Business & Finance

UNITE HERE - Hyatt Attempting to Off-load 3 Properties with Labor Disputes

August 31, 2010 - UNITE HERE has created hyattlabordisputes.org, a website to inform prospective buyers of Hyatt properties about ongoing labor disputes at a number of these hotels.

Hyatt Hotels (NYSE: H) is currently exploring the sale of eleven properties. Three of the properties being sold, the Hyatt Regency Santa Clara, Hyatt Regency Long Beach and Hyatt Regency Indianapolis, are embroiled in labor disputes. Workers at these hotels have asked management to enter into labor peace agreements. Such agreements, also known as card check/neutrality agreements, are designed to establish ground rules for both the union and employer which enables business operations to proceed without the detrimental impact of a labor dispute. Hyatt has rejected their employees’ overtures, inviting disputes.

The labor disputes could result in additional costs to properties that may have other capital needs. During a recent call with investors, Hyatt CEO Mark Hoplamazian stated the hotels for sale “tend to be in suburban or secondary urban markets. And they are Hyatt and Hyatt Regency-branded properties, in the Midwest and on the West Coast. Some of them have capital needs and so forth...” Hoplamazian goes on to say that Hyatt does have the capital to put into the properties and thinks there may be “better owners” for these assets.

“Since Hyatt has indicated its desire to retain management of these hotels but refuses to honor workers’ requests for a fair process to organize, buyers should be aware of what a long-term relationship with Hyatt could involve,” says John Wilhelm, President of UNITE HERE.

Although these properties are not currently under boycott, UNITE HERE has boycotts of ten Hyatt properties elsewhere. In contract negotiations with Hyatt and UNITE HERE affiliates in Los Angeles (Local 11), San Francisco (Local 2), and Chicago (Local 1) have requested that Hyatt enter into labor peace agreements for these properties. Hyatt has denied these requests. On July 22 workers and their supporters in fifteen cities across North America held public demonstrations in front of Hyatt hotels.

UNITE HERE represents more than 250,000 workers throughout the U.S. and Canada who work in the hospitality, gaming, food service, manufacturing, textile, laundry, and airport industries.

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