Union
Strategy Taking Its Toll on Hotels
Los Angeles Business Journal - May 31, 2005
By David Greenberg
In
the year-long game of poker between unionized hotel workers
and owners of large hotels in Los Angeles, the owners appear
to hold the weaker hand.
An
aggressive boycott campaign has cost the hotels millions of
dollars in lost business. Two of the nine hotels have dropped
out of the Los Angeles Hotel Employer's Council (both were
sold; the new owner of the Hyatt Regency Los Angeles cut its
own deal with the union and the St. Regis hotel will be converted
to condominiums). And a third hotel manager is urging accession
to Unite HERE Local 11's demand for a contract that would
expire in 2006, to line up with expiration dates in other
large cities.
"Local
11 has outmaneuvered us," said John Stoddard, general
manager of the Wilshire Grand hotel. "What I'm saying
is stop fighting them and give them the '06 agreement."
When
the previous contract expired more than a year ago, there
appeared little hope that Unite HERE Local 11 could prevail.
The larger and deeper-pocketed grocery workers' union had
just lost a bruising battle with supermarket chains, and the
contests had similar parallels.
Both
unions represented lower-skill workers in industries where
employers were aggressively seeking to cut costs. Both were
at a disadvantage as a regional union fighting owners with
nationwide, and in the case of the hotel owners, worldwide
resources.
Knowing
that it couldn't afford to strike, the union launched a boycott
of the hotels, even though a successful boycott was sure to
cost workers in the form of lost hours. And it pressed on
with a tactic of delaying negotiations, showing a willingness
to work without a contract until 2006 if need be.
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