How to escalate a labor dispute

  • By James McCusker / Herald Columnist
  • Saturday, November 6, 2004 9:00pm
  • Business

A fracas in San Francisco has all the elements of a classic union-management standoff. It’s got headlines and picket lines, charges and countercharges, thrusts and parries. The whole thing is straight out of a keg-enriched clam bake to which both the Montague mob and the Capulet crew had accidentally been invited.

It is the happy-face hospitality industry, but smiles are scarce these days on the streets and sidewalks in front of San Francisco’s premier hotels. Represented by Unite Here Local 2, the 4,300 workers who normally staff these hotels have been locked out of their jobs for over five weeks now, and negotiations are at an impasse.

One of the things that makes this a classic confrontation is that it is a labor dispute about money, or at least that’s how it started. Before the labor contract expired in August, and even for a while after that, the talks had the usual items up for discussion: wage boosts, health and pension benefits, and that sort of thing. And while there was not any great meeting of the minds – this was a labor contract negotiation, after all, not an ice cream social – they were still talking. Then the rhubarb started.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

The union decided that it couldn’t accept the proposed concessions on health care and pension benefits. And for its part, the hotel management didn’t like the union’s demand to time the expiration of the contract to coincide with other hotel union contracts in nine cities across the nation.

That derailed the talks. The union declared a strike at four of the hotels. In response, 14 of the city’s hotels announced a lockout. Great unhappiness befell all, including the hotel guests who had to endure shouts and menacing picketers in order to enjoy their stay.

The direct, bread-and-butter economic issues behind the management-labor conflict are straightforward enough. Tourism in San Francisco has not yet fully recovered from the effects of the 9-11 attacks. The hotel industry, beset by low occupancy rates and problems, was increasingly fixated on its rising costs for energy, insurance and taxes, and felt it needed to contain its labor costs as much as possible.

On the worker side, the main issue was, and is, the cost of living. San Francisco is one of the most expensive places to live in the entire country, and while wages are generally higher there, housing costs are out of balance with the income of ordinary wage earners. Of course, it is precisely those ordinary wage earners who are needed by the hotels.

By themselves, the economic issues didn’t present an insurmountable obstacle. In fact, it looks a lot like a textbook- perfect example of the prelude to a successful collective bargaining agreement.

But the economic issues weren’t left alone. They were quickly surrounded by things that were much tougher to negotiate. Whatever the tactical merits of the union’s calling a strike, for example, it drew in the city’s camera-ready mayor, Gavin Newsom. This didn’t help.

For some reason, Newsom decided to throw in with the workers, and even joined their picket line briefly to emphasize his antipathy toward the hotels’ management. He demanded an immediate end to the lockout and threatened a boycott of the hotels as far as scheduling any city functions there. His rhetoric may have inspired city supervisor Tom Ammiano’s move to encourage an end to the lockout by threatening the hotels with reduced municipal services.

And just to show that it, too, could make things worse, the union thought it would be a good idea to crystallize management’s apprehensions about facing a larger, multistate labor union. Unite Here sent 20 workers to Hawaii to set up picket lines at two Sheraton hotels there, just to make its point.

Where it goes from here is anybody’s guess. But it is clear that while Newsom may have gotten some political benefit from his photo op with the striking workers, he probably cost them a lot in terms of lost wages, and perhaps even lost jobs. He ruined any chance of his brokering an early settlement, because he gave up any pretense of helping both sides reach a settlement by representing the broader and best interests of the city.

Management and labor negotiators in this dispute have their work cut out for them. But in a broader economic sense, the San Francisco mess should make us stop and think about what role municipal government should take in our economy. As things stand now, it would seem that the burden of proof is on Newsom to show how open hostility to business somehow improves the collective bargaining process in particular and the economy in general. We’re listening.

James McCusker is a Bothell economist, educator and consultant. He also writes “Business 101,” which appears monthly in The Snohomish County Business Journal.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

2025 Emerging Leader Anthony Hawley (Olivia Vanni / The Herald)
Anthony Hawley: Creating friendships and filling pantries

Since 2021, Hawley has increased donations to Lake Stevens Community Food Bank through fundraising and building donor relationships.

2025 Emerging Leader Megan Kemmett (Olivia Vanni / The Herald)
Megan Kemmett: Seeking solutions to any problem or obstacle

Executive director of Snohomish Community Food Bank overcomes obstacles to keep people fed.

2025 Emerging Leader DeLon Lewis (Olivia Vanni / The Herald)
DeLon Lewis: Helping students succeed

Program specialist for Everett Community College believes leadership is about building bridges.

(Image from Pexels.com)
The real estate pros you need to know: Top 3 realtors in Snohomish County

Buying or selling? These experts make the process a breeze!

Relax Mind & Body Massage (Photo provided by Sharon Ingrum)
Celebrating the best businesses of the year in Snohomish County.

Which local businesses made the biggest impact this year? Let’s find out.

Construction contractors add exhaust pipes for Century’s liquid metal walls at Zap Energy on Monday, Feb. 3, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Snohomish County becomes haven for green energy

Its proximity to Boeing makes the county an ideal hub for green companies.

A closing sign hangs above the entrance of the Big Lots at Evergreen and Madison on Monday, July 22, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Big Lots announces it will shutter Everett and Lynnwood stores

The Marysville store will remain open for now. The retailer reported declining sales in the first quarter of the year.

George Montemor poses for a photo in front of his office in Lynnwood, Washington on Tuesday, July 30, 2024.  (Annie Barker / The Herald)
Despite high mortgage rates, Snohomish County home market still competitive

Snohomish County homes priced from $550K to $850K are pulling in multiple offers and selling quickly.

Henry M. Jackson High School’s robotic team, Jack in the Bot, shake hands at the 2024 Indiana Robotics Invitational.(Henry M. Jackson High School)
Mill Creek robotics team — Jack in the Bot — wins big

Henry M. Jackson High School students took first place at the Indiana Robotic Invitational for the second year in a row.

The computer science and robotics and artificial intelligence department faculty includes (left to right) faculty department head Allison Obourn; Dean Carey Schroyer; Ishaani Priyadarshini; ROBAI department head Sirine Maalej and Charlene Lugli. PHOTO: Arutyun Sargsyan / Edmonds College.
Edmonds College to offer 2 new four-year degree programs

The college is accepting applications for bachelor programs in computer science as well as robotics and artificial intelligence.

Nichole Webber: Drawing up plays for athletes and politics

The communications director for the city of Everett believes leadership is rooted in honesty, integrity and selfless commitment to others.

2025 Emerging Leader Natalie Given (Olivia Vanni / The Herald)
Natalie Given: Building trust and communicating concerns

Everett Police Department’s Public Information Officer builds relationship and better communication.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.