Employers of Bermuda hotel.

The BIU demand was disclosed yesterday by HEB chief executive officer Mr. John Harvey.

Labour Minister the Hon. Irving Pearman is sending the BIU/HEB contract dispute to the Essential Industries Disputes Settlement Board. A hearing chaired by American Mr. Arnold Zack is expected in mid-June.

Mr. Harvey said the board is only to settle a contract for the HEB's six largest properties: the Southampton Princess, Hamilton Princess, Sonesta Beach Hotel, Marriott's Castle Harbour, Belmont Hotel, and the Harmony Club.

But the BIU had demanded day cares at all HEB hotels, not just the big six, Mr. Harvey said.

Thirteen smaller HEB hotels which refused to sign the 1991 hotel award would not be bound by any agreement, he said. The small hotels argue that current labour legislation would bind them to the BIU forever.

Mr. Harvey, who earlier described the BIU's demands as "outlandish,'' yesterday disclosed some of them.

In addition to increased wages, the BIU wanted major increases to vacations, pensions, and sick leave, and "a day care centre for each hotel,'' Mr. Harvey told The Royal Gazette .

In addition to a percentage wage increase, the BIU was also asking for "very, very expensive upgrades'' to wages paid for certain jobs, he said.

Earlier, BIU president Mr. Ottiwell Simmons MP said the HEB wanted to cut workers' maternity leave to seven weeks from nine. Hoteliers also wanted workers to pay half the cost of the booklets outlining the collective agreement, he said.

Unionised hotel workers have voted to strike if a "speedy and equitable solution'' is not reached.

The two sides are working on a three-year contract, expiring in 1998.

Mr. Harvey also said he was approached recently and asked that the HEB grant an immediate increase in the size of the gratuities paid to workers for each hotel guest.

The HEB chief executive said he needed to research whether there was a precedent for such a move prior to arbitration.

He said demands for increased gratuities were among the items the board was supposed to settle.

"It's something that we haven't talked about,'' he said. "Once you get into a process that's been agreed to by all parties, it's difficult to do these things.'' However, "anything could develop.'' Files from The Royal Gazette indicate the HEB implemented a 12.5 percent gratuity increase on the eve of a Board of Inquiry to settle a contract with the BIU in 1988.

However, the gratuity hike had already been agreed on, and other matters were outstanding.