Turtle Bay says union
tapped into guest lists

The hotel accuses Local 5 of illegally
accessing trade secrets

Turtle Bay Resort, the North Shore's only major hotel, sued Local 5 yesterday, alleging the hotel workers union illegally accessed the company's trade secrets and used them in its consumer boycott of the property.

The suit, filed in the First Circuit Court, alleges that Local 5 union members or individuals acting on their behalf misappropriated the resort's customer files and used the information to discourage potential guests from visiting the resort.

"It is one thing to declare a boycott and use the normal, traditional methods of informing the public that the union is boycotting a property," said Terry O'Toole, an attorney representing Turtle Bay in its latest court proceeding against the union. "It is quite another to deliberately violate trade secrets of Turtle Bay Resort, including customer lists, and then to directly contact and harass these customers."

Turtle Bay is seeking punitive damages and compensation for lost business that occurred as a result of what management is calling a "campaign of harassment," including coercion of employees and guests and interception of electronic communications.

"Frankly, I don't know what they are talking about," said Eric Gill, financial secretary-treasurer for the union. "We don't get their e-mail or mail. If we see customers, we tell them there's a boycott."

Members of Local 5 have not violated any laws and have only followed standard union operating procedures, Gill said.

"They don't like our boycott so they are trying to use lawyers and judges to stop it," Gill said.

The North Shore hotel and the union have been at odds for several years over contract negotiations. The union called for a consumer boycott of the hotel in 2003 and tensions have escalated into several court proceedings this summer.

In June, a federal court judge rejected a request for a temporary restraining order by the hotel to prevent union employees from picketing at the entrance to the property.

Shortly after that request was denied, Kyle Kajihiro, a well-known Oahu nonviolence activist, sued the owners and managers of Turtle Bay Resort and its head of security, alleging resort security attacked him during a one-day union strike. The outcome of that suit, which is being partially funded by Local 5, remains undecided.

Meanwhile, the National Labor Relations Board has taken Turtle Bay to court on allegations of unfair labor practices. Turtle Bay's union workers have made more than 16 complaints against their employer since early 2004 to the NLRB, which mediates disputes between management and unions. The hearing, which began last month, will continue in mid-October.

Dan Berkley, an attorney representing Turtle Bay Resort before the labor board, has called the charges frivolous and argued that they are part of a union campaign to demoralize employees and hurt the hotel, which is owned by Oaktree Capital Management of Los Angeles and managed by Texas-based Benchmark Hospitality.

The impact of union actions on Turtle Bay has resulted in a major loss of revenue for the resort, especially damaging the group and kamaaina visitor markets, said Abid Butt, general manger and vice president of Turtle Bay Resort.

"We know that we trail behind our competitive set," Butt said. "We are constantly having to call our group business and other contacts to reassure them that they may feel comfortable coming to the resort."

The hotel previously went through years of neglect, but since Oaktree took over the property, it has had a $70 million renovation, Butt said. However, the resort's efforts have been hindered by union activities that have threatened the safety and peace of mind of guests and employees, he said.