Government will send the contract dispute involving 900 blue-collar workers to binding arbitration and they have already selected a chairman and a deputy who will both be non-Bermudians.

At the same time, the Essential Industries Disputes Settlement Board handed down its arbitration award to the Bermuda Industrial Union and the Hotel Employers of Bermuda. The award will form the basis of the new collective bargaining agreement between both bodies.

The HEB and BIU are studying the document and no details of the award have been released.

Yesterday, BIU president Mr. Ottiwell Simmons said the Government blue collar workers strike, slated for August 8, will go ahead as planned.

He said the formal 21-day strike notice was sent to the Ministry of Labour and Home Affairs late yesterday afternoon.

Home Affairs Minister the Hon. Irving Pearman said he had not received the official notice yesterday afternoon but he had anticipated its arrival.

As a result, the dispute involving the 900 workers will go to binding arbitration.

"We have already lined up the chairman and the deputy chairman who are both non-Bermudians,'' he said. They will head the panel.

"We will aim to set up the panel over the course of the next few days, after we receive the union's official letter. The union will also provide assessors to present their case to the panel.

"This is one of the things we would want to expedite.'' On Tuesday, the workers voted to strike after they rejected any further effort to negotiate an agreement with Government.

Talks on a new contract for street cleaners, bus drivers, ferry and tug boat workers, and Public Works and Agriculture and Fisheries employees, has been under way since August, 1994.

Some of the workers -- such as garbage collectors and tug boat operators -- are considered to perform esssential services. Consequently the official 21-day notice of a strike was required.

Meanwhile, hospital workers which the BIU also represents have agreed yesterday to accept voluntary arbitration.

Workers from both the small and large hotel properties are to meet at BIU headquarters today at 3 p.m. to discuss the award handed down from the Disputes Settlement Board.