Chicago Hotel Workers Settle

CHICAGO--(BUSINESS WIRE)--Sept. 3, 2002--The Hotel Employees and Restaurant Employees Union (HERE) Locals 1 and 450's rank and file negotiating committee voted overwhelmingly today to approve a settlement proposal. The historic settlement, which is still subject to ratification by the union's membership, includes major improvements in wages, healthcare and job protection language.
Contract highlights include $3.27 in raises over the four-year agreement for non-tipped workers. This represents a 37% wage increase for union housekeepers. The overall economic package increase is over 54%.
Worker contributions for family medical coverage will decrease from $85 per month to $30 per month over the life of the contract. Employer contributions to the health care fund will increase 94% over the four year contract. In addition, the health care benefits will improve in the first year with an expanded network of hospitals covered at 100%, and will further improve in the second year with an expanded network of covered doctors.
The union also won four paid sick days over the life of the contract. The previous contract had none. Other contract highlights include immigrant rights language and subcontracting and successorship language which will provide a high degree of job security. In addition, the union won improvements in bereavement leave, jury duty pay, and one paid 15 minute break per day.
The settlement proposal is 15% higher in wages and benefits than a final offer proposed by management last Thursday afternoon. That offer was soundly rejected by the negotiating committee Friday, making a strike seem inevitable until Governor Ryan stepped in at the last minute.
The new contract proposal will affect 23 downtown and 4 suburban hotels. A ratification vote will be scheduled for later this week.

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