This presentation covers the major trends of union organizing particularly in the hotel industry -

It also provides practical guidance on avoiding this problem if you are expanding or buying new properties, as well as tips on keeping your property union-free.

II.  GENERAL TRENDS IN THE LABOR MOVEMENT

Membership Decline

This is not a new trend, but has been going on for decades.  Contrary to popular belief, union membership, even at its peak in the 1950's, never reached even 50% of the workforce.  Today the unionized percentage rate in the private sector is around 8%.

This has had an obvious negative impact on the power and financial clout of Big Labor, which derives income solely from the dues of members.  Particularly hard hit have been unions in industries which are in decline such as steel and automakers. 

One of the few growth areas for unions is in government employment.

Mergers

These trends in turn have lead to mergers as unions struggle to survive.  One of the most important mergers to this particular audience is between the Needle Trades Union (UNITE) and the Hotel and Restaurant Employees Union (HERE).

Geographic Realities

The overall decline in union membership, power and prestige, has not been at all uniform either geographically or in industries.  While there have been a relatively small number of union elections in some states (the Dakotas, the Carolina's, and several of the Mountain and Southern states), there have been a very large number of elections in states such as Washington, California and New York.

Win Rate Up

In addition, the percentage of elections which unions win have been steadily increasing since 1998. 

Hotels

The hotel industry makes a particularly attractive target in today's atmosphere, as it is a growth industry, it contains some jobs that relatively low paying, and it is an industry which cannot be exported or handled offshore.

III.  NEW UNION APPROACHES

AFL-CIO To CTW

For many years, the major consortium of unions, the AFL-CIO, has attempted to counter these trends by putting more and more resources into political campaigns and other political activities.  These have not always been successful in getting pro-union politicians elected, and even when that does occur, it does not always result in pro-union legislation.

Politics To Organizing

Consequently, a major dispute developed among member unions of the AFL-CIO as to whether or not this was the right approach.  Eventually, seven major unions, including UNITE HERE chose to defect from the AFL-CIO and form their own organization called "Change to Win".  The main goal of Change to Win is not political but traditional union organizing efforts.

IV.  LABOR PEACE AGREEMENTS

The most successful tactics used in the Change to Win Arsenals are the so-called Labor Peace Agreements, which come in a variety of permutations.

Traditional Union Organizing

Unions traditionally organized employee workforces from the ground up.  A several weeks long period of persuading employees to sign authorization cards, usually low key and sometimes secretive, would result in filing an election petition with the National Labor Relations Board (NLRB), the government agency in charge of labor management relations.

After a sometimes intense campaign in which both sides – the employer and the union – attempt to persuade employees to vote either for or against the union, an election is held via secret ballot.  If the union persuade a majority of those voting to vote yes, "the" union then represents all of the employees in an appropriate bargaining unit, whether they had voted for or against the union.

The New Approach

Unions now try to organize companies from the top down.  Unions pressure company ownership and management to agree to union demands before ever approaching employees.  There are several variations on these so-called Labor Peace Agreements.

Neutrality

In a Neutrality Agreement, the company agrees not to oppose future unionization efforts.

These Neutrality Agreements can be "strict" requiring the company to do nothing at all during a union organizing campaign, to affirmatively allow union organizers access to the property or to give union spokes people a form from which to persuade employees to support the union.

More limited Neutrality Agreements allow the company to express its opinion (if done in temperate terms) to correct any misstatements the union may make, to respond to union "provocations" or to give union representatives equal time, i.e. if the company holds meetings with employees to present it views, a union spokesman will be present.

Card Check

Some labor peace agreements go so far as to require the company to recognize the union on the basis of authorization cards alone.  There is no campaign and no secret ballot election.

Why Do Hotels Agree To Labor Peace Agreements?

In most situations, labor peace agreements grow out of collective bargaining at one location where the company is at an economic disadvantage.  The union may have a credible threat of a strike, or may be seriously affecting the company's business.  In order obtain a better relationship at the target location, the company agrees to some form of labor peace agreement at its other properties.

Many locations in the country (San Francisco, Chicago, New York) are much more pro-union than other parts of the country.  There may be politicians at either the local or national level who are able to put pressure on employers to deal favorably with unions. 

City councils are often useful tools for unions, and may pass local ordinances requiring employers who do business with the city, or who do business in a certain area of the city to recognize unions or deal favorably with them.

