Up to 400 union members met with management of the Fairmont Southampton yesterday as they outlined their reasons for axing 35 jobs.

Hotel employees also addressed their concerns to managing director Norm Mastalir, in the presence of Bermuda Industrial Union representatives.

Last night Mr. Mastalir told The Royal Gazette he was optimistic there would be no further job cuts at the hotel, which announced the job losses on Friday as part of cost-cutting measures "to preserve the operation of the 593-room resort for the balance of the year".

Eighteen positions are already vacant, while three posts are occupied by retiring members of staff. Another 15 employees however, will be made redundant.

On Friday Mr. Mastalir explained the decision had been taken due to the "dramatic effect" of the global economic downturn on business.

"The economic realities faced by the hotel are unprecedented, making these steps unavoidable," he said.

"Business, as we have known it for the last few years, will not be the same any time in the foreseeable future."

Not only are 35 jobs to go but the four-star hotel is to close half its guest rooms until April. Restaurants will also be shut on a rotating basis until the summer season.

Chris Furbert, BIU president, said yesterday: "The union is there to assist its members in any way it can. We called the meeting so staff could be officially informed and the management team could explain their position.

"We were there to assist any questions the staff had," he said.

"It was a good meeting. Mr. Mastalir explained why the decision had been taken and informed the staff they are doing everything possible to make sure Bermudians are gainfully employed."

Speaking to this newspaper last night Mr. Mastalir said: "It is our sincere hope that we are through with redundancies, and that revenues can be produced to match our revised business plans," he said.

"The hotel will continue to explore other cost-cutting options before considering further reductions in fixed payroll. Where practical the hotel will continue with the hiring freeze that has been in place since October, and take advantage of opportunities to reduce payroll costs through attrition.

"As an occasional employee moves on for reasons of their own, for example, we can evaluate whether the position could be left open, if even in the short-term."

He said: "The redundancies announced last week came virtually from across the board. As the hotel's overall business is down sharply, nearly every department needed to be scaled back."

The Fairmont Southampton employs 680 full-time and 121 part-time staff.

Mr. Mastalir said regarding restaurant closures, operating times would "vary week to week depending on business levels and occupancies".

"For those interested in dining with us, we encourage you to call 238-8000 for reservations and information."

The hotel also announced at the weekend the winter closure of "all unused public areas".

Mr. Mastalir said: "While the Mid-Ocean Ampitheatre remains open for larger functions, our main ballrooms and the related foyer and meeting rooms are now closed."

There are currently no plans for job losses at the Fairmont Southampton's sister hotel, the Fairmont Hamilton.

Last night John Harvey, CEO of the Bermuda Hotel Association, said he was "very much" concerned for the Island's hospitality industry in the current global economic climate.

Mr. Harvey said: "The Bermuda Hotel Association is and will continue to work diligently with our partners in the Ministry of Tourism to ensure that Bermuda is best-positioned to attract and host as many visitors as we possibly can in 2009 and beyond."