Collective Bargaining Agreement

1990 MEMORANDUM OF UNDERSTANDING

   Memorandum of Understanding entered into January 30. 1990 between the Hotel Association of New York City. Inc. (hereinafter referred to as the "Association") in its own behalf and in behalf of its individual members (hereinafter referred to as "Employer" or "Employers") and the New York Hotel and Motel Trades Council, AFL-CIO in its own behalf and in behalf of its affiliate unions (hereinafter referred to as "Trades Council" or "UNION").

   WHEREAS, the Association and the Trades Council are signatories to a Collective Bargaining Agreement (hereinafter referred to as the "Agreement") signed June 26, 1985, which Agreement by its terms, expires June 30. 1990, and
   WHEREAS, the parties desire to modify said Agreement and as modified, extend same,
   NOW. THEREFORE, it is mutually agreed as follows:

1. The Agreement shall be extended up to and including June 30, 1995

2. Wages

  a. Each employee on the Employer's payroll for not less than one(1) year shall on July 1, 1990 receive a lump sum payment of $200.00. Each employee on the Employer's payroll for six(6) months or more but less than one(1) year shall, on July 1, 1990, receive a lump sum payment of at least $100.00 plus a prorated amount equal to $16.67 per month for every month of employment in excess of six(6) months.

  b. Effective August 1, 1990. each employee on the Employer's payroll on that date shall receive a wage increase of 5.5% of the employee's actual rate of pay in effect on that dale.

  c. Effective August 1, 1991, August 1, 1992 and August 1,
1993 respectively each employee on the Employer's payroll on that date shall receive a wage increase over and above the
employee's actual rate of pay in effect on those dates as
follows:

(i) Non-tipped employees o $18.00 per week plus a lump sum payment in the same amounts and under the same conditions as in paragraph (a) above.

(ii) Tipped employees o $12.00 per week plus a lump sum payment in the same amounts and under the same conditions as in paragraph (a) above.

d. Effective August 1. 1994, non-tipped employees - $18.00 per week and tipped employees - $12.00 per week.

e. The parties agree that in accordance with past practice the rate of the aforesaid wage increases shall be applicable to all wage-related items contained in the Agreement, e.g., extra room rate, nightshift differential, banquet rates, etc.

3. Benefit Funds

a.  Insurance and Union Family Medical Fund

The parties acknowledge that the current contribution rates payable by contributing Employers to the Insurance Fund and Union Family Medical Fund (the "Funds") are respectively 3.75% and 2.75% of the Employer's monthly gross payroll. The parties further acknowledge that the Funds' consultant has determined that said contribution rates are insufficient to maintain the present Funds' benefit programs.

  Accordingly, the parties agree as follows:
(i) Effective as of and retroactive to January 1, 1990 the contribution rate payable by contributing Employers to the Insurance Fund shall be increased from 3.75c.o to 4,75%.
   Effective as of January 1, 1991 and effective each January 1st thereafter respectively up through and including January 1, 1994, the contribution rate payable by contributing Employers to the Insurance Fund shall be increased .75% each year so that as of January 1, 1994 the Insurance Fund contribution rate payable by contributing Employers will be 7.75%, an increase of 4.0% over the contribution rate in effect as of December 31, 1959.

(ii) Effective as of and retroactive to January 1, 1990 the contribution rate payable by contributing Employers to the Union Family Medical Fund shall be increased from 2.75% to  3.75%..
   Effective as of January 1, 1991 and effective each January 1st thereafter respectively up through and including January 1, 1994 the contribution rate payable by contributing Employers to the Union Family Medical Fund shall be increased .75% each year so that as of January 1, 1994 the Union Family Medical Fund contribution rate payable by contributing Employers will be 6.75%, an increase of 4.0% over the contribution rate in effect as of December 31, 1989.

(iii) Effective as of January 1. 1990 and continuing until March 31. 1995 the parties agree as more specifically hereinafter provided in subparagraph (b) hereof to temporarily allocate a portion of the contributions payable by contributing Employers to the Pension Fund, from the Pension Fund to the Funds.

(iv) In the event during the term of the Agreement the Funds' consultant determines that additional monies are required to maintain the benefit programs offered by the Funds', the Association and Trades Council agree to establish a joint committee to study and review the Funds' financial condition and to explore all possible funding alternatives in lieu of the payment of additional contributions by the Employers Among other mailers, the study committee shall consider the use of available monies from the parties' other jointly-sponsored Taft-Hartley Funds, the viability of the refinancing of real estate owned by the Funds and a review of the entire industry wide medical program to determine the continued need of satellite FMO locations end the medical benefits offered thereat.
   If, following this review and the application of monies from any source described above, there Is still 8 need for additional monies, i.e., over and above the combined aforesaid additional 8% increase in the Funds contribution rate, it is agreed that the Employers shall contribute, effective as of July 1, 1993, an additional sum of money equal to not more than 2% of their monthly gross payroll to the Funds, which additional contributions shall be allocated between the Funds in such amounts as is determined by the parties hereto. If the aforesaid additional 2% contribution rate increase is not fully required on July 1, 1993 but additional contribution monies are required on or before July 1, 1994, the Employers shall on July 1, 1994 pay an additional contribution rate increase of no more than the difference between 2% and the contribution rate increase previously required and paid on July 1, 1993 such that the total combined Funds' additional contribution rate over the Funds' contribution rates in effect on December 31, 1989 will not be more than 10% during the term of the Agreement.

b. Pension Fund

   The parties acknowledge that the current contribution rate payable by contributing Employers to the Pension is and shall remain 5.50% of the Employer's monthly gross payroll during the term of the Agreement. The parties further acknowledge that the Pension Fund's consultant has determined that said contribution rate is more than sufficient to maintain the Pension Fund's present and agreed upon future benefit programs.

