98 Fired Hyatt Housekeepers

By: Patrick Maguire

Book Chapter: Human-to-Human Service

Posted: 01/2/2010

So much for letting sleeping dogs lie. In case you missed it, on Christmas morning Phil Stamm, GM of the Hyatt Regency in Boston, raised the ire of many readers when his op-ed piece appeared in the Boston Globe. I encourage you to read the entire piece and all of the comments that follow it. The majority of the comments are in support of re-hiring the 98 fired housekeepers and denounce Mr. Stamm’s submission to the paper. Some of the housekeepers fired last summer had been with the Hyatt for more than 20 years. Because of the public piece submitted to the Globe, the public debate about replacing the fired housekeepers with out-sourced, contract workers has been reignited.

Here is an excerpt from the Christmas day Boston Globe piece written by Phil Stamm:

“…The number of visitors to Boston plummeted, as did revenue at our hotels. We had to make tough decisions to keep our business afloat and preserve as many jobs as possible. Early steps included management reductions and every cost-cutting tactic we could muster. In August, we made a difficult decision we had hoped to avoid, laying off 98 housekeepers and hiring an outside company to manage this work.”

In response to Mr. Stamm’s piece, I delivered a letter to the concierge at the Hyatt Regency in Boston on 12/26, and was assured that Mr. Stamm would receive it. I invited a response to the questions in my letter before I published this blog post. I also copied and invited responses from the following people:

Hyatt: Thomas Pritzker-Chairman, Penny Pritzker, Mark Hoplamazian-CEO, H. Charles Floyd-COO North America, Susan Smith-General Counsel, John Willis-Global Marketing, Robert W.K.Webb-Chief HR Officer, Farley Kern-VP Corporate Communications, Lori Alexander-Director Field PR, North America, Amy Patti-PR Manager and Katie Rackoff-PR Manager.

Rabbi Barbara Penzer-Temple Hillel B’nai Torah West Roxbury, MA

Cambridge, MA Mayor Denise Simmons

Boston Mayor Tom Menino

MA Govenor Deval Patrick

MA Senator John Kerry

Unite Here, Local 26: Katharine Cristiani, Jeffrey Nelson and Nat Lippert (These are the admins listed on the Facebook group, Bring Back the Hyatt 100!)

The only people I have heard back from so far are Phil Stamm, Cambridge Mayor Denise Simmons and Rabbi Barbara Penzer.

Rabbi Penzer submitted a letter to the Globe in response to Mr. Stamm’s op-ed piece, but asked that I not quote from it directly.

I invite anyone mentioned above who was not able to respond this week to participate in the discussion by adding your comments at the end of this post.

Please click on the following three items to read the full text:

– My letter with 7 questions for Phil Stamm.

–  Mr. Stamm’s response.

– Cambridge Mayor Denise Simmons’ letter to Mark Hoplamazian, Hyatt CEO. 

Here are my questions and Mr. Stamm’s responses:

(My follow-up comments are in parentheses.)

PM(Patrick Maguire): #1-Were you aware that your letter was going to be published in the Globe on Christmas day?

PS(Phil Stamm): My submission to the Boston Globe was made in response to some continuing misinformation about the unprecedented offer we have made to our former housekeepers in Boston. It was drafted and submitted some time ago and indeed we certainly did not intend for it to appear on Christmas.

(I invite a representative of the Boston Globe and Mr. Stamm to clarify the timing of the op-ed piece on Christmas day. Mr. Stamm-When did you submit the piece? To the Globe- Did you seek authorization from Mr. Stamm to run the piece on Christmas day?  Did the Globe purposely hold onto Mr. Stamm’s submission and strategically run it on Christmas day hoping to elicit the public outcry that it has?)

PM: #2- You mention that you “…had to make tough decisions to keep our business afloat and preserve as many jobs as possible,” and that, “Early steps included management reductions and every cost-cutting tactic we could muster.” Please provide as much detail as possible regarding the tough decisions and cost-cutting tactics that you employed so I can better understand your rationale for firing the housekeepers.

The letter from Mr. Stamm does not directly answer this question, so let me clarify my intent.

