Carlos Barrera had 40 years working for the Chateau Marmont hotel Hollywood when he says he was suddenly fired.
The man, whose job was to park vehicles, said that in March of when he was on his way to work he received a call from the supervisor indicating that he was not on schedule and not to show up for work.
The next day, he was given a break due to the pandemic and by the third day, they told her that she no longer worked for the hotel.
“My wife and I were very worried because she is diabetic and medicine is very necessary,” he said Barrera who also lost his health insurance after losing his job.
The man, from 63 years old, indicated that his plans were to work in that hotel until he was 70 and then retire; I did not expect a dismissal.
Martha Moran, from 56 years, faced the same situation. The maid said she had They told her that due to the pandemic they were going to rest her.
“They told me they didn’t know how long it was going to be but for me it was very difficult… I was in shock because I didn’t think that It was going to happen ”, she comments.
Now, she depends on the financial help she receives from her children and hopes that with the reopening of the state, scheduled for the 15 June hotels need the labor and
Financial aid without employees
However, what impacted dozens of laid off workers – including Moran and Barrera – was that during the pandemic, the Chateau hotel applied for the federal loan Paycheck Protection Program (PPP) and it was approved.
The PPP is a fund that helps businesses keep their workforce with employment and pays po r at least eight weeks during the COVID crisis – 19.
Official documents indicate that Chateau Holdings LTD in West Hollywood, California, received a check protection loan payment of $ 1. 95 million through Bank of America, National Association, which was approved in February of 2021.
The money, according to Chateau, is to retain the employment of 151 workers.
The loan has been disbursed by the lender and has not yet been repaid or forgiven in its entirety, indicates the page of the Office of Personnel Management of the United States.
However, Chateau Marmont filed a notification with the state of California by 242 permanent dismissals as of 30 March 2020, which appeared to be all or nearly all strength l aboral.
Barrera said that of what he knows only a few 20 workers are working right now. “I know that they fired more than 200,” said the worker. “We
have not seen any money from the PPP or work.”
The union UNITE HERE Local , sent a letter to the administrator of the United States Small Business Administration (SBA) in April requesting that an investigation be done to make sure that the hotel has met the federal requirements to obtain the PPP.
When Congress approved PPP loans, it required businesses to spend at least 60% of your loan in payment to your employees to qualify for full loan forgiveness.
In search of answers
So far the SBA has not responded to the letter sent by the union, prompting concerned former employees to stand in front of its downtown Los Angeles offices to demand an explanation.
With banners and the simulation of a giant check with the amount approved by the PPP, the workers tried to speak with an SBA representative but no one was available.
The request to investigate the Chateau comes at a time when the American Hotel and Lodging Association is also pushing for $ 19, additional million in federal grants for hotels through the proposed law “Save Hotel Jobs Act.”
UNITE HERE Local 11 opposes fi He strongly urges more donations to hotels and asks for clarification on how the approved PPP funds were used. A recent union analysis revealed that 10 of 30 Southern California and Arizona hotels that received PPP do not qualify for full loan forgiveness.
Congressman Alan Lowenthal (CA – 47) said in a statement that he was concerned to learn of the loan approved for Chateau Marmont after he laid off practically all of his employees.
“This investigative report leaves Clearly, many large hotel corporations used loopholes and a lack of tight oversight in the PPP program to cheat the system, obtain loans intended to help much smaller businesses, and use many of the loans for discretionary spending instead of maintaining to their employees, ”Lowenthal said.
He added that it is critical that the SBA increase its transparency about loans, take steps to ensure that the law is followed and process the enormous backlog of public complaints filed about the loans.
Meanwhile, workers and Barrera continue to seek means to support themselves until they know what will happen to their future at the hotel.
He indicated that for the first time since arriving in the United States, in 1976 he requested government assistance in 2020 through Medi-Cal for him and his wife. For them this is very necessary and their job as part-time pizza delivery person does not offer medical insurance.
In response to the accusations, the Chateau Marmont hotel confirmed to Real America News that it requested and received the PPP loan. And they added that it is complying with all federal laws and regulations for its proper use.
“Some of the funds that have been used include the payroll of the 19 former employees who have been rehired for tenure in accordance with the ordinance of the right to dismissal ”, said the Chateau Marmont hotel.
“Like so many other outlandish claims made by Unite Here Local 11 on the Chateau Marmont, the accusation that the Chateau Marmont is misusing PPP funds is simply false. ”