BIU president Mr. Ottiwell Simmons MP said the 12 small property owners that resigned from the HEB last Friday were only destroying their union instead of building it up.

The properties pulled out after feeling there was a risk that a hotel award would be imposed on them at the conclusion of the hearings between hoteliers and the Bermuda Industrial Union.

Those that resigned were Ariel Sands, Coral Beach, the Horizons, Lantana, Newstead, Palmetto Bay, and Pompano Beach.

Also included were the Reefs Beach Club, Rosedon Guest Cottages, the St.

George's Club, Stonington Beach Hotel, and Waterloo House.

However the six larger properties -- Southampton Princess, Princess Hotel, Marriott's Castle Harbour Resort, Sonesta Beach, Belmont and the Harmony Club have remained as members of the Hotel Employers of Bermuda.

Earlier when asked how he felt about the resignations chairman of the board for the HEB union, Mr. John Harvey said: "The HEB will live on.'' Yesterday Mr. Simmons said in order to have good industrialised relationships among employers and employees one of the prime requirements is to establish strong and permanent employee organisations and strong and permanent employer organisations.

"What the 12 small hotels have done is destroy that concept.

"The effect of this is that they have mashed up the HEB organisation when in fact they should be building it up to have good industrialisation.'' Mr. Simmons added: "I am of the opinion that they are being led by Mr. David Dodwell of the Reefs, who is a member of the UBP and elected member to the Parliament.

"He should have been able to influence Government to do what they (the 12 properties) are seeking to achieve which is changing the Labour Relations Amendment Act of 1991, which would in turn prevent them from being tied to a collective bargaining agreement with the BIU in perpetuity.'' Mr. Simmons stated that that was a political situation and the properties should be going to Government, not breaking away from the HEB and refusing to sign an agreement with the BIU.

"I am also concerned about this matter because the Stonington Hotel, which is Government, is joining with the others who are not only going about ideas in their own way, but they are breaking the law. They are in breach of the Labour Relations Act 1991.

"No matter how much they run they cannot hide because they are bound to the agreement which is the law in any case. They simply cannot run away with the union membership because the union members in the large and small hotels come under the same collective agreement.'' Manager of the Reefs Mr. David Dodwell commented on the suggestion by Mr.

Simmons that he was the small properties ring leader.

"It is complete nonsense that I am the ring leader of this whole thing, and it is not the first time that Mr. Simmons has said that. I think it is a political cheap shot on his part.

"The non-participation of the smaller properties is not a surprise and in fact the BIU has been objecting to the non-signing for years.

"When the negotiations came up again in January only six hotels were represented and at that time Mr. Simmons objected strenuously, but continued to participate in the process.'' Mr. Dodwell added that in the 1991 process, all the small properties participated and at the end of the day no agreement was unsigned.

"Everybody made an individual decision to resign and a meeting was called by chairman of the board for the HEB Mr. John Harvey. I wasn't even there when the idea was proposed.

"We continue to recognise the union and we continue to submit union dues on behalf of the employees and essentially we have a relationship with the union that is no different to the large properties.'' Mr. Dodwell concluded: "The board will come up with a decision and I will personally review it and if it is appropriate I will implement it. Our only problem is with the in perpetuity clause in the act.

Vice president and managing director of Lantana Colony Club Mr. Paul Leseur said the problem between the BIU and the small properties that resigned was a legal situation.

"There was no contract in existence after 1991, only a series of hotel awards. And if one signs, with the way the legislation is drafted, we will be agreeing to the outcome in perpetuity and that is not what bargaining is all about, there has to be some give and take.'' Mr. Leseur added: "The process that we dealt with in the 1960s and 70s and into the 80s is no longer valid in the 1990s and the year 2000. I will not join anything that in my opinion will put my company out of business.'' He also said that the hotel industry in Bermuda is in disastrous shape. "We are heading for disaster and we need to look at the hotel industry. The processes used in the past are no longer satisfactory.'' The hearings continue today and heading the Essential Industries Dispute Settlement 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.