finalised soon, a source close to ongoing contract negotiations revealed last night.

Apparently the workers are furious because gratuity increases they are seeking will not be paid out by hotel management until the agreement is finalised.

The source, who refused to be identified, told The Royal Gazette : "The Union wanted the hotels to put aside the gratuities until the contract was agreed.

"The hotels have decided that they will not pay the gratuities until the contract is signed. Many hotel workers are getting angry and they will take action to get it done.

"It is immoral of the hotels to do this. The longer it goes, the more likely there will be trouble but it's not necessary.'' The Hotel Employers of Bermuda (HEB) and the Hotel, Night Club and Restaurant Division of the Bermuda Industrial Union are trying to reach a new collective bargaining agreement.

The former one expired in February and talks have been underway since then.

Just recently they went into mediation after negotiations ceased.

One of the issues under discussion is the increase in gratuities guests pay each day.

The source explained that the increase in gratuities is normally the first thing worked out by the negotiating sides.

In the past, the increase has been paid into an escrow account and is paid to the workers once the agreement is hammered out. This way, pointed out the source, the hotel workers do not lose out.

Gratuities make up a major portion of the wages hotel workers earn. However that depends on the amount of business the hotel is doing -- which tends to be stronger over the summer months.

However the workers will lose gratuity increases for the months no agreement was in place, said the source.

"We have lost three months already,'' he noted. "We could lose the bulk of our whole earnings.

"Why do the employees have to be the ones who suffer? These are people who are making just $15,000 to $17,000 a year. Most of their money comes from the gratuities.'' The source blamed the impasse on the lack of trust between the two sides.

"There is no trust. Both of them say they don't trust the other and it is the workers who suffer. They are starting to get angry and they are threatening to turn.'' The Bermuda Industrial Union was set to meet with Government assistant labour relations officer Neville Darrell yesterday in a bid to seek a solution to the new collective bargaining agreement.

BIU president Derrick Burgess was not available for comment last night.