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Ilikai hotel to reopen after labor deal reached

Not all employees will be rehired

By Erika Engle

POSTED: 10:17 a.m. HST, Jul 10, 2009

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The Ilikai hotel will reopen on an undisclosed date after the new owner and the hotel workers' union reached an agreement late last night.

However, not all workers will be rehired, according to the new owner.

Under the new contract between owner New York-based iStar Financial Inc., and Unite Here Local 5, the workers' wages, benefits and job security provisions will remain intact and iStar will offer employment to Ilikai workers based on seniority, the union said in a statement.

All workers will receive the vacation pay accumulated prior to yesterday's closure.

"This agreement accomplishes what our members most desired," said Eric Gill, chief negotiator for the union, in a statement. "We will now have a real chance to work to rebuild the business and restore the reputation of this important hotel, and the opportunity to safeguard our future by working hard to make the new Ilikai a success."

The hotel will open as soon as practically possible, iStar said.

The new union contract provides for improved operational efficiencies, an improved cost structure and the rehiring of approximately 50 employees. iStar earlier this week said the hotel closure would affect 65 employees, but the union provided conflicting numbers.

"We understand that those employees who are not offered positions will be paid a severance allowance," the statement said, though the remark was not directly attributed to Andrew Blackman, senior vice president of investor relations and marketing.

"We look forward to working closely with the union to achieve the long-term viability of the hotel, which would provide the continued employment opportunities we all desire," he said. "We are optimistic that this new agreement will not only help to preserve jobs, but also to help achieve the operational efficiencies that are needed to succeed."

Long-term viability of the hotel also will require recovery within the tourism industry, the company said.

Ilikai workers who lost their jobs effective with yesterday's hotel closure will need to go to union headquarters to review the agreement with union negotiators.

 

 


The Ilikai hotel will reopen on an undisclosed date after the new owner and the hotel workers' union reached an agreement late last night.

However, not all workers will be rehired, according to the new owner.

Under the new contract between owner New York-based iStar Financial Inc., and Unite Here Local 5, the workers' wages, benefits and job security provisions will remain intact and iStar will offer employment to Ilikai workers based on seniority, the union said in a statement.

All workers will receive the vacation pay accumulated prior to yesterday's closure.

"This agreement accomplishes what our members most desired," said Eric Gill, chief negotiator for the union, in a statement. "We will now have a real chance to work to rebuild the business and restore the reputation of this important hotel, and the opportunity to safeguard our future by working hard to make the new Ilikai a success."

The hotel will open as soon as practically possible, iStar said.

The new union contract provides for improved operational efficiencies, an improved cost structure and the rehiring of approximately 50 employees. iStar earlier this week said the hotel closure would affect 65 employees, but the union provided conflicting numbers.

"We understand that those employees who are not offered positions will be paid a severance allowance," the statement said, though the remark was not directly attributed to Andrew Blackman, senior vice president of investor relations and marketing.

"We look forward to working closely with the union to achieve the long-term viability of the hotel, which would provide the continued employment opportunities we all desire," he said. "We are optimistic that this new agreement will not only help to preserve jobs, but also to help achieve the operational efficiencies that are needed to succeed."

Long-term viability of the hotel also will require recovery within the tourism industry, the company said.

Ilikai workers who lost their jobs effective with yesterday's hotel closure will need to go to union headquarters to review the agreement with union negotiators.

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