Collective Bargaining Agreement

1995 MEMORANDUM OF UNDERSTANDING

   Memorandum of Understanding entered into so as to be effective July 1. 1995 between the Hotel Association of New York City. Inc. in its own behalf and in behalf of the HANYC Bargaining Group Hotels (hereinafter collectively referred to as the "Employer") 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 employer and the Trades Council are signatories to a Collective Bargaining Agreement signed June 26, 1985, as amended by a Memorandum of Understanding signed January 30. 1990 (hereinafter collectively referred to as the '1990 Agreement'), which 1990 Agreement by its terms, expired on June 30. 1995, and was extended by the parties to midnight July 4, 1995, and
   WHEREAS, the Employer and the Trades Council desire to modify and extend the 1990 Agreement as now restated In this Memorandum of Understanding, signed July 3, 1995 (hereinafter referred to as "1995 Agreement" or "this Agreement"),
   NOW THEREFORE, it is mutually agreed as follows:

1. Duration
    Except as expressly provided for herein, the 1990     Agreement is renewed end extended until midnight June 30, 2001.

2. Wages.

(a) Effective July 1, 1995, each employee on the Employer's payroll on that date shall receive a wage increase of 4.0% of the employee's actual rate of pay in effect on that date.
(b) Effective July 1, 1996, July 1, 1997. July 1, 1998. July 1, 1999. and July 1, 2000, each full time 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-tip employees - $18.00 per week.
(ii) Tip employees - $9.00 per week.
(c) Part-time non-tip and part-time tip employees on the Employer's payroll on the dates set forth in paragraph 2(a) and (b) above shall receive the wage increase set forth above and with regard to the wage increase specified in 2(b) (i) and (ii), shall receive such wage increases on a pro-rata basis.
(d) The Employer and the Union 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 1995 Agreement, .e.g., extra room rates, nightshift differential rates, banquet rates, etc.
(e) The minimum weekly rates set forth in Schedule A of the 1990 Agreement shall be increased by the wage increases provided for in paragraphs 2(a) and 2(b) above.

3. Benefit Funds

(a) Insurance Fund. The Employer and the Union acknowledge that the current contribution rate payable by the Employer to the Insurance Fund is 7.75% of the Employer's monthly gross payroll. The Employer and the Union further acknowledge that the Insurance Fund's consultant has determined that said contribution rate is sufficient to maintain the present benefit programs, and provide for the improvements set forth in paragraph 3(a) (ii)-(v).
Accordingly, the Employer and the Union agree as follows:
(i) The aforesaid contribution rate payable by the Employer will remain the same during the term of the 1995 Agreement
(ii) A prescription drug program will be established and implemented by the Trustees of the Insurance Fund, provided that no increase in the Employer's contribution rate to the Insurance Fund is required over the term of the 1995 Agreement
(iii) Life insurance benefits will be increased to $10,000 as follows: to $5,000 July 1. 1995; to $7,500 July 1. 1998 and to $10,000 July 1, 2000, provided that no increase in the Employer's contribution rate to the Insurance Fund is required over the term of the 1995 Agreement.
(iv) Statutory disability benefits will be increased to $300 per week, during the term of the Agreement at such time as recommended by the Fund's consultant, provided that no increase in the Employer's contribution rate to the Insurance Fund is required over the term of the 1995 Agreement.
(v) Domestic partners of eligible fund participants will be treated as qualified dependents and eligible for Insurance Fund benefits, provided that no increase in the Employer's contribution rate to the Insurance Fund is required over the term of the 1995 Agreement. The Trustees of the Insurance
Fund shall adopt and promulgate such rules as may be required to effectuate the foregoing.

(b) Union Family Medical Fund. The Employer and the Union acknowledge that the current contribution rate payable by the Employer to the Union Family Medical Fund is 6.75%of the Employer's monthly gross payroll. The Employer and the Union further acknowledge that the Union Family Medical Fund's consultant has determined that said contribution rate is sufficient to maintain the present benefit programs, and provide for the improvements set forth in paragraph 3 (b) (ii) and (iii).
Accordingly, the Employer and the Union agree as follows:
(i) The aforesaid contribution rate will remain the same during the term of the 1995 Agreement.
(ii) Improvements in out-of-area medical benefits will be
established and implemented by the Trustees of the Union Family Medical Fund, provided that no increase in the Employer's contribution rate to the Union Family Medical Fund is required over the term of the 1995 Agreement.
(iii) Domestic partners of eligible fund participants will be treated as qualified dependents and eligible for medical benefits, provided that no increase in the Employer's contribution rate to the Union Family Medical Center is required over the term of the 1995 Agreement. The Trustees of the Union Family Medical Fund shall adopt and promulgate such rules as may be necessary to effectuate the foregoing.

