Berkeley prepares to transform its marina — and keep labor relations there ship-shape

The Berkeley Marina has long been a bustling destination for residents looking to take in stunning natural views, fly a kite, learn to sail or enjoy an upscale bayside meal.

But the area has faced challenges in the last few years, especially around the Berkeley pier, which remains closed in disarray on the San Francisco Bay. Now, as preliminary plans are underway to transform the waterfront, city leaders are working to ensure that future workers are happy and business runs smoothly.

On Tuesday, the Berkeley City Council unanimously approved adding a “labor peace policy” to its municipal code, which requires that any hospitality operation which inks a new (or amended) lease on city-owned marina property vow to work in good faith with labor unions and employees that want to request or negotiate benefits.

In exchange, employees agree to avoid economic actions like picketing, boycotts and work stoppages while union recognition discussions are underway — a compromise supported by Berkeley’s Labor Commission and local hospitality union reps.

The policy, introduced by Councilmember Kate Harrison and Mayor Jesse Arreguín, will apply to new leases signed for city-owned property at the marina. In an attempt to avoid negatively impacting small businesses, exemptions will be carved out for operators with less than 2,500 square feet and operators with pre-existing leases.

The council made its first foray into establishing labor peace policies at the marina with the former site of Hs Lordships, an iconic banquet and brunch destination at 199 Seawall Drive which experienced a history of pushback from employees unhappy with work conditions. The city has been seeking a new tenant since the 50-year-old institution shuttered in 2018.

That site is currently being eyed for transformation into a hub for food truck grub. Last year, the city entered into an exclusive negotiating agreement with a commercial real estate firm, Innovation Properties Group, to explore feasible options to create a food truck village and outdoor recreation space in the gusty, vacant parking next to the decaying bayside structure, as well as operations for a restaurant and indoor event space.

“Berkeley is a world-class tourist destination, welcoming more than a million visitors annually, and the waterfront – a crown jewel of Berkeley – offers multiple parks, recreation facilities, restaurants and accommodations,” Harrison said during Tuesday’s meeting, adding that the marina is home to some of the most significant city-leased commercial properties. “I believe really strongly in the rights of workers who engage in economic action. However, it’s also strongly in our interest to head off potential labor conflict and city revenue loss at marina hotel and restaurant operations.”

Amid a national uprising of union actions against management that refuse to budge on negotiations, the goal of the agreement is to minimize any conflicts in the marina that could harm employees or lead to work stoppages that would threaten potential revenue for the city.

In recent years, the local hospitality industry has been rife with disputes, economic action and strikes — including initiatives from employees at HS Lordships in 2018, staff at the Berkeley DoubleTree in 2021 and airport workers in 2012 and 2022.

The policy will apply to new leases signed for city-owned property at the marina. Exemptions will be carved out for operators with less than 2,500 square feet and operators with pre-existing leases.

Harrison said similar policies are in effect at the Port of Oakland, BART, and the San Francisco International Airport. If lessees and employees can not agree to arbitration, a public hearing would be held by the city council. However, she said that has never happened in other nearby jurisdictions.

A representative from Unite Here Local 2, which organizes 15,000 hotel, food service and gaming workers across the Bay Area – primarily women, immigrants and people of color – said during Tuesday’s meeting that Berkeley’s agreement is “fair and based on best practices learned over decades of experience.”

Mayor Jesse Arreguín agreed.

“Given the potential redevelopment at the waterfront, It’s important that we make this a standard for future leasing and properties (there),” Arreguín said Tuesday. “We have a proprietary interest to make sure we don’t have economic disruption, that we’re getting that lease revenues and help replenish our marina fund and operations. But also, we’re ensuring that our businesses are run in a way that demonstrates our community’s values.”