National labor and gay rights controversies come home to roost for Chicago-based Hyatt
(Chicago, IL) – Just six months after becoming a publicly traded company, Hyatt Hotels (NYSE: H) is already facing sharp criticism at home in Chicago and across North America. Today, over one hundred religious leaders and hotel workers held protests outside Hyatt’s first annual shareholders meeting at Hyatt McCormick Place, outraged at how the company is trying to make the recession permanent for workers despite significantly improving industry conditions and Hyatt’s rising share values.
A delegation of over 40 Chicago-area religious leaders went to confront Hyatt’s top decision makers at the shareholders meeting.
Inside the meeting, a former Hyatt housekeeper from Boston, who was fired in August 2009 and replaced by an outsourced worker making minimum wage, appealed to Hyatt’s owners and top executives directly. Together, they called on Hyatt’s majority owners and Chicago’s wealthiest family, the Pritzkers, to not leave workers behind as the company moves forward. Last November, in one day the Pritzkers cashed out over $900 million as part of Hyatt’s Initial Public Offering.
The demonstrations signal a deepening crisis for Hyatt among its core constituencies, including Hyatt workers, religious organizations across the country, and gay rights activists, who fault Hyatt for courting LGBT customers while refusing to sever ties with Doug Manchester—a Hyatt owner and key funder of the initiative to ban gay marriage in California. Today, workers and community allies held simultaneous demonstrations protesting Hyatt in Chicago, Vancouver, Honolulu, San Francisco, and Los Angeles. In city after city, Hyatt has used the economy as an excuse to roll back benefits for its hardworking employees and lock workers into a recession for years to come.
On Tuesday, June 8, four hundred hotel workers at the Hyatt Regency in San Francisco went on strike, and protests in Chicago come just days after hundreds of workers at the Hyatt Regency Chicago walked off the job in protest of worsening working conditions at Chicago’s largest downtown hotel. Hyatt also sparked a national controversy in 2009, when in Boston, Hyatt fired all of its housekeepers (approximately 100 of them), replacing them with subcontracted workers being paid minimum wage.
“I gave my body—everything I have—to that hotel, and Hyatt disposed of us like we were trash,” said Lucine Wiliams, who worked at the Hyatt Regency Boston for 21 years, before Hyatt fired her on August 31, 2009. Williams traveled to Chicago and participated in the shareholder’s meeting as a proxy, where she appealed directly to Hyatt’s top decision makers.
Nationwide, the hotel industry is rebounding faster and stronger than expected, with a hearty rebound projected in 2011 and 2012. In the six months following Hyatt’s November initial public offering Hyatt’s shares were up over 65% (IPO on 11/5/09 at $25; 5/5/10 traded at $41.86). Despite these trends showing a strong recovery for the hotel industry, hotels are still squeezing workers and cutting staff. While this marks a trend involving several major hotel companies, Hyatt is the starkest example.
“Hyatt has become an emblematic obstacle to our nation’s economic recovery,” says Rev. Calvin S. Morris, Ph.D. and Executive Director of the Community Renewal Society, who led a delegation of dozens of religious leaders into the shareholders meeting. “I’m here today with leaders from many congregations and many faiths to send a message to Hyatt’s owners that we will not sit idly by as Hyatt locks hardworking housekeepers, dishwashers, and doormen into a recession, while one of the wealthiest families in America gets wealthier.”
UNITE HERE International Union represents 300,000 workers in the hospitality, gaming, food service, manufacturing, textile, laundry, and airport industries across North America.
###
Hyatt housekeepers in Chicago and 7 other cities to file injury complaints with OSHA
The hazards associated with hotel work and service sector jobs more broadly have been largely invisible and unregulated. Serious injuries can happen slowly over time, through the repetition of certain tasks. Nevertheless, the long-term impact can result in debilitating injuries that in some instances require surgical intervention, physical therapy, or lead to permanent disability, like the loss of the full use of one’s arm.
