Union, 16 Hotels Agree on Labor Pacts in Chicago

Mimegasite.com, 09/15/2006

Chicago -- The union representing hospitality workers and 16 hotels here have agreed to new labor contracts, virtually ensuring labor calm at most of the city's hotels just as the convention season begins.

Unite Here Local 1 yesterday announced it secured tentative agreements with five properties representing various brands of Starwood Hotels. Another 11 properties agreed to accept terms of the Starwood-negotiated contracts.

The new agreements, which union members are expected to ratify, follow contract agreements the union reached over the past few weeks with Hilton Hotels and Global Hyatt Corp. for their hotels in Chicago.

"This settlement is good for Chicago," said Local 1 president Henry Tamarin. "We were glad to be able to reach it without a disruption in the work as we head into the busy convention season. The Chicago hospitality industry will benefit from better-paid workers and safer working conditions achieved in this contract."

In addition to winning wage and benefit increases for workers, the union prevailed on a key provision that substantially increases its ability to organize workers at non-union hotels without interference from management.

Under the system known as card-check neutrality, workers can sign cards favoring unionization rather than vote by secret ballot in elections conducted by the National Labor Relations Board. The latter method is a much longer process and one in which employers can lobby employees to vote against unionization. Under both methods, the hotel becomes unionized if a majority of workers approve it.

Although the hotels that agreed to new contracts are already unionized, the hotel companies managing those hotels agreed to abide by card-check neutrality at any local hotels they may subsequently manage or purchase.

Like the Hilton and Hyatt contracts, the contracts with the Starwood properties extend for three years, retroactive to Sept. 1. All the contracts negotiated so far cover nearly 7,000 workers, according to the union.

The new agreements in Chicago coincide with new labor pacts Unite Here negotiated this week in San Francisco with 13 of the city's biggest hotels. Most of San Francisco's other full-service hotels are expected to follow suit.

The contracts in San Francisco also include card-check neutrality and a 2009 expiration date, strengthening the union nationally both in terms of growing its membership and in gaining more leverage over the big hotel companies in future contract negotiations.

Contract negotiations in Chicago continue with four relatively small properties. A strike dating to June 2003 continues at the Congress Hotel.