Hotels seek concessions

By Dan Nakaso
Advertiser Staff Writer

In one of the first signs of the war's effect on Hawai'i's economy, some of O'ahu's major hotels asked union officials yesterday for concessions such as shorter work shifts to avoid massive layoffs as a result of war-related cancellations.

"We'd like to find ways to keep as many people working," said Keith Vieira, senior vice president of operations for Starwood Hotels & Resorts, Hawai'i and French Polynesia. "Maybe shorter shifts versus having to lay people off."

Starwood has seen a 15 percent drop in occupancy since February as tourists canceled plans in anticipation of the war, Vieira said.

Representatives from Renaissance 'Ilikai Waikiki, Kahala Mandarin Oriental Hawaii, Starwood and the Marriott chain asked for yesterday's meeting with officials from the Hotel Employees & Restaurant Employees, Local 5, which represents about 4,000 hotel workers.

Neither side wanted to talk about the specific issues that were discussed yesterday. But the hotels are proposing shorter work shifts and flexibility in scheduling, moves that would cut into hotel workers' wages.

"They presented us with some of their thoughts to dealing with the situation and we heard them out," said Local 5 spokesman Jason Ward. "We didn't agree to anything. It's encouraging that they were trying to assemble a group to discuss these issues in a coordinated manner."

No further discussions have been scheduled and hotel officials are waiting to hear back from the union.

"Hopefully we won't have to get to this," Vieira said. "But they were very receptive."

Thousands of hotel and restaurant employees were laid off after the Sept. 11 terrorist attacks and both sides want to avoid a repeat of the massive labor strife. Last year the union finalized contracts after contentious negotiations that included the threat of a massive strike.

The union said earlier this week that the hotels had learned from Sept. 11 to make labor cuts quickly to avoid major losses.

After the attacks, many hotels in Waikiki saw occupancy rates in the 20s.

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.