pointing out that their Union had serious cash flow problems and telling members to seek help from Government's Department of Social Services because the BIU could not help them. A reader changed a minimum of words in the Royal Gazette story reporting on the letter and, using exactly the same form, sent us a new version.

The letter is addressed from a notional local hotel company to its unionised members. The new version reads as follows: "Our company is experiencing a serious cash flow problem and can no longer afford the employee benefits that we have provided in the past.

In these circumstances we have approached the Bermuda Industrial Union to assist you in meeting your basic needs.

The letter claims the company has been under `severe attack' during the past year. It adds that more and more tourists are refusing to come to Bermuda -- some failing to pay existing rates.

Other unions are using any pretence to disrupt the Bermuda economy, the letter states.

And it goes on: As a result the hotels are closing earlier and remaining closed longer.

The non-organised construction companies are being granted major contracts in an obvious attempt to avoid unionised firms due to the excessive demand the union is making for its membership.

We have also suffered heavy expenses in support of industrial disputes. The letter continues: For all of the above reasons, we find that we are short of cash to continue staff benefits as we have in the past.

We therefore urge that you approach the Bermuda Industrial Union.

Remember, you have earned the right for any assistance since you pay union dues.

If you have any questions, please approach your union organiser or union officer for further explanation.

Yesterday the hotel spokesman said the hotels have lost hundreds of thousands of dollars over the last two years.

Many of the losses were put down to high union wages.

`I expected some sort of intervention from Government,' he said.

He said people in powerful positions in Bermuda seem `powerless' to undo the wrongs of the union.

Those with real power included union bosses and chamber maids, he added.'' There is probably no better example around of the other side of a story.