president Mr. Ottiwell Simmons MP said yesterday.

"We've got to fight for our rights,'' Mr. Simmons said after learning hotel management had not deducted union and credit union dues from pay cheques distributed yesterday to hotel employees.

Although the hotel's break with the BIU was effective when it awarded workers a 10.3 percent pay increase on February 27, the hotel deducted union dues from the pay packets issued on March 4. That was because those cheques were for the pay period that ended on February 26, a spokesman for hotel management said.

Earlier in the day, Mr. Simmons noted union dues had been deducted from cheques issued on March 4 and said the union was awaiting a report on what happened this week.

Told union dues had not been deducted, he said: "They've declared war on the union. We've got to fight for our rights. We shall not rest until our goals are achieved.'' Asked whether that would mean job action at Elbow Beach Hotel, Mr. Simmons said: "Draw your own inferences.'' Mr. Simmons said the BIU had informed both Elbow Beach management and the Labour Minister that "the union considers it has a legal collective bargaining agreement in place and that Elbow Beach is legally obligated to abide by it''.

"That includes them following the grievance procedure, collecting union and credit union dues and fees, and ensuring that the workers are employed under all other terms and conditions of that agreement.'' Labour Minister the Hon. Irving Pearman said last night the Ministry continued to act as a mediator between the two parties, and the fact talks were continuing was encouraging. If talks fail, it could go to a Trade Disputes tribunal.

The loss of union dues from Elbow Beach employees would be a serious blow to a union that is already under serious financial duress. Pink Beach Club and Grotto Bay Hotel have also split with the union.

Based on an estimated 275 employees at the hotel paying dues of $7 a week, the break would cost the BIU $8,342 per month.

The union is already hurting for cash. Yesterday, BIU fisheries division head Mr. Danny Farias said he was organising a fish fry in the hopes of raising several thousand dollars for the BIU.

Because they do not receive regular cheques like hotel workers do, many of the up to 30 fishermen in the BIU are not up to date on their dues, he said.

In October, the BIU asked its members to contribute an extra $5 per month to build up a legal defence fund, "so that the union's financial resources would not be totally depleted.'' In the BIU's financial statement for the year ended September 30, 1991, the BIU cited expenses of $878,294 for salaries of officers alone.

Meanwhile, a former BIU shop steward has charged that the BIU and Hotel Employers of Bermuda are "in bed'' over Elbow Beach.

Mr. Raymond Russell said the two groups are more concerned about protecting their own interests than the welfare of Elbow Beach workers and the hotel.

He insisted the deal offered Elbow Beach workers when the hotel broke with the HEB and the BIU is far superior to what the workers would get under the recent Haughton Award, Mr. Russell said.

The Elbow Beach workers got the increases from the Hobgood and Haughton awards, plus profit sharing. And they had already received an improved share of gratuities that was equivalent to the five percent Hobgood increase Elbow Beach had previously rejected, Mr. Russell said. The BIU is more worried about lost union dues from Elbow Beach workers than in assuring the workers get a better deal, he said.

In turn, the HEB "is mad at Elbow Beach'' for breaking with it. Neither group wants the non-union deal between Elbow Beach management and its workers to go ahead, he said.