The AJIM study found the highest injury rates among hotel workers to be in housekeeping. The study also indicated alarming differences in hotel injuries by race and gender, showing that women hotel workers were 50% more likely to be injured than men, and Hispanic women had almost double the risk of injury of their white female counterparts. The variation in injury rates across the major companies suggests room for remedies. Housekeepers working at Hyatt hotels in the AJIM study had the highest injury rate of those hotels studied, with a risk of injury almost twice that of the company with the lowest rate.
At some Hyatt properties, room attendants are required to clean as many as 30 rooms a day, nearly double what is commonly considered standard in the industry. Speeding up work by raising the room quota or adding room amenities can strain the body and lead to more accidents, like slipping on wet bathroom floors or tripping over furniture.
“Cleaning 25 to 30 rooms a day and making beds ‘hospital style’ demands working fast and lifting heavy mattresses,” says Maria Carmen Dominguez, who worked at the Grand Hyatt San Antonio as a room attendant before getting a broken tendon and permanently injuring her shoulder. “After surgery and months of physical therapy, I am still in pain anytime I lift my arm, even just to get dressed or brush my daughter’s hair.”
Dominguez also alleges that workers are discouraged from reporting injuries for fear of punishment, and that management has created a monetary disincentive for reporting injuries called “Safety Bingo,” with a lottery prize for housekeepers that grows every day that no injury is reported.
The complaints recommend to OSHA a number of remedies to reduce the health risks associated with housekeeping work. These recommendations include: fitted sheets to reduce the number of times that women must lift 100-plus pound mattresses to tuck sheets; long-handled mops and dusters, so workers do not have to get down on their hands and knees to clean the floors or climb bathtubs to reach high surfaces; and reasonable room quotas, so women no longer have to rush to finish rooms, risking slips and falls.
“There are common sense changes like fitted sheets, mops, or caps on daily room quotas that can make the difference between healthy bodies and hurt housekeepers,” says occupational health expert Gary Orr. “It is critical that we explore ways of making hotel work safe to reduce the high rates of injury that we see among housekeepers. Corporate-wide solutions are not only needed but are the most effective and less costly as they can be applied to multiple worksites.”
Complaints were filed by workers in Hyatt Hotels in the following cities: San Antonio, Chicago, San Francisco, Santa Clara, Los Angeles, Long Beach, Honolulu, and Indianapolis.
DePaul dining workers ratify new contract
“Even with all the obstacles that we went through, we stood together, and we got a great contract,” said Chanteen Hardaway, a campus dining worker at DePaul.
DePaul students supported the workers with a campus-wide Living Wage campaign.
For more information on the food service industry on college and university campuses, visit the Stir It Up campaign’s website.
Major victory for Blackstone Hotel workers
Hotel ordered to offer jobs back with back pay and benefits
Union estimates lost earnings and benefits to total at least $250,000
Among the other significant rulings in this case, the judge also ordered the company to restore its 2008-2009 health insurance plan and compensate Blackstone employees for unlawful increases to health plan costs. The Hotel was also ordered to stop refusing to bargain with the Union on health plan coverage and layoffs.
Based on documents turned over by the Blackstone, the Union estimates that these lost earnings and increased benefit costs already total at least $250,000, and this amount is growing every day.
Community leaders have long criticized the owners and management of the Blackstone Hotel for their systematic efforts to dismantle the union, despite the hotel having received $72.9 million in taxpayer subsidies and credits ($40 million of which are tax credits meant to spur low income community development). As part of the ruling, the judge found that a Blackstone manager broke federal law by illegally encouraging and passing around a Union decertification petition. The judge’s decision reinforces an earlier decision issued by an NLRB Regional Director on Mar. 27, 2009, finding that the Hotel illegally encouraged and assisted some employees in circulating the decertification petition.
LaMar Johnson was one of the 14 workers laid off from the room service department. “I got married just 6 months before I was laid off from the Blackstone Hotel, and this last year has been a real struggle for me and my family. I haven’t even been able to buy a new pair of shoes. I’m gratified to know that the judge in this case sided with us and found that the hotel had broken the law. It feels like someone is actually looking out for the little guy.”
Workers at the Blackstone began organizing shortly after the hotel reopened in the summer of 2008, and the Union became officially recognized in December 2008. Workers began bargaining their first contract at the hotel shortly thereafter, and have been negotiating their first contract since.
