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Home My WebLink AboutStaff Report 4.C 09/24/2012 A entacv IteMl,#4.C Za56 DATE: September 24,:2012 TO: Honorable Mayor and Members of the City Council FROM: John C. Brown, City Manager SUBJECT: Proposed Letter to Petaluma Sheraton RECOMMENDATION It is recommended that the City Council consider signing a•le tterregarding the labor contract for employees of the Petaluma Sheraton hotel. BACKGROUND At the,September 10, 2012:meeting;of the City Council, Mr. Marty Bennett, representing UNITE HERE! Local 2850, discussed a letter written by Mayor Glass in July 2012 regarding the labor contract for employees of the Petaluma Sheraton hotel. Mr..Bennett requested that the Council place an item on its September 24, 2012 agenda to consider signing;a current version of the letter. ;Mr. Bennett indicated,theletter,is;necessary because Local 2850 members are working at the Sheraton With an open contract, and thus far have not made progress with negotiating a "successor clause" or incremental wage adjustments. Mr. Bennett indicated that successor clauses preserve and the-contract if a hotel is sold. He further indicated that wages at the Petaluma Sheraton have been frozen, pursuant to labor/management agreement, but should be increased incrementally if salaries are to provide a living wage for the Bay Area A majority of the Council indicated an interest;in placing this item on the September 24, 2012 agenda. Council also indicated'soine interestin<includinga signatureiine for,each Council member on any letter that maybe approved and sent. DISCUSSION Attached for your consideration is a copy of the Mayor'sJuly.26, 2012 letter, and a slightly modified version of that same letter. Modifications generally change the letter so that it comes from a group rather than an individual, and add a signature line for each Council member. I have received limited feedback from:Council(members regarding the Mayor's letter, since your September 10, 2012 meeting. That feedback, however, suggested that any letter the Council sends should take a more neutral tone encouraging only continued constructive dialog between the effected parties until a mutually, agreed upon resolution is achieved. Feedback and Council Agenda Review: City Attorney Finance Director City Manager�-�� 4 • comments at the September 10"' meeting also indicated interest in-hotel Management's position on these labor discussions. With that limited feedback in.mind.a second, more neutral, version of the Mayor's letter has also been drafted for the Council's consideration. Copies of any letter the Council may approve will be provided to management at the Petaluma Sheraton, and UNITE HERE! Local 2850. A copy of this staff report, and the attached letters, was provided to.management at the Petaluma Sheraton, for their information at the same time the agenda package was made available to the Public. Any feedback they inaycatelto offer can be provided to the Council at your September 24, 2012 meeting. FINANCIAL IMPACTS Approximately 3 hours of staff time.were expended on this item,_with an estimated value of approximately S425. ATTACHMENTS 1. Mayor's letter,dated July 26; 2012 2. Modified version of.Mayor's letter;.to include Council 3. Alternate version of letter. • w = ATTACHMENT 1 a. 60�otk •> • CITY OF PETALUMA POST OFFICEBox.61 185€ 'PETALumMA,CA 94953-0061. • David Glass . July 26, 2012 Mayor To Whom.It May Concern: The.Cityof Petaluma has enjoyed a wonderful,partnership with the Sheraton, lending construction'moneyfromthe City's Redevelopment Agencyand.receiving many benefits •from the high quality of service that has resulted in a pleasant experience for many visitors to our City. TheiCity istherecipient of significanttransientoccupancy tax income and as such has a real interest in management and employees:,coming together in a collaborative manner to achieveiabor harmony. I was delighted in 2006 during my first term as-Mayor when the Sheraton and the employees'signed a;.collective bargaining agreement making the Sheraton the first union hotel in Sonoma County. That agreement resulted in high'.quality jobs and important health care benefits which have made the Petaluma Sheraton the first place I think of and recommend whemspeaking at public events. I regularly-speak of the unique location, and quality service.The proximity toeShollenberger Park and the beautiful walking trails are ,part of the story'but so lathe compassion theownership has.demonstrated'to-its workforce and,their resulting loyalty to management that assures guests of a:friendly high quality experience when staying in this hotel. I understand that the Sheraton is•currently in negotiations with UNITE'HERE, Local 2850, over a contract renewal.where, in addition to wageincreases, one of the unresolved issues is the union's proposal toadd a successorship clause tothe agreement. Changes in the industry have led to:hotels changing handymore,often, but unlike Rim Hospitality and Basin Street Properties, some hotel owners think-of their acquisitions like bricks and mortar real estate—without treating the loyal client base and the employees as assets. A successorship clause would assure the employeesthat if there is,new ownership their hard- earned nghts to access health care and other benefits would continue. • :Labor.adyocates tell me successorship clauses iike.the one the union is-proposing are .common mrhotel contracts. It is•my understanding your own company,Rim Hospitality; which-manages the Petaluma Sheraton,has',agreed to successorship language in its hotels in Emeryvilleand Concord. Dozens more hotel owners and operators at hundreds of hotels haveragreed to;successorship language throughout the Bay Area, from San Jose to Sacramento, and across,thenation, from New York to Chicago to Los Angeles. I would appreciate this important'consi'deration be granted to the Petaluma employees as well Petaluma£iir Hall 11 English Street Petaluma CA 94952 Sincerely, • rt Phone.