Industrial Union are under review.

The pension fund is administered by the BIU and the Hotel Employers of Bermuda.

Staff at hotels which have torn up the BIU-HEB collective bargaining agreement have not been hit up to now.

This is because the hotels have still been part of the pension fund, and contributing.

But this week it was revealed pension fund trustees are carrying out a review.

They are looking again at the implications of hotels splitting from the HEB, BIU, or Bermuda Hotel Association.

Trustees may decide hotels going their own way should not participate in the pension fund.

The move comes amid continued friction between the BIU and hotel bosses.

Last month BIU president Mr. Ottiwell Simmons MP warned Government and hoteliers union-busting contracts invited confrontation.

His outburst came after Elbow Beach Hotel ripped up its contract with the BIU, replacing it with one drawn up by management.

Among its terms are increased gratuities, profit sharing, and incentive bonus based on guest satisfaction.

Other terms include attendance bonus plan, and Major Medical, including doctors visits.

Management also offered the pay increases put forward under the Prof. Ronald Haughton Award.

And from February 25 next year the hotel's contribution to the pension fund will be increased to 35 cents per hour for each employee.

Elbow Beach, which recently broke from the HEB, is the largest hotel to tear up the collective bargaining agreement.

Sonesta Beach, the two Princess properties, Marriott Castle Harbour, Belmont, and Harmony Club decided to sign after much soul-searching.

Among properties which recently produced their own contracts are Pink Beach and Grotto Bay.

Mr. John Harvey, the HEB's chief executive officer, said the pensions issue was reviewed many years ago after a hotel cut ties with his organisation.

"Because that property had been participating in the pension fund it was decided to grandfather that property, which has continued to make contributions.'' Mr. Calvin White, administrator of the pension fund, said the pensions issue was being scrutinised.

He added, however, the review did not stem from Elbow Beach's decision to go it alone.

Three of the pension fund trustees are appointed by the BHA, three by the BIU, and there is one independent.