Business
Laid-off food workers claim their 'right to return' to jobs was violated at Hotel Figueroa
Two days after the food hospitality operator at a fashionable downtown hotel shuttered its restaurants and laid off its food and beverage employees, a new third-party management company moved in and hired a whole new set of workers, according to a complaint filed with the Los Angeles city attorney’s office.
The laid-off food and beverage laborers had attempted to unionize months earlier. They allege that Hotel Figueroa and hospitality operator the Botanical Group left them out of the hiring, potentially violating a city “right to return” law that requires that new hotel owners or new operators retain the site’s employees for a transitional period, according to the complaint.
A Feb. 21 letter addressed to the city attorney’s office asks for an investigation. A spokesperson for the office confirmed receipt of the complaint but wouldn’t comment further on the matter.
“The company closed without retaining workers in violation of the recall law,” said Kurt Petersen, co-president of Unite Here Local 11, which is aiding the hotel workers in their effort. ”It is beyond outrageous to see wealthy companies … treat their long-standing workers like they are disposable.”
The hotel is denying the premise of the workers’ complaint.
In a prepared statement, a spokesperson for Hotel Figueroa said its ownership is “acting in accordance” with the Los Angeles Hotel Worker Retention Ordinance, which requires that new hotel owners or operators retain the site’s employees for a transitional period. The 2006 ordinance initially applied only to hotels in the LAX corridor. In 2022, a new hotel worker protection ordinance expanded the existing law to include all city hotels with more than 50 guestrooms.
The retention rule is intended to protect laid-off hotel workers so that if a hotel undergoes a change in control, the successor hotel employer is required to hire previous employees for a 90-day transition period and may not discharge these employees without cause.
Pastor Mike Kinman, right, walks out of the Hotel Figueroa after demonstrating in support of restaurant workers who were laid off.
(Brian van der Brug / Los Angeles Times)
The Hotel Figueroa spokesperson said there isn’t a new food and beverage operator in place, but that they are instead working with a “consultant to provide limited F&B [food and beverage] service.” Several former staff members of the former third-party management group returned to the hotel’s food and beverage outlets, she said, and they expect more will return in the next few weeks.
When asked how many non-managerial staff had been hired back, the spokesperson said the company wouldn’t comment further.
The Botanical Group did not respond to emails and message for comment.
The 2006 retention ordinance was drafted in response to mass firings that occurred in 2000 at a Wyndham hotel near LAX. The hotel closed and laid off more than 200 employees. The hotel reopened as the Radisson Hotel LAX about a year later but did not hire all of the former Wyndham workers, even though more than 100 of them submitted applications.
Since then, the law has been invoked a handful of times, said Maria Hernandez, a spokeswoman with Unite Here Local 11.
On a recent Friday afternoon, a bartender at the reopened Bar Magnolia said he and the other bartenders present were new to the job, as well as other non-management employees. The space once occupied by Sparrow Italia, which served coastal Italian dishes and cocktails in an indoor-meets-outdoor setting, remained closed.
A dishwasher, line cook and prep cook interviewed previously about Hotel Figueroa also said they had been laid off and not rehired by the new operator.
Rev. Edgar Rivera Colon, left, exhorts patrons to support the rehiring of more than 100 workers who lost their jobs.
(Brian van der Brug / Los Angeles Times)
Workers sought to organize
Tension between the former hospitality group Noble 33 and its employees at Hotel Figueroa started soon after the third-party management took over food and beverage operations for the hotel in 2021, according to workers and union organizers who spoke with The Times.
Workers said they were forced to take on multiple tasks without more pay as their colleagues left and management failed to back-fill positions.
On Dec. 8, back-of-house food and beverage workers who worked for Noble 33 notified their management that they intended to form a union, and submitted cards to do so.
Six days later, hospitality operator Noble 33 announced it would close Sparrow Italia, Café Fig, Bar Magnolia, the Cafeteria and La Casita at Driftwood at the famed hotel, a historic building in downtown L.A. that for the last two decades built a following for its Mediterranean-inspired space and stylish dining rooms.
Rev. Andrew Schwiebert, center, talks with diners as he and dozens of others participate in a “water-in” at the Café Fig.
(Brian van der Brug / Los Angeles Times)
Noble 33 followed through on the closure. On Feb. 11, the company laid off an estimated 100 non-management employees and closed the Hotel Figueroa’s restaurants.
Maria Ibarra, a cook for Noble 33 at the hotel, said she was laid off and not rehired. She now faces unemployment.
“The owners thought they could just replace us overnight and that we would give up and walk away,” Ibarra said. “My co-workers and I will not do that. We have rights.”
Wednesday, Unite Here Local 11, workers and religious leaders called for a boycott of the hotel and hospitality group, at a morning press conference in front of Hotel Figueroa.
