A few months ago, airline catering company Flying Food Group (FFG) was one of many California-based hospitality groups to be targeted by state lawmakers trying to enforce a union-backed bill that affects the rehiring process in the hospitality industry. UNITE HERE Local 11 Union was instrumental in getting the recall law passed and is now using it as a weapon to attack other employers they are bargaining with. The latest hotel to be targeted is the Hyatt Regency in Long Beach.
In October, Hyatt Regency Long Beach was fined $4.8 million by the Labor Commissioner's Office of California for failing to recall 25 employees in a timely manner, violating Senate Bill 93. UNITE HERE also filed a class action lawsuit against the Hyatt in February over alleged wage theft and working conditions. While UNITE HERE undergoes negotiation with the Hyatt Regency, union employees have gone on strike at the hotel.
The labor commissioner accused FFG of violating SB-93 in August, citing the company over $1.2 million for not promptly rehiring 21 workers who were laid off during the COVID-19 pandemic, according to the Southern California Record. This was during a time when the company had expanded its operations and began its hiring process again, as mandated by law.
Prior to the pandemic, FFG had established a collective bargaining agreement (CBA) with its California employees, including negotiated recall rights. However, the unions sidestepped this CBA and pushed for the passing of SB-93 by the California legislature, a law granting recall rights to airline and hospitality industry employees laid off due to COVID-19 until Dec. 31, 2024. The legislature passed SB-93 on April 16, 2021, and the union has since taken advantage of the ambiguity in the law ever since, according to the Southern California Record.
In July 2022, employees for Hudson News at Los Angeles International Airport (LAX), who are represented by UNITE HERE, filed a complaint alleging violations of this recall law, according to the Los Angeles Daily News. The union is currently negotiating a new CBA with Hudson Group, and they’re currently on strike, according to its website.
Terranea Resort in Rancho Palos Verdes is another hospitality group that’s been targeted by the recall law. In March 2022, the resort was fined $3.3 million for SB-93 violations, and UNITE HERE is the group that once again filed the complaint on behalf of the employees. According to the LA Times, they were trying to organize the hotel and have been in a battle with Terranea that has gone on for over four years.
These citations present an evident pattern of UNITE HERE Local 11 using the recall law to bully employers in negotiations, FFG said. There will be more hotels found in violation of SB-93 in the coming months.