(c) Pension Fund
The Employer and the Union acknowledge that the current contribution rate payable by the Employer to the Pension Fund is 5.5% of the Employer's monthly gross payroll. The Employer and the Union further acknowledge that the Pension Fund's consultant has determined that said contribution rate is sufficient to maintain the Pension Fund's present benefit program and to provide for the improvements set forth in paragraph 3 (c) (ii)-(iii) hereof.
Accordingly, the Employer and the Union agree as follows:
(i) The aforesaid Contribution rate will remain the same during the term of the 1995 Agreement.
(ii) Effective July 1. 1995. employees who retire shall be
eligible to receive a maximum pension benefit provided
that they retire after the completion of twenty-five (25)
years of service and further provided they have also
reached 55 years of age. The parties agree that no
increase in the Employer's contribution rate is required to the Pension Fund over the term of the 1995 Agreement.
(iii) The current Maximum monthly pension benefit shall be increased to $750.00 for future retirees (i.e., retiring on or after July 1. 1995) provided that no increase in the Employer's contribution rate is required to the Pension Fund over the term of the 1995 Agreement.

(d) Dental Fund
The Employer and the Union acknowledge that the current ... contribution rate payable by the Employer to the Dental Fund is 2.00% of the Employer's monthly gross payroll. The Employer end the Union further acknowledge that the Dental Fund's consultant has determined that said contribution rate is sufficient to maintain the Dental Fund's present Benefit program, and to provide for the improvements set forth in paragraph 3 (d) (ii) through (iii).
   Accordingly, the Employer and the Union agree as follows:
(i) The aforesaid Contribution rate will remain the same during the term of the 1995 Agreement
(ii) Improvements in out-of-area dental benefits will be
established and implemented by the Trustees of the Dental Fund provided that no increase in the Employer's contribution rate to the Dental Fund is required over the term of the 1995
Agreement.
(iii) Domestic partners of eligible fund participants will be treated as qualified dependents and eligible for dental benefits, provided no increase in the Employer's contribution rate to the Dental. Fund is required over the term of the 1995 Agreement. The Trustees of the Dental Fund shall adopt and promulgate such rules as may be necessary to effectuate the foregoing.

4. Joint Study Committees

Section 56 of the 1990 Agreement will be amended to provide for the formation of additional Joint Study Committees which will review and decide within one hundred and eighty (180) days after the effective date of the 1995 Agreement the issues of:
(a) Determination of a minimum gratuity payable to tipped category employees for work performed in connection with independent kosher catered functions held on the Employer's premises;
(b) Front Service Employee gratuity rates and all issues impacting thereon;
(c) Modification of the banquet roll-call job referral system, creation of "C" Lists by banquet hotels and review of current practice of pre-plating.
(d) Establishment of a credit union;
(e) Technological changes and productivity, and
(f) In addition to the above study committees, within forty-eight (48) hours after ratification of this Agreement, the parties agree pursuant to Section 56(G) and (H) of the 1990 Agreement to jointly convene the Study Committees, Productivity and Operating Distinctions Between Hotels in order to study and review the Employer's request to modify the job classifications and/or job categories set forth in Schedule A and to review the Employer's need, if any, for additional flexibility in the combination of jobs, otherwise limited by Section 22(B) of the 1990 Agreement. The Employer and the Union agree that no employee shall be laid of or discharged or suffer a loss of wages and/or benefits as a result of any resolution of these foregoing issues by the Study Committee. The Study Committee shall make every effort to resolve the issues set forth in paragraph (f) by September 30, 1995. At the request of the Association, the Union agrees that it will expeditiously meet with representatives of the Association and representative of individual HANYC Bargaining Group Hotels Of groups of such HANYC ' Bargaining Group Hotels sharing common operational needs or issues of concern in order to study, review and resolve to the mutual satisfaction of the HANYC Bargaining Group Hotels and the Union any such productivity or operational issues.
   In the event that any of the foregoing study committees are unable to reach agreement within one hundred and eighty (ISO) days after the effective date of the 1995 Agreement, upon mutual agreement, discussion between the Employer and the Union shall continue until a resolution is reached, i.e., none of the foregoing Study Committee's, issues set forth in paragraphs (a)-(f) above, shall be referred to arbitration before the Impartial Chairman unless both the Employer end the Union mutually consent thereto, notwithstanding any of the provisions of the 1990 Agreement seemingly to the contrary.

