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California Resort, Spa Reaches Deal With 2 Unions

By Michael Kinsman, The San Diego Union-Tribune
Knight Ridder/Tribune Business News

Jan. 1, 2005 --The long-simmering and often very public labor strife at the La Costa Resort and Spa has ended with agreement on two union contracts covering 752 workers. For more than 2 years, the North County resort has been the target of more than 100 picket lines, public demonstrations and other boycott efforts. The protests often included members of religious organizations and community groups.

The labor disputes began when KSL Recreation Corp., which bought the hotel in 2001 for $120 million, refused to abide by terms of the agreements upon their expiration in April 2002.

Agreement on a four-year contract covering 623 members of the union, Unite Here, was reached two weeks ago, and the contract has been ratified by the union membership. The contract should be signed within a few days, said Jef Eatchel, secretary-treasurer of Unite Here in San Diego. Housekeepers, waiters, cooks and other service employees approved a contract retroactive to Jan. 1 that includes annual wage increases, plus health care coverage under a union plan with lower premiums and better coverage, Eatchel said.

Meanwhile, agreement on a five-year contract covering 129 massage therapists, fitness trainers and other spa workers has been reached with the Teamsters Local 542, the hotel said.

The contract includes wage increases and improved health care coverage, but no other details were released by the hotel pending ratification by the union members. It is effective Feb. 1.

Denise Chapman, director of marketing for La Costa, praised the attitude of union employees during the labor impasse.

"During the entire time we were negotiating, our employees have been determined to give our guests the best service they can," she said. "We never had a work stoppage, and we appreciate that."

The agreements come as KSL is putting the finishing touches on a $70 million renovation of the resort.

The two-year renovation includes updated guest rooms, lobby and clubhouse, and a new spa and 18,000-square-foot ballroom. In addition, a 320-seat restaurant is expected to open next month, Chapman said. Unite Here, a union of 440,000 hospitality and textile workers nationwide, attributed the settlement to concerns over health care. "We were able to give the workers a better health care plan for less money than the hotel," Eatchel said. "I think when they (KSL negotiators) realized that, it helped us reach an agreement."

Employees who don't earn tips will see their salaries increase 13 percent to 23 percent over four years, the union officer said. Eatchel hopes the labor peace at La Costa will spill over to the Hotel del Coronado, which also is operated by KSL.

About 800 workers at the hotel have been working without a union contract since it was invalidated when KSL and CNL Hospitality Properties purchased the hotel in December 2003.

Labor negotiations were suspended in August and resumed Wednesday.

-----To see more of The San Diego Union-Tribune, or to subscribe to the newspaper, go to http://www.uniontrib.com.

(c) 2005, The San Diego Union-Tribune. Distributed by Knight Ridder/Tribune Business News. For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail [email protected].

 
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