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to HERE Local 1 Press Release |
May 20, 2003 - The collective bargaining agreement between the parties
expired on December 31, 2002. The Hotel has been available to negotiate
with the Union 24/7 since August of 2002. The Union has not had time
to negotiate. Over a nine month period they have only had time for
eight, two-hour sessions.
The Union is seeking a 46% wage increase over the next four years, as well as a 100% increase in Health and Welfare benefit payments. The Union is seeking additional economic and non-economic provisions, which never existed in any previous contract. Compared to the last contract agreement, which was reached four years ago, occupancy and room rates are down considerably while costs are up significantly. Like the entire Hotel industry, the Congress has been hurt by the downturn in travel and convention business, a down economy, and the aftermath of the 9/11 terrorist attacks, in addition to increased competition by other hotels who have been reducing their rates. The Hotel is an older property that requires extensive maintenance and continuous renovations. Since 2000, the average occupancy rate has fallen from 56.6% to 26.1%, and the average room rate has fallen 11% in the same period. The Congress Plaza Hotel will continue to provide services to its customers, regardless of any threatened union activities. |
Peter Andjelkovich, Chief Negotiator (312) 782-8345 |