UNITE HERE Local 11 Blackstone Group Investor Alert: Hotel Workers Strike Blackstone-owned Southern California Hotels
Workers at the Fairfield and Aloft Los Angeles Airport hotels owned by affiliates of Blackstone Group are on strike as of July 10, 2023, joining the largest hotel workers' strike in modern history.
Blackstone Group investors should tell the firm to agree to a fair contract and put an end to the labor dispute as soon as possible.
The Fairfield and Aloft hotels are owned by Blackstone Real Estate Partners VIII. Blackstone is the largest alternative asset manager in the world with $991 billion under management.
Blackstone Group co-founder and CEO Stephen Schwarzman received more than $1.27 billion in total compensation and dividends last year as earnings eligible for distribution in the private equity giant's real estate segment jumped more than a third.
Blackstone hotel workers are demanding a contract that provides wages, benefits and protections that allow them to live and provide for their families in Southern California. Workers reached such an agreement with the largest hotel in Los Angeles, the Westin Bonaventure, on June 30, 2023. Blackstone should reach an agreement similar to the Westin Bonaventure contract.
See coverage below:
Los Angeles Times:
LAX hotel workers walk out in second wave of strikes, July 10, 2023
New York Times:
Los Angeles Hotel Workers Go on Strike, July 2, 2023
CNN:
Workers at major hotels in Southern California begin strike over holiday weekend, July 1, 2023
Los Angeles Times:
Unionized hotel workers reach deal with biggest employer on eve of July 4 weekend and planned strike, June 30, 2023
The Sheraton Phoenix is owned by Blackstone Real Estate Partners IX and workers there are also members of UNITE HERE Local 11. Sheraton Phoenix workers are now negotiating for a fair contract and currently don't make enough to provide for their families. Many housekeepers make only $17 per hour.
Strikes may continue at hotels across Southern California if employers fail to agree to a fair contract.
These issues present Environmental, Social and Governance (ESG) risks to Blackstone and limited partners. It is therefore in funds' fiduciary interest to engage with Blackstone to resolve these issues.
UNITE HERE Local 11 is a labor union representing more than 32,000 hospitality workers in Southern California and Arizona that work in hotels, restaurants, universities, convention centers and airports.
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