Turtle Bay union deal bars hotel conversions

Unite Here Local 5, which represents about 8,100 hotel workers in Hawaii, has secured a pioneering contract for Turtle Bay workers which prohibits conversion of hotel rooms into condominium, condotel or timeshare units.

The seven-year contract, which was ratified at the end of May and goes into effect in January, is the first in Hawaii to offer workers protection from job loss due to conversion. Another significant milestone is that the contract will bring Turtle Bay wages and benefits up to par with Wai­kiki rates. Depending on the classification, Turtle Bay workers historically had been paid $3 to $4 less per hour than their Wai­kiki peers.

"Finally, after so many years of fighting, we have a contract that gives us job security and wage parity with Wai­kiki. It’s time to celebrate," said housekeeper Fely Shansey, who is one of more than 300 Turtle Bay workers affected by the new contract.

Drew Stotesbury, chief executive officer of Turtle Bay Resort, said the new contract allows the resort to move forward with plans to build two new hotels and preserve 664 acres as conservation land.

"This collaborative agreement that Turtle Bay Resort has reached with Unite Here Local 5 is great news for the shared future of the North Shore and Hawaii’s hotel industry," Stotesbury said.

Eric Gill, Local 5’s financial secretary-treasurer, said last year’s "conservation easement" agreement settled issues relating to the size and impact of the development and opened the way to resolve questions relating to employment and jobs.

"We now have achieved a reasonable compromise that is good for workers, good for the community and good for the landowner," Gill said. "This is a significant step forward for Hawaii’s people."

Gill said Turtle Bay wages will catch up to Wai­kiki by 2020 or 2021.

"The resort also has agreed to match future Wai­kiki increases," he said.

Gill said the conversion provision also is significant since it will halt some of the spread of an industry trend that over the past decade has been partially responsible for the loss of 8,000 hotel units statewide, including 5,000 units in Wai­kiki.

"Fewer traditional hotel rooms means fewer good jobs," Gill said. "Good jobs here mean money spent here and taxes paid here — a better life here. Each time you convert a hotel room, you take money out of the economy, money that could have paid for one student for one year in the public school system."

Local 5 estimates about 570 union jobs were lost through 2014 as conversions took place at the former Ohana Hobron, the former Ohana Surf Hotel, the former Ohana Ala Wai Tower, the former Ohana Islander, the former Aston Parkside, the former Wai­kiki Terrace, the former Ohana Reef Towers, the former Royal Garden at Wai­kiki, the Aqua Bamboo, the Ala Moana Hotel, the Makaha Resort and the Mira­mar at Wai­kiki.

Gill said the Turtle Bay contract goes beyond last year’s city Bill 16, which if it had advanced would have established permitting and notification requirements for hotel owners that wanted to convert rooms into condominiums or timeshares.

In 2018, when Local 5 renegotiates its Wai­kiki hotel contracts, Gill said the union will seek to include a conversion provision similar to that outlined in Turtle Bay’s contract.