hotels to retire at 65.

The Bermuda Industrial Union yesterday vowed to fight hotel bosses tooth and nail.

BIU president Mr. Ottiwell Simmons said his union's general membership had expressed opposition to the move.

And now union chiefs intended meeting all Princess employees aged 60 and over.

"We want to get a feeling on what they think about what is going on,'' said Mr. Simmons.

The decision to enforce retirement at 65 at Southampton Princess and Hamilton's Princess Hotel will come into effect on January 1, 1995.

Southampton Princess employees were told about it through a letter by director of Human Resources Ms Elaine M. Foy.

In it, Ms Foy stressed mandatory retirement accorded with a company wide policy.

"Consistent with the retirement practice of many local and international businesses, the mandatory retirement age is 65 years.

"We anticipate that there will be many questions and concerns regarding this policy and to this end we will be sponsoring seminars on budgeting, financial planning and Government support services for individuals approaching retirement age.

"Information will be available on your pension and social security entitlements.'' The letter stated retirement should not be seen as an attempt to cut the work force of long-serving loyal employees.

Instead, it was an opportunity for individuals to "pursue special interests and not be restricted by employment commitments''.

Yesterday Princess Hotels managing director Mr. Stephen Barker told The Royal Gazette up to now there had been no formal retirement policy at local hotels.

Asked to explain the thinking behind the policy, he said: "Well, I think it's something that most companies do have.

"It is not anything new. We are just putting in a policy. We were possibly negligent not to have done so in the past.'' He added: "I suppose it's difficult to determine at what age someone becomes less productive.'' Mr. Barker explained 43 people -- out of a total staffing of 1,300 -- were aged 65-81 at the two Princess properties. Of these, 16 were aged over 70.

He said employees aged 65 and over when the policy came into force would have "one year's grace period''.

This meant they could work another year before retiring.

"It is worth pointing out we do contribute to a private pension scheme as well as a Government plan. Each retiree will receive two cheques.'' Mr. Barker said the new policy would hopefully make the hotels more productive and competitive.

"It's a policy in place in most hotels around the world.'' He stressed mandatory retirement would provide job opportunities for young Bermudians.

"We are not getting rid of anybody. We are not making anybody redundant.'' Mr. Barker added meetings had been held with the BIU.

"It wouldn't be expected that the BIU would support any measure which disadvantages any of its membership.'' Mr. Simmons said the union had expressed its opposition to Princess managers in no uncertain terms.