Download Labor Peace Agreement Mandate - Minnesota Lodging Association

2017 Issue Brief:
Labor Peace Agreement Mandate
BACKGROUND: There have been proposals during recent sessions of the Minnesota Legislature to require a
“labor peace agreement” for any hospitality project which receives financial assistance from the state or a
local government. Qualifying projects could include hotels, major or minor league sports facilities, convention
centers, civic centers or cultural venues with food and beverage operations, catering or cafeteria facilities. A
labor peace agreement is a binding contract between the owner or developer of a hospitality facility and any
labor organization seeking to represent hospitality workers.
POSITION: Oppose passage of a Labor Peace Agreement mandate.
SUPPORTING STATEMENTS:
•
This proposal is a massive intrusion into free markets which makes Minnesota a much less attractive
place to build, own or franchise a hotel. Developers with other options will find it more attractive and
economical to expand in states that do not have the labor peace agreement provision.
•
The bill appears to apply to hotels of any size that receive even a very small amount of assistance.
A 50-room, limited-service hotel in a suburb where the city helps with a traffic signal shouldn’t be
treated the same way as a very large project with significant assistance.
•
An unlevel playing field is created between communities because the bill could apply differently in
different cities. This isn’t fair to communities that may want and need development.
•
The requirement for binding arbitration is very aggressive and unreasonable. A developer or operator
who is required to negotiate a labor peace agreement prior to commencing construction is essentially
being asked to negotiate against themselves.
The voice of Minesota’s lodging industry
1959 Sloan Place, Suite 120, Saint Paul, MN 55117-2070  (651) 778-2400
industry website www.mnlodging.org  consumer website www.hotelsmn.com