Workers at the Fairfield and Aloft Los Angeles Airport hotels, owned by affiliates of Blackstone Group, commenced a strike on 10 July 2023. This action marks their participation in the largest hotel workers’ strike in modern history.
The striking workers, employed by Blackstone Real Estate Partners VIII, are demanding a contract that offers fair wages, benefits and protections that enable them to support their families in Southern California.
Workers at the Westin Bonaventure, the largest hotel in Los Angeles, successfully reached an agreement on 30 June 2023.
Potential for further strikes and ESG risks
Failure by employers to reach a fair contract agreement may result in continued strikes at hotels across Southern California.
The impact of these labour disputes presents environmental, social and governance (ESG) risks to the Blackstone Group and its limited partners.
Investors are urged to encourage the firm to expedite the resolution of these issues in the best interest of their fiduciary responsibilities.
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The Blackstone Group, the largest alternative asset manager worldwide, with $991 billion under management, is at the centre of the ongoing labour dispute.
Co-founder and CEO, Stephen Schwarzman, earned over $1.27bn in total compensation and dividends last year, with significant earnings from the firm’s real estate segment.
Workers demand better pay to support their families
The Sheraton Phoenix, owned by Blackstone Real Estate Partners IX, is also experiencing negotiations for a fair contract, with workers from UNITE HERE Local 11 demanding improved wages to adequately support their families.
Many housekeepers at the Sheraton Phoenix currently earn only $17 per hour.
UNITE HERE Local 11, a labour union representing more than 32,000 hospitality workers in Southern California and Arizona, stands in solidarity with the striking hotel workers, advocating for fair working conditions and compensation across sectors including hotels, restaurants, universities, convention centres and airports.