5. Gratuities -From Service Department
(a) Effective July 1, 1995, Section 50 (A) of the 1990 Agreement shall be o amended to provide that in the case of all tour parties, adult as well as youth, bell persons shall receive an additional twelve and one-half cents (12.5 cents) per bag checking in and twelve and one-half cents (12.5 cents) per bag checking out to bring the total gratuity payable in and out per bag to one dollar and thirty seven and one-half cents ($1.375) per bag in and out.
(b) Effective July 1. 1995, Section 50(c)(1) of the 1990 Agreement shall be amended such that when a tour group having reservations at a hotel or motel arrives and/or departs from a hotel or motel in motorized buses, door persons will be paid a gratuity equal to sixty-seven and one-half cents (67.5 cents) for arrival and sixty-seven and one-half cents (67.5 cents) for departure per person.

6. Gratuities - Banquet Department

(a) Effective July 1, 1995. except as otherwise provided herein, the Union and the Employer agree that with respect to banquet functions a minimum gratuity equal to fifteen percent (15%) shall be paid to tip category employees {banquet waiters/waitresses and captains) working said functions, pursuant to established practice in each hotel. . If, however, any Employer signatory hereto is currently paying its employees banquet gratuity amounts which would require that Employer to increase its current gratuity rate by more than one percent (1%) during the first year of this Agreement, the employer shall increase the gratuity required hereunder in two (2) equal increases in each of the first two years of this Agreement.

(b) The foregoing notwithstanding, the Union and Employer agree that, in the case of hotels (other than the traditional large banquet hotels, such as the New York Hilton, Waldorf Astoria, Sheraton New York, Plaza. Pierre. St. Regis and the like), which other hotels for purposes of this provision will be called "small banquet hotels." a minimum gratuity equal to fourteen percent (14%) shall be paid to tip category employees (banquet waiter/waitresses and captains) working said functions, pursuant to established practice in each hotel. The Union and Employer also agree however, that if at any time during the term of this Agreement any such small banquet hotel increases its July 1, 1995 gratuity or service charge to its banquet customers, the aforesaid minimum gratuity payable hereunder to tip category employees (banquet/waiters/waitresses and captains) working said functions shall be increased from fourteen percent (14%) to fifteen (15%) percent, pursuant to established practice in each such hotel,

(c) The Employer and Union agree that where an Employer does not utilize the services of a captain, all of the gratuity amounts payable hereunder shall be paid to the banquet waiters and waitresses.

7. Notice of Layoffs and Recall and Change of Schedule.

(a) Effective July 1, 1995, the Union and Employer agree that the previsions of the 1990 Agreement with respect to the required prior notification of a change of an employee's schedule or of e layoff and recall, or a layoff effectuated after a recall, shall be amended as follows:
(i) The Employer shall give to the affected employee at least five (5) calendar days prior written notice of a change of an employee's work schedule.
(ii) The Employer shall give to the Union at least five (5) calendar days prior written notice of the layoff of an employee.
(iii) In the case of an employee who is recalled to work from a layoff by an Employer, the Employer shall, if it intends to again layoff the affected employees, give the Union at least three (3) calendar days prior written notice of said second layoff.

  The Union and Employer further agree that the Employer may not layoff, recall and then again layoff an employee more than three (3) times in any one calendar month and further, the Employer shall, during any such recall, pay premium pay to the affected employee in accordance with the provisions of Section 8 of the 1990 Agreement, as modified by this Agreement. It is agreed that the notice of change of schedule set forth in subparagraph (i) above shall not apply to recalls covered by this subparagraph (iii).

8. The Union and the Employer agree, notwithstanding the provisions of Section 29 (E) (1) of the Agreement, that if a Hotel (i) requires an employee to work on a holiday, or (ii) if a holiday falls on an employee's regular day off or (iii) if a holiday falls during an employee's vacation, an employee may voluntarily take a day off, with pay, In lieu of receiving holiday pay which day off with pay shall be scheduled within thirty (30) days before or after the holiday, provided prior written notice together with written consent by the employee is given to the Union, which consent will not be unreasonably withheld or delayed.
   In the event a dispute arises between the Union and an Employer under the provision of this paragraph, the parties agree to proceed to expedited arbitration before the Office of the Impartial Chairman. In no event, however, shall such expedited arbitration cause a delay in the foregoing.

9. The Union and the Employer agree to delete Section 53 (C) of the 1990 Agreement and replace it with the following:
(C) It is agreed that the introduction of new technology or equipment or certain modifications which may broaden job skills, duties or responsibilities does not automatically require additional compensation or an adjustment in the wage rate of the affected employees.
10. The Employer and the Union agree to delete the last sentence of Section 53 (D) of the 199D Agreement and replace it with the following:
(D) In no event shall submission to the Impartial Chairman's office delay implementation of the Employer's modification(s). 

