Plaza Hotel Future Has Union Jobs, Owner Says

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Elad Properties, owner of the Plaza Hotel, has offered to create 658 union jobs when it reopens the landmark hotel late next year. The offer is similar to other proposals it has made, including the preservation of 150 hotel jobs and paying double severance to union members.


Of the 658 jobs, 455 would be in retail, at the shopping complex to be developed at the hotel. Most of the rest of the jobs would be at the 150-room hotel that is planned. There would be 28 jobs at the 200 luxury condominium units that Elad expects to sell, and another 25 jobs stemming from the planned health club.


The New York Hotels Trade Council’s severance package pays a one-week salary for every year a member has been employed, and Elad has offered two weeks’ salary per year of employment. The hotel workers union has repeatedly rejected the offer in favor of keeping the 800 hotel jobs that are to be lost when the hotel is closed for conversion at the end of this month.


“In the beginning they promised us 1,200 jobs. What happened to that number? They make these numbers up as they go along,” union spokesman John Turchiano said. He said the union has sent a letter to Elad Properties requesting a breakdown of the types of jobs the developers were offering.


Elad, which said these jobs and the double severance together would cost $20 million, will employ members of the building services union local 32B-32J and other unions.


“Renovating the Plaza … is the only way to preserve jobs there, for without the immediate infusion of hundreds of millions of dollars the structure will decay beyond repair,” the CEO of Elad, Miki Naftali, said in a statement.


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