Bermuda's biggest union made a profit of nearly half a million dollars last year -- but paid out just $35,000 in benefits to its members.

And last night Bermuda Industrial Union president Derrick Burgess explained that the organisation would be in financial difficulty if a large number of its members suddenly lost their jobs or became ill and demanded benefit payments.

"Most certainly they would be able to get something but you can only pay out what you can afford,'' he said.

Despite receiving $2.1 million in contributions from its membership for the 12 months up to September of last year, the union paid out just $320 in sickness benefits to members. Other benefit payments included $23,300 in unemployment benefits, $7,145 in superannuation payments and $4,510 in education seminars.

In total just $35,275 -- or 1.31 percent of the union's income for the year -- was paid out to out-of-work union members seeking some sort of financial assistance.

By contrast a massive $993,298 was paid out in salaries to BIU officers while an additional $875,000 was spent on "other expenses of management''. The total wages and expense account package ate up nearly 70 percent of the union's earnings.

The union's total income for the year came to $2,685,867, while expenditure reached $2,239,288 -- a profit of $446,579.

When contacted by The Royal Gazette last night Mr. Burgess conceded that a large proportion of contributions were used to run the organisation and pay wages to BIU officers. And he confirmed that, with funds being swallowed up in administration costs, there was little left in the kitty to pay out in benefits.

He also explained that the $875,000 in "other management expenses'' was made up of miscellaneous items such as telephone and electricity bills, taxes, security, travel expenses and other administration costs.

"We have administration costs and it's an old building,'' he said.

"We have a building which is quite old and we are running into problems with pipes that you have to replace and everything.'' He added that, although contributions were separated into individual funds such as the superannuation fund, unemployment and trade disputes fund, and sick and welfare fund, these funds were now empty because of running costs.

"The money is broken down into six funds but if you look at the administration costs these little figures are not going to take care of the expenses,'' he said.

When asked why only a nominal amount -- $320 -- had been paid out in sickness benefit to BIU members who could not work because of illness he replied: "The thing is thank Christ people are healthy.

"If 2,000 members were to be made unemployed we would be up s**t street -- it would wipe us out.

When asked what advantages BIU members gained for being in the union -- membership costs $10 a week -- Mr. Burgess replied: "What do you expect for $10?''.

But he later added: "I think our members get excellent service.'' Mr. Burgess also denied that he and his staff were earning too much money. The Royal Gazette understands that, in a collective agreement signed two years ago, the BIU president was awarded an annual salary of nearly $90,000 a year while the General Secretary picked up nearly $70,000.

Other perks include up to seven weeks a year paid holiday, ten-and-a-half weeks a year sick pay and a weekly petrol allowance of $70.

But Mr. Burgess denied that he and his staff were creaming off the profits for their own benefit.

"If you look at other unions our wages are by far the least,'' he said.

"Our administration staff and executive make nowhere near what the other union makes -- we're well below them.''