Boycott Hyatt Hotels

http://www.boston.com/jobs/news/articles/2009/09/18/hundreds_attend_rally_for_fired_hyatt_housekeepers/

I certainly have sympathy for these workers, but this is a common practice particularly in the retail industry. There are very few full-timers working at my local grocery stores, for example. or at the mall stores for the same reason, to save money on benefits...IMHO if you are suggesting boycotting Hyatt then you should boycott all such stores.

You might as well boycott all the other companies in the US that have been doing the same thing for years. Not to mention the places that won't give employees enough hours to be "full time" and therefore qualify for benefits, but call a 35 hour week "part time".

This is how Republicans deal with the ever-rising cost of employee health insurance, they just don't pay it.

Hyatt however, is owned by the Pritzker family of Chicago, huge backers of Obama. Maybe this particular Hyatt is a franchise or something.

I agree w/ susieqq. You're asking us to make a reactionary decision based on an NPR or BG report about Hyatt.

Please do some more research and come back with a comparison of the general practices of the industry, including competition so we can make a more rational, informed decision.

And oh yes, another group are Adjunct Professors at Colleges and Universities.....

People generally speaking should act in more sensitive way and sanction all these companies which outsource etc

SV

Naw.... see, no one else wants those jobs anyway, right?

Thanks Placename, for the article. I'll will avoid Hyatts, franchise or not, the brand always has a say. I don't care who else does it, it's still wrong.

I think this is yet anther example of why health care needs to be uncoupled from employment.

I agree with Placename, I would prefer seeing individual health insurance policies.

Go ahead and boycott. I think you can and should use your consumer dollars as you see fit.

I would say I don't normally do boycotts but then I realized I have an aversion to Donald Trump. I've seen some ties and shirts I liked that I passed up because they had his name on them.

To each his/her own.

I wonder what the employment situation is like at Fodors

You should boycott the chicken industry which hire out jobs such as pluckers.

And to add insult to injury, the fired workers unknowingly trained their replacements. Unconscionable

Barbara is right. The number of cos. that do this is too big to count, probably including many other hotel chains. If you boycott them all, you'll probably be spending the night under a bridge.

The fact that they were lied to and made to train their replacements instead of additional temporary workers, as they were led to believe, tells volumes about the ethics of the Hyatt company.

Oh, this is really nice:

http://www.hyattpressroom.com/displayPRasPDF.asp?compID=3942847

This has been a fairly big news story in Boston - for 24 hours. Company plans to hire workers at $8/hr - which is the minimum wage in MA and not pay them benefits as opposed to $13-15 with benefits for some current Hyatt housekeeping staff.

Brings up all sorts of ethical issues about from where we get our goods and services. Pricey coffee chains now advertise "Fair Trade" coffee. But the list is endless - child labor jeans and rugs, produce picked by exploited farm workers. And then we have also to be concerned about humane treatment of chickens and cows. And we are told correction of such injustices would only cost pennies per item - but in this economy everyone is looking for those few cents multipled a thousand times.

Not sure I have an answer, either on a large or personal scale. Becomes more of a social justice issue than where to book a hotel room. And I am really curious how successful Boston/Cambridge Hyatts will be at hiring $8 hour workers who are legal - even fast food pays more than that in MA.

that link isn't working for me

http://blogs.harvardbusiness.org/hbr/hbreditors/2009/09/hyatt_housekeepers_and_damagin.html

They don't find them themselves. They contract to these outsourcing companies who shelter them from scrutiny about where the employees actually come from.

This is the one they contracted with supplying the employees.

http://www.hssstaffing.com/hsspeople.html

You can decide what phrases such as "... to help them get fully integrated into their local community, develop their English language skills where necessary and help them learn and comply..." mean as far as where (or if) they find workers that are legal.

Placename, I looked for a link to the story, but there is none. There is a phone number under "contact us". 1 800 323 7249. There was a press release...perhaps someone could suggest that it be made available to the general public on their website before this grows even worse?

Go to the www.hyatt.com website. It is under Press Release, the second one down.

http://www.hyattpressroom.com/displayPRasPDF.asp?compID=3942847

Hyatt is patting themselves on the back for their treatment of lesbian, gay and transgendered people. As long as they aren't housekeepers, evidently.

Just curious, when you book a hotel, airfare or rental car Placename do you look to pay more? Unfortunately, there is a price to pay for our insatiable demand for the "deals." That price is exacerbated when we are in a period where travel is weak.

No, I mean the link to the release regarding the housekeepers. There was a media release about that specific issue, but it doesn't appear on their website and should, as the "facts" as presented by NPR aren't exactly accurate.

