The Bermuda Industrial Union has written to members notifying them of the $3 increase from the present $7 rate, which will take effect in August.

Union chiefs blame the rise -- the first in a decade -- on increasing costs and a shrinking membership.

A letter from BIU general secretary Molly Burgess sent out to the union's 4,500 members added: "In addition, we have faced increases in the cost of supplies, utilities and the wages of the dedicated staff employed to service your needs.

"We have tried to meet these challenges by staff reductions, wage freezes, modernisation, a careful scrutiny of our operations and spending requests by heads of department and by reducing or ceasing many of your benefits.'' The letter added the declining membership was due to a decline in numbers working in the BIU's core industries.

Ms Burgess said: "Some of this reflects the replacement of workers due to technological change and part reflects a conscious effort by employers to reduce costs through contracting out, downsizing, privatising and -- in some cases -- questionable firings.'' The letter also explained the increase was needed to help cover costs associated with representing members' interests -- including hefty legal fees and wage supplements to workers whose jobs were at risk.

It also cites wage supplements for members "caught up in the rash of downsizing'' and hardship payments to deserving cases.

The BIU's membership peaked in the 1960s, when it had around 6,000 members, but numbers have been in decline for several years.

But Ms Burgess' letter added: "Your union has reacted to these challenges by vigorously attending to your needs and recruiting new members.''