Union urges Small Enterprise Administration to take an in depth take a look at resort chain’s post-PPP layoffs

Omni resort associates obtained a whopping $76 million throughout 32 PPP loans, in accordance with UNITE HERE. However within the circumstances for which the union has “direct information,” 5 lodges obtained practically $15 million in loans. Regardless of that, “Three of them—Omni Windfall, Omni San Francisco and Omni William Penn—are briefly closed, and none of our members have been rehired or paid by the resort. The Omni New Haven and Omni Parker Home solely lately reopened with out all of their services, and the lodges have didn’t recall greater than 80% of our members who work on the lodges.”

This isn’t what the PPP was imagined to do, and it’s straight dangerous to the employees. “The failure of those lodges to rehire their staff has financially harmed our members and created nice uncertainty for them and their households. Thus far, we now have not obtained commitments from Omni to make use of the loans to completely rehire the employees we symbolize.”

The union additionally despatched letters to the managers of the lodges in query, noting that they seem to not be in compliance with the PPP’s phrases and calling on them to rehire employees, together with letters to the banks answerable for a lot of the loans, calling on them to take a really shut take a look at whether or not the lodges qualify for forgiveness.

“It is time for the SBA to step up and be certain that cash supposed to assist American employees really advantages them,” said UNITE HERE Executive Vice President Carlos Aramayo. “It’s unfathomable that large companies like Omni have entry to thousands and thousands of tax-payer backed loans, whereas lots of of their employees stay with out a paycheck heading into the vacations.”

Rep. Katie Porter previously called for an investigation into resort layoffs in and round her California congressional district after these lodges obtained PPP loans.

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