Hotel Strikes Threaten Events: Are You Ready?
Skift Take
Moving a meeting or conference because of a labor strike is no easy feat. But it’s sometimes the only option – and it’s an issue event planners may be facing in the coming weeks and months.
Contract talks at Marriott, Hilton, Hyatt, and Omni in Boston, San Francisco, Honolulu, and Providence, Rhode Island are underway. If they stall, the possibility of a strike increases. Unite Here, the union representing the workers, said votes will begin August 6 at 50 hotels in Boston, San Francisco, Honolulu, and Providence, Rhode Island.
If workers vote to authorize strikes, they could begin any time after contracts expire. Contracts in some cities have already expired, while others expire in the coming weeks.
In addition, over 40,000 hotel workers with the Unite Here union have contracts up for renegotiation this year in more than 20 cities across the U.S. and Canada. Additional strike votes may be announced.
“Momentum is building for strikes this year because workers are at a breaking point while the hotel industry is making record profits,” said Unite Here International President Gwen Mills. Among the demands of workers are a raise in wages and the reversal of staffing cuts that have led to fewer employees doing more.
Political Scientist Conference Impacted by Hotel Strike
A strike puts event planners in a tough spot. Canceling or changing venues will cost money but many attendees may want to show support for workers.
The American Political Science Association (APSA) went through it last year when 6,000 were registered for its conference at the JW Marriott Los Angeles and Los Angeles Convention Center.
The Marriott was one of the properties impacted by work stoppages by Unite Here Local 11 workers. The union asked APSA to support the strike by boycotting. “This was effectively a request to move the conference out of L.A. entirely, rather than just these specific hotels,” said Sidney Rothstein, an assistant professor of political science at Williams College and APSA member.
APSA released a statement that it couldn’t cancel its convention as it would cost the association $2.8 million.
Association members weren’t happy. The APSA Labor Politics Group, of which Rothstein is the co-chair, created a petition asking that labor rights be respected. More than 1,000 members signed it.
APSA eventually ended up moving its sessions out of the JW to the convention center. Challenging with 1,500 events over four days just weeks before the scheduled start.
“They should have seen the strike coming. It’s baffling they didn’t make contingency plans,” said Rothstein. He decided not to attend in person and tuned it virtually instead.
APSA did not respond to a request for comment.
This situation demonstrates the importance of staying aware of any possible strikes at properties you are using.
Include Strike Clauses in your Contracts
What can meeting professionals do to protect their events? It is imperative to have a contract that speaks to remedies for a labor disruption.
“A contract governs what will take place if both parties have agreed to it. The old adage goes, ‘If it ain’t in the contract, you ain’t going to get it,’” said hospitality attorney Jonathan T. Howe.
“In general, unless there is a specific clause in an event contract relating to strikes or staffing, a strike would not allow a group to cancel,” said attorney Lisa Sommer Devlin. “A group always has a right, if it thinks something is wrong for any reason, to ask the hotel for reasonable assurances that it can perform as agreed. If the hotel can’t guarantee, it could justify concessions or, depending on the circumstances, cancellation,” she said.
Legal counsel can help. “A group should not make irrevocable decisions without getting legal advice,” said Sommer Devlin.
Most hotels continue to operate during a strike. Service levels will usually be reduced with managers helping out in other departments, and outside non-union workers coming in. With this in mind, you should have a clause in your contract that allows you to relocate your meeting in such a situation.
Not All Strikes are the Same
There is informational picketing where workers march to bring attention to a certain issue. A true strike is where the workers walk off the job.
If your group will not cross a picket line, state that in the contract.
Also, plan for the worst-case scenario. Language in the contract should specify what will be done if a strike does occur. Do you expect the hotel to cover the ancillary costs of moving the event? State this.
Do you have to bus your group to a different hotel? Make sure the hotel you are contracted with will cover this and any other additional costs that are incurred.