San Francisco's world-renowned hotel industry is facing a new hurdle in its path to full recovery from the pandemic: the prospect of labor unrest. With contracts for thousands of hotel workers set to expire in August, tensions are mounting between Unite Here Local 2 – the union representing hotel employees – and the city's major hotel operators.
The Looming Contract Expirations
Over 55 Bay Area hotels, including iconic properties like the Fairmont, St. Regis, Marriott Marquis, Westin St. Francis, and Palace Hotel, are bracing for potential disruptions as labor contracts covering nearly 10,000 workers are due to expire in August. Unite Here Local 2 has already planned a protest in Union Square on Wednesday, demanding better wages and benefits for its members.
A Struggle for Fair Compensation
According to Elizabeth Tapia, president of Unite Here Local 2, the union's primary objectives are to secure higher wages and improved benefits for hotel workers. Many employees, such as Antonia Beltran, a dishwasher and food service worker at the Hyatt Regency, have seen their workloads increase while their wages have stagnated.
Beltran, who earns $29 per hour and has received only a $1 raise in the past three years, struggles to make ends meet in the costly Bay Area. "In San Francisco, everything is so expensive — food, gas, mortgage," she laments. "It's a lot of frustration."
The contract expirations raise the potential for significant labor disruptions in San Francisco's iconic hotel industry. If negotiations between the union and hotel operators break down, Unite Here Local 2 could call for strikes, pickets, or other job actions at over 55 affected properties.
This would likely cause major inconveniences for guests, ranging from reduced housekeeping and amenity services to having to cross active picket lines. San Francisco has experienced disruptive hotel labor disputes in the past, including a two-week strike in 2018 that forced several hotels to curtail operations like room cleaning.
The looming expiration of these contracts carries substantial economic implications for the city. San Francisco's tourism sector supports over 86,000 jobs and generated $813 million in taxes and fees prior to the pandemic in 2019. Protracted labor unrest and hotel service disruptions run the risk of deterring conventions and visitors, with potentially severe economic ripple effects.
While the narrative describes the union's push for higher wages, key issues extending beyond pay are also likely to be bargaining priorities, such as affordable healthcare, improved pensions, workload limits, job security provisions, worker safety protocols, and policies addressing the impacts of new technologies on staffing levels.
San Francisco's extremely high cost of living underlies much of the tension in these negotiations. As one of the most expensive cities in the United States, hotel workers require comparably high wages just to make ends meet. In fact, San Francisco's minimum wage currently stands at $16.99 per hour, among the highest minimum wages in the world.
For workers like Antonia Beltran who have only received minimal raises despite soaring living costs, the financial strain highlights the importance of securing a favorable new contract with hotel operators.
The Union's Perspective
Unite Here Local 2 argues that staffing levels have been cut, with hotels reducing housekeeping services and keeping many restaurants closed. Nationwide, the union claims that hotel staffing is down 13% compared to pre-pandemic levels.
"Staffing is much lower than it was before," says Tapia. "The hotels have really tried to eliminate room cleaning."
The Hotels' Stance
While Hyatt, a major hotel operator, has expressed a willingness to negotiate "a fair contract" with Unite Here Local 2, other hotel chains have remained tight-lipped on the impending labor negotiations. The Hotel Council of San Francisco, representing hotel owners, acknowledges the industry's challenges, citing high interest rates, increased business costs, and the lingering impact of the pandemic on visitor numbers.
A Delicate Balance
As San Francisco's critical tourism industry continues its recovery, with visitor spending still 8% below 2019 levels, hotel operators face the delicate task of balancing their financial constraints with the demands of their workforce. The upcoming contract negotiations will be a pivotal moment, potentially shaping the future of the city's hospitality sector and the livelihoods of thousands of workers.
Source: SF Chronicle