Last week, hundreds of workers employed by PAI Partners-owned concessionaire, Areas USA, walked out on strike at Los Angeles International Airport, following workers’ first strike on November 21. PAI Partners is a private equity investment firm based in Paris, France.
Workers’ decision to strike during the busy holiday season came after Areas has failed to agree to wage increases workers need to afford the soaring cost of housing in the Los Angeles area.
“My coworkers and I are on strike because our futures depend on us fighting for what we deserve,” said Joshawa Nichols, fast food attendant at Areas. “We know that it can affect the companies when we go on strike. We do it for a good reason, but I still hate that it could be negatively impacting other union members’ union pensions.”
The public pension fund, Washington State Investment Board (WSIB), has committed $165 million to PAI Europe VII, which is an owner of airport concessionaire Areas. Areas is one of the many employers that LA-area workers have struck in the last six months that is tied to private equity firms with investments from public pension funds.
Workers went to Olympia to testify about the ongoing strikes and the potential fiduciary risks they pose for the boards’ beneficiaries.
Many pension funds have been grappling with how to address the potential Environmental, Social, and Governance (ESG) risks that drawn-out labor disputes at their investment properties can pose for investment returns, and are looking for tools to avoid and address such disputes. UNITE HERE Local 11 members have testified at numerous pension fund board meetings over the past eight months. On November 13, California Public Employees’ Retirement System (CalPERS) was the first fund to pass a comprehensive Labor Principles policy.
Last week’s Areas walkout is their second strike this year. Hospitality workers across Southern California began striking on the July 4th weekend and called for a boycott of hotels across the Los Angeles area.
Areas USA employs more than 400 workers as cashiers, fast food attendants, cooks, baristas, servers, and bartenders at LAX at well-known establishments such as California Pizza Kitchen, B Grill by Boa Steakhouse, Coffee Bean & Tea Leaf, Dunkin' Donuts, and Ashland Hill.
UNITE HERE Local 11 is a labor union representing more than 32,000 hospitality workers in Southern California and Arizona that work in hotels, restaurants, universities, convention centers and airports.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231213855370/en/
Contacts
Rachele Smith | rsmith@unitehere11.org | 623-670-9889
