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  Issue No 21 Official Organ of LaborNet 09 July 1999  

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Unions

Showdown at the Hyde Park Plaza

By Michael Crosby - Director, Trade Union Training Australia

The ACTU's Organising guru looks at the lessons to be learned from the recent dispute.

 
 

Hyde Park Plaza workers celebrate victory

25 housekeepers at the Hyde Park Plaza hotel - the people who clean and present the hotel rooms - took on a major hotel management corporation in Sydney recently and won hands down. On the face of it this was a victory against contracting out of jobs but the real victory lay in newly unionising workers learning the strength of collective action.

This is an emerging story across Sydney's major residential hotels as LHMU makes a very serious attempt, using an organising approach, to unionise hotel workers. They have allocated significant organising resources to the campaign. In addition Troy Burton, a member of the ACTU's Organising Unit has been allocated to the project on a full time basis..

Overall the campaign has met with significant success. The organising team has followed a classic organising approach. The key thrust of the campaign has been to develop activists capable of campaigning around issues. They have been fortunate in that there are a lot of issues. This is an industry that has until recently been poorly organised and this has allowed management a pretty free reign. That enormous progress has been made in the last 2 years is quite clear. Activists have been developed and given the job of mapping their workplaces, issues have been identified and some hundreds of workers have joined the union.

Employers have tried to resist this push to unionisation. One newly opened hotel has insisted on the use of AWAs (individual contracts) to contract its entire workforce. Some others have made life very difficult for the union's new delegates. Most have attempted to resist access for organisers. Interview rooms have been made available next to the office of the human resource manager. In another case, organisers were restricted to the "smoking alley". In most cases the organisers have been able to overcome these obstacles. Indeed these battles over access have made the management look petty and given the organisers credibility in the eyes of workers.

The most potent attack on the union has been a widespread attempt to introduce non-union enterprise agreements. The union successfully organised no votes in the vast majority of hotels.. Again, this exercise demonstrated to workers the meanness of their employers and the benefits of sticking together to get what they wanted - in this case a yes vote for their award and their union and a no vote to management's agenda.

Mirvac on the attack

The management of the Hyde Park Plaza - part of the Mirvac Group - tried to force their housekeeping staff onto a non union agreement some three months ago but this was resisted by workers. During this period workers at the site worked closely with LHMU organisers and out of this experience a good groundwork of trust was developed. Not satisfied, management had another go to break the collective strength and integrity of their housekeepers.Mirvac announced that the housekeeping function was to be outsourced. On 1 - 6 - 1999 the housekeeping staff were informed that this was to be done and that they would be offered jobs by the new contractor AHS. - a Western Australian operator. If they wished to accept these jobs they would need to sign individual contracts with the operator on or before 15 - 6- 1999. If they failed to sign they would be replaced on that date.

A large poster "congratulating" the housekeeping department on their "opportunity" was placed in the staff room. This incensed the housekeeping staff who immediately and publicly, removed and destroyed the poster.

Employees contacted LHMU organiser Rebecca Reilly. A simple leaflet was prepared calling for a meeting of employees the next morning. This leaflet was distributed by a team of organisers, directly to employees whilst they worked. No notification was given of the visit, and no contact made with management at this time. This notice was followed up by telephone calls to all workers by both union officials and two of the hotel contacts.

The following morning (June 2) all employees rostered on, as well as most of those who were not, met in the park opposite the hotel prior to work. It was decided that nobody would sign anything, as there was considerable concern about the implications. A number of key "activists' were identified by this meeting. Although no-one was formally labelled a delegate or representative, a fairly formal "phone tree" was established, which meant that from that point on all information was effectively broadcast to all employees with only one phone call from union officials.

Later in the week, representatives from Mirvac management and the proposed contractor (AHS) held a meeting with the housekeeping staff, welcoming them to the new company, and reassuring them that they had nothing to worry about.

At this meeting, in line with discussions that had taken place at the pre-work union meeting, employees asked a number of questions to which they were given answers that did not reassure them.

