S.F.
Lockout Backfired on Hotel Operators
Pacific News Service - November 24, 2004 By David Bacon
Editor's
Note: San Francisco hotel operators had to end their lockout
of some 4,300 hotel workers mainly because of their own tactical
missteps.
Sometimes
the fate of a single battle foretells the outcome of a war,
long before it's over. The eventual end of the San Francisco
hotel lockout promises to be this kind of watershed moment.
Last
Saturday, before San Francisco Mayor Gavin Newsom strode into
his office to announce the end of the five-week lockout before
a bank of television cameras, he went down the hall to pay
respects to the workers who had made it possible. Dozens of
room cleaners, waiters, bartenders and floor sweepers rose
to their feet and gave him a standing ovation. It was the
culmination of one of the most remarkable political turnabouts
in a city known for unconventional politics.
The
mayor, after all, was the candidate of the workers' adversaries.
For years, the city's hotels had bankrolled Newsom's political
initiatives, especially the "Care not Cash" program,
designed to rid the streets of the homeless. When Newsom finally
ran for mayor, downtown businesses, including hotels, were
his primary supporters. At the time, the hotel union was one
of the few that strongly campaigned for his opponent, Green
candidate Matt Gonzalez.
But
beginning last summer, UNITE HERE Local 2 skillfully exploited
new fault lines in urban politics and the economics of the
hospitality industry in its quest for bargaining leverage.
In fact, leverage has been at the heart of the conflict from
the beginning, more important than even wage increases or
benefits.
By
Labor Day, the union was locked in fractious negotiations
with the 14 hotels of the Multi Employer Group representing
hotel operators, including multibillion-dollar corporations
like Hilton, Intercontinental, Starwood and Hyatt. The actual
hotels are owned by large investment groups and pension funds.
While
the hotel operators were proposing tiny wage increases and
big hikes in health insurance payments of up to $273 a month,
the key issue was the duration of the contract itself. Local
2 proposed that a new agreement expire in 2006, when similar
contracts with the same corporations expire in other cities
around the country, from New York to Chicago to Honolulu.
By lining up the expiration dates, the union hoped to form
a common front of workers in major urban hotel markets, who
could act together to win a new standard of living that individual
local unions are too weak to gain alone.
Barbara
French, spokesperson for the hotel group, called this idea
"a non-starter from the beginning."
Another
union proposal sought to unify its membership base and solidify
community support. Existing contract language protecting the
rights of immigrants would be combined with a new bid to increase
the diversity of the hotel workforce, particularly by hiring
African American workers. Since the end of the 1960s-era civil
rights protests, the largest of which focused on the Sheraton
Palace Hotel, black employment in hotels has dropped to less
than 6 percent.
In
September the union launched a limited two-week strike against
four hotels in the employer group. The operators answered
with the first of a series of strategic missteps. They locked
the workers out of the other 10 hotels in the group, saying
they'd extend the lockout beyond the strike's end, so long
as workers kept demanding the 2006 expiration date.
Perhaps
believing that workers wouldn't sacrifice paychecks simply
for an expiration date, the hotels miscalculated again. Hotel
worker Elena Duran, speaking for many others, reacted by saying
simply, "It's important for us to level the playing field."
Then
the union turned the lockout, meant as a pressure tactic against
it, into a weapon against the operators themselves. The 4,300
locked-out laborers mounted large, boisterous picket lines.
Bullhorns blasted their chants into the streets, and up into
the hotel rooms, from early morning until after midnight.
Union members ate on the lines, often bringing their children
with them.
Picketers
were a polyglot reflection of the city's diversity, with all
its racial groups, speaking a bewildering variety of languages.
Some
conventions pulled out of picketed hotels, while guests complained
about disruption inside, or just refused to cross the lines.
When operators brought in strikebreakers from hotels in other
cities, the union extended its picket lines to Chicago, Honolulu
and Monterey, provoking one-day shutdowns that previewed what
coordinated bargaining in 2006 might accomplish.
Finally,
the union turned to the city itself. Matt Gonzalez, Board
of Supervisors president, held a crowded hearing at City Hall.
The mayor, hitherto quiet about the dispute, decided to make
his own attempt to settle it. Here, the hotel operators made
their most disastrous error. Newsom asked them to end the
lockout while he tried to make progress in negotiations. The
hotels turned him down flat. And when he threatened to picket
with the workers, a gesture with little actual economic clout,
they criticized him publicly. Matt Adams, head of the Multi
Employer Group, wondered aloud in the San Francisco Chronicle
why the mayor, whose campaign they had financed was not taking
their side without question.
Newsom
went to the picket lines and announced he was pulling city
business from the hotels, encouraging all their clients to
go elsewhere. As complaints of lost revenue and noise from
the picket lines mounted from businesses around the hotels,
Newsom pulled the police away, saying the operators could
end the ruckus any time they liked.
Finally,
the union and its allies, now including the mayor, drove a
wedge between the hotel operators and the owners, who gained
nothing from the lockout. After five weeks, the operators
let the workers return to their jobs, with no agreement on
their essential demand that the union give up the 2006 contract
expiration date.
The
contract remains unresolved. The union agreed not to strike
for 60 days. The operators and the hotels will be able to
function unhindered through their busiest season. But the
grand strategy to stop the union's bid for greater bargaining
power has unraveled, leaving the Multi Employer Group in disarray
and politically isolated.
PNS
contributing editor David Bacon, (dbacon@igc.org) is a freelance
writer and photographer who writes regularly on labor and
immigration issues. His latest book is "The Children
of NAFTA" (University of California Press, 2004).
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