Despite early union disputes, Pa. Convention Center ends year on high note

Coping with major groups canceling scheduled and future conventions, putting new work rules into place, rifts with two of its six unions, and major groups gaining confidence and returning business, it's sure has been a roller coaster of a ride for the Pennsylvania Convention Center in the past year.

Issues at the Convention Center started last year when the Carpenters Local 8 union went on strike over the prospect of new work rules that the Convention Center said would give exhibitors a more streamlined experience and more flexibility and freedom with their booths. But it ended with a slew of major bookings ( see them in chronological order here.)

Battle with the unions

Disputes between the Convention Center and two of its six unions — the Carpenters and the Teamsters Local 7 — heightened when the new work rules were put in place in May. When the two unions refused to sign a deal agreeing to the rules, the Convention Center barred them from working.

The Convention Center's move — deemed a "lock out" by the two unions — resulted in a number of high-profile protests outside of the Convention Center, which coincided with a number of conventions, including the four day World Congress on Industrial Technology convention.

The two unions' work was then divided among the remaining four who did sign the agreement: Electrical Workers Local 98, Stagehands Local 8, Ironworkers Local 405 and Laborers Local 332. This caused further rifts between the unions, with some members siding with the barred unions and others calling the unions out on their "hypocrisy" when news hit that a six-member Carpenter crew still worked inside the Convention Center.

The fight escalated when the two unions filed a charge against the Convention Center alleging a violation of a section of the National Labor Relations Act that defines unfair labor practices. The National Labor Relations Board ultimately dismissed the claim since the Convention Center Authority was not under its jurisdiction. In response, the unions filed the same claim with the Pennsylvania Labor Relations Board— a case that's expected to produce a ruling next year.

Major groups regaining confidence in Philadelphia

The antiquated work rules placed Philadelphia at a major disadvantage, especially when compared to major competition like Boston and Washington, D.C. Large convention groups that canceled or were lost due to the work rules between 2014 and 2017 would have booked 925,000 hotel room nights and generated $1.3 billion in economic impact.

But, despite its union woes, recovery at the Convention Center seems to have been swift, as many returning and new conventions have gained confidence in Philadelphia after the new work rules were put in place (See the bookings in chronological order in the accompanying photo gallery.)

"For us, going back this year [was due to] the change in management with the Convention Center," Bobby Heard, the associate executive director for membership and education for the American College of Physicians, told the Philadelphia Business Journal in an earlier interview. "The change in work rules with the unions have really made us feel more comfortable coming back to Philadelphia and not worried that it would the most expensive city to hold the meeting in."

Had the work rules stayed antiquated, ACEP would not have returned. And this sentiment is shared among other meeting planners.

"They talked to us about Philadelphia for years, and it's been on radar," Heard said. "[It wasn't] until they could articulate in a way that motivated us that there are significant things going on. We didn't agree to do a site visit until that happened."

At the time of publication, the Convention Center has booked 13 conventions due to the new work rules, which will generate more than $350 million in economic impact to the region. Furthermore, the center has added another 43 conventions to its tentative pipeline with a potential impact of more than $800 million.

The Greater Philadelphia Hotel Association expects record occupancy for this year and are projecting to exceed that performance next year.

Source: Philadelphia Business Journal‏