Paying more or less these days seems to have very little to do with the underlying cost basis, once one discounts the barely necessary, such as executive overhead and unrealistic expectations of profit margins.

Hyatt charges as much or more than many chains already and tends to nickel and dime for every service offering once checked in. By this logic, they should be able to pay better than those chains, yet they've gone for bare legal minimum pay.

Now that I've read the details, I am apt to write them and experience my outrage as a member of their program. I am most inclined to believe that the new budget employees may not feel as loyal and may not do the job that the others did. This will probably come back to bite them in the proverbial arse.

I never stayed at a Hyatt due to their high (for me) rates. Does it mean I am boycotting them, or does it mean they are boycotting me?

Where is Paul Harvey when you need him? Oh, yeah, he's dead. Guess we'll have to look elsewhere for the rest of the story.
So I did - called Hyatt corporate - and was informed that the involved Hyatt employees were offered employment with HSS, the outsourced staff supplier with whom the properties had been working for several years, and those who declined were offered assistance with job searching and some sort of severance. I did not get into specifics as to what that severance includes. The Hyatt person was not able to tell me whether or not the HSS jobs came with any sort of benefits (including health coverage.) This sounds a whole lot different than the deceptive scenario reported and being discussed above.

So, while I lament that we have a system in this country that ties access to health care to employment, I can't hold Hyatt solely responsible for that. And the fact that Hyatt has a pretty darn good record in its policies and practices with regard to LGBT and Latinas makes me wonder if there wasn't some sort of embellishing sensationalism in the reporting of this issue. Which is too bad if it did happen, because it just makes other reports of valid issues easier to dismiss.

Why don't they just cut the salaries of the big executives by $7 an hour?

why don't they cut the salaries of the big execs TO $7 an hour and take away their health insurance? I'll bet they change their policies pretty quickly!

I wonder that too. Our own hospitality company cut heads in this same sort of way, offering those variation of those wonderful deals to be outsourced, while the CEO took a 105 million bonus in the same year. In general, this stuff is BS. Temp services go into a different column in the books than do perm employees and therefore skew the info to stockholders in the currently desirable way. It's only a fact of life because no one is left with any concern to fight it.

I'm glad you called Seamus, thanks. I'm in an awkward position, but have been told, as has the media...if they care to report it, that HSS has been working with the 3 hotels for about 5 years, assisting with necessary staffing as those jobs were hard to fill. They eventually decided to go with HSS exclusively. It was not a case of the Hyatt employees training the HSS employees then once training was conpleted, being let go. As well as the opportunity to work for HSS, they were given some sort of severance and extended health benefits. That does not erase the pain of losing a long time job to outsourcing.

It's sad and unfortunate. With DS and DIL in IT, I have felt the pain of outsourcing with both of them. It's ugly and unfortunate, and you can't help but feel resentful toward the employer. I'm a great fan of NPR and am surprised at their spin...the situation was bad enough, IMHO, it did not need embellishing!

"Temp services go into a different column in the books than do perm employees and therefore skew the info to stockholders in the currently desirable way."

A different column in the internal accounting means nothing on consolidated financial statement where the aggregate operations of a hotel are shown.

Switching to an outsourcing may change the internal expense code, but in financial statements presented for a public company the change is negated by at least the operating profit level. I say that because it is conceivable that switching to an outsourcing changes whether a cost is viewed as a Cost of Revenue or part of SG&A. However, any investor or analyst with half a brain knows that GAAP accounting allows a certain latitude with how expenses are characterized so different company's use different methods.

From my perspective, the issue wouldn't be the expense cuts if those cuts are in-line with revenue declines, but more if Hyatt's RevPar numbers lag their peers which could imply service cuts are impacting their reputation.

But, much like the airline industry guaging the impact of service cuts on booking levels in the midst of a 1/2 dozen other macro issues is next to impossible.

I love Hyatt Hotels and stay in them whenever I can .. Seamus, I am so glad you actually called and spoke to someone about this and got a better view of the whole picture.
NPR obviously is no different from most of the other radio/television shows who go for more of a scandalous view of a story.. whether it is factual or not.

FYI, Hyatt is currently a private company. They just filed an IPO to go public.

Will we be able to blame the Republicans for Blockbuster closing as many as 960 stores or the US Post Office closing 700 locations?
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Movie and video game retailer Blockbuster Inc. indicated in a regulatory filing that it may close as many as 960 stores by the end of 2010, including closings in 2009.
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The Postal Regulatory Commission published a preliminary list of U.S. postal locations slated for potential closing. According to ABC News, the postal service is considering approximately 3,200 locations for closure. However, the PDF document available for public review lists just under 700 of the USPS locations identified for review.
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Think they're outsourcing to China?