“At every step, the Blackstone Hotel has skirted the law, waging a vicious and illegal anti-union campaign in an attempt to decertify the union and impede the collective bargaining process,” said UNITE HERE Local 1 President Henry Tamarin. “Now the Hotel wants to skirt the judge’s decision and their moral responsibility to these workers, by appealing this case and refusing to grant these workers what is rightfully owed to them.”
The Judge’s orders are directed to Sage Hospitality and Chicago Master Lessee, LLC. Prudential Insurance Company has an investor member interest in Chicago Master Lessee, LLC. The company has appealed the judge’s decision. Workers from the Blackstone Hotel and other union supporters gathered in front of the hotel on Thursday morning to call on the hotel to drop the appeal and immediately remedy the situation by bringing laid off workers back to work with compensation.
UNITE HERE Local 1, Chicago’s hospitality workers union, represents over 15,000 workers in the Chicago area.
###
Ameristar workers appear before Indiana Gaming Commission on “part-timer” crisis
Workers call for investigation of growing state tax burden from staff cuts in one of Indiana’s most profitable industries
“After 13 years of service, Ameristar cut me to part time and I lost my benefits,” says Christinia Davis, a Buffet Server at Ameristar Casino, who has racked up more than $100,000 in medical bills from recent major surgery. “I’m proud to say that I haven’t had to rely on state aid for more than a decade now because of this job, but with my part-time status that may all change.”
Christinia is just one of many area casino workers who has seen her hours cut in recent months. 30% of the unionized staff at Ameristar are now working part-time and are not eligible for health benefits. The average buffet beverage server at Ameristar currently makes $9.85 an hour, meaning an employee who works part-time at 28.5 hours a week at part-time status, has a gross annual income of $14,598. At that level, one would fall below the federal poverty line as a head of a two-person household and qualify for Temporary Aid to Needy Families (TANF) and Hoosier Healthwise, Indiana’s health insurance program for low-income families.
By contrast, Ameristar’s top executives have done well in recent months, and freely admit their intent to rely more and more on part-time workers to boost corporate profitability.
“We’ve made a big shift from full-time to part-time labor, which gives us a lot more flexibility in scheduling,” said Gordon Kanofsky—an Ameristar CEO and Vice Chairman, who earned $3,836,470 in total compensation in 2009—on an earnings call with investors.
The Indiana Gaming Commission is charged with regulating and issuing licenses to Indiana riverboats, on the premise that these casinos “promote the most economic development in a home dock area,” that “best serve the interests of the citizens in Indiana.” Casino workers called on Commission members to assess whether Ameristar still meets that criteria by investigating the negative economic impact and tax burden of Ameristar’s reliance on part-time workers.
“When gaming came to East Chicago over a dozen years ago, these casinos were supposed to provide good jobs to replace the ones that were moving overseas,” says Jami Peterson, a bartender at Ameristar East Chicago. “Instead, my coworkers are going to the state to get food stamps, partial unemployment or healthcare.”
Workers from Ameristar available for interview.
# ##
Gutierrez honors Congress Hotel Strikers at 7th Anniversary Rally
The event, led by keynote speaker Congressman Luis Gutierrez, gave recognition to the strikers who are immigrants to the United States and honored them for their struggle to lift job standards for all workers in the Chicago hospitality industry. In so doing, strike supporters at the rally called both for an end to the strike at the Congress Hotel and immigration reform in the United States.
An overwhelming majority of the courageous individuals who have led the longest hotel strike in American history at the Congress Hotel are immigrants to the United States. Working families in Chicago have made astounding gains in recent years because the Congress strikers have refused to settle for substandard wages. At the time that the strike began, Chicago housekeepers were making just $8.83 an hour, compared to $14.60 an hour today. The strikers at the Congress Hotel stand as a powerful example of how immigrant workers in the United States are leading the fight to raise standards for low-wage workers in the service industry and beyond.
“The United States was built by immigrants, who came here and fought to make jobs in this country better,” said Henry Tamarin, the President of UNITE HERE Local 1—the union of hospitality workers in Chicago. “The Congress Hotel strikers continue that tradition today.”
