the new collective agreement with the union.

Sir John disclosed yesterday that Labour Minister the Hon. Irving Pearman had contacted the Hotel Employers' of Bermuda (HEB) to hand over a formal list of its concerns.

The Premier said that both parties -- the HEB and the Bermuda Industrial Union -- had agreed to abide by the recommendations handed down by the Essential Industries Disputes Board.

He said it was disturbing that the undertaking now seemed in danger of being set aside.

The Board was set up with the support and agreement of the Island's three political parties, as a means of resolving longstanding problems in Bermuda's premier industry and providing a more secure basis for the economy.

Although hoteliers had expressed some reservations about using such a mechanism, Sir John said that the major players in the industry recognised that use of the board to settle disputes could achieve a greater stability in the tourism industry.

He said that as the hotels had vigorously participated in the hearings before the Board, there was every expectation they would accept its findings and sign the new collective agreement.

Sir John added: "Given the importance of the tourism industry to Bermuda and having taken note of the lacklustre performance of the industry in recent months, it is imperative that both parties live up to the spirit and letter of the recommendations.

"Then the industry can focus its attention on producing a successful season rather than sowing the seeds of potential confrontation which will do neither the industry nor Bermuda any good.''