hotel's contract dispute next week.

The Hotel Employers of Bermuda are expected to go to the Supreme Court in an effort to remove lawyer Mr. Michael Mello from the three-man panel that will hear the dispute.

Mr. Mello chairs the Price Control Commission and has sat on number of arbitration boards in the past.

Labour and Home Affairs Minister the Hon. Irving Pearman, who appointed Mr.

Mello as well as Canon James Francis to work with board chairman Prof. Ronald Haughton, confirmed last night that a problem exists but would not discuss details.

"I have been made aware that there is a concern and it is apparent that one of the parties is acting on it,'' Mr. Pearman said. "The Ministry is not involved in that action. It's an independent action. That's what the courts are there for.'' The BIU-HEB contract expired last February when the hotels terminated it and a settlement proposed by Government arbitrator Mr. William Hobgood was rejected by the union, sparking the essential industry legislation, which allows Government to refer the two sides to arbitration for binding settlement.

Former Home Affairs Minister the Hon. Sir John Sharpe referred the two sides to the board after mediated talks between the two sides broke down earlier this year.