I guess universal healthcare where there's a tax on remuneration to cover healthcare **instead** of premiums for each regular employee would eliminate that issue.

Ok, so what this really means is that Hyatt subcontracted the cleaning to the temp agency, who told the current employees that the pay rate started at $8 per hour, and they didn't have enough experience with them to know that they just had to demand more money and they would get it.

OO, I hope if Hyatt is filing for an IPO, you and hubby can take the money and run. Nothing more stressful for top brass to go from private to a publicly held company.

One more reason for having a public health care option.

Can't afford Hyatt's anyway.

The Hyatt Place hotels are a gorgeous moderately priced option. LOVE them!

Never go to the Incline Village Hyatt? The Kaanapali Hyatt? Ugh!

Lots of jobs in the US have been outsourced so not only have people lost thier health beenfits they've lost their income. Here's a list of Companies who CNN has verified outsource. Maybe there should be a boycott of those as well:

http://www.cnn.com/CNN/Programs/lou.dobbs.tonight/popups/exporting.america/content.html

That ought to keep boycotters busy.

How do you know that HSS would have paid the housekeepers the same as Hyatt? Probably they wouldn't, and that's why some of the long term employees turned down the job. This doesn't absolve Hyatt in my book, they knew the higher paid people would be out a job, they just hired another firm to do the dirty work.

http://www.buenosaires.park.hyatt.com/hyatt/hotels/index.jsp

This is the Hyatt Hotel in my town.
I have been there for tea ... I would live there if someone would let me.

Im sure the family feud of the Pritzker family hasn't helped matters at Hyatt. The IPO is being floated to help resolve the family feud over inheritance issues.

Interesting list, Suzie, and if I boycotted every company that was on the list I would have to boycott my health insurance carrier, stock brokerage company and so forth and so on.

I hate what has happened to our American workers but realistically I don't see how we can boycott every company that has done what Hyatt has done.

Scarlett~They'll let you live there, but you have to #1. do dishes #2 clean your own room #3 check yourself in and out. #4 receive any deliveries......wait a second... it sounds JUST LIKE HOME!!

The issue is more than the hourly wage. This kind of business practice eliminates the pensions the employees would have earned, in addition to the health insurance and other benefits. The hotel can contract with a different housekeeping service in a couple of years, so the possibility of employment for a period sufficiently long to receive a pension is eliminated. That is how the contracted housekeeping company can keep it prices, and therefore wages, low. Has little overhead for benefits of any sort.
And if fewer and fewer employees ever receive private pensions, the pressure on Social Security will be enormous and makes for a vicious circle.

A lot of this stems from Vizcaino v. Microsoft. In 1996 a class action lawsuit was brought against Microsoft representing thousands of current and former employees that had been classified as temporary and freelance. The case was decided on the basis that the temporary employees had had their jobs defined by Microsoft, worked alongside regular employees doing the same work, and many worked for years.
Micrroft eventually had to pay $97 nillion.

This lead to management in many industries changing the definitions and responsibilities of full-time temps and part-time temp to avoid paying for benefits. By outsourcing Hyatt avoids direct laibility.

Hyatt doesn't have a pension plan cynthia--wish they did! 401K only.

GoTravel, DH doesn't think it will have any impact on us...we'll see! They've been contemplating this move for several years and have structured reporting, as well as Board of Directors, to be in line with what they will need to do as a public company. I don't like it in that things are fine right now and something is bound to change--and I don't know what!

No one is supposed to talk about the IPO which is very easy to do, as no one understands a damn thing that's going on! Andrew has it right as to why, especially now, in this economy, IMHO.

OO, pension plan or available 401K, the employees of the contracted housekeeping firm, which is likely to be the contracted firm for only 2 or 3 years, are still faced with much more difficulty in accruing retirement benefits based on longevity. Even if an employee continues in the same 'position,' if the contracted agency has changed there is little chance to build the longevity needed.

This is how the rich get richer and all others do not.
(See how nicely I worded that?)

<<<And if fewer and fewer employees ever receive private pensions, the pressure on Social Security will be enormous and makes for a vicious circle.>>>

Not sure about this. Social Security isn't offset by private income, so how would the lack of a pension create more pressure on SS?

