a proper hearing''.

A union member who attended yesterday afternoon's meeting described the mood as one of grim resignation.

"There was a general feeling that there was no other choice but to accept.'' A senior union official said: "The award was not as good as Hobgood, but we have no regrets because Hobgood was not a proper hearing.

"If it had been, we would probably have accepted it.'' The official said he hoped the hotels would return to profitability in the next two years, when fresh contract talks will begin.

"But I sometimes wonder with the hotels, because every time they come to contract negotiations they cry poverty. I do not know what kind of picture they will paint in two years.'' He added: "Members were resigned to the award, although one or two may have thought we could have received a better one.'' Earlier, 19 members of the 21-strong HEB held a one-and-a-quarter-hour meeting.

6.4.6,13.0.6,24.8.3, Mr. Harvey, also executive director of Bermuda Hotels Association, spelt out the key points of the ruling.

Afterwards, he said: "It is considered an expensive award. The HEB members will go back to their principals and report on the award.

"They will be getting back in touch with me in due course.'' He added: "We do not view this as a sweatmeat award. It is retroactive, and we are losing money.'' Mr. Harvey pointed out the HEB had wanted a wages and benefits freeze from January 1991 until February 24, 1993.

He said the mood of the meeting was one of "listening in silence''.

"It is up to the individual members to decide what to do. The 14 percent wages increase over four years is a very heavy award. The proposed pension increases, too, are high. Each cent costs a lot of money.

"The latest financial statement indicated a $17 million loss for the hotels.

We are losing money.'' Mr. Harvey said it was wrong to compare Haughton's award with that of Hobgood.

"It's a false comparison. The economic conditions now are different, and the prospects are different.'' Mr. Harvey said it was "premature'' to say how hoteliers would react to Prof.

Haughton's report.

He declined to speculate on any possible split from the BIU.

Labour Minister the Hon. Irving Pearman yesterday welcomed the BIU's decision to approve the new contract.

"One hopes both parties will accept it and create a new beginning,'' he said.

Mr. Pearman added: "Employers and employees have to have a positive working relationship for productivity, innovation, and finding new methods of doing things.'' Mr. John Harvey Ms Molly Burgess.