When the housekeepers at the three Hyatt hotels in the Boston area were asked to train some new workers, they said they were told the trainees would be filling in during vacations.
On Aug. 31, staffers learned the full story: None of them would be making the beds and cleaning the showers any longer. All of them were losing their jobs. The trainees, it turns out, were employees of a Georgia company, Hospitality Staffing Solutions, who were replacing them that day.
The move to outsource the jobs of about 100 housekeeping employees at the Hyatt Regency Boston, Hyatt Regency Cambridge, and Hyatt Harborside at Logan International Airport is unusual in the hospitality industry, which counts on the housekeeping staff to help make sure hotel guests are comfortable.
“It’s unbelievable,’’ said Lucine Williams, 41, who has worked at the Hyatt Regency Boston for nearly 22 years and was making $15.32 an hour plus health, dental, and 401(k) benefits when she lost her job. “I don’t know how they can treat people like that.’’
After hearing the news at meetings last month, employees cried and screamed, said Drupattie Jungra, 55, who had worked at the Cambridge Hyatt for more than 21 years and made $15.69 an hour, plus benefits.
“Where am I going to go look for a job?’’ said Jungra, a widow who regularly sends money to her family in Guyana and whose four grown sons live with her.
Hyatt officials confirmed the layoffs at the three hotels, but declined to say whether the chain was considering similar moves in other locations across the country. “As part of an ongoing drive to address challenging economic conditions, the Hyatt hotels of Boston have restructured their housekeeping services,’’ according to a statement from the hotel. “Regrettably, the restructuring included staff reductions.’’
Like many hotels in the Boston area, the Hyatt has struggled this year, as a recession has caused people to cut down on their travel plans. Boston area hotels experienced a 21 percent drop in revenue per available room in June compared to the year before, according to PKF Hospitality Research, and 10 percent in July. Chicago-based Hyatt reported revenue fell 18 percent to $1.6 billion in the first half of this year.
Other hotels have taken a different approach to riding out the recession. Earlier this year the Liberty Hotel ended its contract with the company that provided its security and night janitorial service and replaced them with hotel workers from other departments who might have otherwise been laid off. “We would not [outsource housekeepers] because we want to tightly control the guest experience here and the cleanliness,’’ said managing director Jim Treadway.
Representatives from the Hilton and Marriott hotel chains said they have not outsourced their housekeepers and have no plans to do so.
Paul Sacco, the president of the Massachusetts Lodging Association, said he isn’t aware of any other hotels that have outsourced their cleaning staffs but wasn’t surprised by the move. “In these economic times, it just calls for unusual initiatives that maybe we wouldn’t have looked at before,’’ he said.
But Sacco pointed out that outsourcing has been going on for years at companies around the country and that not only would the move save the Hyatt money, it wouldn’t affect the hotel guests. “If you stayed at the Hyatt last night and you bumped into the housekeeper, would you notice a difference?’’
Janice Loux, the president of Unite Here Local 26, a union that represents local hotel workers, called the outsourcing a “race to the bottom.’’ The Hyatt housekeepers were not part of the union but reached out to Local 26, which is organizing a picket and rally in support of the housekeepers today at 5 p.m. at the downtown Hyatt.
“Never ever in all my years have I seen a wholesale contracting out of an entire department,’’ she said.
Loux said the new workers will make $8 an hour and receive no benefits, based on information from a Hospitality Staffing Solutions employee. Staffing firm president Rick Holliday sent out an e-mail stating his employees made competitive wages but didn’t answer further questions.
The dismissed workers received two weeks of pay when they were let go, plus one week of pay for every year they worked at the Hyatt up to five or 10 years, depending on the hotel. According to the housekeepers, two Hyatt employees from each hotel were asked to continue working, though it was unclear if they would be employed by the Hyatt or by the staffing firm.
Williams, a single mother of a 13-year-old with asthma, stocked up on medication before her insurance runs out at the end of the month. Last week, the former Hyatt Regency Boston housekeeper also had to cancel an airline ticket she’d bought the day before she was laid off to go see her father in Barbados. She hasn’t seen him since 2005, and isn’t sure when she’ll see him again.
