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Palma.—The Balearic government, all the regional hotel federations and even tour operators in the UK received the news as a knock out blow yesterday and pleaded with the trade unionists to be responsible and to return to the negotiating table in an attempt to reach a solution.

The hostelry sector are after a 2.9 percent pay rise, a 35 hour week and more paid holiday but, employers are refusing to accept their demands, so, for the time being, industrial action is going to be taken on the eve of peak season.

The strike could involve as many as 100'000 hostelry sector workers across the Balearics and yesterday, the Majorcan Hotel Federation warned that the strike could turn what was looking as potentially one of the best summer seasons, into the worst.

As the Bulletin reported yesterday, the UK holiday market, for example, continues to be slow and there are concerns that the German market is also beginning to lose some of its momentum amidst growing concerns about the economy and jobs.

Sources in the UK said that, never mind if the strike goes ahead or not, if it hits the media, then the news will have a damaging affect on bookings. “It's going to be a very late booking market, probably the latest ever and there are still plenty of unsold holidays for the Balearics in July and August. “The market has been slow but it is picking up now that the Jubilee is over. Interest in the Olympics is minimal and the weather is dreadful,” the Bulletin was told. “But, we are finding that some clients are already wary of Spain because of its worsening economic situation and once word gets out that holidays could be ruined by industrial action, they will quite simply go somewhere else. It's complete madness. “With unemployment at record highs, the hostelry sector is just cutting the lifeline to the Balearics and in the end, strike action could cost them their jobs.” Other unions, such as the medical and teachers, yesterday called on the hostelry sector workers to join them on June 20 when a mass march is going to be staged through Palma in protest over the government's cut backs as the Balearics faces a summer of discontent.