The employer may actively seek union assistance because of certain business reasons. 

a.  Unions are often able to steer major conventions toward or away from certain hotels based on their labor policies.

b.  Employers in the gaming industry may find certain localities overtly hostile to the opening of a new casino.  Unions can often be helpful in overcoming this opposition.

c.  Unions may offer direct financial assistance to certain properties including in the area of financing new constructions.  Loew's New Orleans Hotel is a good example of this.

American properties of foreign-owned corporations may sometimes receive pressure from the parent, in order for the parent to maintain good relations with its own union.  Sodexho is a target of this tactic.

Fear of a corporate campaign.  (See below)

Corporate Campaigns

Corporate campaigns are another example of top down organizing when ground up organizing no longer is effective.  Rather than persuading employees to sign authorization cards, unions persuade Boards of Directors and shareholders of major companies to adopt favorable policies towards unions in order to avoid negative publicity, boycotts, etc.

Unions may also put pressure on banks or lending institutions and other third parties who are friendly to it to either cease doing business with a particular hotel target or to persuade the hotel target to adopt union-friendly policies.

V.  2006 THE "SUMMER OF DISCONTENT"

Hotel Workers Rising

UNITE HERE's "Hotel Workers Rising" campaign was successful.  Targeted hotels in Chicago, New York and San Francisco all ended up signing collective bargaining agreements, many of which contained labor peace requirements.  The Chicago campaign was particularly successful and resulted in a Hilton-UNITE HERE "Partnership for Future Growth" agreement.

This agreement included:

1) card check agreements at other locations;
2) advancing labor peace in other cities with collective bargaining agreements;
3) the Hilton receiving "preferred status" as a hotel management company of choice for the union and
4) a commitment to mutually explore enhancing Hilton hotels productivity and competitiveness, especially in food service and restaurant sectors.

Other Properties Targeted During The "Summer Of Discontent" Included The Following:

Atlanta
a.  Hotel Indigo Atlanta Midtown
b.  InterContinental Buckhead

Boston
c. Hyatt Regency Boston Financial District
d. Hyatt Regency, Cambridge

Chicago
e.  Four Seasons, Chicago
f.  Intercontinental Hotel

Hartford
g. Downtown Hartford Marriott at Adriaens Landing

Honolulu
h. Turtle Bay Resort

Los Angeles
i.  Glendale Hilton
j.  Hyatt Regency Long Beach

Miami
k.  Hotel Inter-Continental Miami
l.   Hyatt Regency Miami

Monterey
m. Monterey Bay Travelodge (Fairgrounds)

San Francisco
n.  Argent Hotel
o.  Comfort Suites San Francisco Airport
p.  Crowne Plaza Union Square
q.  Fairmont San Francisco
r.   Four Seasons San Francisco
s.  Grand Hyatt
t.  Hilton San Francisco
u.  Holiday Inn Civic Center
v.  Holiday Inn Express (FW)
w.  Holiday Inn Fisherman's Wharf
x.   Hyatt Regency San Francisco
y.   Mark Hopkins InterContinental
z.   Omni San Francisco Hotel
aa.  Palace Hotel
bb.  Park Hyatt at Embarcadero Ctr

VI.  EXPANDING INTO NEW TERRITORY

Location, Location, Location

Some states are more conducive to remaining union free.

Know the difference between "right-to-work" and "employment at will."

Understand The New Location

Do not acquire new properties in the dark – get all the information you need.  If the property is unionized, make sure you have copies not only of the collective bargaining agreements but side letters, white paper agreements to master contracts and past arbitration decisions. 

If the property is currently nonunion, what is the atmosphere at the property.

• Have employees been transferred from a union facility to a nonunion facility recently?
• Is the prospect hotel operated on a union-free basis?
• Has the prospect opened new facilities in the last ten years that have remained union-free?
• Has there been union activity in the last five years?
• Does the property have sophisticated employer relations program?
• Does the prospect utilize external resources to remain union-free?

VII.           REMAINING UNION-FREE

It is possible to "union proof" your property to a great degree.  By following a few simple pro-employee rules, carefully monitoring wages and benefits, aggressively dealing with safety issues, discrimination, favoritism and other employee complaints, you will be able to demonstrate that a union is not needed at your property. 

Remember:  it is far easier to prevent union organizing from getting started in the first place than it is to campaign against a union once organizing has started.

Mike Mitchell is a partner with Fisher & Phillips LLP, a law firm limiting its practice to representing management in labor and employment matters.  He can be contacted at 504.522.3303 or mmitchell@laborlawyers.com