Source: http://www.boston.com/business/articles/2009/09/17/housekeepers_lose_hya...
Jaeger
its sad but thats business.
1WTF! I couldn't even read all of that story.
Someone works for you 22 years and you don't even have the heart to tell them to their face that you're replacing them. I mean these women have families and need time to find other ways to support themselves.
"That business" my ass!
This is just what I was talking about on another post. The world we are living in today is the worst. We cannot find it in our hearts to simply respect each other.
Just simple politeness is out of the question now!
2"That's business" is not excuse and should never be used in cases like this.
3That is just rude. They had to train their replacements. I have seen it before but not like this.
4Pink, the Hyatt is losing money, they need to save money so that they arent charging more per room for the customers. Its not the right thing to do in regards to long term employees but its understandable coming from a business point of view.
5Well that is business. I mean, its not right and I respect a company more for not doing things like that but in reality, it happens every day and in far sadder stories.
A company is out to make a profit, not care for people's sob stories. Yes, they should strike a balance, and yes this was shady, but the woman who had to cancel the airline ticket? Please. She didn't have to do that. She chose to do that.
6One of my first jobs was at a Hotel and I hated it not because of the work but because I realized how shady management was.
If these Hotels had simply been up front and said we're sorry we're going to have to lay you off I wouldn't have a problem with their decision other than feeling sorry for the employees. However why the cloak and dagger? It's just so shady. I've had friends in the industry for years and some who only lasted a few months by choice. The common theme of their complaints was the same sentiment. I just don't get why they feel they have to be that way.
7maybe the hyatt needs to offer more specials to get more people in their rooms. The bad PR will do more damage to their already lagging profit margin.
8No, their treatment towards their long time employees of 22 years working hard for them, IS wrong to do.
The company could have been honest with them. The ladies have been honest employees for them Some places have a high turnover rate because their employees don't work hard and they are THIEVES toward the hotel guest...Apparently these ladies were not this way all those years or the company would have fired them earlier.
The women would have understood loosing their jobs since it was apparent that the company was loosing money. But they did NOT expect to be done in this manner. If they sued then I believe they should win every dime for the deceit.
9well they were given severance so its not as if they got nothing.
outside of the training (which is a huge slap in the face, but again, happens often) it sounds like a regular lay off.
10When my job was outsourced, I had to train my replacement. It really sucked! I feel for these ladies, but also understand that this is how business works. The management should have been upfront with them from the start, however.
11I think we all can agree on thinking that the company sould have been more up front with them. I hope the women find new jobs ASAP so their family life won't suffer too much before hand.
12This is why people should not believe or put faith solely in their job. Look at it as a means to what you need: a paycheck and always keep your hustle fresh and in the works.
13I understand that it is business, but it is a crappy way to do business and certainly not necessary. Lots of companies are struggling and wouldn't think to do this to their employees. This is certainly a poor PR move and will cost them clientele.
14No that's cold blooded. It's one thing to train your replacements when you know that you are leaving, but it's a whole different subject matter to keep them out of the loop, even if it's just business. It's bad business dealings that leave the remaining employees disgruntled and angry with the company, which is never a good recipe.
15I look at it this way, it is business. And business that I would not like to patron. If ever i were to want to stay in such a ritzy hotel, I would choose another and not the Hyatt. I cannot blame them for making this decision, but i can blame them for not being upfront and honest with their employees. They should have told them that this was coming down the line when they first found decided on it. Then given them enough time to possibly find other work. But I do understand that there is an inherrent risk with such actions, they could choose not to train their replacements well, they sabotage things, or they could join up with a union tht would force it's hand. Tough situation really for all involved
16Another sad story and I dislike the fact that the employees were lied to about their replacements "just filling in for the summer"
17Businesses are made up of people so "that's business" and "that's people behaving like soulless dicks" is the same.
18It is not a tough situation for Hyatt's owners. It is a tough situation for the maids who no longer have a job.
