Posted in Labor
Last updated 03/07/2011 at 3:53 p.m. PST

Union Sees Big Victory in Settlement with Hilton

Deal featuring numerous benefits for employees brings end to a nearly 18-month boycott

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By on March 7, 2011 - 2:57 p.m. PST
Aaron Glantz/The Bay Citizen
Jacov Awoke has worked at the Hilton for 21 years. The value of his pension will increase 25 percent over the life of the contract.

Unionized hotel workers in San Francisco announced a "huge victory" in contract negotiations with management at Hilton's Union Square hotel and called a halt to their nearly 18-month boycott.

"This is a watershed moment," said Mike Casey, President of Unite Here's Local 2, which represents approximately 800 of the 1,400 workers at the Hilton.

The union and hotel management have reached a settlement agreement that features gains for the employees in most areas with no significant take-aways.

Health care will continue to be fully paid for workers, families and retirees. Workers will not have to make any copayments to use their health coverage, while dependents will have to pay just $10 to see a doctor. 

The deal also increases the value of pensions for workers at the hotel by 25 percent over the life of the contract.

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Effective October 2012, employees who have worked at the hotel for 20 years will get five weeks' paid vacation.

The workload for individual housekeepers will also be reduced on days when many guests are checking out.

The deal came after the union ran a coordinated campaign against the hotel, including a boycott, pickets and demonstrations.

"I'm very happy," said Jacov Awoke, 50, a doorman who came to Monday's press conference in his uniform.

Awoke, who has worked for the Hilton for 20 years, said he makes $11 an hour. "So the health care and pension are very important to me and my family," he said.

The hotel's general manager, Michael Dunne, attended the press conference, appearing nervous at times as union officials and workers described their gains.

His only smile came when Casey, the union leader, announced the end of the boycott. 

"It was the right time for us to settle," Dunne said. "We value our employees and look forward to working with them."

Dunne said that since 2009, the Union Square Hilton had lost approximately 10 percent of its business, but he was reluctant to attribute the entire drop to the boycott.

Casey said the deal, which is likely to be ratified Friday, will "set the tone for negotiations with the rest of the industry." He predicted that an existing campaign against Starwood Corporation, which owns the W, St. Francis and Palace hotels, "will escalate."

Local 2 is also promising to push for a similar contract from the Marriot and Hyatt hotels, but Casey said the union would target Starwood first.

Aaron Glantz
Aaron Glantz covers housing, real estate, development, and veterans issues for The Bay Citizen. Before joining TBC, Glantz spent seven years covering the war in Iraq and the treatment veterans receive when they come home. ... View Profile
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