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Hyatt Statements Regarding the Decision to Outsource the
Housekeeping Function at Three Boston Hotels

Hyatt Statement Regarding Governor’s Proposed Boycott - 9.23.09

Boston - September 23, 2009 -  Hyatt Hotels released the following statement in response to the governor’s boycott threat:

“We are very disappointed by the Governor’s decision to threaten a boycott of our hotels since it directly threatens the 600 associates who work in Hyatt properties and who live and work in Massachusetts at a time when businesses and individuals are cutting back on travel during the worst economic period we have seen in decades,” said Phil Stamm, General Manager of Hyatt Regency Boston.

“We do not understand why the Governor is putting more Massachusetts jobs at risk instead of working with us to find jobs for employees affected by the realities of these unprecedented economic challenges.”

Like so many other businesses – we have been forced to make some very difficult decisions. We deeply regret whenever staff reductions are necessary – and we have instituted a task force to provide support to the Boston area Hyatt employees affected by the recent restructuring of the hotels’ housekeeping services. In support of their transition to new jobs, the program includes extended healthcare coverage and retraining assistance tailored to the situation of each individual.

Our management teams and human resource directors from each of our Boston properties, along with Hyatt’s regional management team are creating individual support plans for each of the affected employees in addition to the severance, healthcare coverage, and counseling already provided:

  • The support program will have several features, but will focus on retraining.
  • Hyatt is extending healthcare coverage through the end of this year to provide additional support.
  • Hyatt will assist affected employees in utilizing every commercially reasonable means available to secure new positions. We intend to remain committed to this as long as is necessary for those who are seeking new jobs to find them.
We have been reaching out and will continue to reach out to each of our affected employees. We will remain unwavering in our commitment to provide assistance to them during their transitions to new jobs.

Hyatt Statement Regarding Boston Hotel Housekeeping Staff  9.21.09

Boston - September 21, 2009 -  We are announcing today the formation of a task force to provide additional support to the 98 Boston area Hyatt employees affected by the recent restructuring of the hotels’ housekeeping services.

In support of their transition to new jobs, the program will include extended healthcare coverage and retraining assistance tailored to the situation of each individual.

Our management teams and human resource directors from each of our Boston properties, along with Hyatt’s regional management team will develop and administer this program, which includes the following initiatives beyond the severance, healthcare coverage, and counseling already provided:

  • The support program will have several features, but will focus on retraining.
  • Hyatt is extending healthcare coverage through the end of this year to provide additional support.
  • Hyatt will assist affected employees in utilizing every commercially reasonable means available to secure new positions. We intend to remain committed to this as long as is necessary for those who are seeking new jobs to find them.
“We deeply regret whenever staff reductions are necessary,” said Phil Stamm, General Manager of Hyatt Regency Boston. “Throughout this difficult period we have treated our employees with dignity and respect, but certainly have not adequately communicated that commitment to the Boston community.

The additional outplacement support initiatives we are providing through our task force underscore our concern for our affected employees.”


Hyatt Statement Regarding Boston Hotel Housekeeping Staff - 9.18.09

September 18, 2009 - At Hyatt, we value and respect all our associates, care about the communities in which we operate and deeply regret whenever staff reductions are necessary. The difficult decision to outsource the housekeeping function at our Boston properties was made in response to the unprecedented economic challenges those hotels are facing in the current business environment. It was not made lightly.

A precipitous drop in revenues at our Boston hotels has made major cost cutting measures necessary. The decision to outsource the housekeeping function is the most recent in a long series of efforts to control costs. We have eliminated management positions at all three hotels, reduced staff in multiple departments and made significant cuts in sales, marketing and administrative budgets.

Though the business downturn has necessitated difficult decisions for us as it has for so many other employers, Hyatt always strives to treat its employees with care and consideration. Despite what has been reported, the hotels in Boston have treated their housekeepers with fairness and dignity.

Press reports suggesting that we “tricked our associates into training their replacements” are absolutely false. The transition to contract housekeeping services was not sudden and secretive. In fact, the company providing housekeeping services to our Boston Hotels – Hospitality Staffing Solutions (HSS) – has been working with two of the three hotels for more than three years, with Hyatt and HSS employees working side by side every day. When the properties completed the transition to all contract personnel in housekeeping on August 31 approximately half of the housekeeping staff at two of the three Boston Hyatt Hotels were HSS employees.

We are providing resources and support to assist employees who have lost their jobs as they seek new employment.

  • The housekeepers were invited to apply for open positions at the three hotels, however there are very few positions available due to economic conditions. They will continue to be welcome to apply for jobs at Hyatt hotels as positions become available.
  • We worked with local hotels and provided each housekeeper with current job openings.
  • We provided them with an Employee Assistance helpline, assisted them with benefit transition paperwork.
  • We provided severance benefits.
Because we have a longstanding relationship with HSS, we’re confident that HSS personnel working according to Hyatt standards can provide Hyatt quality housekeeping services. The savings realized from these arrangements contribute significantly to the financial stability of our properties, which allows us to continue to provide services to our guests and enables Hyatt properties to continue to be major employers in the Boston area.

The HSS employees serving our properties in Boston are living in the area. They are not from outside of the community. So the notion that jobs were exported to somewhere outside of Boston is inaccurate.

Contrary to published reports, HSS does offer a wide range of benefits to its employees. Hyatt properties continue to be significant employers in Massachusetts with approximately 600 employees.
 

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Contact:

Hyatt Hotels & Resorts
www.hyatt.com

 

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Also See: Editorial: Hyatt Treated 100 Housekeepers Shabbily When it Fired Them -- But the Response from the Governor of Massachusetts is Way Over the Top / September 2009
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