Item Number:    _7b_Exhibit A 
Date of Meeting: September 11, 2014 
Employment in Airport Dining and Retail 
An Overview 
Staff Briefing 
September 2014

Body of Knowledge Overview 
Job Quality: 
2013 Employer Survey (part I) 
2014 Employer Survey (part II) 
2014 Employer Interviews 

Employment Continuity: 
Employment Growth 
2011 Stakeholder Involvement 
Practices at Other U.S. Airports

Airport Dining and Retail Employees 
Estimated total employees: 1,640 
Hiring spikes in summer 
58% of employees represented 
83% employed full-time 
Average tenure is 5.97 years 
Average annual turnover 10-20% 
Average 40% non-native English speakers

Employee Workplace 
Employment by Operation 
Majority of                        Coffee
3% 
employees work in       5% 
14%        Full-Service Dining
food service 
Quick Serve
25% 
Most have direct              26%     Retail/Duty Free
interactions with
customers              27%          Passenger Services
Support


4

Employee Responsibilities 
Vast majority of employees have secure access only 
Background check, TSA threat assessment 
No security training required 
TSA allows only 25% of employees per location to access
restricted areas 
Storage units 
Garbage, recycle, etc. 
Approximately 83 with airfield (AOA) access 
Deliveries to satellites, etc. 
5

Job Quality

Employee Wages & Tips 
Nearly all non-managerial employees make less than $15
in hourly wages 
Weighted average wage $11.16 per hour 
Many employees receive tips, sales commissions and/or
bonuses 
Tips/commissions range between $2 and $40 per hour 
Significant tip income for servers and bartenders

Employee Tenure 
Restaurant Tenure Rates (Non-Airport) 
Average airport tenure is      Type of Position         Average
significantly longer than off-                     Tenure 
airport counterparts:         Chefs/Head Cooks        5.40 years 
Hourly Cooks             3.32 years 
Full-service: 5.9 years 
Servers                  3.35 years 
Quick Service: 4.9 years 
Bartenders               3.68 years 
Retail: 5.9 years 
Entry Level Kitchen          2.36 years 
Entry Level Front of House     1.77 years 
Quick Service  Shift Lead      3.66 years 
Quick Service  Crew Member  2.66 years 
Source: Washington Restaurant
Association member survey, 2013-14

Airport Dining & Retail Employers 
More than 35 employers 
Prime operators: HMSHost, Hudson, Dufry largest employers 
Tenancy between less than one year and 51 years 
Employ between 11 to 600 individuals 
Nearly all employers offer benefits in addition to wages 
Most common recruitment tool is employee referrals 
Employer 'poaching' commonplace 
Competition between employers leads to job quality gains

Prime Employer Wages & Tips 
Weighted non-managerial average
wage: $11.25/hr 
Weighted average non-managerial
medical: $4.41/hr 
Tips in food service range: $20-25/hr
or more 
Sales commissions range: $2 - $14/hr

Independent Employer Wages & Tips 
Weighted non-managerial average
wage: $10.72/hr 
Weighted average non-managerial
medical: $2.32/hr 
Tips in food service range: $3.75 -
$6.50/hr 
Average sales commissions: $5/hr

Program Employer Benefits 
89% of employers provide paid vacation/paid time off 
82% provide paid/subsidized medical benefits 
64% of employers offer a retirement plan (401K or pension) 
Weighted average benefit cost $4.17 per hour 
Most employers provide free or discounted meals or
merchandise 
Many employers pay for bus passes or airport parking

Locally Owned and Operated 
Bigfoot Food & Sprits      Manchu Wok1 
Beecher's Cheese        Massage Bar 
Butter London          McDonalds1, 2 
Coffee Bean & Tea Leaf1, 2   Metsker Maps 
Dilettante Diva Espresso1   Pallino Pastaria 
Emilie Sloan            Planewear2 
ExOfficio              Quiznos1, 2 
Firehouse Express        Sub Pop Records 
Fireworks             Ventures 
Great American Bagel     Waji's2 
Bakery1,                The Wishing Stone2 
Ivar's Seafood Bar 
La Pisa Caf 
1 - Local franchises 
2 - No City of Seattle operations

