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EMPLOYMENT CONTINUITY/ WORKER RETENTION AT MAJOR US AIRPORTS (excluding four Canadian airports in the North American top 50 by passenger volume) Continuity policy/ mandatory retention - The following 10 US airports are known to have mandatory worker retention/employee continuity included in their contracting requirements, for at least some portion of the employment base in airport dining and retail. These policies have not undergone any specific legal review, and do not represent any recommendations. (*Sales per enplanement is average dollar spend per departing passenger) Rank -- 2012 2102 SPE Focus on Small Retention Policy Airport Governance Management Model Operators Most Recent Transition Specific Retention Policy Employer Exemptions Focus on Local Concepts Pax SPE* RANK Business/ACDBE 3 $9.33 24 Los Angeles International Municipal Multiple prime operators, LAX prime leases in Terminals Transition ongoing since 2008-09 Required to retain outgoing No employer exemptions without ACDBE mostly achieved Local food and retail Airport private developer with 17- 4,5,7 & 8: HMSHost, Hudson, from prime operators to (in some operators' employees for 90-days. board approval. via joint ventures with concepts operated by year contract. DFS and direct lease with cases new) operators. Developer large prime operators. prime operators or CMS, an ACDBE. Tom Bradley subleasing in Tom Bradley Terminal One ACDBE direct lease. sublessees to developer Developer: Westfield to prime operators. under brand license (contracts with HMSHost, agreements. Hudson) 6 $14.10 1 John F. Kennedy Port Authority Third-party managers, private Terminal 1: AVAirPros, Transitions on an ongoing basis in Required to retain outgoing No employer exemptions. Developer required to Local food concepts International Airport developers (airline-owned or Terminals 2 & 3: Delta Airlines airline-controlled terminals. Most operators' employees for 90 days, recruit ACDBE operators operated by prime leased terminals). Developers (OTG), Terminal 4:JFKIAT (SSP, recent transitions to developer so long as the succeeding to meet goal, no small operators. No local retail sublease to prime operators. Hudson), Terminal 5: JetBlue OTG in Delta and JetBlue terminals. concession is of the same type as business focus. concepts. (OTG), Terminal 7: British the preceding concession. Airways, Terminal 8: AA (Westfield) 7 $12.28 6 San Francisco Municipal Prime and independent Multiple operators including Last transition from master Must be retained for a minimum No employer exemptions. SFO Direct small business and Strong emphasis on local International Airport operators, but no dominant HMSHost, High Flying Foods, concessionaire (HMSHost) to 90 days of trial employment by the requires new operators to join a ACDBE participation as concepts. Directly operator Hudson, HBF and others. multiple operators. successor contractor. joint employer bargaining unit well as joint venture operated by mostly local representing all tenants in contract agreements with large operators. negotiations with labor. operators. 11 $8.29 44 Phoenix Sky Harbor Municipal/County Multiple prime operators HMSHost, Delaware North, Ongoing transition since 2008 from New operators are required to hire No employer exemptions. ACDBE participation Some emphasis on local International Airport SSP, Hudson, Paradies. dominant prime operator from a pool of qualified workers exclusively via joint concepts operated by (HMSHost) to multiple prime until the pool is exhausted. venture agreements. prime operators. operators. 14 $12.11 7 Newark Liberty Port Authority Private Developer Developer: Westfield Long-term developer contracts. Required to retain outgoing No employer exemptions. Developer required to Predominantly national International Airport (contracts w/ HMSHost, Developer subcontracts to prime operators' employees for 90 days, recruit ACDBE operators food brands operated by Areas, Hudson) operators. so long as the succeeding to meet goal, no small prime operators. No concession is of the same type as business focus. local retail concepts. the preceding concession. 20 $7.89 54 (tied) LaGuardia Airport Port Authority Private Developer Developer: Marketplace Long-term developer contracts. Required to retain outgoing No employer exemptions. Developer required to Limited focus on local Development Developer subcontracts to prime operators' employees for 90-days, recruit ACDBE operators concepts. No local retail operators. New bid for developer so long as the succeeding to meet goal, no small concepts. anticipated soon. concession is of the same type as business focus. the preceding concession. 21 $8.01 49 Ft Lauderdale-Hollywood County Multiple prime operators Lauderdale Dominant operators HMSHost and Required to offer continued No employer exemptions. Exclusively via joint Predominantly national Intl Airport Partners/Delaware North, Delaware North received 15-year employment for 45 days, unless venture agreements with food brands operated by HMS Host, Paradies, Hudson extensions in 2008. Other not needed for operation. No large operators. prime operators. No transitions took place between obligation beyond 45 days. local retail concepts. prime operators. Rank -- 2102 SPE Focus on Small 2012 SPE Retention Policy Airport Governance Management Model Operators Most Recent Transition Specific Retention Policy Employer Exemptions Focus on Local Concepts Pax RANK Business/ACDBE 27 $8.31 43 San Diego International County Multiple prime operators Food service: SSP, High Flying Transition from master Required to hire from pool of Employers with 10 or fewer No direct small business, Strong emphasis on local Airport Foods, HMSHost concessionaire HMSHost to employees and retain for a employees exempt, but there were one non-local ACDBE concepts all operated multiple prime operators in 2012. minimum of 90 days. no such employers. direct lease operator, under license otherwise exclusively via agreements/joint joint venture ventures with prime agreements with large operators. operators. 