As Southern California sits on the precipice of what could become the biggest hotel worker strike in U.S. history, hoteliers will need to be flexible as well as create solid contingency plans, hotel experts say.
Contracts expire today for members of hospitality union Unite Here Local 11, which represents 15,000 workers across Southern California and Arizona. While one major hotel has already struck a deal to avoid the work stoppage, other hotels across the region have yet to respond to workers’ requests for better wages and safer working conditions — meaning workers could strike as soon as the July Fourth holiday weekend.
Employees expected to participate in the strike include front desk workers, room attendants, housekeepers and kitchen staff.
Though not part of the negotiations, Hotel Association of Los Angeles and California Hotel & Lodging Association spokesperson Pete Hillan envisioned how hoteliers might handle the work stoppage. “Typically in these situations, hotels will have someone on staff, like a mid-level manager, fill in for any of the positions that Unite Here’s workers walk out from,” he said.
But that approach may not be sufficient to prevent guests from noticing a disruption at hotels, said Leora Halpern Lanz, assistant dean of Boston University’s School of Hospitality Administration.
“Guests could be upset that their anticipated expectations were disrupted, and perhaps they didn't even have any notice,” she said. “They may ask for a break on their rates, for complimentary services, or even push for more concessions. Hotel management needs to have contingencies in place to make the best of a potentially disruptive situation.”
In terms of staff response to the strike, Lanz echoed Hillan’s intimation that hotel managers will need to pick up the extra slack.
“A college graduate working their way toward a general manager or regional position would understand that these situations can happen and this is what it means to be part of management,” she said. “If someone in mid-management quits because they had to pitch in with housekeeping, engineering or at the front desk, that’s not someone who is destined to be a hotel GM.”
Given the open-ended nature of the potential strike, workers could potentially be off the job for weeks or even months. In the case of a long-term strike, hoteliers will need to take extra considerations to keep hotels operating, such as adjusting on–property services available and communicating clearly with guests to manage their expectations, Lanz said.
Meanwhile, representatives of Unite Here Local 11 would contend that there’s one straightforward thing hotels can do: Prevent the strike in the first place by negotiating with workers. Though negotiations began in April, a union spokesperson told Hotel Dive, “We’ve seen very little movement and [hotels] aren’t putting much toward the pension.”
Timing is everything
The timing of the strike will add extra challenges for hoteliers. AAA has predicted record-breaking travel volumes for the July Fourth holiday weekend, with domestic travel set to increase by 2.1 million people compared to the same weekend in 2022.
“The fact that Unite Here has committed to a strike at the peak of a holiday season, less than two years after hotels were closed for COVID-19 really harms members and guests trying to enjoy a long summer weekend in Los Angeles,” Hillan said. ”It holds the city hostage for its recovery.”
Unite Here, meanwhile, contends that the city’s hotel industry is doing well, with its press releases noting that hotels took $15 billion in federal bailouts during the pandemic, and in 2023, hotel profits in Los Angeles and Orange County exceeded pre-pandemic levels.
So far, only the Westin Bonaventure Hotel & Suites has struck a deal to avoid a work stoppage at its hotel, agreeing to raise wages, improve working conditions, make family healthcare more affordable and contribute to pensions.
Other properties have not reached deals. Hotels that could be potentially impacted by the strike include Marriott, Hilton, Hyatt, IHG, Accor and Highgate, all of which did not respond to Hotel Dive’s requests for comment.
