The 1,900-room Hilton San Francisco Union Square and the Unite Here union representing the hotel’s 750 workers have agreed on a new contract after a long, high-profile standoff focused on health care benefits.
Under the contract, workers will receive a 4% annual pay increase, which can be divided between direct wages, pension or health care benefits. They will also continue to receive fully paid health care or US$10-a-month health care if they want their families covered. After 10 years of service, the benefits stay in place for life.
Union officials said they hope the deal with the city’s largest hotel will ease ongoing labor negotiations at other hotels experiencing long-term labor disagreement.
The San Francisco Examiner reported on Tuesday that this news is good for the city’s Mayor Ed Lee, especially as it prepares to welcome tourists for this summer’s America’s Cup yacht races and he mounts an effort to build a new waterfront arena for the NBA’s Golden State Warriors. A functional hotel industry will also be crucial as Lee prepares San Francisco to bid on hosting a Super Bowl, the Examiner reported.
About 9,000 people work in San Francisco hotels, according to the union, of which almost 90% are union workers.