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Downtown hoteliers, labor union dodge strike with 3-year deal

Unite Here Local 1 strikes agreement with major brands including Marriott, Hilton, Hyatt

Downtown hoteliers, labor union dodge strike with 3-year deal
Unite Here Local 1 President Karen Kent and Hilton hotel at 198 East Delaware Place in downtown Chicago (Google Maps, Facebook)

Chicago’s hospitality sector evaded a potential pitfall on its road to recovery as downtown hotel landlords and union leaders struck a deal to prevent a work stoppage.

Labor union Unite Here Local 1 approved a new three-year collective bargaining agreement with major downtown hotels, including household brands such as Marriott, Hilton and Hyatt, Crain’s reported.

The deal was reached two weeks before the previous labor agreement was due to expire. It’s likely that at least a dozen hotels will be covered by the new contract terms, which will allow the labor union to oversee the city’s most prominent inns.

“This agreement will allow us to bring our collective focus back to showing visitors to Chicago true hospitality,” Unite Here Local 1 President Karen Kent told the outlet.

The labor union entered negotiations from a position of strength, leveraging the ongoing labor shortage in the hospitality industry. While hotel owners have enjoyed a bounce-back year after struggling mightily throughout the height of the pandemic, they’re still striving to regain pre-pandemic levels of business.

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The new contract spans a shorter duration compared to the existing five-year agreement, but it’s hailed as a significant victory for the city, which is striving to rebuild its reputation as a top destination for tourists and business travelers. The recent negotiations marked the first time labor leaders and hotel operators met at the bargaining table since 2018, the outlet reported.

The established terms ensure daily guest room cleaning, a point of contention stemming from pandemic-related health protocols. In addition, non-tipped hotel workers will see their minimum wages rise from $23 to $25 per hour. The agreement also secures workers’ healthcare coverage and strengthens their pension.

Large events, such as concerts from Taylor Swift to Lollapalooza and an inaugural Chicago NASCAR race, along with a general return of tourism, have sustained Chicago’s hospitality scene this summer. In June, Chicago’s hotel occupancy rate reached 80.4 percent, which was the highest level since pre-Covid days. 

Earlier this month, hoteliers enjoyed a record-breaking Lollapalooza weekend. The city’s biggest music festival generated nearly $40 million in revenue over a three-night stretch, marking a 27 percent increase from a year prior.

— Quinn Donoghue 

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HiltonHyattMarriottUnite Here Local 1Karen Kent
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