Thousands of hotel workers who walked off the job over the Labor Day weekend are back at work this week, but the nationwide labor dispute against three hotel chains continues. Travelers should expect continued picketing and disruption, the Unite Here union warned.
“Strike issues including raises, workloads, and COVID-era cuts have not been resolved, and workers are ready to do whatever it takes to win,” said Gwen Mills, International President of Unite Here, said in a prepared statement.
Over the holiday weekend, more than 10,000 workers went on strike at 25 Hilton, Hyatt, and Marriott hotels in nine cities, including Boston, San Diego, Honolulu, and San Francisco. Seven hundred workers in San Diego remained on the picket line Wednesday, and strikes have been authorized in four more cities, the union said.
While the hotel industry has enjoyed the return of travelers after the pandemic, workers say they continue to feel the impact of COVID-era staffing cuts and reductions in guest services such as automatic daily housekeeping and room service. They’re calling for higher wages, fair workloads, and the reversal of the cuts.
Hotel industry post-pandemic stats
The hotel labor dispute comes as the travel industry continues to recover after the pandemic with rising occupancy rates and room revenue.
- Occupancy in US hotels was estimated at close to 64% in 2023, just under 2019’s level, according to the American Hotel and Lodging Association. In April 2020, nearly 75% of hotel rooms in the US were vacant.
- Average revenue per available room is estimated to reach $101.84 in 2024, which would be a record high. An industry analyst noted that rate growth, more than occupancy, is driving that stat.
- Revenue for the US hotel market is expected to reach $110 billion this year, up from about $100 billion in 2022, according to Statista, which expects the US market to outperform the global hotel market.
- The industry counts 1.9 million workers; nearly all housekeepers are women, the Associated Press reported.
As the industry returns to pre-pandemic business, many hotels are experiencing a labor shortage, according to the American Hotel + Lodging Association. 76% of hoteliers surveyed said they’re dealing with staffing shortages, with 13% severely understaffed.
AHLA contends that average hotel wages have increased more than 20% faster than wages in the rest of the economy. But Unite Here says staffing and service cuts hotels made during the pandemic resulted in lower income and harsh conditions for workers.
Don’t meet travelers’ expectations.
Exceed them.
Hotel workers demand better pay + working conditions
Hotel workers went on strike after months of unresolved negotiations with the hotel companies, the union said.
“Workers aren’t making enough to support their families, and many can no longer afford to live in the cities that they welcome guests to,” Mills said. “Too many hotels still haven’t restored staffing or the services that guests deserve, like automatic daily housekeeping and room service, and painful workloads are breaking workers’ bodies.”
For example, when a room hasn’t been cleaned for days, it can result in a massive mess that’s hard to clean in the allotted time, workers say.
Wages aren’t enough to cover the cost of living, requiring many hotel workers to work multiple jobs, according to the union.
“I have to work a second job because my job at the hotel is not enough to support my kids as a single mom,” Mary Taboniar, a housekeeper at the Hilton Hawaiian Village in Honolulu for six years, said in a statement issues by the union. “I’m living on the edge where I’m not sure if I’ll be able to pay our rent and groceries or provide my family with health care.”
Contract negotiations continue
While the labor dispute continues, Hilton and Hyatt both told CNBC they remain committed to negotiating a fair agreement with the union. Hyatt also said it has contingency plans to reduce the potential impact of more strike activity.
Unite Here urges travelers to stay away from hotels where workers are picketing or have been on strike until a new contract is signed. The union keeps a list of impacted hotels, which is regularly updated.
In 2023, union members won record contracts after striking at Los Angeles hotels and Detroit casinos.