Post-pandemic changes lead to US worker strikes

With U.S. hotel companies like Hilton and Hyatt Hotels Corp. stating they are willing to negotiate, there is no word yet of any discussions starting between hoteliers and the Unite Here union that represents some 10,000 hotel workers and 25 properties who walked off the job on Labor Day Weekend in eight cities, including Honolulu, Boston, San Francisco, San Jose, San Diego and Seattle.

The strikes were supposed to end after the long holiday weekend, but as of Tuesday morning there is no word about the status of striking workers returning to their jobs. The hotels remain open, implementing contingency plans to mitigate the impact on guests.

Nonetheless, the strikes hurt the hotels and with publicly traded Hilton, Hyatt and Marriott being targets of the union, along with multiple REITs who own the properties, hotel analyst Michael Bellisario of R.W. Baird opined that the strikes have multiple effects: hotels' top-line results are impacted (cancellations, less out-of-rooms spend); expenses are higher (to pay for temporary workers and/or added security); and booking activity is lower, particularly longer booking window business (e.g., group and Hawaii). “While the disruption is transitory as the sides ultimately will reach a new agreement, the collective bargaining process highlights the upward pressure on wages as well as the operating challenges/risks of the hotel business (more so for owners than brands),” he said.

The Associated Press reported almost half of the striking workers were in Honolulu. It added that Unite Here said strikes have been authorized and could begin soon in other cities, including Baltimore; New Haven, Connecticut; Oakland, California; and Providence, Rhode Island. A total of 15,000 workers have voted to authorize strikes.

Similar strikes over wages, staffing cuts, especially in housekeeping, led to contracts last year for Los Angeles hotel workers and Detroit casino workers. In Southern California, workers at 34 hotels won significant wage hikes, increased employer contributions to pensions, and fair workload guarantees. Under the contract, housekeepers at most hotels will earn $35 an hour by July 2027.

Since the pandemic, Unite Here has won back automatic daily room cleaning at some hotels in Honolulu and other cities, either through contract negotiations, grievance filings or local government ordinances.

But the issue is back on the table at many hotels where contracts are expiring. Union President Gwen Mills said Unite Here is striving for language to make it difficult for hotels to quietly encourage guests to opt out of daily housekeeping.

Mills characterized the contract negotiations as part of long-standing battle to secure family-sustaining compensation for service workers on par with more traditionally male-dominated industries.

“Hospitality work overall is undervalued, and it’s not a coincidence that it’s disproportionately women and people of color doing the work,” she said.

The American Hotel & Lodging Association said 86% of its member hotels reported increased wages during the first half of this year.