Hotels
to Face Complaint by NLRB
The Agency's Counsel Finds That A Declaration of an Impasse
with L.A. Workers Wasn't Legal
Los Angeles Times - January 27, 2005
By Nancy Cleeland
The
National Labor Relations Board's top attorney has found that
nine upscale Los Angeles-area hotels acted illegally in declaring
an impasse last July in their talks with the hotel workers'
union, according to union and hotel officials.
The
general counsel's decision to issue a complaint could be a
strategic and financial blow to the hotels, said an NLRB official
who spoke anonymously. For one thing, the hotels could be
forced to refund hundreds of thousands of dollars collected
from workers for health insurance, the official said.
Richard
McCracken, attorney for Unite Here, which represents the hotel
workers, said the complaint could give the union certain advantages,
including the ability to call a strike without risking permanent
job losses. And he said it could limit the options for the
hotels as negotiations moved forward with Unite Here Local
11, which represents about 2,600 maids, bellmen and other
employees of the nine hotels who have been without a contract
for six months.
Maria
Elena Durazo, the local's president, said it was "a great
day, mostly because of what the workers have gone through.
Now they see there is some justice in this struggle."
Fred
Muir, a spokesman for the Los Angeles Hotel Employer's Council,
downplayed the significance of the complaint, noting that
the council could appeal to an administrative law judge and,
eventually, to the entire NLRB board in a process that could
take years. The hotels also have the option of negotiating
a settlement with the NLRB.
"This
thing is one hell of a long way from being a real decision,"
Muir said. Even if the general counsel's ruling is upheld,
he contended, it would have no material effect on the hotels
financially or strategically.
Attorneys
for the union and the hotel council were notified of the decision
Wednesday. Muir said members of the hotel council - which
represents the Millennium Biltmore, Westin Century Plaza and
other properties - hadn't yet met to discuss their response.
The
decision by General Counsel Arthur F. Rosenfeld came out of
the NLRB's Washington headquarters rather than a Los Angeles
field office, underscoring its significance. It was also notable
because so many union leaders view the NLRB as sympathetic
to business interests. Rosenfeld was appointed by President
Bush.
The
counsel's office is the investigative and prosecutorial arm
of the federal board, which is charged with overseeing union
elections.
NLRB
officials said publicly only that they were communicating
with both parties.
An
official familiar with the situation, speaking on condition
of anonymity, said Rosenfeld rejected the hotels' argument
that talks were at impasse because the union was insisting
on a contract expiring in 2006. Rosenfeld reasoned that talks
couldn't be at an impasse because both parties were continuing
to discuss contract issues, the official said.
Under
NLRB rules, when negotiations are at a bona fide impasse,
an employer is allowed to impose conditions not included in
the expired contract - such as the $10-a-week health insurance
premium the hotels began charging workers after July 1. A
union representative said nearly 500 members lost their insurance
as a result. The hotel council also unilaterally restricted
union representatives' access to the hotels.
McCracken,
the union attorney, agreed that the complaint could well be
only the beginning of a lengthy litigation process. But whatever
happens on that front, he said, the complaint has brought
the NLRB actively into the negotiation process, which means
the board must approve any final contract between the parties
to be sure that the workers are fairly compensated.
Beyond
that, McCracken said, the general counsel's decision gave
the union credibility.
"Until
now, the union's been saying one thing, the employers another
thing," McCracken said. "This is the first time
there's been a neutral, authoritative evaluation of the bargaining
situation, and the conclusion is that the union's the one
that's right."
But
Muir had a different view: "I don't think that this call
from the NLRB today will change the dynamics of the talks."
The
union is trying to line up contracts across the country to
expire at the same time, raising the possibility of a national
strike. The Los Angeles hotels have said they will never agree
to such a deal.
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