How to Protect Your Event From a Labor Strike

Most hotel contracts have a force majeure clause that allows a group to cancel in a wide variety of circumstances. One such circumstance is a labor strike that makes it impossible for the hotel to provide the services and goods it has promised or for the group’s attendees to get to the event.

Many planners assume that such a clause provides adequate protection. In reality, a clause that only mentions a “strike” is far too narrow, because the hotel will argue that the term is limited to formally declared strikes by organized labor, and that anything short of that is not adequate grounds for termination.    

 

In recent years, labor unions have resorted to a number of techniques that each falls short of a formal strike but can significantly disrupt a meeting or force the cancellation of an event. These include things like boycotts, picket lines, work stoppages, work slowdowns, and “sick-outs.” 

Another technique often not covered by the typical hotel contract is when organized labor quietly contacts speakers, exhibitors, or prominent attendees and encourages them to not come to the conference because of alleged unfair labor practices at the facility. If key players refuse to cross a picket line or decide to back out of the meeting as a show of support for a disgruntled union, the event may well need to be canceled, even though there is no formal strike or other action covered by the precise wording of the hotel contract.

An argument can be made that activities specifically aimed at disrupting a meeting should be equitable grounds for cancellation, even if the activity is not covered by the plain wording of the contract. But some hotels are unsympathetic.

The safest course of action is to build into the contract a clause broad enough to cover any and all action by organized labor that threatens to either diminish the level of service provided by the hotel or jeopardize the attendance and the success of the meeting. 

In addition, make the hotel specify in the agreement the date its current union contract expires and the date of its next union contract negotiations, as well as any known or anticipated adverse labor actions. If a major labor contract is up for renegotiation shortly before your meeting—and the hotel has no solid contingency plan to deal with a labor disruption if negotiations break down—then it might be prudent to consider holding the event elsewhere.

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