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Hyatt moves to settle staffing controversy

September 28, 2009
Staffing Industry Analysts North American Daily News

Hyatt Hotels & Resorts moved to settle a staffing controversy that arose from the layoff of 98 housekeepers last month at Boston hotels. The layoffs had drawn criticism from unions and the governor's office. The Boston Globe newspaper reported the housekeepers made $15 an hour and were replaced by new housekeepers that made $8 an hour.

The company said Friday the 98 housekeepers will have the option of taking new full-time jobs through a division of United Service Companies, a provider of maintenance and security services as well as temporary workers. In addition, Manpower Inc.'s (NYSE: MAN) Right Management outplacement division will help any housekeeper who chooses not to go with United Service.

Massachusetts Gov. Deval Patrick had called last week for Hyatt to reinstate the housekeepers and threatened to order state employees to not use Hyatt hotels when traveling.

"Surely there is some way to retain the jobs for your housekeeping staff, as other hotels in the area have done, and to work with them to help the company meet its current challenges, rather than tossing them out unceremoniously to fend for themselves while the people they trained take their jobs at barely livable wages," Patrick wrote in a letter to Hyatt's president and CEO.

The housekeepers going to United Service Companies will keep their previous rate of pay through the end of 2010. Those choosing to use Right Management will keep their rate of pay through March 2010.

Hyatt said the difficult economy prompted it to outsource housekeeping at its Boston hotels to Hospitality Staffing Solutions, an Atlanta-based firm.