<<<Even if an employee continues in the same 'position,' if the contracted agency has changed there is little chance to build the longevity needed.>>>

Theoretically, at least, the employee would be a "continuing" employee of the agency. If the agency were "dropped" by Hyatt in the future, the agency would still be staffing other hotels and their employees would go to work there (as opposed to staying at the Hyatt, but now being employed by a different agency). We contract with a third party to provide mailroom and reception services for my office, and that's how they work. They're employees of a company that we contract with. When we changed companies, the "employees" left our office and went to work elsewhere that their employer had a contract.

Exactly SF- and the employees of the temp company that worked for the same company I used to work for had health insurance and a 401k, and also accrued vacation time. The insurance wasn't as good, but it wasn't as expensive either.

Sadly, this is what free entreprise is all about.

Do you want to mandate at what rate companies must hire employees, a minimum hourly rate? Or elt the ebb and flow of the labour makret decide.

If nobody aplied for the jobs at a salary of $8, they would raise it until enough did.

My company, Fortune 500, moved most of its manufacturing off shore. Why? Because when a consumer walks into a store and compares our product with our competitor, most would choose the lower cost item if it met their needs. Our competitors, all non-US, are manufacturing offshore in low cost jurisdictions, so for us to compete, we need to lower costs also. Manufacturing in USA and putting an American flag on all our products would not change the mind of enough people to allow us to compete.

Walmart.

Simple fact, people buy on price. And to lower prices, you do what you have to do. You can be altruistic and patriotic (and some companies can survive doing this), but in a consumer market, forget it.

Going after executive salaries would not change the profitabilty of most (majority?) of companies. Free market again.

In Canada, we have a minimum wage AND free health care. Kinda the best of both worlds, though surviving in a city on minimum wage, with a family...tough.

But even our manufacturing based has been very hard hit.

There is no such thing as free healthcare. Healthcare is paid for by someone. I presume taxpayers?

http://www.thebostonchannel.com/money/21085692/detail.html

"Do you want to mandate at what rate companies must hire employees, a minimum hourly rate?"

Unless I've misunderstood, that's exactly what happens in Australia. Most employees are covered either by enterprise-based agreements or by enforceable industrial awards negotiated between employer groups and unions, both legally enforceable.

These are underpinned by a national minimum wage (currently $14.31/hr) determined by the Australian Fair Pay Commission. Waiters, bar staff etc. are included in the award system (which explains why tipping is the exception rather than the rule here). In addition there's a compulsory employer contribution (9% of gross pay) towards employees' pension plans.

Admittedly this doesn't prevent employers converting full-time jobs to part-time, but in the latter case higher hourly rates apply in compensation for the lack of annual and sick leave entitlements.

Basic health insurance for all is provided by Medicare Australia, with the option of "top up" private insurance. It is very rare for employers to offer health insurance as a benefit. In addition, phrmaceuticals costs are subsidised and capped by the government.

"There is no such thing as free healthcare. Healthcare is paid for by someone. I presume taxpayers?"

Of course. And in countries which provide some form of publicly-funded universal health insurance, costs are demonstrably much lower than the predominantly private model employed in the United States, with no loss of quality.

Despite this point being made in many threads on this forum, it seems that for what I can only see as ideological reasons some people just don't want to believe it.

sf, in a perfect world, yes. However, at this time, the agency dissolves as an entity, and perhaps reforms as a different entity. Only the owners or stockhoders reap the profits. When employees must work for the agency 5 or 6 years or whatever to be able to participate in a 401 plan, they are then essentially left out.
About social security, if private pensions or other schemes carry enough of the load, social security does not need funding increases or cost of living increases, thereby removing a certain amount of the pressure on that retirement plan. When fewer employees are able to receive income from private pensions, there is more pressure on social security to pay more. With fewer younger workers paying into social security, the funds must come from somewhere. If more retirees received a chunck of what they need from private pensions (via longevity) it would be easier on the social security budget and the younger employees paying into it.

Health care needs to be de-coupled from employment.

As Degas said, Health care needs to be de-coupled from employment. I would add that health INSURANCE needs to be de-coupled from employment.

How can small businesses buy insurance for their employees at the same premium rates as large businesses. How can a small corner store compete with Walmart or Costco in the insurance market? No wonder small businesses, the Ma and Pop businesses, go broke.

http://abcnews.go.com/Business/wireStory?id=8668349

Hyatt has offered the housekeeping staff their jobs back with benefits!

http://www.boston.com/business/articles/2009/09/25/firing_housekeepers_creates_pr_mess_for_hyatt/

http://boston.bizjournals.com/boston/stories/2009/09/21/daily71.html

Yes - their jobs back - but thru the outsourcing company and no mention of at what wages. Could this be what they were planning all along or did they misjudge public reaction in boston.