percent Hospital Levy rise.

The increase has been passed on to staff at Bermuda Hotel Association properties.

Bermuda Industrial Union president Mr. Ottiwell Simmons described it as "unfair''.

But BHA president Mr. Stephen Barker said hotels had no choice.

"We like other businesses in Bermuda have always passed on to our employees the maximum permissible by law and we have no choice but to continue this policy,'' he said.

The Hospital Levy rise was announced during his Budget speech by Finance Minister the Hon. David Saul.

Dr. Saul said bosses could collect from workers the full one percent increase.

Or, they could split it evenly between themselves and employees.

Earlier this month Mr. Simmons urged workers to sign a petition against the increase.

He said the full burden would be shouldered by workers.

Last night Mr. Simmons reacted with anger to the BHA move.

"It is unfair to the working class.'' Managing Director of Pink Beach Club Mr. W. A. (Toppy) Cowen criticised Government.

In a memo to his staff, he said the Levy would be shared evenly between the club and employees.

Mr. Barker said the hotel industry was already striving for relief from heavy costs.

It would not be "prudent'' for hotels to absorb this "extra burden''.

"Our employees were awarded four percent salary increases in February 4 by Professor Haughton's board and that amount is excessive and far ahead of the pace of inflation.

"Our competitors in other jurisdictions outside Bermuda are faced with much lower salary increases and have enjoyed these lower percentage increases for many years.'' On Wednesday night, Government's decision to allow employers to pass on the full one percent Hospital Levy increase came under fire in the Senate.

Opposition and Independent Senators criticised the move.

Progressive Labour Party Senate leader Milton Scott called it "the workers' burden''.

And he warned that when workers start contract and wage negotiations this year, "the one percent Hospital Levy increase will already be on the table.'' But Government Sen. Michael Winfield chastised the Opposition for yet again knocking tax increases while failing to say how they would fund all the social programmes they were asking for.

Independent Sen. Alf Oughton could not see "why Government chose not to continue with the historic 50-50 split'' of the levy.