UPDATED: Providence’s Omni Hotel Slashes Health Benefits for Workers, According to Union
Thursday, May 21, 2020
Providence's Omni Hotel is reportedly slashing healthcare benefits to workers during the coronavirus crisis.
The union representing the workers at the hotel wrote in an email to members of the Providence City Council, “I have the unfortunate task of informing you that the Omni Providence has decided to drop its employee's health insurance as of May 31."
In the email from Nancy Iadeluca, UniteHere Local 26 who is the Rhode Island Director, said the cut to benefits is a violation of the union's collective bargaining agreement with the Omni.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“Not only is this a clear CBA violation, but in my view, a very poor business decision in the midst of a pandemic. I'm making sure you all know what's happening in your city, and of course letting you know UniteHere Local 26 will respond accordingly. I wanted to reach out and let you know personally before the fur flies,” wrote Iadeluca.
UNITE HERE Local 26 represents workers in the hospitality industries of Massachusetts and Rhode Island and at locations including the Boston Convention Center, Fenway Park, and Logan International Airport.
Omni Hotels issued the following statement to GoLocal:
“COVID-19 has swiftly and significantly impacted the hospitality industry and Omni Hotels & Resorts is no exception. As a result, we temporarily closed Omni Providence Hotel in March to ensure the long-term success of the hotel and our business. As part of our temporary closure and in light of our disagreement over the terms of the CBA, we negotiated in good faith with Unite Here Local 26 and advised the union in March that we would extend the company’s subsidy of employee health benefits for two months beyond the hotel’s closure. We further advised that, after that point, the insurance program would still be available to employees who elected to continue to pay the premiums or, as unions have done in other cities, the union would be able to subsidize the premium for the employees.
In addition to extending health care benefits and paying out available PTO upon request, our charitable foundation has provided over $2 million in grants to Omni associates affected by the COVID-19 crisis and we’ve provided resource assistance from the property and corporate-levels to ensure associates had access to relevant information and support they needed.
Throughout this global crisis, our greatest concern has been the hardship it placed on our Omni family, and we have diligently worked to minimize the impact. COVID-19 has placed heavy burdens on many, and all parties are having to navigate unfortunate circumstances; however, Omni Hotels & Resorts has acted reasonably and admirably in caring for its associates during this challenging time.”
Providence City Councilman Nicholas Narducci issued a statement criticizing the Omni’s decision.
“It has been brought to my attention that the Omni Providence hotel has decided to drop its health insurance for its employees. It is appalling that a major hotel chain would make this decision during the time of a global pandemic and cause further burden to its employees,” said Narducci.
“In addition, it violates their own contract with the UniteHere Local 26 Union. I would urge the Omni Providence to change this course of action, and not cancel their employee's much-needed health insurance,” he added.
The Omni’s media office did not respond to request for comment at the time of publication.
The Omni was the first Providence hotel to announce its closure in early March. The company operates 43 properties.
Recent VIP Controversy
In February, comedian John Cleese famously played a hotel proprietor in the BBC series, Fawlty Towers.
While staying in Providence for his show at The Vets, Cleese had something to say about his accommodations at the Omni Hotel downtown.
"I am staying in the Omni Hotel in Providence, RI. My room is cold. They can do nothing to warm it other hotels provide me with a heater. They can’t do this at it would be a fire hazard! They point out that they have 562 rooms. Perhaps I should have stayed in a small hotel," Tweeted Cleese.
Apparently, Cleese’s social media chastising garnered a reaction from the management at the hotel chain — but not without Cleese calling out his own position of privilege — and the shortcomings of “corporate America.”
"My tweet worked the room is now warmer. Because I have the power to tweet but NOT of course because I am a member of the public. So much for corporate America!" he then Tweeted.
The Omni says in its mission, "We are a luxury brand whose incredible family of associates puts the soul in hospitality every day. The needs of our guests, associates and owners are in the forefront of everything we do. Through authenticity and innovation, we create unique memorable experiences.”
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