The four Sheraton hotels in Waikiki and the union representing the properties' 2,500 employees today announced a tentative agreement on a new labor contract.

The tentative pact, which requires ratification, follows a tentative settlement reached last week between the union, UNITE HERE Local 5, and the Hilton Hawaiian Village Beach Resort & Spa. Unionized employees at the Sheraton and Hilton properties have been working without a contract since June 30.

The Sheraton contract covers unionized workers at the Sheraton Waikiki, Sheraton Princess Kaiulani, Sheraton Moana Surfrider and The Royal Hawaiian who are represented by UNITE HERE Local 5.

The Sheraton contract includes the "same economic package and other improvements" secured by Hilton workers, according to a joint statement by Local 5 and Starwood Hotels & Resorts, which manages the Sheraton hotels. Terms of the tentative agreements were not released, but Local 5 secretary-treasurer Eric Gill has said the Hilton contract resolves longstanding issues including subcontracting, pension, healthcare and wages.

"We are pleased with the outcome of the negotiations," said Eric Gill, Local 5 Financial Secretary-Treasurer. "Sheraton stepped up to the plate and made the commitment to provide our members with excellent wages and meaningful improvements in health and welfare benefits that will help bring them into Hawaii's middle class."

The tentative agreement "provides for a secure future for our employees and allows us to remain competitive," said Keith Vieira, senior vice president and director of operations for Starwood Hotels & Resorts in Hawai'i and French Polynesia.

Ernest Nishizaki, executive vice president and chief operating officer of hotels owner Kyo-ya Co., Ltd., added, "Our associates have always been key to the success of the Sheraton Hotels in Waikiki. Their dedication and commitment to outstanding service have helped build our hotels' reputation and secured our position in the marketplace. We are very pleased to be able to share that success with our associates."

The Sheraton hotels and Local 5 began negotiations in May.

The contract negotiations and settlements come during a time when Hawai'i's hotel industry is enjoying record-high revenue and rates. Average hotel room rates reached an all-time high in August despite a drop in occupancy, and hotel revenue statewide is on track to beat last year's record.

Rod Kane, a cook at the Sheraton Princess Kaiulani Hotel, said: "We've said all along that our goal this year was to secure good middle class hotel jobs for a Hawaii our children can afford to live in, and we're finally on our way towards achieving that goal."

The Hilton and Sheraton settlements, if ratified, would avert a possible strike. Unionized workers at the Hilton and four Sheraton hotels in Waikiki voted on Aug. 23 to authorize the union to strike if talks broke down, and the union held several rallies and pickets in front of the hotels.

Local 5 said it will seek the same improvements at other Waikiki hotels where contracts have expired. Contracts have expired June 30 for hundreds of unionized employees at the Waikiki Beach Marriott Resort & Spa, the Hyatt Regency Waikiki Resort & Spa and the Ilikai. Unionized workers at the Kahala Hotel & Resort and the Ala Moana Hotel have been without a contract since Aug. 31.