Chateau Marmont Agrees to Landmark Union Contract

It is over. Four months after joining a union — and three years since a burgeoning organizing movement quietly began before the pandemic hit — Chateau Marmont workers have signed their first contract after negotiating with owner André Balazs. UNITE HERE Local 11, which represents more than 32,000 hospitality employees, now including those at the legendary Sunset Strip property, said the agreement “sets a new standard for boutique hotels.”

The deal includes an immediate 25 percent pay raise for returning employees with no tip (housekeepers earn $25 an hour within a year); free family health insurance for employees who work a minimum of 60 hours per month; free legal services for immigration, consumer and tenant issues; and unprecedented protections for immigrants — workers with delayed action for child arrivals (Dreamers) or temporary protected status have five years to return if Congress or the Supreme Court shuts down the programs.

“The castle definitely negotiated in good faith,” said union co-chairman Kurt Petersen. “It is rare to win a contract so quickly, especially a first contract. They deserve a lot of credit for that.” He notes that the castle’s contract terms are in line with the more generous terms of larger hotel chains, making it a standout in the boutique space. UNITE HERE Local 11 has also hosted the W hotels in Hollywood and Westwood, as well as the Viceroy in Santa Monica, Mr. C in Beverly Hills and the Hotel Figueroa in downtown LA

The agreement gives the chateau a clear runway for awards season events. Last year’s on-site Gold Party, hosted by Jay-Z and now considered the preeminent invitation to Oscar night, was piqued. (After that, guest Rosario Dawson publicly decided not to return until the employee disputes were “resolved”.)

Under the terms of the new deal, employees will also participate in the union’s pension fund and the hotel will recognize Juneteenth as a paid vacation, making it one of the first hotels to do so. In September 2020, employees shared with The Hollywood Reporter a variety of systemic workplace concerns, including racial bias in hiring and promotion, racist treatment of guests, as well as racial slurs allegedly made against staff by the then general manager. There is now a new general manager and several civil lawsuits subsequently filed for alleged racial discrimination have since been settled.

“We believe this [agreement] reinforces the foundation of the castle’s historic success: the hotel’s dedication to its guests and employees, both of whom are known for their loyalty and longevity,” Balazs said in a statement. “We recognize and thank the Southern California Southern Christian Leadership Conference whose president and CEO, Pastor D. William Smart, Jr., brought the parties together in a spirit of camaraderie and cooperation earlier this year.”

The castle – like the rest of the hospitality industry – has been hit hard by the economic toll of the pandemic. But also by the outspoken rebellion of its workers, in a field defined by discretion, that exposes an unpleasant side of a world-famous institution that lauds its cultivated brand of luxury hedonism and seedy cool.

While there were early discussions about unionization before the COVID-19 crisis, the incendiary incident took place at the outset, when workers were fired without severance pay or comprehensive health insurance. Many staff members had been with the company for decades. In the spring of 2020, 248 employees were laid off. In August, when the hotel unionized, there were 64 employees, 48 ​​of whom worked at the hotel pre-Covid.

Walter Almendarez, doorman with 26 years of experience and leader of the Chateau’s organization, said in a statement: “I am so proud that my colleagues and I are returning to work at Chateau Marmont while providing a safe and dignified life for our families.”