Unite Here Local 5 — the hotel labor union representing workers at The Modern Honolulu — and Diamond Resorts, the property’s owner and operator, have reached a tentative agreement on a new contract, according to a source close to the deal.
The source said the tentative agreement includes a “significant pay raise.” Local 5 declined to comment on the agreement’s status.
A new contract could offer a path forward for the company and the union; however, the deal could still fall apart if it isn’t supported by union membership, who haven’t yet voted on it.
The relationship between the union and Las Vegas-based Diamond Resorts has been somewhat contentious since the company bought the Modern in April 2018 for a reported $225 million. At the time of the sale, The Modern was a full-service hotel, but Diamond Resorts has expressed interest in partially or fully converting the property into a timeshare.
In the spring, the company notified the union that it intended to layoff about 30 percent of the Modern Honolulu workers in the next 30 days. The announcement, which didn’t completely come to pass, and strife over new contract negotiations triggered months of unrest, including union protests and administrative and legal actions.