On June 15, 2003, members of UNITE HERE Local 1 working at the Congress Hotel went out on strike after the hotel decided to freeze wages until 2010, refused to pay healthcare premiums for its employees (effectively eliminating employee healthcare benefits), and demanded the ability to subcontract out all bargaining unit work at the hotel. To ensure that hotel jobs in this city are strong, family-sustaining jobs, Congress strikers have taken the fight to the streets of Chicago, New York, the Philippines, and around the world. There are about 60 active remaining strikers, who both actively picket the Congress hotel and lead campaign statewide to bring an end to the Congress Hotel Strike.
Since the time that negotiations began, the Congress Hotel has never offered a proposal with increases in wages or the company’s share of healthcare costs from the rates listed in the contract that expired in 2002.
“It’s been hard over the last few years, but I’m doing this for my kids—and for all the other hotel workers with families in this city. I want to leave things better for those who come after me,” said Dolores Contreras, a single mother of three and a striker who worked at the Congress Hotel as a banquet server before the strike began.
###
Protests cloud Hyatt’s first shareholders meeting
National labor and gay rights controversies come home to roost for Chicago-based Hyatt
A delegation of over 40 Chicago-area religious leaders went to confront Hyatt’s top decision makers at the shareholders meeting.
Inside the meeting, a former Hyatt housekeeper from Boston, who was fired in August 2009 and replaced by an outsourced worker making minimum wage, appealed to Hyatt’s owners and top executives directly. Together, they called on Hyatt’s majority owners and Chicago’s wealthiest family, the Pritzkers, to not leave workers behind as the company moves forward. Last November, in one day the Pritzkers cashed out over $900 million as part of Hyatt’s Initial Public Offering.
The demonstrations signal a deepening crisis for Hyatt among its core constituencies, including Hyatt workers, religious organizations across the country, and gay rights activists, who fault Hyatt for courting LGBT customers while refusing to sever ties with Doug Manchester—a Hyatt owner and key funder of the initiative to ban gay marriage in California. Today, workers and community allies held simultaneous demonstrations protesting Hyatt in Chicago, Vancouver, Honolulu, San Francisco, and Los Angeles. In city after city, Hyatt has used the economy as an excuse to roll back benefits for its hardworking employees and lock workers into a recession for years to come.
On Tuesday, June 8, four hundred hotel workers at the Hyatt Regency in San Francisco went on strike, and protests in Chicago come just days after hundreds of workers at the Hyatt Regency Chicago walked off the job in protest of worsening working conditions at Chicago’s largest downtown hotel. Hyatt also sparked a national controversy in 2009, when in Boston, Hyatt fired all of its housekeepers (approximately 100 of them), replacing them with subcontracted workers being paid minimum wage.
“I gave my body—everything I have—to that hotel, and Hyatt disposed of us like we were trash,” said Lucine Wiliams, who worked at the Hyatt Regency Boston for 21 years, before Hyatt fired her on August 31, 2009. Williams traveled to Chicago and participated in the shareholder’s meeting as a proxy, where she appealed directly to Hyatt’s top decision makers.
Nationwide, the hotel industry is rebounding faster and stronger than expected, with a hearty rebound projected in 2011 and 2012. In the six months following Hyatt’s November initial public offering Hyatt’s shares were up over 65% (IPO on 11/5/09 at $25; 5/5/10 traded at $41.86). Despite these trends showing a strong recovery for the hotel industry, hotels are still squeezing workers and cutting staff. While this marks a trend involving several major hotel companies, Hyatt is the starkest example.
“Hyatt has become an emblematic obstacle to our nation’s economic recovery,” says Rev. Calvin S. Morris, Ph.D. and Executive Director of the Community Renewal Society, who led a delegation of dozens of religious leaders into the shareholders meeting. “I’m here today with leaders from many congregations and many faiths to send a message to Hyatt’s owners that we will not sit idly by as Hyatt locks hardworking housekeepers, dishwashers, and doormen into a recession, while one of the wealthiest families in America gets wealthier.”
###