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Author of www.HotelLawBlog.com
17 September 2006
In past few blog commentaries, I have described the labor settlements in San Francisco and Monterey, and begun to look at what they portend. Last time, my partner, Marta Fernandez, helped us understand that although the union would like us to think that the deals cut with Multi-Employer Groups (or MEGs) in various cities set the standard for everyone else, that is not true. Nothing mandates that hotels adopt a “me too” agreement as the union proposes.

Today, we will look at one important area where it may pay for other hotels (i.e. non-MEG hotels) to avoid the “model” negotiated by the MEGs.

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Author of www.HotelLawBlog.com
16 September 2006
For this comment, I talked with my partner, Marta Fernandez . She is one of the senior members of our Global Hospitality Group® who specializes in labor and employment issues related to hospitality. Her background and contact information are provided below.

As the strike threats resolve in New York, Chicago and now San Francisco and Monterey, one has to ask, “What does it all mean?” What is the significance, for example, of the deal Local 2 of UNITE HERE cut with the 13 San Francisco hotels making up the SFMEG (San Francisco Multi-Employer Group).

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Author of www.HotelLawBlog.com
14 September 2006
After two years of strikes, lockouts, boycotts and tense negotiation, the 13 hotels that make up the San Francisco Multi-Employee Group reached a tentative labor agreement this week with Local 2 of the Unite Here union. Rank and file members of Unite Here will vote on the pact Sept. 22, and it is likely to pass. While the union touts a victory, the agreement is very close to the proposals originally made by the union two years ago. Yes, the SFMEG hotels stood up to the union throughout this time, but the negotiation process was clearly costly to all.

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15 March 2006

Closing hotels and hotel closings

Hotel closings are hitting record levels, but now it is for all the right reasons! Unlike closings caused by the “great real estate depression” of the early 1990s, hotels are closing today for positive reasons: major rehab and construction projects, conversions to condo hotel or residential condos and expansion. Hotel developers and owners are finding that construction is often so extensive that it is advisable to close the hotel while the work is being performed. But, you should not make the decision to close without first consulting with your labor counsel to consider the labor and employment implications, and determining the optimal strategies for your situation.

[By the way, hotels also close because of financial difficulties, but that is a different problem for another article. Those issues are also very important. For example, see Closing that hotel may be the worst money-saving idea you ever had! Lenders, here’s why mothballing a hotel can be a very bad idea.]

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