San Francisco Hotel News & Labor Updates

October 14, 2010 Hotel, Business Leaders Unify, Call For Responsible Action From UNITE HERE Local 2 Union is Hurting Employment, Economy, City of San Francisco San Francisco—Hotel and business leaders today called the hotel employees union UNITE HERE Local 2 one of the leading threats to the economic recovery of San Francisco because of its irresponsible behavior and harmful actions such as boycotts, walk-outs, strikes and protests. In an unprecedented gathering of business groups, hospitality organizations and community leaders today at a media conference, San Francisco business leaders called upon Local 2 to rejoin hotels in negotiations and reach a long-term contract. Talks began more than a year ago when the contract expired on August 31, 2009. Yesterday, Local 2 began a six-day strike at the Hilton San Francisco Union Square. Representatives of the Chamber of Commerce, Hilton, Starwood, Marriott, Hyatt, and other business leaders pointed out that hotels in San Francisco have been the target of boycotts, protests and other labor actions by Local 2 at various times for three of the past six years. “The economic foundation of San Francisco’s economy is tourism and hospitality which produced $7.8 billion in business in 2009 and is responsible for more than 20,000 direct jobs–and numerous indirect jobs–and provided $426 million in taxes to San Francisco just last year,” said Michael Dunne, general manager of the Hilton San Francisco Union Square. “It’s time that Local 2 stopped picketing and boycotting and become a responsible member of our community. The first step they can take is to negotiate a new contract.” Hilton is offering the union a contract with pay hikes as well as increases sufficient to meet the reasonable needs of the healthcare fund, with no employee contributions. He said Local 2 is out of touch with economic realities. “Their current proposal would increase labor costs over 25% in the next three years alone, including wage increases of up to 7% each year and over the next three years a 35% increase in our health fund contributions and an over 30% increase in our pension contributions. The union has proposed a substantial increase in gratuity compensation of banquet servers, many of whom earn over $100,000 annually,” explained Dunne. Dunne said it’s time for Local 2 and its leadership to negotiate a contract. “UNITE HERE has negotiated new contracts with Hilton this year in Houston, San Diego, Minneapolis and San Juan, P.R. The question in San Francisco is what is wrong with Local 2 and why do they insist on fighting instead of negotiating a new contract?” Dunne asked. Joining Dunne at the conference were: Steven Falk, president and CEO of the San Francisco Chamber of Commerce; Patricia Breslin, executive director of the Hotel Council of San Francisco; Toni Knorr, general manager of the St. Regis Hotel; Clem Esmail, general manager of the San Francisco Sheraton Palace; Mark Fenton of the Hyatt Grand Regency Hotel; Michael Pace, general manager of the W Hotel; Dan Kelleher, general manager of the San Francisco Marriott; Scott McCoy of the Renaissance; Richard Hill, manager of the Westin St. Francis Hotel; and Oscar Rodriguez and Debbie Bonafede of Marriot Hotels and Resorts. “Local 2 is attempting to drive business away from San Francisco at a time when the City desperately needs visitors and the money and jobs tourism brings with it to local economy,” said Patricia Breslin, executive director of the Hotel Council of San Francisco. “It’s time for Local 2 to stop harassing potential visitors and to return to the bargaining table for the benefit of its own members, the economy of the city and the health of the hospitality industry.” Wages and benefits for hotel employees average approximately $60,000 for housekeepers and some bartenders and banquet workers make more than $100,000 annually. All employee healthcare costs are fully paid by the hotels and they receive nearly five weeks paid time off each year as well as three free meals each day as part of their employment package. In June of this year, the San Francisco Convention and Visitors Bureau took the unprecedented action of censuring and then expelling the union and its president Mike Casey from the 1,700 member bureau. The union had repeatedly discouraged and intimated conventions and travelers from doing business in San Francisco as part of its labor negotiation strategy.

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