Ruling could lead to more unions in US hotels

The American Hotel & Lodging Association (AH&LA) has issued a strong statement condemning Thursday’s National Labor Relations Board (NLRB) decision in the Browning-Ferris Industries of California case, which defines franchisors and companies that hire contractors as “joint employers” and now allows unions to negotiate directly with franchisors as opposed to just franchisees. The ruling potentially increases the chances of further unionization of the U.S. hotel industry.

“The hotel industry remains a driving force in today’s economy, and provides unique opportunities for those who own and operate their own businesses to achieve the American Dream,” the AH&LA stated. “That dream, for so many of our members, is threatened because of today’s short-sighted, highly politicized decision.

“With the 92% of lodging properties in the United States owned by franchisees and small businesses, we are very concerned that these changes to the joint-employer standard will have a profound negative impact on economic investment and job growth across our industry. The NLRB’s decision to expand the definition of joint employer could severely limit opportunities by diminishing the autonomy of millions of small business owners and dissuading potential entrepreneurs from wanting to start a new business.”

AH&LA co-chairs the Coalition to Save Local Businesses (CSLB), comprised of small and local businesses, concerned citizens and trade organizations, to inform Members of Congress about the potentially devastating impact that redefining the joint employer standard would have on the U.S. economy.