at an official hearing.

They are "pretty confident'' a settlement will mean they can keep their jobs, despite threats from management.

But bosses at the property, the scene of picketing and disruption for much of the day, were last night discussing whether to consent to the tribunal plan.

Acting manager Mr. Clyde Darrell would not comment last night on referring the matter to the Trade Disputes Tribunal. But the directors had extended yesterday's deadline until noon today for workers who walked out on Monday to reapply for their jobs, he said.

And any worker complaints would be "heard by a complaints committee established by the management'', he added.

The situation was still "fluid'', said Labour Minister the Hon. Irving Pearman after Government attempts at peacemaking.

Ms Debbie Fox, a spokesman for the Grotto Bay workers, said last night they were awaiting results of a meeting between hotel management and the Ministry.

But it was likely pickets would be back up this morning.

Meanwhile some guests checked out of the hotel, complaining rooms had not been cleaned and their meals had been reduced to buffets.

A large section of the hotel's 120 staff stopped working on Monday morning over losing union representation and the abolition of mandatory tips. They said pay for dining room help has dropped from $700 or $800 a week to $300.

Management responded by saying workers who walked off the job had dismissed themselves, and would have to re-apply for their posts by noon yesterday. Mr.

Darrell said about 35 employees kept working.

As the deadline passed workers and Bermuda Industrial Union officials were meeting near the hotel entrance, where they were picketing.

BIU general secretary Ms Molly Burgess said some protestors might have gone back to work, but declared a majority were standing firm.

"They're serious -- they're really serious,'' she said. "They just can't take it any more. They've been under a lot of pressure for a long time.'' Government labour relations officer Mr. Edwin Wilson came to talk to protestors after the Ministry requested a meeting, she said.

"He asked if we would agree to go to the trades disputes board. We put that to the members and they agreed.

"Now we have to wait to hear what management have to say. We're going to continue to picket until we hear.'' The Ministry had promised a "very early date'' for any hearing, she added.

Last night former Grotto Bay shop steward Mr. Unray Waldron said he was pretty confident staff would get their jobs back after the dispute.

In yesterday's heat pickets marched good-humouredly with signs saying "All we did was react to a company action'' and "This is NOT a strike. Employers have locked us out.'' Buses and some taxis refused to cross the line.

A young couple from New Jersey said they were checking out of the hotel and switching to the Princess.

"There's no help,'' they said. "We had to get our own towels. The bar-tenders were acting as waiters.'' A Massachusetts honeymoon couple said Grotto Bay had been "raved about'' by people back home.

"But there's no room service and the rooms weren't cleaned on Monday,'' they said.

Waiters were "not accommodating whatsoever'' on Sunday night, they added, and they had not seen any since Monday morning.

A middle-aged husband and wife from from Philadelphia said they waited six hours on Monday to get into their room.

"Nobody told us anything,'' they said. "We still don't really know what's going on.

"We just left a strike back home. We came here to get away from all that.'' Mr. Pearman said he had a "full and frank'' discussion with Grotto Bay management and board members and still hoped the two sides could work the situation out without "third party intervention''.

DISPUTE HOTS UP -- Protesting workers, above, braved the heat and picketed Grotto Bay Beach hotel yesterday, while BIU general secretary Ms Molly Burgess (left) and other officials met Government labour relations officer Mr. Edwin Wilson (in suit), shown below, at the scene and agreed to a tribunal.