This resulted in the calling of another union meeting, for the Friday (June 4) again before work. Once again there was a high staff turn out, and for the first time the issue of what would happen if they all refused to sign the contracts was discussed. Another briefing had been arranged with AHS, at which the East Coast manager of AHS was to attend to reassure the workforce. The workers decided that they would meet again on the morning of that proposed meeting (Tuesday June 8), with officials of the union, and not attend the proposed briefing unless the union organiser were there.

On Tuesday June 8, workers met union officials in the park opposite the hotel, and then decided to move into the lunchroom and not start work until management and AHS agreed to talk to them and their union organiser.

This resulted in a meeting that lasted until 11:45. Whilst management were clearly unhappy about union organisers being present (Troy Burton, Rebecca Reilley and Greta Martin) they agreed to meet with organisers and representatives from the workforce to discuss the concerns. The employers were then asked to leave the room whilst representatives were formally elected. As the organisers left the hotel, management met them and gave an undertaking to postpone the proposed contracting out whilst discussions took place.

The Union organisers and four workers met with Hyde Park Plaza management and Australasian Housekeeping Systems management the following afternoon.

A number of concerns were raised about the proposal, and whilst some guarantees were given in relation to pay rates (award minimums) concerns about job security and workloads were not resolved. The worker representatives made it extremely clear to management that it wasn't simply a question of entitlements. They felt deeply hurt by the process that had been adopted.

Mirvac had adopted a policy over a number of years of issuing incentive bonuses to permanent staff of several hundred dollars worth of shares. When the worker representatives asked if they would continue to be eligible to receive these offers they were clearly told by the general manager that this would no longer be happening anyway, and so it would not be an issue either way. Two days later every Mirvac hotel employee was offered $500 worth of shares - except the Hyde Park Plaza housekeeping department. More than any other single event, this completely destroyed all respect for management, and any faith in their reassurances.

Management gave an undertaking to respond to the issues raised, and not to progress with the contracting out until the issues had been resolved. A further meeting was scheduled for the following Wednesday (June 16).

On Tuesday June 15, AHS management contacted the LHMU office and postponed indefinitely the following day's meeting, due to AHS management being unavailable due to personal reasons. Attempts by LHMU organisers to set up a further meeting were resisted. AHS management agreed to meet, but said that Mirvac management would not be involved, as they had declared that the issues were now between AHS and the LHMU. Hyde Park Plaza management confirmed this position, and declared that the contracting out would be going ahead on Tuesday June 29, and that employees had until then to sign contracts with AHS, or they would be without a job.

A meeting of workers was called to discuss the situation on the morning of Friday June 18, and they decided that they would all refuse to sign any agreements. Possible management tactics were discussed, including the likelihood that employees would be approached on an individual basis and told that other employees had signed, and being threatened with unemployment if they did not sign. They undertook not to sign anything until they had discussed it with each other, and shown the documents to an LHMU organiser.

On Monday June 21 and Tuesday June 22, Management representatives from both Mirvac and AHS made concerted efforts to intimidate staff into signing contracts, including the tactics the workers had discussed. Whilst the workers found this extremely stressful, without exception they refused to sign, and it only further alienated them from management. Eventually management attempted to call a meeting, but staff refused to attend, saying they were sick of being harassed over the issue.

A pre-work meeting of workers and union officials was arranged for Wednesday June 23, at which the housekeepers resolved to fight.

They would strike on the following Friday and undertook not to discuss this with anyone, as they wanted the action to be as much of a surprise for management as possible. It is clear from the reactions of several management people that the workers were able to keep their intended action secret. Further, they agreed on a number of actions to take if management continued to attempt to persuade them to sign the contracts, including walking out of lunchrooms, turning their backs on managers, and short scripted response about being left to complete their work without harassment.

