LEWISBURG - Patty Vass is worried. The waitress sees fewer people walking downtown than normal in the summer.
LEWISBURG - Patty Vass is worried. The waitress sees fewer people walking downtown than normal in the summer.
Labor problems at The Greenbrier resort in White Sulphur Springs have meant fewer tourists in downtown Lewisburg.
That means less money in her pocket, but more important to her is the effect it could have on her family.
Vass' husband, like many others in the area, has worked for the famed resort for 35 years. With a 13-year-old son to raise, her family needs the health insurance her husband gets working for the almost 200-year-old resort.
Already, about 30 percent of the four-star resort's 1,100 unionized employees have been laid off, union officials have said. And The Greenbrier recently lost its largest convention when it could not reach agreements with the nine resort unions.
So far, her husband's 35 years of service has kept him steadily working, though Vass said she sometimes questions for how long.
"It makes you wonder what would happen, and I just hope they work it out for the whole community," she said, while serving lunch at Food & Friends on Washington Street.
Usually, by this time of the year, the 710-room resort is booming with conventions and other guests. The Greenbrier sends busloads of people into downtown Lewisburg to leisurely shop at boutiques and antique stores, while stopping to eat at the small eateries up and down Washington Street.
"My higher-end spenders are not coming through," said Mary Moore, owner of Estate Antiques.
She and her husband moved to Lewisburg from Charleston, S.C., and he did work for The Greenbrier. He has since found other employment because of the labor problems.
Her "higher-end spenders" usually come from the resort on the buses, she said. Now, she said, the town is full of rumors about the intentions of CSX, the railroad giant that has owned the resort since 1910.
"They're not working with the union at all," Moore said.
"We don't know the ins and outs of what's going on, but we know the tourists aren't here," said Karen McClung, who owns Plaid Eagle Antiques and Collectables down the street from Moore's business.
Business owners say buses full of Greenbrier guests have traditionally allowed their shops to have customers on weekday afternoons.
"I usually have four or five people," McClung said, looking around to see only a reporter and a photographer.
In an average year, McClung said, 90 percent of her customers are from out of state. This summer, 90 percent are West Virginians.
"There's even parking places," she said of the street outside.
Leah Spence, daughter of the owner of Aggie's on Washington Street, said the business has seen a major downturn. The Greenbrier's green and white buses are no longer dropping guests off on the curb. "That's why it's really, really slow in the afternoons," she said.
"You just don't see the foot traffic you usually do this time of the summer," agreed Katie Ickes with the Greenbrier Valley Chamber of Commerce.
Adding to the problems could be higher gasoline prices keeping commuters away from the area, she said.
"Those weekdays are the days that are normally your group business days," said Kara Dent, director of the Greenbrier County Convention and Visitors Bureau.
Weekend business may be down a little, Spence said. Traditionally, Lewisburg's shops and restaurants get one-night or day-trip commuters on weekends.
With two special events held this weekend, Dent said Friday she expected large crowds. "You can't find a room in Lewisburg," she said.
Business owners can only hope the resort reaches a labor agreement soon so they can see crowds of shoppers on weekdays, too.
"We're still trying to make it," Spence said. "Hopefully something's going to happen."
So far, the two sides have failed in their talks. The union's contract expired in January. Workers offered to extend it another three years.
The Greenbrier and CSX rejected that idea. Lynn Swann, spokeswoman for the resort, declined to specify why the company objected to the current contract.
"I'm not going to get into specifics," she said.
LEWISBURG - Patty Vass is worried. The waitress sees fewer people walking downtown than normal in the summer.
Labor problems at The Greenbrier resort in White Sulphur Springs have meant fewer tourists in downtown Lewisburg.
That means less money in her pocket, but more important to her is the effect it could have on her family.
Vass' husband, like many others in the area, has worked for the famed resort for 35 years. With a 13-year-old son to raise, her family needs the health insurance her husband gets working for the almost 200-year-old resort.
Already, about 30 percent of the four-star resort's 1,100 unionized employees have been laid off, union officials have said. And The Greenbrier recently lost its largest convention when it could not reach agreements with the nine resort unions.
So far, her husband's 35 years of service has kept him steadily working, though Vass said she sometimes questions for how long.
"It makes you wonder what would happen, and I just hope they work it out for the whole community," she said, while serving lunch at Food & Friends on Washington Street.
Usually, by this time of the year, the 710-room resort is booming with conventions and other guests. The Greenbrier sends busloads of people into downtown Lewisburg to leisurely shop at boutiques and antique stores, while stopping to eat at the small eateries up and down Washington Street.
"My higher-end spenders are not coming through," said Mary Moore, owner of Estate Antiques.
She and her husband moved to Lewisburg from Charleston, S.C., and he did work for The Greenbrier. He has since found other employment because of the labor problems.
Her "higher-end spenders" usually come from the resort on the buses, she said. Now, she said, the town is full of rumors about the intentions of CSX, the railroad giant that has owned the resort since 1910.
"They're not working with the union at all," Moore said.
"We don't know the ins and outs of what's going on, but we know the tourists aren't here," said Karen McClung, who owns Plaid Eagle Antiques and Collectables down the street from Moore's business.
