UniteHere Local 2 Settles Diverted Funds Case with Hyatt
January 19, 2011 - The federal government brought a legal case against UniteHere Local 2 for illegally diverting monies from one employee trust fund to another trust fund contrary to the terms in the collective bargaining agreement and without bargaining with Hyatt.
Today, Local 2 agreed to settle these charges, reversing its action and restoring the monies to the proper funds with interest.
Hyatt regrets that we had to take such a serious action to get Local 2 to abide by the terms of the contract and meet its legal obligations to bargain in good faith with Hyatt.
We look forward to Local 2 responding to Hyatt's request for bargaining dates. It's time for Local 2 to stop trying to force its national agenda to grow its membership at other hotels, and to get back to the bargaining table and begin serious negotiations to reach a fair and equitable contract for our San Francisco hotel associates.
Hyatt understands that the Legal Fund may need additional funding. We are disappointed that Local 2 has delayed serious negotiations with us for 17 months and allowed the Legal Fund to diminish its assets. The funding of the Legal Fund, as well as all terms and conditions for our associates should be resolved through meaningful negotiations.