The decision to strike was courageous action indeed. Many of the workers had lengthy periods of service at the hotel - one person had been there 35 years and another 25 years. One of their key concerns was the loss of their accrued entitlements. If they signed the individual contracts these would be preserved by Mirvac in a Trust Fund. The workforce is low paid so presumably they had no resources to carry them through either a prolonged strike or unemployment if their strike was unsuccessful. The union, like most Australian unions, has no strike fund so could not afford to pay strike pay. The workers stood to lose everything.

The organisers began to mobilise the whole membership across Sydney hotels. Organiser, Kylie Mills, met with housekeeping members as far afield as Blacktown Travelodge and sent in a representative to the support the Hyde Park Plaza workers on the picket. A large contingent of Star City casino delegates also participated as did a number of hotel workers who came to the picket on their days off or before work. As well, many of the housekeeping members in hotels near the Hyde Park, pledged their support to attend the picket during their lunch hours.

Union secretaries in Sydney were rung to seek their support at the picket and demonstration at Friday lunchtime. The Secretary of the Labor Council, Michael Costa, was asked for his support which was given enthusiastically. Costa had recently committed his Council to the adoption of a far more organising approach to its work.

Plans were begun to be put in place for Naomi Steer, the Labor Council officer in charge of community liaison to contact community groups, churches and the like and ask them to support the housekeepers and ask the various groups to write to Mirvac and ask for fair treatment for the workers. If they were not satisfied, we were to ask them to threaten to write to all their affiliates informing them of the strike by housekeepers at the Hotel.

The Secretary of the Media Alliance, Anne Britton was also contacted for her support. The Sebel of Sydney, a Mirvac hotel, marketed itself to artists visiting from overseas. She was asked to get the leaders of the American Screen Actors Guild and British Actors Equity to write to the hotel expressing concern over the dispute. In the event of the dispute not being settled they were to be asked to write to their members indicating that there could be problems at hotels managed by the Mirvac chain. This she agreed to do.

The LHMU's organisers arranged for a delegation of the housekeepers to attend the meeting of Labor Council scheduled for Thursday night and speak to the delegates asking for their support. This they did to great effect. Sora Fulak and Belinda Nicholls spoke movingly of their plight and what they were prepared to risk in order to keep their jobs and remain members of their union. Clearly these were ordinary workers being oppressed by an employer. These workers were heard in absolute silence and at its conclusion they were met with prolonged applause. At the meeting's end unions from around the hall promised their support and attendance the next day at the picket.

Immediately after the meeting, Peter Lewis, the Labor Council's journalist, contacted an ABC radio journalist and asked him to come to the Trades Hall Inn to interview the two housekeepers. This happened, with the result that news of the picket and demonstration formed part of the ABC radio news the next morning. Lewis also drafted a classically short media release which he sent out that night to all media outlets. The wire services picked up the story and circulated news of the dispute on their networks.

The picket began promptly at 7.30 a.m. under red union banners and with a full turn out of the striking staff together with a large number of LHMU organisers. A meeting was being held that day for LHMU delegates from the paint industry so these delegates turned up at the picket to lend their support during their lunch break. Numbers were also swelled by the trainees from Organising Works turning up en masse to lend a hand.

Passing motorists were asked to honk their horns in support and this a sizeable proportion of cars and trucks did to the great delight of the picketers. There really is something about a blast from a semi trailer that gladdens the heart of a worker on their very first picket line!

The pamphlet passed out to passers-by was very simple and drew their attention to the attack on the workers' right to join a union. It asked them to ring one or all of the Mirvac hotels listed and express their concern at the treatment being given to the housekeepers.

The police were a heavy presence but took no action to move us on. Some cars faced by the picket chose not to enter.

Michael Costa from the Labor Council turned up at 9 a.m. unannounced and addressed the workers. His message was that organising represented our future and that companies like Mirvac had to be defeated. The media were present in reasonable numbers throughout the morning and ABC radio did a live cross to the picket line to talk to the organisers and workers.

The Employment Advocate rang to say they were very concerned at the situation and would be investigating. The whole union movement waits with bated breath for their rigorous and unbiased assessment of Mirvac's actions.