" “If you stayed at the Hyatt last night and you bumped into the housekeeper, would you notice a difference?’’" This statement = soulless dick.
19I don't think thast fair Roar. No one wants to let people go, no one wants to be in that position. I'm sure they'd much rather have the profit to continue as usual.
Clearly they could have handled it better, but its not like they're twisting their mustaches looking for a way to screw people.
20Well maybe they had to do it because maids should not be earning $15 / hr
there are
certain jobs that are low paying jobs, and if you want to earn more you should learn new skills, try to be promoted to management, etc. these are entry level. it could be said they shot
themselves in the foot. I know for dang sure that I would not be working at mcdonalds for 20 years and expect to be earning twice the minimum wage.
21And they gave them up to 3 months severance too and they didn't have to.
22His statement says to me that he felt the housekeeping staff was disposable.
23Soulless dicks.
"Hyatt Hotels Corp. wants to make a second run as a publicly traded firm: The Chicago company on Wednesday filed for an initial public stock offering, hoping to raise as much as $1.15 billion.
An IPO could be another big payday for Goldman Sachs Group: The investment bank took a 7.5% stake in the firm in 2007. The Pritzker family, which founded the hotel chain in 1957, owns most of the rest of the business.
As of June 30 the company owned, managed or franchised 413 hotels worldwide, encompassing about 120,000 rooms.
Hyatt earned $168 million in 2008 on sales of $3.8 billion. Revenue had risen from $2.7 billion in 2004. But business has plunged this year with the recession. Sales in the first six months tumbled more than 18% from the same period in 2008, to $1.6 billion.
A stock offering could give the Pritzkers a load of capital to use to acquire choice properties as the recession forces industry consolidation. It also could give family members another way to convert their hard-asset wealth into fast cash."
24http://latimesblogs.latimes.com/money_co/2009/08/hyatt-hotels-corp-wants...
They had been there for 22 years and im sorry but $15 an hour is not big bucks. Definitely not in Massachusetts.
25Hain their severance pay isn't going to be big, and living in Massachusetts can be pretty expansive. So if you have mortgage and other bills, that severance pay can only take you so far.
26I understand that it is business, but it is a crappy way to do business and certainly not necessary. Lots of companies are struggling and wouldn't think to do this to their employees. This is certainly a poor PR move and will cost them clientele.
I agree. Soulless dicks.
I also don't think that $15/hr for housekeeping is too much. Just imagine having to clean up after people day after day. Cleaning their nasty toilets, changing sheets that have god knows what on them...it's not like people take care of the hotel room as if it was their own room. People trash them on a frequent basis. What do they care? They don't have to clean it up.
How many times do you think they've had to clean up vomit, piss, who knows what else off a bathroom floor? Even if the person does keep the room tidy, it's still kind of a crappy job. They deserve at least the $15/hr.
27With the newly unemployed housekeepers benefitless, and the newly employed housekeepers benefitless, who's going to pick up their health care bills if any of them falls ill? People who make $8 an hour can't do much to help the economy, can they?
28they have 3 months of those bills being covered. If they find another job, they still get that severance. Double pay! If Massachusetts is so expensive then they need to raise their minimum wage. And pay is based on skill set, not on dirtiness. it doesn't take much skill to push a vacuum and change sheets.
29If they want more money, they need to change their position.
30Hain, Massachusetts has one of the highest minimum wage in the country after Washington state and and people are still barely surviving on that. Now come winter with heating and gas bill doing something like this is just cruel even if it's just business and they're looking out their the company's interest. It's a nasty way to treat long-term employees. They should have been given some sort of notice to start looking for a new job or better yet a new career, especially those who's put in 22 years of their life for this job and it's really all that they know. Do you really expect them to find another job easily in today's economy where employers are dropping people like flies? Come on now.
31Hainan, someone has to be the hotel housekeeper unless we all want to clean up after ourselves.
Companies like the Hyatt need people to look down their noses at the work other people do so they can get away with unceremoniously dumping employees after 20 years and hire people at half the pay and no benefits.
32Well I kind of agree with Hain, 20 years and they didn't promote even once?