Accordingly, the parties agree as follows:

  (i) Effective as of and retroactive to January 1, 1990 and continuing until July 31, 1990. a portion of the contributions payable by contributing Employers to the Pension Fund in an amount equal to 2.3% of the Employers' monthly gross payroll shall be temporarily allocated to the Insurance and/or Union Family Medical Funds in such amounts as is determined by the parties. During said temporary allocation period the contribution rate payable by contributing Employers will effectively be 3.20% of the Employers' monthly gross payroll.

  (II) Effective as of August 1, 1990 and continuing until March 31, 1995. a portion of the contributions payable by contributing Employers to the Pension Fund in an amount equal to 1% of the Employer's monthly gross payroll shall be temporarily allocated to the Insurance and/or Union Family Medical Fund in such amounts as is determined by the parties. During said temporary allocation period the contribution rate payable by contributing Employers will effectively be 4.50% of the Employers' monthly gross payroll.
 

  (iii) Effective as of April 1, 1995. the above said temporarily allocation will cease and all contributions will be made and reallocated to the Pension Fund at the rate of 5.50% of the Employers' monthly gross payroll.

  (iv) The parties agree that all retirees who retire prior to August 1, 1990 shall receive a monthly pension benefit increase of $10.00 on August 1, 1990 and an additional $10.00 benefit increase each August 1st thereafter up to and including August 1, 1994, for a total of $50.00.
 

  (v) It is further agreed that, the current maximum monthly pension benefit of $300.00 shall be increased for future retirees to not less than $600.00 during the terms of the Agreement as follows:

c. Dental Fund

   The parties acknowledge that the current contribution rate payable by contributing Employers' to the Dental Fund is and shall remain 2.00% of the Employers' monthly gross payroll during the term of the Agreement. The parties further acknowledge that the Dental Fund's consultant has determined that said contribution rate is more than sufficient to maintain the Dental Fund's present benefit program.
Accordingly, the parties agree as follows:

  (i) Effective as of and retroactive to January 1, 1990 and continuing until the earlier of July 31, 1993 or the date upon which the Dental Fund's consultant determines that the Dental Fund's reserve has been depleted to an amount of money equal to one (1) year's worth of contributions ("reserve depletion date") said contributions payable by contributing Employers to the Dental Fund shall be temporarily allocated to the Insurance and/or Union Family Medical Funds in such amounts as is determined by the parties.

  (ii) Elective as of the earlier of July 31. 1993 or the reserve depletion dale, the aforesaid allocation will cease and all contributions will be made and reallocated to the Dental Fund at the rate of 2.00% of the Employers' monthly gross payroll.

4. Extra Rooms/Wage Equalization Lawsuit

a. Effective August 1. 1990:

  (i) Room attendants shall no longer be assigned to make up extra rooms without being compensated for them at the extra room rates specified in the Agreement.
  (ii) The base weekly rates of pay for both bath and night shift room attendants will be equalized to the base weekly rates of pay of day shift room attendants.

b. In consideration of the foregoing, the parties shall immediately enter into a stipulation of settlement, and the Trades Council shall do everything necessary in accordance therewith, withdrawing and terminating the various actions in the United States District Court for the Southern District of New York entitled and referenced as New York Hotel and Motel Trades Council. AFL-CIO. et al. v. Hotel Association of New York City. Inc. et al. 85 Civ. 0216, 0222, 0223, 0225, 0226, 0227, 0228, 0229, 0230, 0231, 1020 and 9925 and all proceedings relating thereto, including any and all charges or complaints filed with the Equal Employment Opportunity Commission, New York State Division of Human Rights and New York City Commission on Human Rights against any Employer who is a member of the Association and who is also bound by the terms of this Memorandum of Understanding and the Agreement as herein modified and extended.
   It is agreed that each of the parties hereto hereby releases the other from any and all liability arising out of or connected in any way to or with any of the issues associated with the aforesaid actions, proceedings or claims of the Trades Council made, instituted or filed in behalf of itself or its members.

5. The parties agree that in the event a signatory to the Agreement assumes control and operation of a hotel not signatory thereto, the Trades Council shall have a period of nine (9) months from the time the Employer has employed not less than 30% of its work force, to be designated as the bargaining representative of said employee work force under the terms and conditions of the "neutrality agreement" set forth in Appendix A attached hereto and made part hereof.

6. The parties shall convene a joint study committee lo review the:

  a. Utilization by signatory Employers of Kosher caterers and its effect on the terms and conditions of the Agreement.
 

  b. Impact, if any, on bell persons and door persons as a result of changes in the "tour party" arrangements.

7. Except as modified herein, all other terms and conditions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have offered their hands and seals the day and year first above written.

HOTEL ASSOCIATION OF NEW YORK CITY, INC.
By: Joseph E. Spinnato, Spinnato

NEW YORK HOTEL AND MOTEL TRADES COUNCIL, AFL-CIO
By: Vito J. Pitta, President

1990 Memorandum of Understanding