contract battle which revealed a massive gulf between management and union camps.

Management painted a grim economic picture as they sought to parry demands for across-the-board improvements in pay and conditions.

They argued for a complete wages and benefits freeze from January, 1992 to February 24, 1993.

Three percent wage increases were proposed respectively for the next two years.

The Bermuda Industrial Union, however, accused the Hotel Employers of Bermuda of "scheming and trickery.'' It has put forward percentage wage increases of seven, six, and seven for 1991, 1992, and 1993.

Union president Mr. Ottiwell Simmons, MP, described hotel workers as the lowest paid in Bermuda with an average wage of $250.44 per week.

"How can anyone deny these workers a wage increase?'' he asked.

The two sides were meeting yesterday before the Essential Industries Disputes Settlement Board at Cathedral Hall.

It followed two days of preliminary wrangling which led to a ban on television cameras and radio microphones.

Both parties have been at loggerheads since their collective bargaining agreement expired on February 24, 1991.

The HEB implemented a five percent pay hike for live-out staff -- three percent for those living in -- on May 24, 1991.

Most members of the HEB also increased gratuities by 50 cents.

Yesterday their lawyer Mr. Stephen Shawe said the HEB now considered the issue of 1991 wages closed.

He went on to describe a black economic cloud hanging over hoteliers.

Losses during 1991 alone exceeded the combined losses in 1988, 1989, and 1990, he claimed.

"Projections for 1992 are grim,'' he declared.

Mr Shawe's opening statement outlined the areas of conflict between the camps.

These included: Gratuities: Union wants an immediate $2.50 rise per person per day; HEB seeks freeze for 1992, and 50c increases for 1993 and 1994. Anything in excess to be treated as hotel income.

Compensation due to lay-off: Union want threshold figure of those ineligible increased from $16,484 to $20,700; HEB proposes no change.

Overtime: Union wants it computed on daily basis, not weekly. HEB claims this will promote absenteeism and inefficiency.

Public holidays: Union wants double time pay, instead of current time and a half. HEB seeks no change.

Major Medical: Union wants insurance to include doctor's office and home visits; HEB claims this will further increase costs.

Paid absence: Union wants compassionate leave increased from four to five working days for overseas funerals, and maternity leave expanded from nine to 10 weeks with employee given three extra paid weeks; HEB seeks no change.

Deduction for meals, room and board: Union seeks no change; HEB proposes 5c increase in duty meal charge in second year of agreement, and further 5c rise in third year.

Suspension: Union wants employer to provide suspended employee with meals and other benefits, and give up right to order from premises; HEB seeks no change.

Part-time employees: Union wants night maids deemed full-time employees.

The two sides also remain divided over pensions, vacations, sick leave, supplemental pay for tipped employees, and hours of work.

On severance pay, the union is pressing for significant increases.

This involves pay being raised to two weeks per year for those who have worked between six months and a year.

Entitlement for more than one year's service would increase to three weeks per year.

In his opening address, Mr. Simmons attacked the HEB for not being sincere in its talks, and seeking to bust the union.

"The HEB negotiators were more intent on scheming and trickery than entering into an agreement.'' He also called for the repayment of six weeks of union dues to 3,000 of the union's members which the HEB stopped collecting.

The hearing resumes this morning.