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Union agreement shields Embassy Suites employees during temporary closure

NYHTC - July 12, 2011 Share/Save/Bookmark

The Embassy Suites in lower Manhattan closed for extensive renovations in January 2011, but thanks to an agreement negotiated between the union and the employer, the jobs, healthcare coverage, and contract rights of unionized Embassy Suites employees have been protected and improved.

The union organized the Embassy Suites in 2000. Goldman Sachs, the owner, closed it in January 2011. Renovations will likely take until the end of this year (and possibly into 2012) to complete. Then, the hotel will reopen as the Conrad New York, a sleek luxury property.

Typically when workplaces close, non-union workers, and sometimes even those who are union-represented, lose their jobs abruptly and whatever medical benefits they had, if any. This is not the case for former Embassy Suites workers represented by the Hotel Trades Council, because the agreement the union negotiated protects them from these devastating consequences.

For starters, every union-represented worker at the Embassy Suites, who wants to go back to work when the hotel reopens will have the right to do so. Until the hotel reopens, each will receive severance pay in the amount provided by the IWA (Industry-Wide Agreement) four days of regular wages for each year of employment. Tipped employees will receive twice that amount. In addition, they will all continue to receive medical coverage, paid for by the hotel, until they are recalled. Workers who do not want to be recalled have the option to collect enhanced severance pay equal to 19 days of regular wages for each year of service and six months of medical coverage, paid for by the hotel. That option is extremely attractive to employees who were planning to retire soon anyway.

When the hotel reopens, a significant number of new jobs will open up, which, according to the agreement, will be union jobs, staffed by workers in IWA-covered positions.

The new agreement includes many important improvements to the existing contract, including these provisions:

Although the new agreement applies only to former Embassy Suites and Conrad New York bargaining unit employees, it still benefits all NYHTC-represented workers. In any given year, the union negotiates many agreements. Any new contract that improves on rights and benefits in the IWA €œor creates new ones €œmakes the union stronger, strengthens its bargaining position overall, and gives the union more leverage in obtaining even better provisions in subsequent contracts, including the IWA.