Their fears were voiced to Labour Minister the Hon. Irving Pearman at a special meeting on Sunday, The Royal Gazette can reveal.

Vice president of the Bermuda Hotel Association Mr. John Harvey said yesterday: "We are all very concerned.'' Unionised hotel workers have been called to a meeting at the Bermuda Industrial Union headquarters this afternoon.

Two issues top the agenda -- the gratuities dispute, and the unsigned collective bargaining agreement between small hotels and the BIU.

BIU president Mr. Ottiwell Simmons declined to comment on mounting speculation about a strike.

Sources, however, yesterday told The Royal Gazette that strike action was planned for tomorrow, Saturday and Sunday.

"It will coincide with Memorial Day in the United States,'' one source said.

He said "strike committees'' had been set up in hotels in readiness for action.

And he added sympathy action could be carried out by others, including dock workers.

Yesterday Pink Beach managing director Mr. W.A. (Toppy) Cowen said: "We are prepared for any eventuality. Nothing comes as any surprise.'' Pink Beach no longer recognised the BIU -- but Mr. Cowen believed it could still be targeted.

He added hotels were enjoying high occupancy rates, and action could be extremely damaging.

"It seems Mr. Simmons wants to flex his muscles when the hotels have got a full house.'' Rumours of strike action have abounded since a Government board ruling went against hotel workers last month.

After a stormy meeting of his members following the board decision, Mr.

Simmons said employees were in "strike mode''.

"They wanted a strike but we had to restrain ourselves,'' he said after the meeting, which about 50 workers attended.

The decision by the Essential Industries Disputes Settlement Board -- chaired by American arbitrator Mr. Arnold Zack -- was that workers should should not receive increased tips for 1992.

Mr. Simmons immediately called on the Hotel Employers of Bermuda to take steps to ease tension.

"The Hotel Employers of Bermuda must commit themselves to signing the collective bargaining agreement immediately. That means now,'' he said last month.

"And we're expecting our membership to make a commitment to get out here and further discuss this report, because it's important that all the workers realise that we believe, in spite of the hearing, that the hotel employers still have money belonging to the workers.

"There can be no award that legitimises or legalises the taking of another person's property.'' Mr. Zack had been asked to interpret a previous ruling by the Professor Ronald Haughton board.

The BIU argues the Prof. Haughton award did not say anywhere that workers were not entitled to their tips.

Union officials estimate workers have a total claim of up to $1 million against their employers.

Mr. Harvey, however, has refuted the BIU argument.

Yesterday he lashed out at the "craziness'' of the union, pointing out three board decisions had gone against it.

"I keep hearing rumours about some sort of action. We are all very concerned.'' Mr. Cowen believed Mr. Simmons had been given the go-ahead to authorise a strike at one of the union meetings following the Zack ruling.

"There does not seem to be much support for a strike, but once 20 people come out there is a roll-on effect, and others could follow.'' Mr. Pearman last night said he could not substantiate rumours of industrial action.

He was unable to help members of the Hotel Employers of Bermuda during the Sunday evening meeting.

"I heard their concerns,'' he said.