Business owners say buses full of Greenbrier guests have traditionally allowed their shops to have customers on weekday afternoons.
"I usually have four or five people," McClung said, looking around to see only a reporter and a photographer.
In an average year, McClung said, 90 percent of her customers are from out of state. This summer, 90 percent are West Virginians.
"There's even parking places," she said of the street outside.
Leah Spence, daughter of the owner of Aggie's on Washington Street, said the business has seen a major downturn. The Greenbrier's green and white buses are no longer dropping guests off on the curb. "That's why it's really, really slow in the afternoons," she said.
"You just don't see the foot traffic you usually do this time of the summer," agreed Katie Ickes with the Greenbrier Valley Chamber of Commerce.
Adding to the problems could be higher gasoline prices keeping commuters away from the area, she said.
"Those weekdays are the days that are normally your group business days," said Kara Dent, director of the Greenbrier County Convention and Visitors Bureau.
Weekend business may be down a little, Spence said. Traditionally, Lewisburg's shops and restaurants get one-night or day-trip commuters on weekends.
With two special events held this weekend, Dent said Friday she expected large crowds. "You can't find a room in Lewisburg," she said.
Business owners can only hope the resort reaches a labor agreement soon so they can see crowds of shoppers on weekdays, too.
"We're still trying to make it," Spence said. "Hopefully something's going to happen."
So far, the two sides have failed in their talks. The union's contract expired in January. Workers offered to extend it another three years.
The Greenbrier and CSX rejected that idea. Lynn Swann, spokeswoman for the resort, declined to specify why the company objected to the current contract.
"I'm not going to get into specifics," she said.
While the resort has hired Charleston lawyers who sit at the negotiating table, Swann insists management of The Greenbrier is making decisions.
Union leaders have said workers will not strike, but the resort sent letters to those with conventions and activities already booked there warning a labor strike could occur. One labor leader said the resort's discouragement of conventions has caused it to lose as much as $15 million in revenue.
The scare of a strike caused a number of conventions to change locations, including the Council of Insurance Agents and Brokers, the resort's largest customer. Earlier this month, it canceled its annual fall convention, when it usually books every room The Greenbrier has available.
That means less money for businesses and government. The Greenbrier, like other hotels and motels, pays a 3 percent room tax to the county. A portion of that goes to tourism promotional groups, such as the Greenbrier County Convention and Visitors Bureau.
Dent said her group's hotel/motel receipts for April were down by 54 percent, mostly from a loss of guests at The Greenbrier. She said that was the first month the situation at the resort began to be noticed by local businesses.
"We continue to expect that to happen throughout the calendar year," Dent said.
She noted the large insurance convention canceled is scheduled for October.
"Even if they signed a contract tomorrow, we'll still see those losses," she said.
That translates to continued hard times for Lewisburg businesses.
"It's definitely having an impact," Dent said. "It's a very unfortunate situation for this county and the state itself."
In May 2007, The Greenbrier's 3 percent room tax sent to the county amounted to nearly $70,000. This year, the resort's 3 percent tax for May was $41,721.
"Right now we're depending on the local community," Spence said. "But the problem is the local community works at The Greenbrier."
The Greenbrier is the county's largest employer, said Ickes. "All across the board, people are seeing a slowdown," she said.
The resort usually hires extra people - as many as 500 - for the peak summer tourist season.
"It's going to start hurting more," said County Commissioner Betty Crookshanks.
Neighboring Monroe and Pocahontas counties are also seeing some negative results, she said.
"The employees aren't going to have as much to spend," she said. "It's affecting people's lives."
Despite some of the swirling rumors, Swann said The Greenbrier is "not trying to break the unions."
Union representatives proposed a new health insurance plan Thursday during negotiations about the master contract. Harold Bock, who is negotiating that contract for all nine unions, said compared to the current insurance plan it would save the resort more than $12 million over five years.
Swann said she could not discuss labor negotiations in the press. The next scheduled master contract meeting is set for Friday.
"I believe both parties are working hard to reach an agreement," she said.
This week could show whether CSX's attempt to fight off a British-based hedge fund will affect the talks. Stan Hostler, who is monitoring the labor talks for Gov. Joe Manchin, said earlier that CSX may need the votes of unions that have invested heavily in the 21,000-mile railroad system to defeat the attempt of The Children's Investment Fund and 3G.
TCI has joined with 3G in an effort to elect five members to CSX's 12-member board. Together the two hold about 8 percent of CSX's stock.
The two unions are not expected to vote with CSX management without a contract at The Greenbrier, Hostler said.
That vote comes up in about two weeks.
Union officials declined to comment about that situation.
To contact staff writer Tom Searls, use e-mail or call 348-5198.
Post a comment
1) Parent company CSX needs a losing subsidiary to absorb some of CSX's massive profits this year and save the company on taxes;
2) While being used as a loss-leader for CSX, what better opportunity than for the Greenbrier to starve out the unions and if not break them, then substantially weaken them and reduce the ranks of full-time employees (aka those with benefits)- forcing those left to accept a contract that goes backwards;
3) The Greenbrier really isn't upset over losing long-time group customers. It is well-known that such long-term relationships become less profitable over time. Encouraging groups to go elsewhere will open up future dates for new, more profitable groups.
Just a thought.