Organized Labor

As many of you know the flow of tourists and business travelers into San Francisco had fallen sharply after September 11, 2001 and the national recession; and, occupancy rates at most of the major hotels had remained low through 2004. However, in the last two years the tourists and conventioneers have returned in large numbers. Business visitors to the city have also increased with the opening of Moscone West in 2003.

What is even more remarkable are the high occupancy rates and higher room rates that now prevail despite the continuing hotel boycott by Unite HERE Local 2 with the major San Francisco hotels. According to Kevin O’Connor, the Organizing Director of Hotel and Restaurant Workers Local 2, the owner of the Intercontinental in London, ix Continents, has signed a memorandum of understanding with the Hotel and Restaurant workers Local #2. In signing the card check neutrality agreement, the owner has agreed not to oppose union organizing. In other words when a majority of the employee’s sign cards the hotel becomes a union shop. Kevin said that the ‘card check’ will allow the union and the hotel operator to bypass the lengthy National Labor Relations Board elections process.

UNITE-HERE Local 2 has been without a collective bargaining agreement with the larger San Francisco hotels since August of 2004. The negotiations have been contentious, with a 53- day lockout at the major hotels represented by the Multiemployer Group in 2004. The hotel workers went back to work at all locations in November of 2005. The union is still boycotting some 13 of the major hotels including the Hilton, Hyatt and the Intercontinental.

The Continental had received approval from the San Francisco Planning Commission on May 6, 2002 and had delayed development until a few months ago. The owner, Hampshire Properties and Mr. Leonard Blakesley of Continental had filed their first application with City Planning in September of 2000. As we go to press the steel -beam-timber shoring and false walls against two adjacent structures are nearly complete. The 8-foot reinforced concrete mat in the building footprint has been poured and the initial plumbing and electrical conduits have been laid in the base. The design architects are Patri Merker and the architect of record, Hornberger & Worstell. The structural design is by Magnusson Ruemencic Associates.

Subcontractors include Architectural Glass and Aluminum, Anning Johnson, Cupertino Electric, Crithchfield Mechanical, C. E. Toland, D&J Tile, Jerry Thompson and Sons, J.W. McClenahan, Lawson Roofing, Malcolm Drilling, Martin Ron & Associates, Partition Specialties, Sheedy Drayage, Spacetone Acoustics, Thyssenkrupp Elevator, Viking Driller, Waterproofing Specialties, and Webcor Concrete and Webcor Carpentry. Some contracts have not yet been finalized.

The mitigation agreement provides generous benefits for the surrounding neighborhood. An analysis by HMS Associates shows total remediation of $7.7 million. Mandatory offsets include$4.8 million for the jobs/housing linkage program, $430,000 for childcare, and $107,500 for school impact fees. Voluntary contributions totaled $2.32 million with support for the United Philippine Network, the South of Market Employment Center, the South of Market Health Center, the Westbay Filipino Center, and cultural center contributions. The largest voluntary contribution was $1.39 million for historic preservation, which would involve the rehabilitation of the Old Mint building on 5th Street. The offsets were deemed necessary because of the granting of conditional land uses for the higher floor area ratio and a height variance.

The project will transform the immediate neighborhood characterized by dilapidated low-rise commercial and residential land use; into an extension of the vibrant Yerba Buena convention center. The new hotel will bring investment money into the south of market and will provide both construction jobs and permanent jobs, particularly for the hotel and restaurant workers. The developer has promised the building trades that this will be a 100% union project.

As many of you know the flow of tourists and business travelers into San Francisco had fallen sharply after September 11, 2001 and the national recession; and, occupancy rates at most of the major hotels had remained low through 2004. However, in the last two years the tourists and conventioneers have returned in large numbers. Business visitors to the city have also increased with the opening of Moscone West in 2003.

What is even more remarkable are the high occupancy rates and higher room rates that now prevail despite the continuing hotel boycott by Unite HERE Local 2 with the major San Francisco hotels. According to Kevin O’Connor, the Organizing Director of Hotel and Restaurant Workers Local 2, the owner of the Intercontinental in London, ix Continents, has signed a memorandum of understanding with the Hotel and Restaurant workers Local #2. In signing the card check neutrality agreement, the owner has agreed not to oppose union organizing. In other words when a majority of the employee’s sign cards the hotel becomes a union shop. Kevin said that the ‘card check’ will allow the union and the hotel operator to bypass the lengthy National Labor Relations Board elections process.

UNITE-HERE Local 2 has been without a collective bargaining agreement with the larger San Francisco hotels since August of 2004. The negotiations have been contentious, with a 53- day lockout at the major hotels represented by the Multiemployer Group in 2004. The hotel workers went back to work at all locations in November of 2005. The union is still boycotting some 13 of the major hotels including the Hilton, Hyatt and the Intercontinental.

The Continental had received approval from the San Francisco Planning Commission on May 6, 2002 and had delayed development until a few months ago. The owner, Hampshire Properties and Mr. Leonard Blakesley of Continental had filed their first application with City Planning in September of 2000. As we go to press the steel -beam-timber shoring and false walls against two adjacent structures are nearly complete. The 8-foot reinforced concrete mat in the building footprint has been poured and the initial plumbing and electrical conduits have been laid in the base. The design architects are Patri Merker and the architect of record, Hornberger & Worstell. The structural design is by Magnusson Ruemencic Associates.

Subcontractors include Architectural Glass and Aluminum, Anning Johnson, Cupertino Electric, Crithchfield Mechanical, C. E. Toland, D&J Tile, Jerry Thompson and Sons, J.W. McClenahan, Lawson Roofing, Malcolm Drilling, Martin Ron & Associates, Partition Specialties, Sheedy Drayage, Spacetone Acoustics, Thyssenkrupp Elevator, Viking Driller, Waterproofing Specialties, and Webcor Concrete and Webcor Carpentry. Some contracts have not yet been finalized.

The mitigation agreement provides generous benefits for the surrounding neighborhood. An analysis by HMS Associates shows total remediation of $7.7 million. Mandatory offsets include$4.8 million for the jobs/housing linkage program, $430,000 for childcare, and $107,500 for school impact fees. Voluntary contributions totaled $2.32 million with support for the United Philippine Network, the South of Market Employment Center, the South of Market Health Center, the Westbay Filipino Center, and cultural center contributions. The largest voluntary contribution was $1.39 million for historic preservation, which would involve the rehabilitation of the Old Mint building on 5th Street. The offsets were deemed necessary because of the granting of conditional land uses for the higher floor area ratio and a height variance.

The project will transform the immediate neighborhood characterized by dilapidated low-rise commercial and residential land use; into an extension of the vibrant Yerba Buena convention center. The new hotel will bring investment money into the south of market and will provide both construction jobs and permanent jobs, particularly for the hotel and restaurant workers. The developer has promised the building trades that this will be a 100% union project.