11. Industry Training Program ("lTP") and Legal Fund 
The Employer and the Union agree that the contribution rate of $1.50 per month per employee required to be paid by the Employer to the ITP under the 1990 Agreement was not and is not now sufficient to defray the cost of the ITP's current programs.
   The Employer and Union agree that the current contribution rate payable by the Employer to the Legal Fund will remain the same during the term of the 1995
Agreement. The parties further acknowledge that the Legal Fund's consultant has determined that said contribution rate is sufficient to meet the Legal Fund's present benefit program and future benefit improvements.
   Accordingly, the parties agree as follows:
(i) Effective with contributions due on and alter July 1. 1995, contributions payable by the Employer to the Legal Fund shall be temporarily suspended and paid to the ITP in order to extinguish the ITP's deficit and to provide for a sufficient reserve therein as may be agreed upon by the Trustees.
(ii) Notwithstanding the foregoing, the Employer's temporary payment to ITP of contributions otherwise due and payable to the Legal Fund shall cease when the Legal Fund's consultant determines that the Legal Fund's reserve has reached two (2) years worth of operating expenses.
(iii) The Employer and the Union acknowledge that pursuant to a decision of the Impartial Chairman (Decision No. 95-83) under Section 13(B)(1) of the 1990 Agreement, the Employer is and was required to increase its contribution rate to ITP from $1.50 to $4.50 per month per employee.
   The foregoing notwithstanding, and unless otherwise agreed to by the Union and the Employer, the Employer and the Union agree that effective July 1, 1995 and for the duration of the temporary suspension of the Employer's contribution to the Legal Fund as provided in subparagraph (i) above, the contribution rate payable by the Employer to ITP shall be $1.50 per month per employee.
(iv) The parties agree to jointly study the ITP in order to meet the Employer's concerns that the program(s) be revised to (a) more accurately meet the employment needs of hotels, (b) provide training in skills that employees will need in order to fulfill hotel employment requirements and (c) that the ITP's administrative offices, programs and facilities be combined with the Joint Employment Office in order to effectuate savings, if possible, and to more closely align the purposes
of ITP's benefit programs with the purpose of the Joint Employment Office to better service Employers and their employees and to effectuate the Union's request that graduates of the Industry Training Program be granted preferential hiring and promotion opportunities on an industry-wide basis.

12. Overtime Pay
The Union and the Employer agree that Section 11 (G) of the 1990 Agreement shall be amended to provide that overtime pay shall be paid for all work performed on the sixth (6lh) and seventh (7th) consecutive days of work unless such overtime work is occasioned by an Employer's business needs and further provided prior written notice of same is given and written consent is obtained from the Union which consent will not be unreasonably withheld or delayed, unless emergency circumstances prevent the Employer from giving such notice to and obtaining consent from the Union.
   In the event a dispute arises between the Union and an Employer under the provision of this paragraph, the parties agree to proceed to expedited arbitration before the Office of the Impartial Chairman. In no event, however, shall such expedited arbitration proceeding delay or prevent the performance of the work by the affected employee(s).

13. Part-Time and Casual Employees
The Union and Employer agree that Section 8 (A) of the 1990 Agreement shall be amended to provide that where an Employer, for business reasons, (e.g., "business reasons" include, but is not limited to, the elimination of a meal in an a la carte restaurant or the temporary closing of an a la carte restaurant, club or beverage outlet (or a special banquet function), requires the temporary reduction in the work week of employees in any of its departments, it shall first give at least five (5) calendar days written notice to and obtain the Union's written consent to such work week reduction, unless emergency circumstances prevent the Employer from giving such notice to and obtaining consent from the Union. The consent of the Union will not be unreasonably withheld or delayed.
   In the event a dispute arises between the Union and Employer under the provisions of this paragraph, the parties agree to proceed to expedited arbitration before the Office of Impartial Chairman. In no event, however, shall such expedited arbitrations proceeding delay or prevent the performance of the work by the affected employee(s).

14. New Section 45 (C)
The parties agree to amend Section 45 of the 1990 Agreement by providing for a new paragraph (C), which shall read as follows:
"With regard to any contract, lease or agreement entered into on or after July 1, 1995 between an employer and a Concessionaire, the Employer and Concessionaire will be considered a joint employer for the purposes of this Agreement. The Employer shall at all times hold end exercise full control of the terms and conditions of employment of employees of the joint employer for labor relations purposes with regard to the schedule of hours, wages and economic benefits provided in this Agreement including holidays, vacations, premiums, overtime, health and welfare, dental, pension, legal and training and/or any other economic benefits required by this Agreement. The Employer's liability shall be limited as provided for in Section 46 of this Agreement. Employees of the joint employer shall be members of the bargaining unit as set forth in Section 2 of this Agreement".