To Phil Stamm- You brought the firing of the housekeepers out in the open again by re-engaging the public with your submission to the Boston Globe. It’s obvious that your op-ed piece was meant to rationalize your decision about the firings, and attempt to repair Hyatt’s battered public image. Your strategy has backfired. As of this publication, most of the 85 comments on the Globe website support re-hiring the fired housekeepers, and several mention boycotting Hyatt until that happens. You have further alienated yourself and the Hyatt by making ambiguous references about “tough decisions,” “management reductions,” and “every cost-cutting tactic we could muster.” It is very hard to empathize with you without any detail (Again, you brought this public, and your assertions warrant an explanation). You’re implying that the only way you could stay afloat was to outsource the housekeeping jobs. Your response is not convincing.

A. What tough decisions did you make to keep your business afloat and preserve as many jobs as possible?

B. Please detail the management reductions that you referenced.

C. What cost-cutting tactics did you employ before the housekeeper firings?

D. Did you and your managers have your compensation packages reduced as part of your “cost-cutting tactics?” If yes, please explain.

PM: #3- Can you please describe the negotiations or arbitration process (if there was one) that occurred between Hyatt and the 98 housekeepers before you fired them? Please include what your final offer was that they refused before your final decision to terminate them. Did you let the housekeepers know that if they didn’t accept a reduced compensation package that they would be terminated?

PS: No response.

(Does your lack of response mean that you made no attempt to negotiate with the housekeepers before firing them?)

PM: #4- A preliminary evaluation of your costs vs. benefits of firing the housekeepers just doesn’t makes sense, financially or otherwise. In the long run, are you really saving that much money? It appears from both short and long-term perspectives that you would benefit from admitting a mistake, apologizing profusely, and hiring back the housekeepers, immediately. Short-term you are paying the fees to HSS for the new workers, legal counsel, plus benefits to the fired staff, and suffering from boycotts and a PR nightmare. Longer-term you’re looking at a potential huge settlement, as well as continued boycotts and PR fire storms. Sticking to your guns looks like a no-win proposition. Please comment.

PS: No response

(I’d like to hear real stories and projected financials from vacation and business travelers, event planners, travel agents, corporate  and private function planners, and everyone that has any information about Hyatt boycotts on rooms and functions as a result of the housekeeper firings. I’d like to attach some hard numbers to the boycott threats. Please weigh-in on what your personal stance is and what your organization’s position is regarding boycotting Hyatt properties and venues.)

PM: #5- “…Was it clearly communicated and widely known by all Hyatt housekeepers that they were being phased out, and that a ‘transition’ to go with 100% HSS employees was underway, or was the staff just supposed to read the writing on the wall?”

PS: No response

PM: #6- I’m no expert on employment law, but apparently there is a federal law, Worker Adjustment Retraining Act (WARN), that requires employers to give employees a 60-calendar day advance notice of layoffs when the number of employees affected is 100 or greater. Did you purposely pare the number of remaining Hyatt housekeepers down to 98, then fire all of them at once to avoid being subject to the provisions within the WARN Act?

PS: Some of the questions you pose do not properly or easily lend themselves to the format you have presented. Your inquiry regarding WARN for example, applies the wrong number for the coverage analyses and would require a substantive legal discussion of WARN. We did not take any steps to avoid WARN, nor did we mislead our employees.

(I think my questions are very clear. As I mentioned, I’m no expert on employment law. Experts, feel free to weigh in on the discussion.)

PM: #7- How many of the 98 housekeepers who were fired were required to train their replacements? Did your supervisors lie to your housekeepers and tell them that the employees they were training were only being trained to cover for them when they were on vacation?

PS: No response.

(It would be great to see comments from the fired housekeepers, or from family and friends of the housekeepers on this issue to get an accurate account of what went on. Obviously we can’t rely on sensationalized media accounts, so I encourage as many people as possible with first-hand information to comment.)

