February 5, 2008 - The recent semi-boom in condo hotel and hotel developments has caused a corresponding increase in disputes between union workers and developers. The first major battle began over four years ago and only recently came to a conclusion of sorts. The dispute between Congress Plaza Hotel and local union workers from Unite Here Local 1 ended up costing the 115 year old building approval from the Chicago Plan Commission for an expansion and renovation.

Another possible development casualty that we posted about is the IBM Building. The owner, Prime Group, plans to sell floors 2 through 14 to Oxford Capital Group who then intends to give the aging building a boost by renovating those floors and putting in a hotel. Prime is seeking landmark status for IBM, which would qualify it for a 12 year major tax break worth millions. In a Sun Times article, the union contends that unless a neutrality agreement is signed promising that attempts to unionize hotel workers won’t be fought, the City Council shouldn’t grant the status. Oxford’s plans haven’t yet reached the stage of finding an operator for the proposed hotel. Not all chains work with unions, so the neutrality agreement would be restrictive.

And now the most recent fight is shaping up at the newly opened Trump Hotel. A portion of the 339 room hotel is already doing business and staffed by a large number of workers who aren’t currently unionized. Local 1 members plan to picket the hotel this week in hopes of convincing Trump to enter into a union agreement and also to persuade the current employees to join the union.

In the long run, the economic benefits Chicago Neighborhoods get from hotels should be weighed against union benefits.

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This entry was posted on Wednesday, February 6th, 2008 at 5:24 pm and is filed under Luxury Condos(t) , News(t) . You can leave a response.