HERE Local 1 Seeking Federal Mediation for Chicago's Congress Plaza Hotel Labor Dispute / May 2003

Hotel Online Special Report

HERE Local 1 Seeking Federal Mediation for Chicago's
Congress Plaza Hotel Labor Dispute

CHICAGO - May 7, 2003 - Senator Barack Obama, Democrat from Illinois� 13th Senate District, is calling on the owners of the Congress Plaza Hotel on South Michigan Avenue to agree to federal mediation to resolve a looming labor dispute. The Hotel Employees & Restaurant Employees Union, Local 1, represents about 150 workers at the Congress Plaza Hotel. The contract expired on December 31, 2002.

The Congress Hotel is located in Senator Obama�s Illinois State Senate district.

Negotiations began in early December, yet the parties describe their positions as far apart. The Congress, an historic convention hotel facing Grant Park on South Michigan Avenue, has historically provided wages and benefits in line with the rest of Chicago�s unionized hotels.

The union negotiated a major raise and benefit improvements with the rest of the city�s union hotels last summer, avoiding a strike at the last minute when Governor

Congress Plaza Hotel
520 S. Michigan Ave.
Chicago, Illinois

Ryan stepped in to mediate. Instead of offering wage increases, however, the Congress has proposed wage and benefit reductions in its final offer to the union workers. The hotel management also wants the ability to institute unlimited subcontracting, threatening the job security of the entire workforce.

In a letter dated May 6, Sen. Obama urged the owners to reconsider their refusal of the union�s request for federal mediation. �A labor dispute at the Congress Hotel will be harmful to all parties � the employer, the workers, visitors to Chicago and the community,� wrote the Senator.

�I am very concerned about the situation at the Congress Hotel,� said Sen. Obama. �I hope the owners will agree that federal mediation could help both sides reach a fair agreement, without the situation escalating into an ugly mess.�

Contact:
Lars Negstad
HERE Local 1
312-663-4373 x243

Sen. Barack Obama
(773) 393-1996

Also See:	Illinois Governor George Ryan Averts Chicago Hotel Strike; HERE Approves Settlement Proposal / Sept 2002
	The Impact of the HERE Union Agreement on Chicago Hotels: An Analysis Yields a Profit Decline on Nearly Five Percent / Scott K. Steilen / Sept 2002

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