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Background Research on Hotel Labor Disputes and ATHE

Author: John Fletcher

January 1, 2006

 

Part I: A rundown on the players and issues involved.

 

What is UNITE HERE?

UNITE HERE is a union organization that represents, among other professions, workers in the hotel industry.  It is a young organization created when two older unions, UNITE (The Union of Needletrades, Industrial and Textile Employees) and HERE (Hotel Employees and Restaurant Employees International Union), merged in July of 2004.  Membership is diverse (with significant Latino/a, African-American, and Asian-American representation), but the majority of members are women.  I found no information about GLBT membership. 

In addition to its main website ( http://www.unitehere.org/ ), UNITE HERE maintains several watchdog websites (for instance, www.hotellaboradvisor.info or www.hotelworkersunited.org ) that monitor and publicize any labor strife in various hotels. 

 

What did UNITE HERE have to do with the site of the last ATHE conference in San Francisco (the Westin St. Francis)?

UNITE HERE Local 2 in San Francisco is currently in a long-term labor dispute with San Francisco's Multi-Employer Group (SFMEG), a coalition of fourteen hotels in the SF area ( www.sfmeg.com ).  The Westin St. Francis in San Francisco, the site of ATHE's 2005 conference, is one of these hotels.  The boycott of the Westin St. Francis, however, ended in November when that hotel's management gave in to key provisions.  See http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/09/01/BUG7OEG7G11.DTL&type=business

There is no evidence to suggest that ATHE itself had a direct impact on the Westin's decision to give in to UNITE HERE's demands (the Westin's own statements suggest it was rather the events that were not happening at the Westin that swayed them).

 

What are the issues in the San Francisco situation?

While workers want to see improvements in health care, workload, and immigration issues, the main source of ongoing tension appears to be the term of the contract to be signed.  Both UNITE HERE Local 2 (in San Fran) and the SFMEG cite this issue as a sticking point (see http://www.unitehere2.org/issues.html and http://www.sfmeg.com/message_employees_111805.cfm).

UNITE HERE in San Francisco wants workers' next contract to expire in August of 2006.  This would put SF hotel workers in the same cycle of contracts as hotel workers in other cities (including Chicago).  UNITE HERE argues that the hotel industry has, in the last decade, experienced a shift away from local ownership/management and toward nation-wide consolidation.  UNITE HERE responds by creating a block of local unions all set to renegotiate their contracts at the same time and wielding the threat of a nationwide strike should negotiations go badly.  Hotel companies, interested in preventing a nationwide strike, resist this trend.

The Westin St. Francis in San Francisco resolved its dispute with UNITE HERE by agreeing (reluctantly) to an August, 2006, expiration date for its contract. 

Chicago's Palmer House Hilton's contract expires in August of 2006.

 

Does UNITE HERE currently have any involvement with Chicago area hotels?

UNITE HERE Local 1 Chicago represents workers at the majority of Chicago's major hotels. Local contact information is as follows:

Chicago and Midwest Regional Joint Board

Lynn Talbott, International Vice President/Manager

Noel Beasley, International Vice President/Manager

333 S. Ashland Avenue

Chicago, Illinois 60607

Tel. 312-738-6100

Fax 312-738-9985

 

Local 1 Chicago

Henry Tamarin

International Executive Vice President/President

55 West Van Buren Street, 4th Floor

Chicago, Illinois 60605

Tel. 312-663-4373

Fax 312-986-3828

 

Are any Chicago hotels currently under strike or boycott from UNITE HERE

Yes.  The most prominent labor action right now by UNITE HERE Chicago Local 1 relates to the Congress Plaza Hotel in downtown Chicago.  Hotel workers there have been on strike since 2003.  For full information about this strike, see www.CongressHotelStrike.info. In December, UNITE HERE funded prominent advertisements about the Congress Hotel strike at the O'Hare Airport.

Additionally, UNITE HERE has also called for boycotts of the Chicago Four Seasons Hotel and the Chicago Intercontinental Hotel because these are non-union hotels which are affiliated with chains that have taken, in UNITE HERE's opinion, a hard-line stance against striking workers in San Francisco. 

 

Is there a labor dispute currently at the Palmer House Hilton?

As of early January, 2006, no. The Palmer House Hilton Chicago is not currently under strike, boycott, or strike watch from UNITE HERE.  The Strike Action Index at www.hotellaboradvisor.info (maintained by UNITE HERE) gives Palmer House a rating of Green (No visible labor unrest activities).  The website www.congresshotelstrike.info (maintained by UNITE HERE local 1) lists the Palmer House as a "responsible union employer."  The website www.hotelworkersunited.org includes the Palmer House on its list suggested hotels to patronize instead of the three boycotted hotels.

 

Does the possibility for a strike in or around August, 2006, exist?

