Business
Hotel strike nears end as union reaches more tentative deals with holdouts
The almost 10-month-old strike that initially involved roughly 60 hotels and more than 15,000 workers in Los Angeles and Orange counties is nearing its end.
In late April, the powerful hospitality union Unite Here Local 11 announced it had reached tentative contract agreements with 12 Southern California hotels. And on Friday, Unite Here Local 11 officials said the union had negotiated agreements with six more local hotels in recent days.
So far, nearly three dozen other hotels have struck deals with workers over the course of on-and-off strikes that began in July. The new contracts awarded higher pay and other benefits to thousands of housekeepers, cooks, dishwashers, servers and front desk workers.
“Hotels are falling in line,” Unite Here Local 11 co-president Kurt Petersen said. “We’re winning more the longer this goes on.”
Stephanie Peterson, a spokesperson for Aimbridge Hospitality, which operates six area hotels that recently settled, said in a statement: “We are pleased to have reached an agreement with the Union that puts our people first, and we are taking the immediate steps to begin issuing the backpay our associates have been waiting for.”
The new contracts include an almost immediate raise of $5 per hour for workers who don’t typically earn tips, including front desk clerks, dishwashers and housekeepers. Those workers will see a total hourly wage boost of $10 over the course of the contract that expires in January 2028.
Hotel Figueroa, LA Grand and Glendale Hilton are among nine hotels whose owners remain in contract negotiations with the union.
A point of contention had been the practice of some hotels recruiting recent migrants living in a Skid Row shelter to replace striking employees.
In a compromise, four hotels agreed to give the migrant workers priority in hiring for permanent positions. The hotels include the Le Meridien Delfina Santa Monica, the Four Points by Sheraton, the Holiday Inn LAX and the Pasadena Hilton.
“This is a testament to the idea of no workers left behind,” Petersen said. “Our members saw workers exploited and had a sense of solidarity. The bosses’ plan to divide people didn’t work.”
As part of the union’s agreement with Sheraton Park Anaheim, workers who had raised allegations of sexual harassment and were banned from the property will be brought back to work.
Fairfield Inn & Suites and Aloft hotels in El Segundo, which are owned by a real estate affiliate of the Blackstone Group, also approved deals with the union.
Blackstone Group spokesman Jeffrey Kauth said, “The agreement substantially increases wages and benefits over the term of the contract and provides a framework to recognize a broader number of employees who will benefit from these increases. We are proud to continue our positive working relationship with the union.”
During months of strikes, tensions have spiked on picket lines at various hotels and have continued at some locations even after deals are struck.
Outside the Hilton Pasadena, a worker and two union members who were picketing were issued noise citations by local police and are facing criminal charges for using handheld bullhorns.
The union as well as advocates with the American Civil Liberties Union of Southern California sharply criticized the city for pursuing the charges at a Monday city council meeting.
Peter J. Eliasberg, chief counsel at the ACLU of Southern California, sent a letter May 15 to Pasadena’s City Council members, chief of police and city attorney urging the city to drop the charges, saying they “very likely violate the First Amendment and Liberty of Speech Clause of the California Constitution.”
Video footage captured by the union’s general counsel Jeremy Blasi, and reviewed by The Times, shows two police officers recording decibel measurements of several picketers on a public sidewalk a few feet away.
“The City supports the free speech rights of protesters and does not take sides in disputes, but must balance the rights of those protesting with those nearby residents and businesses impacted by protest activities,” said Lisa Derderian, a spokesperson for the city of Pasadena, in an emailed statement.
Pasadena Mayor Victor Gordo said the city planned to review issues raised by the ordinance, but said he couldn’t comment on the claims.
Long Beach Mayor Rex Richardson called the deal a “historic contract agreement that ensures hospitality workers will have the dignity of living wages and industry-leading benefits to support their families,” according to a Unite Here Local 11 news release in April.
“Over the next four years, as we prepare for the 2028 Olympics and welcome visitors from around the world to our vibrant Long Beach community, we can be proud that our local tourism economy continues to thrive, while placing value on the workforce that keeps our hospitality industry running,” Richardson said.
Business
Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO
Lululemon, the yoga pants and athletic clothing company, has hired a former executive from a rival, Nike, as its new chief executive.
Heidi O’Neill, who spent more than 25 years at Nike, will take the reins and join Lululemon’s board of directors on Sept. 8, the company announced on Wednesday.
The leadership change is happening during a tumultuous time for Lululemon, which had grown to $11 billion in revenue by persuading shoppers to ditch their jeans and slacks for stretchy leggings. But lately, sales have declined in North America amid intense competition and shifting fashion trends, with consumers favoring looser styles rather than the form-fitting silhouettes for which Lululemon is best known.
“As I step into the C.E.O. role in September, my job will be to build on that foundation — to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world,” Ms. O’Neill, 61, said in a statement.
Lululemon, based in Vancouver, British Columbia, has also been entangled in a corporate power struggle over the company’s future. Its billionaire founder, Chip Wilson, has feuded with the board, nominated independent directors and criticized executives.
Lululemon’s previous chief executive, Calvin McDonald, stepped down at the end of January as pressure mounted from Mr. Wilson and some investors. One activist investor, Elliott Investment Management, had pushed its own chief executive candidate, who was not selected.
The interim co-chiefs, Meghan Frank and André Maestrini, will lead the company until Ms. O’Neill’s arrival, when they are expected to return to other senior roles. The pair had outlined a plan to revive sales at Lululemon, promising to invest in stores, save more money and speed up product development.
“We start the year with a real plan, with real strategies,” Mr. Maestrini said in an interview this year. “We make sure decisions are made fast.”