15. Temporary Closing of a Hotel/Concession for Renovations
In the event at any time during the term of this Agreement an Employer signatory hereto temporarily ceases its business operations in order to undertake a major renovation project which is not completed during the term of this Agreement, the Employer and Union agree that in such case, the term of this Agreement shall be automatically extended up to and through the actual completion date of the major renovation project and for an additional one hundred and eighty (180) days thereafter. . For example, if this Agreement by its terms expires on June 30, 2001 end the Employer's major renovation project will not be completed until September 30, 2001, the term of this Agreement will be automatically extended up to and through March 31, 2002. i.e. one hundred and eighty (180) days past the September 30, 2001 completion date of the major renovation project.
   The Union and Employer agree that for the purposes of work practices, upon actual completion of the Employer's major renovation project the Employer shall be treated as a new Hotel, Motel or concession and none of the Employer's prior work practices or industry-wide work practices will be deemed to be applicable to the Employer's operations.

16. Ratification of Terms
The Association and the Union agree the aforesaid terms of this Memorandum of Understanding shall be subject lo ratification by the Union's members and its Executive Board.

17. Pending Legal Proceedings
The Employer and the Union agree that each of them shall withdraw with prejudice as to the other any legal proceedings and NLRB proceedings instituted by each of them as against the other, or as against any of their respective affiliates and members, arising out of. or related to, the negotiations for the renewal of the 1990 Agreement.
   IN WITNESS WHEREOF, the Employer and the Union have offered their hands and seals the day and year first above written.
The Hotel Association of New York City, Inc.
By:
Joseph E. Spinnato, President

The New York Hotel & Motel Trades Council AFL-CIO

By:
Vito J. Pitta. President

1995 Memorandum of Understanding

Side Letter

   The parties agree that for the purpose of calculating contributions to the Insurance Fund, Pension Fund, Union Family Medical Fund and Dental Fund, as same is defined in paragraph 14 of the Schedules B and C to the Insurance Fund and Pension Fund and as same is defined in paragraph 12 of Schedules D and E to the Union Family Medical Fund and Dental Fund, contributions are not required for wages in excess of the amount of earnings at which an Employer's FICA contributions are no longer required.

Dated: July 5, 1995

Side Letter 

   Notwithstanding any provisions of the July 5, 1995 Memorandum of Understanding seemingly to the contrary, the Hotel Association and the Hotel Trades Council agree that upon a finding by the Impartial Chairman that an Employer has a pattern of intentional and/or bad faith violation of the provisions of the 1995 Agreement with respect to the hiring of new employees by and amongst other things discriminating against members of the Union, whether they are actively employed or on lay off status, who are otherwise satisfactory to the employer, the Impartial Chairman may, in addition to ordering the termination of the employee unlawfully hired by the Employer and the hiring of the employee discriminated against by the Employer, grant such other remedy or relief as the Impartial Chairman deems appropriate, including but not limited to the assessment of one (1) week's pay for every day the Employer is found to be in violation of the Agreement up to a maximum of five (5) week's pay.
   In the event it is found that the Union knew of the Employer's violation of the 1995 Agreement and intentionally failed or delayed in acting on same, the Impartial Chairman shall also assess against the Union, a like penalty.
   All monies assessed for a violation of this Agreement shall be paid to the Employee Benefits Fund for distribution in proportionate amounts to the various funds.
   The parties agree, notwithstanding the provisions of this side letter agreement seemingly to the contrary, that the Hotel Trades Council may. in its sole discretion, upon good cause shown by the Hotel Association, agree in writing, to waive, in full or in part, the provisions of this side letter agreement and the provisions of sections 6(C) and (D) of the 1995 Agreement with respect to the wages and benefits of new employees including contributions made to the industry wide funds in behalf of such new employees having prior work experience in the hole! industry.
   The terms and conditions of this letter shall be effective on or after July 10, 1995.

Side Letter

   The parties agree that paragraph 3 of this Memorandum of Understanding shall not limit the applicability of Section 13(B)(1) to the benefits provided and in effect as of June 30, 1995 by the Insurance, Special Insurance, Medical, Denial. Pension, Legal Fund and Scholarship and Industry Training Funds.

Dated July 5. 1995

1995 Memorandum of Understanding