The Beverly Hilton said today it signed a labor contract that will expire in 2006, becoming the first major Los Angeles chain hotel to break with the industry's efforts to stop the Unite Here union from synchronizing contract expiration dates across the country.

The move comes as a union-sponsored boycott appears to be hurting the hotels and the local economy, and as the industry's unified stance appears to be breaking down.

The housekeepers union and eight local hotels represented by the Employers Council have been at loggerheads over the expiration date for more than a year.

The union is trying to match the big hotel chains' power by lining up contracts across the country to expire in 2006. That would open the door to coordinated job actions, even a national strike. Major hotel operators are strongly opposed to granting the union that much power

But a union-sponsored boycott against Employers Council hotels is starting to cause serious pain, accounting for at least $10 million in verified lost business to the eight properties so far - with the Westin Century Plaza taking a particularly large hit.

Some conventions and meetings have been relocated or canceled.

Meanwhile, other Los Angeles hotels, mostly independent or small-chain properties, that had planned to follow the Employers Council's lead are starting to peel off and make their own deals. In the last six months, at least four signed contracts with Unite Here that are to expire in 2006.

The Beverly Hilton is the largest by far, and the first with a major chain identity.

State Assembly Speaker Fabian Nunez announced the deal at a press conference, highlighting his recent role as backroom broker in the long-running dispute.

More News About the Los Angeles Hotel Workers' Struggle for a Fair Contract >>