Small property owners have threatened to pull out of the HEB if a hotel award is imposed on them.

The revelation was made yesterday by hotels lawyer Mr. Stephen Shawe during the second day of hearings between hoteliers and the Bermuda Industrial Union.

Mr. Shawe told union president Mr. Ottiwell Simmons that the 13 smaller properties within the Hotel Employers of Bermuda were due to meet this morning.

"If there is any risk that the Essential Industries Disputes Settlement board would impose an award on properties, some or all of the properties would resign from the HEB,'' he said.

Mr. Simmons said that the union had a strong case against the 13 hotels for not signing the 1991 hotel award, and that managing director of the Reefs Beach Club Mr. David Dodwell was leading the pack not to sign.

"They can't give us an agreement unsigned,'' Mr. Simmons said. "They want to give me a cheque that is not signed and they expect me to cash it.'' He added: "The HEB is trying their darndest to get from under the agreement.

"We have been trying for the last four years to get an agreement signed and all the foolishness that has been coming up is absolute nonsense. Thirteen small hotels got together and said they would not sign because if they did they would be stuck with the BIU in perpetuity.

"They are designed to break-up the BIU by not signing and there is ample evidence of that.'' Tuesday was the first day of the hearing in which the two sides are working on a three year contract, expiring in 1998.

The board's mission is to settle the dispute between the BIU and the HEB's six largest properties -- Southampton Princess, Princess Hotel, Marriott's Castle Harbour Resort, Sonesta Beach, Belmont and the Harmony Club.

Heading the five-person board is chairman and Boston arbitrator Mr. Arnold Zack, who sits with retired hotelier Mr. Gordon Asbury, and Senate President the Hon. Albert Jackson.

Regional vice-president of Princess Properties International Mr. Stephen Barker and Grotto Bay Hotel's shop steward Mrs. Debra Tucker are assessors.

Mr. Simmons continued to argue that the hearings terms of reference should relate to all HEB members, including the 13 smaller properties.

On the issue of sick leave Mr. Simmons said that employers had been complaining of the absentee rate of employees who abused sick leave.

"The BIU is always sympathetic of employers who have employees who abuse sick leave and we try to ensure that employers do not incur any high cost from sick leave.

"What the BIU propose is that the employer and the BIU should be in agreement as to whether sick leave has been abused. And if an employer finds that an employee is taking a sick day every month then that would be seen as an abuse.'' On the question of vacation Mr. Simmons said that employees were not "robots and giving them adequate vacation time would be an investment for the employer as the employee would be rejuvenated''.

He added that employers cannot interpret sick leave as a high cost. "It is no more of a cost than putting gas in a vehicle. It is an investment to fill it up and it becomes a cost if you leave it idle.'' Mr. Simmons also told the board that the hours of work should be decreased from 40 to 35 hours a week, without salary reduction.

However, the HEB rejected this proposal as they felt it would amount to an automatic 12.5 percent labour cost increase.

"Reduced hours amounts to work being shared among more workers, and it gives the workers more energy. You cannot work a human like you work a robot,'' Mr.

Simmons said.

He added that most people in Bermuda work 35 to 37 hours a week, "it is the norm''.

"The reduction would not effect the production one bit.'' However, Mr. Shawe disagreed and said that contrary to what Mr. Simmons said a 40-hour work week was common.

"It seems to be that Mr. Simmons has the theory of collective bargaining. He is showing no moderation in his proposals. He seems to feel that if he throws enough stuff at you (the board) he can make you accommodate him in every respect,'' Mr. Shawe said.

But Mr. Simmons said that the BIU wants an agreement "but not at any cost''.

He added that the union had a duty to make an agreement that makes for a better society.

Mr. Simmons told the board that the union was treating this as a serious matter and advised it not to be "taken in by what Mr. Shawe said about throwing stuff at them''.

The BIU also discussed the need for increases in vacation time and the HEB proposed a reduction in sick leave including a cut in the amount an employee can accumulate from 90 days to 70 days.

The union also stressed that employees should receive sick pay when they have been layed off from work.

And the HEB proposed one percent rises for live-in tipped and non-tipped employees in each of the three years in the contract, and two percent hikes for each year for live-out tipped and non-tipped workers.

In addition the BIU proposed extra pay for certain workers, including waiters and bartenders who handle the cash register.