the BIU after accusing it of industrial sabotage.

And they warned of the price of mass rebellion: "We will close down the hotel.'' Pink Beach is joining Grotto Bay by tearing up the collective bargaining agreement between the BIU and the Hotel Employers of Bermuda.

New contracts were handed to workers shortly after the bombshell was dropped last week.

And those who sign have been offered a five percent pay rise.

Last night, however, BIU president Mr. Ottiwell Simmons said slamming the door on the union was illegal, and trampled on human rights.

Pink Beach still recognised the union -- whatever management or the owner may say, Mr. Simmons added.

And he vowed the union would fight to the hilt any attempt to "destroy'' it.

"It's up to Government to bring people into line with the law.'' Mr. Simmons, describing the pay offer as a "bribe'', said Pink Beach had not notified him of any split with the BIU.

Pink Beach revealed the decision at a special meeting of around 70 employees last week.

The hotel's Canadian owner said he was fed up with the drawn-out talks between the BIU and the Hotel Employers of Bermuda.

He also claimed the hotel industry was falling apart, with profits plummeting over the last 10 years.

In addition, service to guests was failing to meet his expectations.

"He stressed it was essential the hotel no longer recognised the BIU,'' said Mr. W.A. (Toppy) Cowen, managing director.

Workers were told they would receive a five percent rise, retroactive to May 24, 1991 -- if they signed the new contracts. It could amount to $2,000.

"Obviously we expect some retaliation from the BIU,'' said Mr. Cowen.

But he warned of the consequence of any confrontation which badly disrupted the hotel.

"The hotel will be closed. We are determined to press ahead with our decision.'' Twenty five workers have so far signed the new contracts, which are effective from December 16.

Roughly half of the 100-strong workforce are unionised.

Mr. Cowen said the decision not to recognise the BIU had been applauded by a significant number at the staff meeting.

"There was a standing ovation from many members. Obviously there were those who weren't so happy.

"We are hoping for 100 percent support. We don't want anyone to leave. We are a good team.'' Mr. Cowen said he completely backed the hotel owner's decision.

The BIU had not achieved anything for its members in the last few years, and exerted a damaging influence in the industry.

"We are now in a situation where people are almost afraid to open up a business because of fear of BIU interference.

"Every time we make a decision we have at the back of our minds the union's influence. The BIU has been a thorn in our side.

"It is really not good enough, and it's time now to take the bull by the horns.'' Mr. Cowen said a split from the BIU had been brewing for some time, with management frustration increasing.

He stressed Pink Beach workers were still free to stay with the union -- although they wouldn't receive the pay rise.

Other effects of the new contracts would be: Management no longer deducting union dues from pay cheques. Those staying with the BIU would make their contributions individually.

A slight change in grievance procedures. Disgruntled workers could now take their complaint to a department head who would refer it to management.

Mr. Cowen stressed pension plans would not be altered, and staff would still receive complimentary meals.

He added pay would be kept on a par with other hotels.

"We are not dictators. If Marriott Castle Harbour gave employees a ten percent pay rise, we would be foolish not to follow suit.''