increased tips paid to its workers in advance of reaching a contract with the Bermuda Industrial Union.

Sonesta manager Mr. David Boyd said he was addressing a "unique situation'' on April 16 when he introduced a 50 cent per guest increase in the tip pool shared by bellmen, maids, waiters, busboys and captains.

Nearly 200 of the hotel's 380 employees would receive increases, Mr. Boyd said.

He cited the extended winter closure of the hotel, due to discovery of asbestos which had to be removed from ceilings.

"With our staff being out of work for so long, we think it's essential that we take advantage of any opportunity we can to improve their earning strength,'' he said.

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

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

Managers of other hotels in the Hotel Employers of Bermuda said yesterday they would not be following suit.

"No, we are not increasing our gratuities, and we will not until we are instructed to do so,'' said Mr. Stephen Barker, regional vice-president of Princess Properties International Ltd.

Mr. William Griffith, manager of the Belmont and Harmony Club, said the same thing.

Mr. Roger Borsink, manager of the Marriott, was off the Island and could not be reached for comment.

At Sonesta, Mr. Boyd said he could not understand why the BIU reacted negatively to the increased gratuities. Union president Mr. Ottiwell Simmons MP questioned whether Sonesta's move was legal and said he feared it would prejudice the upcoming hearing.

"I can't see how the BIU could be upset with the fact that we have decided to precipitate an additional service charge in this hotel which will put additional money in employees' pockets,'' Mr. Boyd said.

"Maybe the union's upset about it because they didn't have to bargain for it.'' The hotel's employees were "very happy. "They appreciate our understanding the necessity to do this.'' There was no hidden agenda, Mr. Boyd said. The move was not intended to break the BIU or undermine the HEB. The hotel explained its reasons to the HEB and "I think those reasons are accepted''.

Mr. Boyd said non-tipped employees normally received their increases retroactively once a deal was reached. But tipped employees could not, because the extra tips were never collected.