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May 29, 2021

Executive Compensation at Unite Here (NYC)

by Anne Paddock

The Hotel, Restaurant, Club Employees, and Bartenders Union known formerly as Unite Here Local 6 (Unite Here) is tax-exempt non-profit labor union representing employees in the hotel industry in the New York metropolitan area. A member of the New York Hotel Trades Council (NYHTC) and the New York City Central Trade Council, Unite Here operates out of the same office as NYHTC. And, the Business Manager of Unite Here – Peter Ward – is also the President of NYHTC (according to the 2019 Form 990).

There are 8 voting members of the governing party (according to the Form 990) although the website of Unite Here states Unite Here is governed by 5 elected general officers, an elective Executive Committee, and an elected Executive Board with representation from across the union.

Unite Here reported total revenue of $18 million in 2019, most of which came from membership dues and fees from NYHTC. Expenses totaled $17 million with the two largest expenses being compensation ($8 million) and payments ($6 million) to affiliate (note: the affiliate is not listed on Schedule R, Section V where transactions with affiliates are listed so which affiliate is unknown). At year-end Unite Here had $20 million in net assets.

47 employees received $8 million in compensation which equates to an average compensation of $170,000. However, only 12 employees received more than $100,000 in compensation with the most highly compensated reported to be:

  • $759,961: Peter Ward, Business Manager
  • $678,270: Richard Maroko, EVP
  • $491,800: James Donovan, President
  • $464,552: Hazel Hazzard, VP
  • $400,037: Vanessa Meade, Secretary/Treasurer
  • $357,504: Christopher Cusack, District Director
  • $316,994: John C Ruben, COO
  • $290,182: Steve Miller, VP at large
  • $282,318: George Padilla, VP
  • $263,812: Edward Cedeno, VP
  • $259,820: Harry Rygor, VP at large
  • $247,734: Lynn Hoffard, Director of Education

It is important to note that all the employees above (except Harry Rygor and Lynn Hoffard) received a portion of their compensation from an affiliated organization (appears to be NYHTC in most cases). Of the 12 most highly compensated employees listed above, 9 (75%) are male while 3 (25%) are female.

4 independent contractors received more than $100,000 in compensation in 2019:

  • $341,239: KB Security Consultants, of Brooklyn, NY for security
  • $260,174: Pitta LLP, of NY, NY for legal work
  • $256,445: CJ Sues, LLC of NY, NY for legal work
  • $110,000: Metropolitan Public Strategies, of NY, NY for lobbying

In summary, Unite Here receives most of its funding from membership dues through NYGTC. The labor union does not appear to historically spend as much as it takes in (given that they have accumulated $20 million in net assets). Most revenue (read membership dues) are spent on compensation for the employees and payments to affiliates.

To read the IRS Form 990 (2019), click here.




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