management and hotel workers agreed to sit down next week to try to resolve the dispute.

The all-day picket at the hotel ended at about 5 p.m. when Minister of Labour the Hon. Irving Pearman said: "I am happy to announce that the work stoppage at Grotto Bay Beach Hotel has ended.'' Acting hotel manager Mr. Clyde Darrell confirmed workers were back at their posts at 5.30 p.m. Mr. Darrell said: "I am happy that its ended.'' Bermuda Industrial Union general secretary Ms Molly Burgess, who had been involved in the meetings with the Minister, said: "We have agreed that we will try it. All of them have been accepted back at work. We understand there are no strings attached.'' A large section of the hotel's 120 staff stopped working on Monday morning, angry at losing union representation and mandatory tips. They say pay for dining room help has dropped from $700 or $800 a week to $300. The blame for the drop in tips and other complaints of a racial nature have been made about the hotel's Maitre d' Mr. Valerio Assunda.

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

They denied the accusations about Mr. Assunda.

Workers estimated that 90 percent of the 120 staff at the hotel took part in the picket. At least ten marched up and down throughout the three-day stoppage.

Yesterday saw Mr. Pearman meeting with both the workers, the BIU, and the employers throughout the morning and afternoon.

"Following meetings between Ministry staff, myself and the two parties it was agreed that the workers would return to work at 5.30 p.m.,'' he said. "It has been agreed by both parties to commence a series of meetings to present and resolve any and all differences. The Labour Relations Officer has been asked to facilitate these discussions and anticipates starting next week.

"I should say how pleased I am that the two parties have agreed to this approach. We in the Ministry advocate and recommend always that parties to a dispute should try very hard to resolve their differences together, with a board being used only as a final resort.

"I commend the two parties for their co-operation and for their willingness to work together to reach a solution. As always the officers of the Ministry are prepared at any time to assist in any way we can.'' Mr. Pearman's announcement came after another day in the heat for the pickets who alternated between sitting in the shade and walking across the entrance in a peaceful picket-line.

Visitors were finding things a little easier after having their rooms cleaned by three maids from Houseprouds, an agency owned by United Bermuda Party MP Mrs. Grace Bell.

They were also given a buffet breakfast and dinner which most said they found adequate. Their only complaint was the cancellation of certain tours, forcing many to hire livery cycles instead.

Ms Burgess and workers representative Ms Debbie Fox returned from their meeting after lunch intent on continuing the dispute until they had heard the decision of Mr. Darrell and his board of directors.

Former Grotto Bay entertainer Mr. Tony Brannon said he believed much of the dispute was caused by the recently appointed Maitre d'.

Italian Mr. Assunda took over from Bermudian Mr. Dean Smith. Mr. Brannon claims Mr. Assunda made a comment of a racial nature to him in November which he passed on to Immigration officials.

Mr. Brannon said: "Nothing was done although I was told that members of staff had been interviewed about similar comments and the way that Valerio was taking half the tips.

"If certain people in the Immigration Department had done their job a lot of this dispute would not have been necessary.'' Also yesterday the United Bermuda Party hit back at comments by the BIU general secretary. It said: "The UBP takes exception to the comments made by Molly Burgess in which she attempts to drag the party into a labour dispute between certain Grotto Bay Hotel workers and the hotel's management.'' Executive Officer Mr. Joe Gibbons said: "While we do not deny that some of our members are on the board of the parent company, the dispute in question has nothing to do with the party or its general membership.

"To the contrary, the UBP has an excellent record of providing the necessary support to ensure that labour-management issues are dealt with quickly and to the general satisfaction of all concerned.'' PEACEFUL PICKET -- Grotto Bay workers rest during picketing at the hotel yesterday.