Technically yes.  Only three hotels in Chicago (Sir Francis Drake, Hilton Fisherman's Wharf, and the Clift Hotel) are listed as "safe from labor disputes" by UNITE HERE's Hotel Labor Advisor site for signing a "me too" contract.  This means that the hotels "have committed to abide by the terms of a union contract negotiated by other hotels in the area, but do not participate in the negotiations. In return, the employees and the union generally agree not to engage in workplace actions" (Hotel Labor Advisor website). 

Since Palmer House's labor contract expires on August 31, 2006, the Hotel has been put on hotellaboradivsor's "Hotel Watch List."  About 28 Chicago hotels (and many other hotels nationwide) are in the same situation.  At this time, nothing suggests unrest about contract negotiations.  Indeed, during the summer of 2005, Palmer House advertised vigorously for more workers.  In an article available at the website of the Chicago Jobs Council ( www.cgc.org ), Palmer House boasted about its higher-than-average wages, benefits, and perks ( http://www.cjc.net/pubs-news/industry_insider/InIn_2005-06_a02_chi_hotels.htm ). 

 

What company owns the Palmer House?

The hotel has been owned and operated by Hilton for the last 60 years.   Recently, Hilton (based in Beverly Hills) announced plans to sell the property.  Options included converting part of the building into retail or office space while maintaining management of the hotel itself (see the Columbia Chronicle online at http://www.ccchronicle.com/paper/citybeat.php?id=285). 

On August 18, 2005, Hilton announced that a New-York based company, Thor Equities LLC, had purchased the property for $230 million.  The Palmer house is now expected to undergo a renovation in excess of $100 million.  Thor specializes in acquiring and renovating properties in urban areas.  For more information, see http://www.hospitalitynet.org/news/154000320/4024263.search?query=%22palmer+house+hilton%22+%22thor+equities%22.  Thor's own website is http://www.thorequities.com.

It is unclear if and how the Palmer's new owner and upcoming renovations will impact hotel workers as they renegotiate contracts. 

 

Are any specifically LGBT/Q issues involved in upcoming contract negotiations?

Not that I can tell.  In its online information ( http://www.hiltonworldwide.com/en/ww/company_info/diversity.jhtml ) Hilton boasts about its commitment to diversity, but this appears to be racial, gender, and ethnic diversity.  UNITE HERE's websites have no information about LGBT issues.

 

So - will there be a strike/boycott that disrupts ATHE 2006?

At this point, no one can say for sure whether there will be a labor dispute at the Chicago Palmer House in August of 2006.  If there is a dispute, in all likelihood it would be city- or nation-wide (i.e., very difficult to avoid). 

 

How do conferences avoid such situations?

Frankly, they often can't.  It's important for ATHE members to realize that ATHE's predicament last summer was hardly novel or due to any shortcomings on the part of the ATHE governing council or conference planners.   Labor relations can break down very quickly, and actions like boycotts or strikes often give very little warning before they happen.  Even UNITE HERE's Strike Action Index can give notice only on a month-by-month basis, a timetable much too brief for conference planners to match.  Several cities are considering legislation to require advance notification for any labor dispute activities, but this has yet to be implemented.  Often, however, conference organizers must make plans and hope for the best. 

Right now, UNITE HERE lists the Palmer House as a safe - even recommended - site for our 2006 conference. 

Even legal experts can find themselves in uncomfortable positions.  I found an illuminating example of another organization's troubles with labor disputes on the website of the National Lesbian and Gay Law Association (http://nlgla.org/unite.here.press.release.html).  The NLGLA was caught unawares when they found that their 2005 Lavender Law conference was to be held at a hotel declared under boycott by UNITE HERE (the Westin Horton Plaza hotel in San Diego).  Unable to move their Lavender Law convention for the same reasons that ATHE was unable to move (cost, schedules, etc.), they simply had to express their regrets at staying and promise to try to do better in the future.  Their letter to the Westin Horton Plaza can be found at http://nlgla.org/hotel.dispute.letter.html.

A conference's best option is to take advantage of a cancellation clause or a force majeure (act of God) clause in its contract with the hotel.  For information about such clauses, see http://www.hotellaboradvisor.info/CancellationClausesmem.pdf.  Plans are in place to include such clauses in future ATHE convention contracts.  Since the contract with Palmer House was negotiated many months ago, however, it is not possible to include one currently.

*****

The below additional information is provided by the Harvey Milk Lesbian, Gay, and Bisexual Democratic Club, San Francisco:

UNITE HERE! Local 2 represents about 12,000 workers in the hospitality industries of San Francisco and San Mateo. Its members work in hotels, restaurants, food services, and the airport and do everything from cleaning rooms to waiting tables to making food for travelers.

Local 2 was the first union in the country to secure domestic partner benefits for their workers and they successfully negotiated to get San Francisco hotels to donate to a fund for HIV/AIDS.

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UPDATE: Week of May 23, 2006
Just this last week, UNITE HERE announced a GLBT-positive initiative called "Sleep With the Right People." It seems to be an attempt to link the consumer power of the GLBT community to UNITE HERE's efforts to raise working and living standards for hotel workers. There's a full-page ad in The Advocate, but the key webpage to link to is http://www.sleepwiththerightpeople.org