Hotel Law Blog

Author of www.HotelLawBlog.com
13 November 2006
Hotel Lawyer on hotel labor and employment issues. On July 21, 2006, a Superior Court jury in rural Placer County California — where you still expect jurors to know the value of a dollar — found Unite Here guilty of “fraud, malice or oppression.” This time, Unite Here — the union that represents hotel and hospitality workers — was caught red handed in its typical outrageous behavior. And it got slapped … but good. The jury hit the union with a $17.3 million (actually $17,292,850) verdict for intentionally and maliciously acting to harm the business of the Sutter Health not-for-profit hospitals and birthing clinics. This is one of the biggest verdicts ever awarded against a labor union in the United States. As usual, I looked to Marta Fernandez, my hotel labor attorney partner, for insight and guidance.

Marta says, “This case is another very important one for all employers. It is right up there with Oakwood and Cintas. It is both educational as to the ‘hard ball’ tactics Unite Here regularly employs, shows the union’s true colors, and demonstrates that when employers will stand up to outrageous union threats and behavior, they finally may be vindicated and justified.” Listen to this story! If you are an employer, it will warm your heart. If you are a callow union boss, it should give you second thought.

CONTINUE READING →

Author of www.HotelLawBlog.com
31 October 2006
Hotel Lawyer on labor and employment developments. It has now been several years since Unite Here targeted the hospitality industry with its organizing efforts. Their tactics have been extremely aggressive. At a macro level, the unions have poured resources into political campaigns across the country and are not shy about calling in favors from those they help elect. And of course, in 2006, we saw the fruits of a huge effort to time union contract expirations to hit at the same time in order to maximize leverage (see my earlier postings about the union campaign). At a micro level, the unions have also stepped up their pressure — buying 5 or 6 shares of stock and playing havoc with public companies (for example, trying to sabotage the CNL public offering), creating web sites to “educate” investors about target companies (with abusive and damaging stories about bad management, poor investment returns) and to generally embarrass and financially harm employers and their management. Fortunately, for employers, there have recently been significant wins in the ongoing struggle (such as the Oakwood Healthcare case) and one of those deserves mention today.

CONTINUE READING →