Skift Take
New hotel strikes in San Francisco are part of a larger labor action that could involve nearly 40,000 U.S. hotel workers by year’s end.
More than 1,500 San Francisco hotel workers went on strike Sunday, demanding better pay and working conditions from Hilton, Marriott, and Hyatt.
Why it matters: Unite Here, the hospitality workers’ union, says that about 40,000 hotel workers in 22 North American markets have contracts that have either expired or will expire by the end of 2024.
Gwen Mills, who became president of Unite Here in June, said the lapse in contracts set the stage for potential widespread labor actions across the hotel sector if issues remain unresolved.
“Our workers really weathered the storm together with owners in many places, making sacrifices to keep things going,” Mills told Skift. “Now we want to be part of the rebound. These are the first major negotiations since Covid, and we’re hoping to rebalance and restore service.”
Labor’s Changing Tactics
- Over 30,000 hotel workers have seen their contracts lapse.
- While negotiating new contracts, employees can continue working under previous terms. However, workers can strike, and owners can have “lockouts” that prevent employees from working and receiving pay.
- About 15,000 workers have authorized strikes.
- These limited strikes of predetermined lengths were meant to signal the union’s seriousness, a spokesperson said.
- The San Francisco strikes represent an escalation to an open-ended strike, with workers vowing to remain on the picket line until they win their contract.
Key Points in Dispute
The San Francisco strike involves workers from various roles, including housekeepers, cooks, servers, and bellhops. The hotel brands say they have been negotiating in good faith and are disappointed by the strike actions.
- Workers are demanding better compensation.
- However, workers also report increased workloads and reduced staffing.
- A case in point: The 1,921-room Hilton San Francisco Union Square has three towers. Before the pandemic, each tower had its own person in charge of cleaning the carpets in the corridors, according to Bill Fung, a house attendant at the hotel. “I now do all three towers myself, plus other work,” Fung said.
Owners Respond
- “Hyatt has a long history of cooperation with the unions that represent our employees,” said Michael DâAngelo, head of labor relations â Americas. “Hyatt remains willing to continue bargaining in good faith. We have a history of offering competitive wages and benefits in the market, including comprehensive health care at little to no cost, as well as retirement savings.”
- Hilton wasn’t able to provide statements about the San Francisco strikes by our publication deadline but said it has a good track record in negotiating with labor unions nationally in good faith.
- The Marriott-owned Westin St. Francis said it remains open. “We have well-established protocols in place to operate our properties and take care of guests in the event of any impact to staffing. We remain available to meet with the local union negotiating committee to reach an agreement that is fair to all parties.”
Potential Disruption
The hotel industry, still recovering from the pandemic, faces significant challenges.
- One of the new strikes is at the Hilton San Francisco Union Square. The property owner, Park Hotels & Resorts, defaulted in the summer of 2023 on a $725 million loan tied to that Hilton and the nearby Parc 55. A lender may foreclose on the property if a sale isnât completed by July 2025.
- In San Diego, about 700 hotel workers have been on strike since the start of the month.
- Prolonged strikes could disrupt tourism and business travel in major cities. The union has created a website, FairHotel.org. “We love the guests, but we ask them not to eat or sleep in striking hotels,” Mills said.
- The San Francisco union said it has been mindful of negotiating in good faith. Last week, Salesforce held its annual Dreamforce conference for about 45,000 workers and clients in the city. “We didn’t go on strike during that event,” a Unite Here Local 2 spokesperson said. Salesforce has since said it will hold its next three Dreamforces in San Francisco, and that’s a significant win for the city.”
The bottom line: The industry will closely watch these negotiations as they could set precedents for upcoming contract talks in other markets.
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