award for hotels and the Bermuda Industrial Union, neither side has signed the deal.

And while the union and six large hotels say they are almost ready to sign, it appears 13 remaining small properties in the Hotel Employers of Bermuda (HEB) will not unless Government changes legislation affecting the industry.

Union leader Mr. Ottiwell Simmons MP yesterday said small properties must sign the deal. The split within HEB ranks, he said, was a "calculated'' plan to coerce Government to change legislation.

"They're saying Government must change the law or they're not going to sign,'' he said.

Labour Minister the Hon. Irving Pearman last night said Government was taking a "hard look'' at the Labour Relations Act "in light of changing attitudes''.

Small hotels oppose the Act because a clause in it would bind them forever to the union once they sign the Haughton Award.

Committees within the Minister's Labour Advisory Council last week began investigating possible changes to the law.

But their first order of business is to find out what Parliament's Joint Select Committee on labour relations and the Premier's Commission on Competitiveness is doing on the issue.

Yesterday, HEB and union representatives met with Professor Haughton for clarification of a clause that was described as a final hurdle to the signing of his award.

The union says the Professor's award said gratuity payments should be retroactive one year. The HEB says they are not.

Although the issue could be serious, spokesman from the two sides indicated they are prepared to accept Prof. Haughton's opinion.

The union is also urging Prof. Haughton to "deal with'' the 13 hotels refusing to sign and for a ruling on the Elbow Beach Hotel's plan to set up a non-unionised contract with its workers.

It is understood the American mediator will only deal with the gratuities issue.