Aug. 21--The picket signs are nearly ready. So too, are large banners for a march up Michigan Avenue on Friday. And union members have already begun signing up for picket duty. 

Is it just high-level theatrics by the hotel workers or is the union dead set on a strike by its 7,000 members on Aug. 31? 

What is clear is that the hotel workers union, which has not staged a strike in Chicago in recent history, is sending a warning to the Chicago-area hotels that it has the grit to do so. 

The hotels get a chance to respond Wednesday, when they are expected to present their first economic package since the two sides began bargaining earlier this month. 

Steven Adelman, an attorney for the Hotel Employers Labor Relations Association, which bargains on behalf of the hotels, described the economic proposal "as a good opening offer." 

At the same time, however, he called the union's quest to bring its wages up to those in New York as "ridiculous." A union room attendant in New York City, for example, earns $18.14 an hour, compared $8.83 an hour in Chicago. 

"Chicago is not the same market as New York, and we are not going to propose wages based on New York, but we expect to be able to make progress," Adelman said. 

While Adelman said he was encouraged by the union's willingness lately to bend on some contract issues, union officials take very a different view of the state of the talks. 

"There's been no movement. It is not looking good. We are full steam ahead for strike preparations," said Lars Negstad, an official with Local 1. Hotel workers Local 450 is also taking part in the contract talks. 

Complicating the negotiations is the fact that the Washington-based union considers what plays out in Chicago as critical to its own fate. 

"Chicago's negotiations are very important to the union as a whole," said John Wilhelm, president of the 245,000-member Hotel Employees and Restaurant Employees union. "Chicago is one of the best hotel cities, but nevertheless the Chicago contract is the worst big city contract," he added. 

Looking down the road, some hotels have already contacted local temporary labor firms about hiring workers in the event of a strike, according to Negstad. "They (hotels) are placing notices at agencies where they do intake," he said. 

Arnold Karr, a spokesman for the hotels, would not confirm that the hotels have talked with temporary labor firms. He would only say that the facilities have contingency plans that vary according to the hotels' size. 

Karr also said that he did know of any cancelled bookings because of fears of a strike, but he added, "Certainly, there is a concern." The Chicago area has 28 hotels--more than 19,000 rooms--that would be affected by a strike. 

The prospect of a hotel workers strike in the Chicago area recently drew the attention of industry analysts, who are concerned about the economic impact on major hotel chains. 

Hotel industry security analysts at Bear, Stearns & Co. said that hotel officials in Chicago had assured them that they would be able to operate if confronted with the strike. 

A strike in September would come at an inconvenient time for Chicago, which expects about 120,000 delegates to be on hand for the International Manufacturing Technology show Sept 4 to 11. 

As part of its publicity campaign during the negotiations, the union has garnered the support of more than 110 churches, unions and other organizations to help with its food pantry in the event of a strike. 

So, far more than 40 Catholic churches have offered to join the effort, and the union on Tuesday released a letter from Francis Cardinal George, saying he hoped that a settlement would be reached soon. 

-----To see more of the Chicago Tribune, or to subscribe to the newspaper, go to http://www.chicago.tribune.com/ 

(c) 2002, Chicago Tribune. Distributed by Knight Ridder/Tribune Business News.