there was a risk that a hotel award would be imposed on them, hotels lawyer Mr. Stephen Shawe revealed.

The announcement was made during the third day of hearings between hoteliers and the Bermuda Industrial Union.

Mr. Shawe said the properties met yesterday morning to discuss the matter and in conclusion the Ariel Sands, Coral Beach, the Horizons, Lantana, Newstead, Palmetto Bay, and Pompano Beach pulled out.

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

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

He added that 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. 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.'' Responding to the news, BIU president Mr. Ottiwell Simmons said the announcement did not bring with it any reasons that could assist the Essential Industries Disputes Settlement board or Bermuda.

"The hotel business in Bermuda has turned into an essential industry and it is our opinion that an essential industry must also be a responsible industry,'' Mr. Simmons said.

He added: "An essential industry can only meet that criteria if that industry is run by responsible owners and managers.

"It is blatantly clear that the small hotels, who were members of the HEB up until today, are in defiance of the law which says they must abide by the agreement that was in existence when the law was written in 1991.

"They have withdrawn from the HEB because they do not want to be joined with the union forever.'' Mr. Simmons also said that the small properties were "mashing up a good organisation (the HEB) just to get at the BIU.

"I implore you (the board) to conclude that all the hotels that come under the award must sign the agreement.'' Tuesday was the first day of the hearings in which the hoteliers and the BIU are working on a three year contract, expiring in 1998.

The board's mission is to settle the dispute between the BIU and the HEB's six largest properties.

Heading the five-person 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.

Earlier Mr. Simmons said the union had a strong case against the 13 hotels for not signing the 1991 hotel award, and that managing director of the Reefs Beach Club Mr. David Dodwell was leading the pack not to sign.

He also said the HEB is trying their darndest to get from under the agreement.

On the issue of payment for hours worked Mr. Simmons called for employees to be paid double time and an additional four hours pay when they work on public holidays.

The union also proposed changes to the current arrangement for severance pay which would mean pay of two weeks per year for employees who have worked for six months to a year, and three weeks per year for those who have served over a year.

"Severance pay is important to us,'' Mr. Simmons added.

And on the question of shift work Mr. Simmons said that if employees who are doing shifts, are asked to work earlier than or later than their shift schedule they should be paid automatically as working a double shift.''