As I read Phil Stamm’s piece on Christmas morning,  it didn’t sit well with me at all. After reading all of the Globe reader’s responses, and Mr. Stamm’s letter in response to my questions, the whole situation is even more unnerving. I’ve read everything I could on-line and asked for input from as many people as possible. I also witnessed, first-hand, the cheerleading politicians and union leaders at the rally in the summer at the Hyatt Regency. I saw all of the fired housekeepers who were at the summer rally and I just can’t get this issue out of my mind.  Here are some of the issues that resonate with me and make this situation so troubling:

– The wealth of the Pritzker family(Hyatt is majority-owned by the Pritzker family):

The 400 Richest Americans 2009

09.30.09, 06:00 PM EDT

      Total Family Net Worth = 16.9 Billion

– According to Bloomberg.com, in November of 2009, Hyatt Hotles Corp. raised about $950 million by selling 38 million shares of stock at $25 each. On Thursday, 12/24/09, Hyatt stock closed at $29.81/share, making the 38 million shares worth more than 1.3 billion dollars.

– The fact that several of the fired housekeepers were long-time employees. (I would appreciate it if someone could post some statistics clarifying this claim.) Long-term employees are the sign of a well-run business. Think about how you feel when you see familiar servers at your favorite restaurant or local shops. Implementing retention strategies, and valuing long-term employees is critical to successful organizations.

– Outsourced employees are not stakeholders. (It also has to be a difficult environment for them to work in. ) In addition to the horrible impact that this move has had on PR, I can only imagine what it has done to morale within the company.  Randy Goldberg, VP recruiting, Hyatt Hotels & Resorts: “We work hard to create a family-like environment, in which our associates can thrive and feel proud of their accomplishments and company.” Randy, is there anything you’d like to add to this discussion?

– I’m not buying the smoke screen about helping ‘our former colleagues’ transition with healthcare and new jobs. Benefits were extended only after a lot of people made a lot of noise. I hate to see the underdog get screwed. These women and their families didn’t deserve to be blindsided like this.

Paul Michelman authors a very thoughtful piece in the Harvard Business Review Blog on 12/29/09. I encourage you to read his entire entry, as well as all of the comments that it generated. Paul’s post ends with,  “Indeed, it looks like the fired housekeepers are placing a pretty big bet on current sentiments. Yesterday they voted to reject Hyatt’s offer of guaranteed employment at current pay through 2010 with a staffing agency. The housekeepers seem intent on using public and political pressure to get their jobs back or gain other advantages in negotiations with Hyatt. Public opinion in the age of citizen media, blogs, discussion boards, and “email this article” is a force that can be quickly marshaled — sometimes to the great pain of those who run afoul of it.

So what’s the “so what” for companies? Be careful. Tread lightly. Think twice. You are surrounded by the watchful eyes, loud voices, and powerful key-stroking fingers of people who are angry, who are paying attention, and who believe they have the power to change the world. Ignore this climate, or assume you can “control the message,” and, well, you may end up having a fortnight like Hyatt’s.”

A link to this blog will be sent to everyone mentioned in this post inviting their comments.

All official statements from Housekeepers, Hyatt, corporations, organizations, politicians, and anyone else are welcome.

I welcome your thoughtful, factual and civil comments to the discussion. Thank you.

1/4/10 update: Fired Hyatt Housekeeper Fires Back.

1/5/10 update: Please read this piece by Martin Evans.

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8 Responses to “98 Fired Hyatt Housekeepers”

1. Hank says:

   January 2, 2010 at 7:11 PM

   Patrick, thanks for your very thoughtful analysis and advocacy. I’m reminded of a quote by Margaret Mead: “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” I will pray for the 98 housekeepers and their families, and for “those who trespass against us,” as well as for the future job security of all workers!

   Dr. Hank

2. colt cutback says:

   January 3, 2010 at 8:21 AM

   Worked for a Hyatt once. The waste was beyond comprehension! In fact I got fired. I was told to go to every room and remove the cameras in the servi-bars. (they were 11 months expired) so I took nearly 300 cameras to the dumpster. Realizing how foolish this was I kept 3 for myself. There was a locker search and I was guilty. I asked the GM “if it were expired milk would I be in the same boat?” The whole place could care less about their employees and the planet as long as the big dogs get their money.

3. carpe bliss says:

   January 3, 2010 at 1:17 PM

   Outstanding effort/care/concern during such a busy season speaking out on behalf of the loyal, committed, and dedicated Housekeepers at the Hyatt. This is such a sad and selfish story… my heart goes out to each and everyone of the Housekeepers and their families and loved ones. A shame and disgrace on behalf of the Hyatt for the thoughtless timing and justification of this poor decision.

