UNITE HERE Local 11 Reminds Investors and Operator of Neutrality Obligation at the Tommie and Thompson Hotels

Yesterday, UNITE HERE Local 11 sent a letter to Machine Investment Group, Ten Five Hospitality, Taconic Capital, and Miramar Capital, reminding those investors and the operator of the Tommie and Thompson Hotels in Hollywood, California, of their predecessor’s commitment to union neutrality at those hotels.

The letter informed the investors and the hotel operator of an arbitration decision dated May 20, 2022, in which an arbitrator determined that Hyatt Hotels Corporation, the former hotel manager and current franchisor of the hotels, must comply with a union neutrality agreement and ensure that any successors also agree to union neutrality. While Hyatt persuaded a federal district court judge to overturn the arbitrator’s award in late 2022, Local 11 immediately appealed and the case is now pending in the Ninth Circuit Court of Appeals. Regardless of the outcome of the appeal, Hyatt is still required to ensure that successor hotel operators agree to union neutrality.

“Workers at these hotels have the right to organize free from employer coercion,” said Kurt Petersen, co-president of UNITE HERE Local 11. “This letter reminds investors that the case is ongoing and Local 11 intends to vigorously pursue its rights.”

Even before they opened in 2021, the Tommie and Thompson Hotels have operated under a cloud. After bailing out the original hotel developer, Relevant Group, in 2021, Taconic Capital and Machine Investment Group scheduled UCC foreclosure auctions for the properties. Originally scheduled for December 21, 2022, the foreclosure auctions were delayed until this month. In the meantime, the food and beverage operator at the Thompson now faces a federal unfair labor practice charge alleging that it unlawfully fired three workers after they engaged in protected, concerted labor activity regarding working conditions at the hotel. The allegations are under investigation by the National Labor Relations Board.

UNITE HERE Local 11 is a labor union representing over 32,000 hospitality workers in Southern California and Arizona who work in hotels, restaurants, universities, convention centers, and airports.

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