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Hyatt Hotel Workers Reject Company Attempt to Slash Worker Healthcare

April 13, 2010

LOS ANGELES - Hotel workers from the Hyatt Century Plaza and Hyatt Andaz West Hollywood rejected last week the Hyatt Corporation's proposals to slash worker healthcare and freeze wages for two years.

In its first two economic proposals, Hyatt offered economic packages for roughly 800 workers that would amount to cuts in health benefits workers have won in past contracts. It also called for a two-year wage freeze, cross-classification and the elimination of departments. Workers and management met April 7 and 8 in Century City and West Hollywood, respectively.

The bargaining sessions marked a major turn in negotiations for hotel workers in Los Angeles. About 4,000 hotel worker contracts expired more than four months ago, but hotels have avoided discussing economic issues. Hyatt negotiations will likely set the tone for other LA hotels.

After this past Thursday's sessions, workers vowed to take their struggle to maintain good jobs to the streets. Such public demonstrations started Friday morning at 6 a.m. with noisy picket lines in front of the Century Plaza and Andaz hotels.

"This is not a proposal for us," said Max Ortiz, a server at the Hyatt Century Plaza. "They want to take away the health program. Instead of going forward, we're just going backward."

Hyatt negotiators said their proposal reflects the economic downturn. But a March 2010 report by hospitality research Firm PFK-HR forecasted that US hotels would enjoy double-digit revenue growth by 2012. According to PFK, such growth has not been seen since the late 1970s and 1980s.

"This company wants to use a temporary recession to make low-wages and poor benefits permanent," said Tom Walsh, president of UNITE HERE Local 11. "We know this company has money and in the next few years will make a lot more."

The workers' counter contract proposal called for maintaining the current healthcare plan and wage increases emphasized in later years of the contract, allowing for improvements in occupancy rates with the economic recovery.

"Healthcare is the most important issue," said Ryan Holmes, a front desk agent at the Hyatt Century Plaza. "We won't let them take it away."

Future negotiating dates have yet to be announced. Meanwhile, workers are planning a major demonstration on April 23, 2010 at the Andaz in West Hollywood.

 

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