4. Patrick Maguire says:

   January 3, 2010 at 2:14 PM

   colt- Could you please explain what you mean by the expired cameras at the ‘servi-bars.’ Thank you-PM

5. Patrick Maguire says:

   January 4, 2010 at 10:55 AM

   Update-Boston Globe
   Fired Hyatt housekeeper responds
   January 4, 2010

   I GAVE my youth to the Boston Hyatt Regency Hotel. I worked there for 24 years as a housekeeper. When they fired me and almost 100 others on Aug. 31, they gave me a few weeks pay and a trash bag to clear out my locker.

   Phil Stamm, whose op-ed “For Hyatt, a difficult decision in trying times’’ was published on Dec. 25, was my boss at the Hyatt.

   I believe Hyatt lied when they told me the workers I was training would only cover vacations. Those workers took my job. A job that is still there. I want it back.

   I raised my family cleaning rooms for Hyatt. I sent my children to college. Hyatt told me they cared about me. But they treated us all very badly until Governor Patrick came to help us.

   Now Hyatt says our fight to get our jobs back will cost others their jobs. I think Stamm is the one worried about his job. That’s why he’s blaming a union that I’m not even a member of for the mess he made.

   I invite Stamm to come meet with us, as the governor did. We’ll tell him what we told Patrick. It is our decision, and ours alone, to fight for our jobs. We won’t stop fighting until we get them back.

   And I’ll show him where he can put the offer Hyatt has made to buy our silence. I still have that trash bag they gave me.

   Corporina Belis
   Roxbury

   © Copyright 2010 Globe Newspaper Company.

6. Michelle says:

   January 4, 2010 at 12:10 PM

   $ and greed, this is such a sad story. Reminds me of the bailouts companies have gotten lately. Laid many employees off to save $, then in return got huge bonus checks.

   Hell, let’s just send all of our companies overseas. Let’s have nothing say, “Made in America”. Let’s not let anyone have a job, just to let the elite corporate make millions. Wouldn’t that be nice.

7. Hank says:

   January 4, 2010 at 2:12 PM

   Comments under the worker’s letter in the Globe includes a debate on “rights” of workers re: retaining sustainable employment, including the perception of future generations having to live under one paradigm – for financial profit by conglomerates, only. There are other emerging paradigms. My response in Globe Comments:

   This debate in Comments re: (worker) “rights” is void of a concept taught at many prestigious business schools in the Northeast – the idea of economic, familial sustainability at the neighborhood “level.” That is, corporations functioning inside “neighborhoods” are guest-citizens of the neighborhood and need to honor neighborhood core values…as guests.

   Please check out http://www.livingeconomies.org. There is a movement to be “inclusive” and to invite business’, including conglomerate’s, to share in the local economy, including hiring individuals from the neighborhood and paying a sustainable, meaningful livable wage: From the Business Alliance for Local Living Economies (BALLE) “Mission and Vision” tab:

   Living economy businesses strive to:

   Measure success by the triple bottom line of people and planet, as well as profits.
   Source products from businesses with similar values, with a preference for local procurement.
   Provide employees a healthy workplace with meaningful living-wage jobs.
   Offer customers personal service and useful, safe, quality products.
   Work with suppliers to establish a fair exchange.
   Cooperate with other businesses in ways that balance their self-interest with their obligation to the community and future generations.
   Use their business practices to support an inclusive and healthy community, and to protect our natural environment.
   Yield a “living return” to owners and investors

   So, there are other evolving models for future generations of workers.

8. Patrick Maguire says:

   January 5, 2010 at 4:20 PM

   From Hyatt facebook fan page:

   Company Overview:

   “We are a global hospitality company with widely recognized, industry leading brands and a tradition of innovation developed over our more than fifty-year history. Our mission is to provide authentic hospitality by making a difference in the lives of the people we touch every day. We focus on this mission in pursuit of our goal of becoming the most preferred brand in each segment that we serve for our associates, guests and owners. We support our mission and goal by adhering to a set of core values that characterize our culture.”

   “Our associates, whom we also refer to as members of the Hyatt family, consist of over 80,000 individuals working at our corporate and regional offices and our managed, franchised and owned properties in 45 countries around the world.”

   “We make a difference in the lives of those we ‘touch’ everyday — that is our definition of hospitality. We do this in an environment that respects all people and all ideas.”

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