Lululemon said last month that it would add Chip Bergh, the former chief executive of Levi Strauss, to its board to replace David Mussafer, the chairman of the private equity firm Advent International, whom Mr. Wilson had sought to remove.
Ms. O’Neill climbed the organizational chart at Nike for decades, working across divisions including consumer sports, product innovation and brand marketing, and was most recently its president of consumer, product and brand. She left Nike last year amid a shake-up of senior management that led to the elimination of her role.
Analysts said Ms. O’Neill would be expected to find ways to energize Lululemon’s business and reset the company’s culture in order to improve performance.
“O’Neill is her own person who will come with an agenda of change,” said Neil Saunders, the managing director of GlobalData, a data analytics and consulting company. “The task ahead is a significant one, but it can be undertaken from a position of relative stability.”
Business
Angry Altadena residents ask officials to halt Edison’s undergrounding work
Eaton wildfire survivors’ anger about Southern California Edison’s burying of electric wires in Altadena boiled over Tuesday with residents calling on government officials to temporarily halt the work.
In a letter to the Los Angeles County Board of Supervisors, more than 120 Altadena residents and the town’s council wrote that they had witnessed “manifest failures” by Edison in recent months as it has been tearing up streets and digging trenches to bury the wires.
The residents cited the unexpected financial cost of the work to homeowners and possible harm to the town’s remaining trees. They also pointed out how the work will leave telecommunication wires above ground on poles.
“The current lack of coordination is compounding the stress of a community still reeling from the Eaton Fire, and risks causing further irreparable harm,” the residents wrote.
The council voted unanimously Tuesday night to send the letter.
Scott Johnson, an Edison spokesman, said Wednesday that the company has been working to address the concerns, including by looking for other sources of funds to help pay for the homeowners’ costs.
“We recognize this community has already faced a number of challenges,” he said.
Johnson said the company will allow homeowners to keep existing overhead lines connecting their homes to the grid if they are worried about the cost.
Edison’s crews, Johnson said, have also been trained to use equipment that avoids roots and preserves the health of trees.
The utility has said that burying the wires as the town rebuilds thousands of homes destroyed in the fire will make the electrical grid safer and more reliable.
But anger has grown as work crews have shown up unexpectedly and residents learned they’re on the hook to pay tens of thousands of dollars to connect their homes to the buried lines.
Residents have also found the crews digging under the town’s oak and pine trees that survived last year’s fire. Arborists say the trenches could destroy the roots of some of the last remaining trees and kill them.
Amy Bodek, the county’s regional planning director, recently warned Edison that a government ordinance protects oak trees and that “utility trenching is not exempt from these requirements.”
Residents have also pointed out that in much of Altadena, the telecom companies, including Spectrum and AT&T, have not agreed to bury their wires in Edison’s trenches. That means the telecom wires will remain on poles above ground, which residents say is visually unappealing.
“While our community supports the long-term benefits of moving utilities underground, the current execution by SCE is placing undue financial and planning burdens on homeowners, causing irreparable harm to our heritage tree canopy, and proceeding without adequate local oversight,” the residents wrote.
They want the project halted until the problems are addressed.
Edison announced last year that it would spend as much as $925 million to underground and rebuild its grid in Altadena and Malibu, where the Palisades fire caused devastation.
The work — which costs an estimated $4 million per mile — will earn the utility millions of dollars in profits as its electric customers pay for it over the next decades.
Pedro Pizarro, chief executive of Edison International, told Gov. Gavin Newsom last year that state utility rules would require Altadena and Malibu homeowners to pay to underground the electric wire from their property line to the panel on their house. Pizarro estimated it would cost $8,000 to $10,000 for each home.
But some residents, who need to dig long trenches, say it will cost them much more.
“We are rebuilding and with the insurance shortfall, our finances are stretched already,” Marilyn Chong, an Altadena resident, wrote in a comment attached to the letter. “Incurring the additional burden of financing SCE’s infrastructure is not something we can or should have to do.”
Other fire survivors complained of Edison’s lack of planning and coordination with residents.
“I’ve started rebuilding, and apparently there won’t be underground power lines for me to connect with in time when my house will be done,” wrote Gail Murphy. “So apparently I’m supposed to be using a generator, and for how long!?”
Johnson said the company has set up a phone line for people with concerns or questions. That line — 1-800-250-7339 — is answered Monday through Saturday, he said.
Residents can also go to Edison’s office in Altadena at 2680 Fair Oaks Avenue. The office is open Monday to Friday from 8 to 4:30.
It’s unclear if the Eaton fire would have been less disastrous if Altadena’s neighborhood power lines had been buried.
The blaze ignited under Edison’s towering transmission lines that run through Eaton Canyon. Those lines carry bulk power through the company’s territory. In Altadena, Edison is burying the smaller distribution lines, which carry power to homes.
The government investigation into the cause of the fire has not yet been released. Pizarro has said that a leading theory is that a century-old transmission line, which had not carried power for 50 years, somehow re-energized to spark the blaze.
The fire killed at least 19 people and destroyed more than 9,400 homes and other structures.
Business
Oil Prices Rise as Investors Weigh Cease-Fire Extension
Oil prices rose and stocks moved slightly higher on Wednesday as investors tried to make sense of President Trump’s decision to extend the cease-fire with Iran despite doubts about the status of another round of peace talks.
An adviser to Mohammad Bagher Ghalibaf, the influential speaker of the Iranian Parliament, dismissed the cease-fire announcement, saying that it had “no meaning.” He equated the U.S. naval blockade with bombings, with commercial vessels coming under attack near the Strait of Hormuz, the crucial shipping lane that has been at the center of a growing energy crisis.
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