Given all this activity and a demonstration due to take place at noon, at 10.15, Mirvac sued for peace. Three delegates and two officials from the union negotiated a settlement which provided for all the workers' demands being met. No outsourcing was to take place at any Mirvac hotel without the agreement of the workers. The agreement specifically provided that the settlement was reached as a result of the action of the workers.

In the event, the demonstration to take place at noon was called off. Even so, representatives of the following unions attended - ASU, RTBU, AMWU, MEAA, MEU, IEU, and NSW Nurses.

The 1999 Organising Works group was also there together with their newly made banners, christened for the first time at this action.

The Wash Up

The workers certainly got what they wanted. More importantly, they are now cemented to their union. They have struggled at great personal cost and they will tell their story to any new workers in their workplace for the foreseeable future. More importantly, as one of them said, "The boss will look at us very differently from now on. There'll be no more taking us for granted." And that's really what unions and collectivity are all about - giving workers voice, pride and power.

The union succeeded in preventing a widescale outsourcing of newly unionised workers on individual contracts. In addition, those workers involved have organised to go and visit sites that helped in their dispute and to talk to other hotel workers facing similar threats. Another important benefit has been the spreading of the word back in Sydney's hotels and casinos that a small group of women housekeepers, by getting together, working with their union and getting the support of the movement were able to beat a major multi national.

But above all, the organisers have been educating these workers to see themselves as the union. It was important for them and the whole campaign that they experienced the pressure of struggle and the feeling of victory.

Some other lessons were learnt. The Labor Council played a central role - akin to its role in the late 19th Century when it was established to act as a centre of organising workers. The decision taken by the Council's affiliates to turn its regular meetings into reports on the progress of organising campaigns has been vindicated. The report from the two housekeeping delegates was both fascinating for the Council's delegates but also of value in itself to the campaign. It built support amongst unions and helped in getting the journalists involved.

The usefulness of a professional, well connected journalist at the Labor Council was demonstrated conclusively. The Council's journalist has worked on the Daily Telegraph as well as for the Minister for Industrial Relations. He knows the journalists who will be reporting on disputes like these. He was able to ring the individuals concerned and sell the story to them.

All in all, this was a good win for the workers, their organisers and the union movement as a whole.

This article was prepared with assistance from organisers Troy Burton and Rebecca Reilly


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*    Visit the LHMU

*   View entire issue - print all of the articles!

*   Issue 21 contents

In this issue
Features
*  Interview: The Future Is Now
Steve Klaasen is just 22. He works for a union. He explains why he is not an endangered species.
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*  Unions: Showdown at the Hyde Park Plaza
The ACTU's Organising guru looks at the lessons to be learned from the recent dispute.
*
*  History: A Rich Vein in the Rock
Every mine, like a human being, has its life. Mount Morgan and Queenstown between 1880 and 1930.
*
*  International: Jailed Unionist Freed
Global union voices delight at the release of Indonesian labour activist.
*
*  Review: Ten (More) Steps to Revolution
Cultural theoritician Snag Cleaver puts the schooner glass to the Eighties.
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*  Labour Review: What's New at the Information Centre
Check out the latest issue of Labour Review, a resource for unions on industrial developments
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News
»  Aussies To Go For Gold in Foreign Uniforms?
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»  Howard Warned: Time Ticking On Entitlements
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»  Hotels Charge Triple Time - Now for the Workers
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»  Air Attack - Qantas Telesales Under Fire
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»  The Hills Are Alive - With the Sound of Pay Cuts
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»  National Trust Places Green(back) Bans on Unions
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»  Body Hire Campaign Hots Up
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»  Attack of the Killer Skips Rocks City
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»  A Holiday With a Social Consience
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»  East Timor: Emergency Public Meeting Called
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Columns
»  Guest Report
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»  Sport
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»  Trades Hall
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»  Piers Watch
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Letters to the editor
»  Conference to Heal Rifts in the Labour Movement
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»  Fabians Scour Poll Ashes
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»  Holiday Confusion
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