The hearing marks the third time Government's Essential Industries Disputes Settlement Board has taken a stab at solving the dispute.

The hottest issue is whether about 3,000 hotel workers are entitled to gratuity increases of 25 cents a day for 1992.

The 19 properties represented by the Hotel Employers of Bermuda say the board has already ruled in their favour.

This has been fiercely disputed by the Bermuda Industrial Union.

It says hotels could owe workers hundreds of thousands of dollars in unpaid tips.

Heading the board is American arbitrator Mr. Arnold Zack, joined by former hotel chief Mr. Gordon Asbury and the Hon. Albert Jackson, the independent president of the Senate.

There had been doubts over whether the HEB would attend the hearing.

But hoteliers decided to show up after workers threatened strike action if they didn't.

Executive director of the HEB Mr. John Harvey said yesterday he hoped the latest hearing would endorse the decision of previous inquiries.

"We presented our case before on the same issues and we prevailed.

"It's our view that those rulings should be continued and there should not be any alteration.'' BIU president Mr. Ottiwell Simmons said that because the hearing was due to take place, there would be no immediate strike.

But a meeting of hotel workers yesterday had agreed to keep their strike vote valid, pending the completion of the hearing.

"The hotels owe certain tipped members gratuities, that the hotels collected and pocketed or spent in their own interests.

"They're effectively stealing from the workers.'' The hearing is expected to last about two days.