How Boston hotel workers triumphed against bosses

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The hotel workers union won their demands because the membership prepared a militant strike.

BOSTON-On Dec. 1, less than two hours after their deadline to begin a strike that was likely to shut down nine major hotels here, Local 26 of the Hotel and Restaurant Employees Union won virtually all of their contract demands. The hotel owners were forced to concede on every key issue.

For the third straight time, Local 26 has made significant gains—at a time when many unions are still in a giyeback mode. The real threat of militant action by the workers brought the hotel owners to the table ready to give in. It's an example all of labor should demands for a four-year contract and yearly "lump sum" bonuses.

They established an educational trust that will be funded by employer contributions of three cents an hour per worker. The union demanded the fund to help teach language skills to the more than 30 percent of the membership who do not speak English as their first language, and to establish a college scholarship program.

Another major item was a 60-percent increase in contributions to the union's health.

Malch/Socialis and welfare fund.

The most visible issue was housing. The union had threatened to strike over this issue alone. Local 26 demanded—and won—the establishment of a trust fund for affordable housing that is the first of its kind in the United States.

Bozzotto noted that other unions have built housing, but this settlement would bring the employers' money into the picture. The range of the bosses' involvement, however, still hinges on a critical question. The fund is not permitted under the federal Taft-Hartley Act, which regulates management trusts.

Even though the union faces an uphill battle in the political arena to change the law, the victory is significant. The owners will pay five cents per hour per employee into an escrow housing trust that will generate a reported $500,000 over the next 18 months.

If the law can be changed by that time, the trust will be activated and another $500,000 will be contributed by the owners over the remaining 18 months of the three-year contract.

One has to make close to $60,000 a year to afford the average house in Boston. To pay the average rent, one must make $32,000 a year. So, while $1 million isn't a lot of money for housing in Boston, Local 26 has set an important precedent for the U.S. labor Speakers at union rallies noted that it was the responsibility of the employers to provide affordable housing for workers: They created the shortage through profit-grabbing real estate speculation, and they must be forced to solve it.

This frightened the hotel owners. As reported in the Boston Globe, "Privately, some hotel operators conceded that there was reluctance to go along with the union's housing-trust-fund demand, particularly among two of the chain hotels. The Sheraton and the Hilton were reportedly concerned it would set a precedent for housing assistance in other cities."

Hotel union leaders from Washington, D.C., have already hinted that, with Boston leading the way, they might seek a similar fund when their contract expires next fall.

How the union won Local 26's strategy was to prepare so well for a strike that they could win their demands without it. They threatened to paralyze downtown hotels with massive demonstrations. They threatened to picket at the suburban homes of the hotel owners. They threatened disruption of hotel operations from the inside.

These weren't idle threats. The union negotiated with a 164-worker-strong committee, ensuring that every hotel worker got news of the contract talks. They mobilized over 2000 workers for the strike-authorization rally, and the message was sent loud and clear to the employers that the union would fight by whatever means necessary any attempt to bring in scabs should the strike commence.

Local 26 reached out for support from other unions and from a variety of community