35 $7.89 54 (tied) Oakland International Port Authority/Muncipal Prime operators for food, one HMS Host, High Flying Foods, From master operator Delaware Required HMSHost to retain City ordinance provided living Limited direct small Local concepts Airport prime for retail World Duty Free North to two contracts with employees of Delaware North for a wage and other exemptions for business, ACDBE predominately via HMSHost 2006. minimum 90 days per city small business with 20 or fewer participation achieved license agreements with ordinance. employees, but Port enacted via subtenant prime concessionaire. resolution that removed the agreements with One prime is local with exemption for the airport. Recently HMSHost. local concepts. lost lawsuit brought by ACDBE tenants against the Port. Currently on appeal. 40 $8.53 40 San Jose International Municipal Multiple prime operators HMSHost, Pacific Gateway From master concessionaire Operators "must retain workers No employer exemptions. ACDBE participation Predominantly national Airport Concessions, Hudson HMSHost to multiple prime performing services under the achieved both as food brands operated by operators in 2007. current concession agreement." subtenants and joint prime operators. No venture agreements with local retail concepts. large operators. Encouraged Retention/Continuity Policy Airports - Numerous airports encourage continuity of employment, but many do not include it in contract documents. The following three airports are examples with such language. Rank -- 2102 SPE Focus on Small 2012 SPE Retention Policy Airport Governance Management Model Operators Most Recent Transition Specific Retention Policy Employer Exemptions Focus on Local Concepts Pax RANK Business/ACDBE 17 $9.15 25 Detroit Metropolitan County Multiple prime operators For food service: HBF, Midway Transitioning from 35-year New operators must interview No employer exemptions from One direct mulitple unit Increased emphasis on Wayne County Airport Concessions, Areas incumbent HMSHost to new prime existing employees and are interviewing current employees. food service ACDBE, local concepts. ACDBE operators, new contracts awarded encouraged, but not required, to otherwise achieved via operator is a local firm. in early 2014 for majority of the hire joint venture existing program. agreements. 24 $8.11 48 Chicago Midway Municipal Private developer Developer: Unison. Long-term developer contracts. Required to include information Infromation provided in RFP ACDBE particpation via Some local concepts International Airport (Contracts with HMSHost, about retention, preferential response is required, but no joint venture operated by local Hudson, MAC One (local), interviews etc. for existing specific commitment required by agreements with large operators under Aero-Dine LLC (local)) employees as part of RFP proposers. operators, or directly developer agreement. management and operations plan recruited by developer. Also local concepts under prime license agreements. 41 $8.82 30 Sacramento County Multiple prime operators Food service: HMSHost & SSP, Awarded multiple new contracts in Proposers encouraged to give first All employers encouraged to give Exclusively via joint Strong emphasis on local International Airport Retail: Paradies & Pacific 2010 to prime operators, food consideration to current first consideration to current venture agreements with food concepts achieved Gateway service contract in 2014 to prime employees. employees. large operators. by brand license SSP. Primes are not universally agreements with prime unionized at SMF. operators. Signature fullservice restaurant local license with HMSHost. Non-Retention/Continuity Policy Airports - The majority of airports have no specific labor or retention/continuity policies, Portland International is provided as detail example. Rank -- 2102 SPE Focus on Small 2012 SPE Retention Policy Airport Governance Management Model Operators Most Recent Transition Specific Retention Policy Employer Exemptions Focus on Local Concepts Pax RANK Business/ACDBE 29 Portland International Port Authority Prime and independent 40 operators among 60 Transition from master operator to None currently. Portland has a N/A Achieves ACDBE Strong emphasis on Airport operators, but no dominant locations. Two operators for current model in 1998. Transition significant number of contracts participation via direct lease local operator. news: World Duty Free, has taken place in ongoing phases expiring in the next three years. subtenancy, joint concepts under self- Paradies. Food operators since then. Labor is pressuring to change its ventures and via direct operation such as Nike, include HMS Host, SSP, model to favor prime operators in leasing with ACDBEs. Columbia, Powells, etc. Sandovals Mexican (local). order to make program more Portland has one FTE Retail includes Powell's, Nike, conducive to organizing. devoted to direct small Columbia, Pendelton. and local business HMSHost and SSP are not recruitment. unionized in PDX. The following 33 airports have no worker retention/employee continuity requirement (Rank by passenger volume noted): Hartsfield-Jackson Atlanta International Airport (1), O'Hare International Airport (2), Dallas/Ft. Worth International Airport (4), Denver International Airport (5), Charlotte Douglas International Airport (8), McCarran International Airport (9), Miami International Airport (10), George Bush Intercontinental Airport (12), Orlando International Airport (13), Seattle-Tacoma International Airport (15), Minneapolis/St Paul International Airport (16), Philadelphia International Airport (18), Logan International Airport (19), Baltimore/Washington International (22), Washington Dulles International Airport (23), Ronald Reagan Washington National Airport (25), Salt Lake City International Airport (26), Tampa International Airport (28), Portland International Airport (29), Lambert-St Louis International Airport (30), WP Hobby Airport (31), Nashville International Airport (32), Austin-Bergstrom International Airport (33), Kansas City International Airport (34), John Wayne Airport (36), Louis Armstrong New Orleans International Airport (37), Raleigh-Durham International Airport (38), Cleveland Hopkins International Airport (39), Love Field Dallas (42), San Antonio International Airport (43), Pittsburgh International Airport (44), Southwest Florida International Airport (45), Indianapolis International Airport (46).
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