Diamond Resorts, hotel union head to bargaining next month

Unite Here Local 5 — the hotel labor union representing workers at The Modern Honolulu — and Diamond Resorts, the property’s owner and operator, are slated to resume bargaining Aug. 28, according to a union official.

Among the issues to discuss are the impending layoff of 28 banquet workers effective Aug. 15. Local 5 spokeswoman Paolo Rodelas said Thursday the company announced the layoffs Tuesday, the same day workers at three Hawaii hotels owned and operated by Diamond Resorts filed a class-action lawsuit alleging wage theft.

The suit filed by Honolulu attorney James Bickerton covers roughly 325 past and current employees of The Modern Honolulu, Kaanapali Beach Club on Maui and The Point at Poipu, Kauai. According to the suit, on multiple occasions on and after April 15, 2018, Diamond Resorts “failed to timely pay plaintiffs and members of the putative class all of their earned wages, including earned overtime wages.”

The suit, which was filed in 1st Circuit Court, seeks wage reimbursement along with double damages and interest.

Las-Vegas based Diamond Resorts said Wednesday, “We experienced an unfortunate payment processing error and have already reimbursed every impacted team member in full.”

Diamond Resorts said the layoffs were not in response to the lawsuit, as the decision to proceed with layoffs was made before the lawsuit was filed.