News for the Hospitality Executive
City Councilmembers, Community Leaders,
Faith Leaders and Hotel Workers—‘Union Contracts Best Economic Stimulus
WIRE)--On Monday April 13th, in the middle of the deepest economic
recession in this country in 50 years, the Radisson LAX hotel signed a
union contract giving significant wage increases, free family health
insurance and providing safer working conditions for the 160 hotel
workers who work at the hotel. City Councilman Bill Rosendahl, joined
Radisson LAX owner Peter Dumon, and community leaders to congratulate
hotel workers on their victory and applauded the hotel for doing the
right thing in these tough economic times. Hotel workers from the
Sheraton Gateway, Four Points LAX, and Westin LAX also joined the
Radisson LAX workers to celebrate their recently won victories. Hotel
workers at all four hotels will now be covered by union contracts with
UNITE HERE Local 11. The Hilton LAX is the last of the hotels that was
part of UNITE HERE Local 11’s ‘New Century’ campaign that is still non
union, and is still being boycotted by UNITE HERE Local 11.
The Radisson LAX contract gives workers a $2.60 wage increase over the three years of the contract. Banquet servers will go from earning $15 an hour to a projected $30 an hour with the service charges over the life of the contract. Furthermore, workers and their families will receive free family health insurance. With all four hotel union contracts giving workers significant wage increases over three years, these contracts will mean that hotel workers will earn an extra $12.3 million in wages through 2012. This extra income will directly benefit local communities and the LAX area where these workers live and work. Of that $12.3 million, workers will reinvest over an estimated two-thirds, or $8.4 million, back into the local community. This creates a “multiplier effect” and this reinvestment will in turn generate an estimated ADDITIONAL $2.9 million in revenue for the local community. Over the next three years, this additional revenue will create approximately 93 new full-time jobs in the local community.
“In the current economic climate, consumer confidence is at an all time low, people are spending less and this leads to a weakening economy. Workers in these hotels, many of whom live in the communities surrounding LAX, will now be paid a living wage and be receiving significant wage increases, as well as have access to affordable healthcare. These contracts will benefit the entire community and lift us all up, they are the best economic stimulus package for our local economy,” said Councilman Bill Rosendahl.
Workers at the four newly union hotels celebrated the transformation of the ‘New Century’ Blvd. Many of these workers live in the areas surrounding the LAX corridor in Lennox, Hawthorne, and Inglewood. “I will now be able to have more spending money to be able to treat my kids and our family to the little extras we could not afford before,” said Alicia Colmenero, a housekeeper at the Radisson LAX. “We don’t have to worry about choosing between paying for health insurance and paying the rent.”
UNITE HERE Local 11