(707)7784345 '�Th 77 I__ -�1;% Fax(707)778-4.419 �" / ,l E-Mail daveglass@comcast.net -David Glass • Mayor 3 . ATTACHMENT 2 September 24, 2012 To Whom It May Concern: The City of Petaluma has enjoyed a wonderful partnership with.the,Sheraton, lending construction money from'the City's Redevelopment Agency and receiving many benefits-from the high,qualityof service that.has resulted in a pleasant experience for many visitors to our City. The City is the recipient of significant transient occupancy tax income and as such has a real interest in management and'iemployeescoming together'ina collaborative manner to achieve labor harmony. The Mayor and members of theCity Council were delighted in 2006 when the Sheraton and the employees signed'a collective bargaining-agreement making,the Sheraton the`-'first union hotel in Sonoma County. That agreement resulted in high quality jobs and important health care benefits which have made the,Petaluma Sheraton the first-place we think of and recommend when speaking at public events. We regularly.speak of the unique location, and quality service. Thecproximity to Shollenberger Park and the;beautiful walking trails are part of the story but so is-the compassion the ownership hasademonstrated to its workforce and their resulting loyalty to management that assures guests of friendly high quality experience when staying in this hotel. We understand that the Sheraton is currently in negotiations with UNITE HERE, Local 2850, over a contract renewal'where, in addition to wage increases, onetof the unresolved issues'is the union's,prop_osal to add a successorship clause<to the agreement. Changes in the industry have led to hotels changing hands more often„but unlike Rini Hospitality and Basin Street;Properties, some hotel owners think'of their acquisitions like bricks and mortar real estate—without treating the loyal;client base and the,employees as;assets. A successorship clause would assure the • employees that if there is new ownership their hard-earned'rights to access health care and other benefits would continue. Labor advocates:tell'us successorship clauses like the one the union is proposing are commonrin hotel contracts. We;.understanding your own'company, Rim Hospitality, which manages the Petaluma!Sheraton, has agreed to successorship language in,its hotels in Emeryville and Concord. Dozens more'hotel owners and operators'.at;hundreds of hotels have agreed to. successorship language throughout the Bay Area, from,San'Jose:to Sacramento, and across the. nation,'from New York to Chicago to LosyAngeles. We would appreciate this important consideration,beigranted to the Petaluma employees:as well. Sincerely, David Glass; Mayor, k Tiffany Renee, Vice Mayor Chris Albertson,Councilmember• Teresa'Barrett, Councilmember Mike''Harris, Councilmember Mike Healy, Coubeil'member' Gabe Kearney; Councilmember 6 ATTACHMENT"3 September 24, 2012 To Whom It MayConcern` The City of Petaluma has enjoyed a wonderful partnership with.theSheraton:We lent the hotel construction;money from the City's'Redevelopment A`gency:and have:received many benefits from the high"quality'of service that has resulted it a°pleasant;experience for many visitors to our City.The'City is the recipienttof significant transient occupancy tax=income through the Sheraton;,and as such would"like to see-management:and.efnployees.comingtogether4n a collaborative.manner to achievelabor-harmony. In 2006, when the Sheraton and its employees signed a collective,bargaining_agreement, it made the Sheraton the first1union hotel in Sonoma County, That agreement resulted in high quality jobs and important health care The compassion the ownership has:demonstrated to its workforce through that agreement, and their resulting loyalty management, is part of what assures guestsithat they will-have:a.friendly high quality:experience:when,staying>in'this.hotel. We understand the Sheraton is currently in negotiations with UNITEHERE, Local 2850,over a contract renewal, and that unresolved,issued include wage-increases and the union's,proposal to add a successorsliip!clause to the agreement: We are also'advised that Rim Hospitality, which manages the.Petaluma Sheraton, has agreed to successorship language in some of its other'hotels, but not'aware`why this same consideration hasthus far notbeen:granted.in Petaluma. Having just completed:extended`bargaining with,almost all.of the City's represented employees, we understand how difficult labor negotiationsIcan,be in the current',economy: We also understand,that even though management:may want,to,,accommodate employee requests, economics cam stand;in;the way of those intentions: In such,a case,the best that may hope to be achieved;is!.a°process based"on mutual respect and good faith, and an outcome:that.isL fair to both parties. For the sake:of labor/management harniony,:and for the continued successiof the Sheraton;Petaluma, the;CityCouiicil of the City"of Petaluma encourages continued constructive dialog between.theiparties until a mutually,agreed'upon resolution is achieved., Sincerely„ David Glass, Mayor Tiffany Renee, Vice Mayor Chris Albertson, Councilriiember' Teresa Barrett, Councilrnember Mike Harris, Councilmember Mike Healy, Coundilthemb& Gabe Kearney, Couiicilthember •