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The American Hotel Association earlier this year distinguished J.W. “Bill” Marriott with its Heritage Award at a gala in Washington, DC. Among those sharing thoughts were family members and long time employees who remembered working with the affable CEO during the company’s infancy. Later in the program, tributes were shared by a host of political leaders including two presidents. Indeed, the night’s rostrum was emblematic of the evolving stature of the lodging industry. At its core, we remain a people business reliant on individual human interactions.

Lodging has become a massive industry that employs 1.4 million Americans, equal to the number who serve in our nation's military. Lodging is among the top three employers in 30 states, and it generates $125 billion in revenues annually. With that comes many challenges, including significant pressure on labor.

Experts believe that we will need 300,000 new workers per year to fuel our hotels in the next decade when the baby boom generation will slip into retirement and Gen X and Gen Y become the dominant force of new team members.



Because of this, many agree that we may well be on the cusp of a shortage of labor that will affect the way that we do business in the future. In the days following the tribute to Mr. Marriott, hoteliers from around the country stormed Capitol Hill, spreading the word that we have a stake in the national dialogue on many issues, including legislation that may further impact the future of labor for our industry.

The following are some thoughts on two critical issues.

Immigration

Ours has always been an industry that creates opportunity for new Americans. Many of the 12 million people who are at the center of our national debate on immigration reform work in our industry. In fact, this influx of new entrants into the U.S. workforce has helped to bridge the gap in the short term. A massive deportation of immigrants would certainly have a devastating affect on our business. We all might agree that something needs to be done to secure our borders, but it is in our collective best interest to support an approach that will allow current residents to earn citizenship.

We must dispel the notion that we are just looking for cheap labor. Competitive pressure in most of our markets has already pushed pay rates beyond the minimum wage and has created a positive wage environment for our employees. In this case, most of us in the industry find ourselves at odds with some in the current administration.

Card Check Neutrality

A bill has already passed the House that would eliminate the secret ballot for the unionization of hotels. This would create a potential incentive for unions to pressure our team members, and it would eliminate a right that has been at the basis of our society since its founding, the right to a secret ballot. On this issue, we stand with our team members in assuring a fair system of choice. While Senate passage seems questionable, and the President has promised a veto, this issue will not disappear. Some presidential candidates have already expressed support for the measure in the hopes of courting union support.

These are just two examples of a larger set of issues about which we need to speak out as an industry. We can expect challenges in dealing with the changing demographics of our labor force as heirs to our industry bring a new set of values to the employment landscape. This will be compounded by shifts in political policy.

In conclusion, however, we each have a responsibility to show that leadership is assuring a future for our industry as bright as its past.

About the Author

Robert Habeeb is the president and COO of First Hospitality Group Inc., a Chicago-based owner, developer, and manager of hotels. He may be contacted at rhabeeb@fhginc.com or 847-299-9040.
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