four-year contract -- despite labelling it "expensive''.

Nineteen members of the 20-strong Hotel Employers of Bermuda agreed to the settlement.

One hotel was said yesterday to still be considering the Prof. Ronald Haughton award.

The Royal Gazette understands it is Elbow Beach, although the hotel's management are remaining tight-lipped.

Last week Mr. John Jefferis, managing director of the Elbow Beach Hotel and Development Company, slammed the deal. He described the pact with the Bermuda Industrial Union as "lunacy'' and "ludicrous''.

In 1991 the hotel broke ranks with other HEB members by failing to implement a five-percent wage increase.

Instead, it increased gratuities by a roughly equivalent amount.

The retroactive Haughton Award offers unionised workers 14 percent over four years, from May 24, 1991 until February 25, 1995.

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

But he ruled employer and employee contributions should rise by two cents per hour for 1993, and three cents for 1994.

Most of the BIU's wage and benefits demands were thrown out because of cash constraints.

The BIU, however, immediately approved the settlement.

Yesterday HEB chief executive officer Mr. John Harvey said all bar one of his members agreed to abide by the decision of the Essential Industries Disputes Settlement Board.

He announced: "All of the HEB membership view the award, particularly at this time of considerable losses and declining occupancies, to be expensive.

"However we all must challenge ourselves, be it Government, businesses, hotels and employees, to improve without delay Bermuda's tourism industry.'' Mr. Harvey said he was "cautiously optimistic'' the one hotel still to accept the award would do so.

He added the hotel industry would need to find "creative ways'' of funding the award.

But he refused to speculate as to what measures management might take.

HEB president Mr. Dennis Tucker said there was a feeling of relief that the protracted contract dispute was over.

It was crucial now to face the challenges of the future, and bump up occupancy levels.

Labour Minister the Hon. Irving Pearman said yesterday: "I am very pleased with the HEB decision for a number of reasons.

"Principally, I feel it is time the industry had the opportunity to focus on where it is going now.

"I don't think we could continue much longer with the level of confrontation we have had in the tourism industry.'' Talks to hammer out a new contract for unionised restaurant workers are likely to start shortly.

The workers have been without a collective bargaining agreement for more than a year.

Traditionally, contract negotiations follow a settlement for hotel employees.

Last week arbitrator Prof. Haughton's award of a new four-year deal for hotel staff was revealed. Now virtually all members of the Hotel Employers of Bermuda have ratified it, union leaders are hopeful negotiations for the restaurant industry should get underway shortly.

BIU president Mr. Ottiwell Simmons was yesterday off the Island, and unavailable for comment.

But Mr. Derrick Burgess, vice-president of the Bermuda Industrial Union, said he believed negotiations would start soon.

"It has always been the case that negotiations with restaurant managers begin after the hotel talks are settled,'' he said.