A settlement has been reached on workplace issues between staff and owners at the former Stonington Beach Hotel, said Bermuda Industrial Union president Derrick Burgess.

However hotel employees maintain they have heard no news, and will not consider anything settled until they see it in writing.

The hotel, now known as the Coco Reef Bermuda, has been forced to close its doors early in the off-season thanks to damage from Hurricane Fabian. Hotel director Andrea Jennings has said the hotel was left with no choice but to close after Government insurers delayed emergency repairs to the hotel's sea wall.

The hotel will be closed for six months starting on October 31.

Hotel employees said the abrupt closure was the final straw in a long list of grievances against new owner John Jefferis, and staged a sit-down in protest on Tuesday afternoon.

Staff are worried about vacation pay, redundancy, and insurance during the hotel's closure, with one employee telling The Royal Gazette, Mr. Jefferis has said he will pay their insurance, "but we don't believe him until we've got it in writing".