Comparison with City of Seattle 
Airport Large Employers: Prime/Represented 
Current
Year          Airport Wage         Airport Wage w/ Medical 
average prime
employer
2014        $11.25           $15.66 
wages and
Year           Seattle Minimum Wage  Seattle Minimum Wage w/          benefits
Medical                     exceed the
2015        $11.00           $11.00                   Seattle
ordinance
2016        $13.00           $12.50                   requirements
in 2015 
2017        $15.00           $13.50 
2018        (CPI)            $15.00

Comparison with City of Seattle 
Airport Small Employers: Non-Represented 
Year          Airport Wage         Airport Wage w/ Medical            Current
average wage
2014       $10.72           $13.02                    and benefits
exceed the
Year          Seattle Minimum Wage   Seattle Minimum Wage              Seattle
w/Medical                   ordinance
2015        $10.00           $11.00                   requirements
2016        $10.50           $12.00                   in 2015 
2017        $11.00           $13.00 
2018        $11.50           $14.00 
2019        $12.00           $15.00 
2020        $13.50           (CPI) 
2021        $15.00           (CPI)

Development & Advancement 
Most employers provide development opportunities: 
Tuition reimbursement 
Internal training curriculums 
Airport University accommodation 
Entry-level skill training (e.g. cash register, cash counting,
customer service) 
Many have robust internal advancement ladders 
Prime employees move within airport or to other airports 
Local independent employees move between airport and
street locations

Job Quality Summary 
Employees key to positive customer service experiences 
Average employee tenure exceeds off-airport industry
standards 
Employee turnover is much less than off-airport 
Current average wages and benefits exceed future City of
Seattle wage ordinance 
Increased competition provides opportunity for job quality
gains

Employment Continuity

Employment Growth 
Competition and diversity of        Employment 
operators has stimulated      1800
1,640 
employment growth         1600
1400
Square footage growth has led
1200
to more employment        1000
800    732 
Expansion of full-service
600
dining has created the most
400
employment per square foot 
200
No evidence of job loss when     0
2003    2013
operators transition 
124% Growth

Stakeholder Engagement 
Employment continuity issue at the forefront since 2011 
Multiple meetings in June - November 2011 
Included all types of operators (current and potential),
airlines, and labor representatives 
Stakeholders clearly polarized on potential Port policy

Stakeholder Viewpoints 
Strong support for hybrid management model 
Labor seeks a maximum of 2-3 prime operators with 90%
of employees 
Local business believes they should receive the majority
of opportunities 
Labor seeks mandatory worker retention and labor
harmony policies 
Small/independent business does not want a mandatory
hiring policy

Policies at Other Major U.S. Airports 
Of the top 44* U.S. airports, 34 have no continuity/retention
policies 
Ten U.S. airports have mandatory worker retention policies 
Predominately California airports 
Nearly all operate with large primes or developers 
Some airports have labor harmony policies with or without worker
retention 


*Canadian airports represent the remainder of the top 50 airports in North America

Structures for Employee Continuity 
Location/Contract Specific Retention 
Impractical if locations/contracts change 
Employee Pool Approach 
Works best when transitioning among multiple employers 
Proven generally successful in San Diego and Phoenix 
Lessons learned can improve future programs

Possible Implementation Options 
San Diego/Phoenix: Mandatory hiring from pool, exemptions
allowed for specialist expertise 
Detroit: New operators required to interview current
employees 
Sacramento: Incumbent employers required to provide
employee information. New operators commit to give
priority consideration via offers to interview

Growth Supports Employment Continuity 
2500
2,296             Anticipated growth will
Target 40%      create new opportunity 
2000               growth 
1,640                   Growth will drive
operator demand for
1500
experienced employees 
Employees  1000                           Increased emphasis on
732 
full-service dining will
500                          create more and higher
paying jobs 
0
2003  2013  2025

Employment Continuity Summary 
Continuity Pool  best solution for a changing program 
Can help employers identify qualified employees 
Can create greater sense of security for current employees 
Requirement to only hire incumbent employees may deter
independent (local and/or small) operators 
Anticipated growth will generate new job opportunities
beyond what exists today