33I don't see where the article says anything about that.
34Do you think 20 years ago they were hired to be housekeepers at $15 an hour?
I've known bank tellers who did just that for 15 years with annual raises but no change in position.
I thought Massachusetts was the state with the public healthcare system. If so, healthcare shouldn't be a problem for the ladies.
It is sad when people lose their jobs, especially when they have been with a company for a long time. Unfortunately, the trend in the past 20 years has been for both employers and employees to have no loyalty. Should the company have been honest with the housekeepers? IMO yes. I also wonder if there wasn't a better compromise that they could have offered, such as cutting at least some of the longtime housekeepers back to part time while filling in the rest of the hours with the subcontractor.
35A pay raise is different from a promotion. A promotion implies added responsibilities.
36I know that.
37I don't see where the article says no promotions. Within housekeeping, there could have been promotions.
I am sure that they were making $15/hour do to merit based raises. They didn't start out at that rate. I would be willing to bet that finding honest, hard working hotel maids is hard. Probably a lot who are hired end up watching TV or something when they are supposed to be vacuuming. So why not reward your good employees with a pay increase?
And how many positions do you think there are to promote them to? Are they going to go from housekeeper to concierge? That is a different skill set. What position would they be promoted to using their same skill set? There is only room for so many house keeping supervisors.
38"This is why people should not believe or put faith solely in their job. Look at it as a means to what you need: a paycheck and always keep your hustle fresh and in the works."
Great point, bella.
39MA has a public health care system but it isn't free. Those I know who have been on it are paying for it. I don't recall a specific amount.
40"...was making $15.32 an hour plus health, dental, and 401(k) benefits when she lost her job."
She was getting a whole lot more than $15.32 an hour when she lost her job. If they are trying to become a PTC, then one of the things they need to do is become more profitable. Getting rid of their health, dental, and 401k responsibilities goes a long way towards that. Since MA has a statewide health care system, and the staff is getting 3 months severance, I don't see a problem.
41Kas, thanks for clarifying the MA healthcare system.
True Steph, there could have been promotions. I was just pointing out that you can get raises without being promoted. I wasn't as clear as I could have been though.
42"But Sacco pointed out that outsourcing has been going on for years at companies around the country and that not only would the move save the Hyatt money, it wouldn’t affect the hotel guests. “If you stayed at the Hyatt last night and you bumped into the housekeeper, would you notice a difference?’’
Nice to see how expendable people have become. And yeah, all people who do housekeeping look exactly alike. D*ckwad.
43No problem, Skb. I think my co worker who's son was on it said it was $65 per week because she said he was paying as much per week as I was at the time. I pay more now.
My boss who's daughter was on it said it was more so I don't have a definitive rate. My boss's daughter had pre existing conditions so maybe that is why her rate was higher?
Anyway it isn't free health care.
44"it doesn't take much skill to push a vacuum and change sheets."
I really don't think that matters in this case, cos you know what, I'm not cleaning up someone's sheets before I get to the room.
45Unfortunately though, skill sets do matter, and that's what companies pay for. Almost anyone could do the housekeeping job which requires no special training versus an accountant that requires a 4 year degree and a certification.
In this case there are people willing to do the housekeeping job for $8/hour. A company is going to pay the lowest wage they can while remaining competitive.
46Or in this case don't pay for. These woman were clearly skilled housekeepers. They were there for over two decades. They received raises. When they became too expenisve for the company, they were dumped. Replaced with temporary employees who are being payed a lower wage and not receiving benefits.
47Oh, I agree that skill sets matter, but doing that to people who were there for 20+ years just seems completely inexcusable to me. And I'm sure the people who do have the jobs now and are getting pad $8/hour are grateful to have them, but no benefits? Rough.
48Well I think if they had gotten promoted the artcle would have pointed it out because it only helps their case that they were treated unjustly.
49on a side note, i was an entry level custodian for a summer and got paid 15 bucks an hour (and time and half on Sat, double on Sun)
so I don't think it's out of line to assume that they were in an entry level position that whole time and didn't move up.
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