Sheraton employees OK contract with 99% vote
Unionized hotel workers at Sheraton's four Waikiki hotels have voted nearly unanimously -- by 99 percent -- to ratify a new four-year labor contract.
Members of Unite Here Local 5 and the Sheraton hotels agreed on a new economic package, which includes wage increases, additional health benefits and lighter workloads for housekeepers. The vote was tallied late Wednesday night.
A ratification vote on the union's tentative agreement with the Hilton Hawaiian Village Beach Resort & Spa contract is scheduled for today.
"The Hilton and Sheraton contracts set a new standard for hotel workers in Waikiki," Local 5 spokesman Cade Watanabe said. "With these new agreements, we are well on our way towards achieving our goals, but there's still a lot of work that needs to be done."
The new contract with Sheraton hotels, which covers 2,500 workers, will expire June 30, 2010. Starwood Hotels & Resorts Worldwide Inc., the parent of Sheraton, reassured hotel workers that they would continue to receive health coverage and pension payments should there be layoffs due to Sheraton's renovation plans.
New terms of the Sheraton contract include the following:
» Average wage increases of up to $2.40 an hour over four years for nontipped employees; and $1.20 an hour over for four years for tipped employees.
» An additional $2.06 an hour over four years toward medical reserves, and an additional 15 cents towards pensions over four years.
» Housekeepers are allowed to drop one room with six checkouts, two rooms with nine checkouts and three rooms with 10 checkouts. They can drop an additional room if they have to travel between buildings or wings.
» Tipping scale increases were granted across the board, from laundry room deliveries to group promotion packages. A 17 percent service charge will apply to a group of seven, rather than eight diners, effective Jan. 1, 2007.
» Night cleaners were granted a wage increase of an additional 59 cents, effective Jan. 1, 2007, an additional $1.50 on July 1, 2007, and additional $1.50 on Jan. 1, 2008.
"There were many compromises made along the way," said Starwood spokesman David Uchiyama. "Both sides in the negotiation process were very focused on the needs and concerns of the associates, and we worked very hard to work those issues out."
Job security was a prime concern for Sheraton hotel workers because of Starwood's major redevelopment plans, which may include a new time-share tower and two nonunion restaurants at the Princess Kaiulani.
Sheraton assured hotel workers it would absorb as many as possible -- roughly 450 -- in its three beachfront hotels while the Princess Kaiulani undergoes redevelopment.
Food and beverage workers also were reassured they would not lose their jobs to subcontractors. Sheraton workers on leave would be able to continue accruing seniority, while others would be offered early retirement packages.
The two parties also agreed to address benefits for same-sex domestic partnerships, establish a drug intervention program and allow employees to donate unused vacation time to their colleagues.
Local 5 expects other Waikiki hotels to follow suit, as contract talks progress for the Hyatt Regency, Waikiki Beach Marriott, Ilikai, Ala Moana, Kahala and smaller hotels.
Negotiations between Local 5 and the Hyatt Regency are expected to resume later this month. Contract negotiations for neighbor island Sheraton properties, such as the Sheraton Kauai and Sheraton Maui, are also due next year.