Elbow Beach Hotel are debating the loss of union representation which accompanies the hike.

"There is something behind it,'' one employee said yesterday. "It sounds too good to be true.'' But some employees scoffed at colleagues' fears that loss of Bermuda Industrial Union representation would mean loss of job security. "Who needs protection, as long as you do your job?'' one worker asked.

Sources at Elbow Beach told The Royal Gazette employees were promised a ten percent increase for 1993 and a four percent increase for 1994 in meetings with hotel management on Tuesday.

In addition, employees were promised improved benefits, such as a major medical plan which includes doctor's office and home visits.

Retroactive pay of two percent per year would be paid for 1991 and 1992, sources said.

By comparison, the recent award of Prof. Ronald Haughton approved by the Hotel Employers of Bermuda gave increases of five, two, three, and four percent for 1991 to 1994 respectively.

Hotel management could not be reached for comment yesterday. The Elbow Beach plan, which is not to be put to an employee vote, was unveiled in a series of meetings that were divided by job description.

In a letter addressed to Elbow Beach "team members,'' Elbow Beach general manager Mr. Timothy Russell said the hotel "will not be taking a backward step and have elected not to re-enter into a renewal of any contractual relationship with the union.

"Be assured we see nothing wrong with what the other hotels have agreed to in the new union contract,'' Mr. Russell said. "In fact, we are enthusiastically implementing all the financial aspects -- wages and benefits -- of what the other hotels and the union have agreed on.

"But, we are not stopping there. We feel it's simply not enough for Elbow Beach employees. We enthusiastically support our owners' desire to provide more for you and your family.'' Mr. Ottiwell Simmons MP, president of the BIU, said yesterday a general membership meeting for all hotel employees would be held at 3 p.m. on Tuesday at union headquarters.

"At that time, we will hear officially from the hotel workers,'' Mr. Simmons said. "I'll let them report to me.'' He said he hoped for a "comfortable turn-out'' from the 3,000-strong BIU hotel division membership.

Feelings were mixed among employees at Elbow Beach, where management is setting up a "fair treatment committee'' to resolve disputes. It is to have four management representatives and three worker representatives.

Management will also institute a profit-sharing plan for good attendance, financial performance and guest satisfaction.

The 1993 increase is "terrific,'' but "we're worried a lot down the road,'' one employee said. Some employees were awaiting word from the BIU.

"I don't believe very much in the union,'' another employee said. "If somebody doesn't work good, the manager fires him. But then the union comes over and the manager can't fire him.''