The group also delivered a letter signed by nearly 500 people demanding that the hotel bring back the laid-off workers.
“We call on you to immediately offer to return the workers to their employment at the hotel and compensate them for time missed,” the letter said.
The boycott is just the latest move taken by workers and the union.
On Friday, nearly 40 people picketed at Hotel Figueroa — seven of them hotel housekeepers alongside about 30 community members and religious leaders with Clergy and Laity United for Economic Justice, a faith-based advocacy group based near downtown. They shouted “Bring them back” and held a sign that read “Bring back the Fig 100.”
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
Business
Monterey Park takes landmark vote on banning data centers
Residents in the city of Monterey Park will be the first in the nation to vote on a permanent ban on data centers Tuesday.
If approved, Measure NDC would prohibit data centers within the city limits and could only be overturned by another vote.
Yard signs saying “No Data Center” in English and Chinese with images of dragons line sidewalks in the San Gabriel Valley city.
As a wave of data center opposition sweeps the country, numerous towns and counties across the U.S. have instituted temporary moratoria and other restrictions on the facilities. But only a handful have instituted indefinite bans, and just four other towns have sent related matters to the ballot.
Supporters are hoping the vote will set a precedent for the rest of the region, where residents are fighting proposals in Vernon and City of Industry.
“This is about as permanent a ban as we can get,” said Steven Kung, co-founder of the group No Data Center Monterey Park. “Winning Measure NDC would send a huge message to the rest of the San Gabriel Valley about how residents don’t want data centers.”
The ballot measure emerged from the fight against a 247,000-square-foot center proposed in 2024 by the Australian-owned investment firm HMC StratCap for a residential area in Monterey Park.
The facility would have sat less than 500 feet away from the nearest home and used three times the electricity of the 60,000-person, predominantly Asian American city.
While the developer touted the potential for jobs and tax revenue, residents expressed concerns about noise and air pollution, rising electricity rates and a potential to lower property values.
The company pulled its plans in late March following public outcry and a March 4 city council vote to extend a temporary data center moratorium and place a ban on Tuesday’s ballot.
In a letter to the city council, HMC StratCap said it would pursue a different use for the land and would not engage in a ballot measure fight.
The city council later banned data centers indefinitely, the first in California to do so, said Mayor Elizabeth Yang. But she’s still been out campaigning for the measure with all four other council members.
“If a council puts in an ordinance, a future council can reverse it too,” said Yang. “With the ballot measure, unbanning it is a lot harder because you need the entire city to vote on it.”
The measure proposes the ban “to protect air quality, drinking water resources, and public health” and “prevent impacts to electricity and water rates.”
While California places third in the country for existing data centers with about 300 facilities, it hasn’t been a hot spot in the recent AI-driven data center boom. High electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in Virginia, Texas, Georgia, Illinois or Arizona.
“Most of California’s data centers are small by today’s standards,” said Shaolei Ren, an engineering professor at UC Riverside who studies how to reduce the environmental impacts of data centers. “Ten years ago, they would be medium-sized, but the power demand for new AI data centers has increased a lot.”
The average operating data center demands 45 megawatts, according to the Washington Post, while the average planned one would draw 430 MW. The one proposed for Monterey Park would have required about 50 MW at peak demand.
As proposals crop up in SoCal, they’re met with fierce opposition. Montebello, El Monte and Baldwin Park have all enacted temporary moratoria, and Alhambra recently banned data centers as part of a zoning code update. City of Industry, Vernon, City of Commerce and Santa Fe Springs are moving in the other direction, trying to court developers and streamline data center approvals. Community groups are fighting that.
Outside the San Gabriel Valley, residents of Coachella and Imperial County are showing up in droves to protest local proposals.
Matthew Shaw, a volunteer with the Coalition for Responsible Data Center Development, who recently published a report on opposition to AI data centers, said a vote to ban them in Monterey Park “would lead to copycats, partially because so many groups are just opposed to any data center development at all.”
While there is no formal opposition to Measure NDC, some building trades like Ironworker Local 433 supported the Monterey Park data center when it was still live before city council. Those in the data center industry are lamenting the state of public opinion.
“These are multi-billion-dollar assets that are built by multi-trillion-dollar companies. These things will get done,” said Mehdi Paryavi, chairman of the International Data Center Authority. “My biggest problem is that our industry does not invest enough in community engagement.”
Paryavi said towns that seek to limit data centers are missing out on thousands of jobs generated by data center construction, operations and customers, as well as faster artificial intelligence speeds and better performance.
Kung said local community organizers are “looking at the empirical evidence” and seeing a ban as a win.
“We’ve never seen a city that embraces a data center and is like, ‘Look how our quality of life has increased, look how all the revenue has gone into citywide improvements,’” he said. “That just doesn’t exist.”
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