controversy over Pink Beach's split from the BIU.

And last night Labour Minister the Hon. Irving Pearman said he would be setting up a meeting with hotel bosses.

In a further move, Premier the Hon. Sir John Swan flatly rejected claims Government was part of a conspiracy against the BIU.

He said the allegations in the House of Assembly by Opposition MPs -- spurred by the Pink Beach row -- were groundless.

The developments come amid claims as many as 90 employees have signed the new management contracts.

Managing director Mr. W.A. (Toppy) Cowen said this left just 14 workers still to sign. "We are absolutely delighted. It's a positive mandate from the staff to get on with the business of operating.'' Mr. Cowen said he had anticipated at this stage 65 percent backing for the new contracts, which replace the collective bargaining agreement between the BIU and the Hotel Employers of Bermuda.

He also rejected accusations the offer of a five percent pay increase to those who signed amounted to a bribe.

Mr. Cowen went on to launch a thinly-veiled attack at Mr. Pearman over his House of Assembly statement on the controversy.

Mr. Pearman voiced dismay that the row had blown up before a ruling from the Essential Industries Disputes Settlement Board on the drawn-out hotel contract talks.

But Mr. Cowen cast doubt on the board's effectiveness in resolving disputes.

"By the time there's a decision it will be time to discuss the next contract,'' he said. "I don't think that's what the Country wants, to go through all that again.'' Last night Mr. Pearman confirmed he had had a wide discussion this week with Mr. Simmons on labour issues.

It followed a letter from Mr. Simmons, urging Government to intervene over Pink Beach.

"I am reviewing carefully his request. Our role is to play the honest broker,'' said Mr. Pearman.

He said Mr. Simmons' letter claimed Pink Beach's actions were not in the best interests of good labour relations.

Mr. Pearman added he would try to organise a meeting with Pink Beach management.

No union representative would be present at the meeting.

Yesterday Mr. Simmons could not be reached for comment.

In his statement yesterday Sir John also defended Government's record on attempting to resolve labour disputes.