LAX’s largest food service company faces a million-dollar bill for worker health insurance
Los Angeles: Fluttering a massive banner reading “HMS Host Pay Up” down a parking structure across from Terminal 4 yesterday, LAX airport workers said the airport food service giant has failed to make the financial contributions to extend health care coverage for its laid-off employees.
“We’ve carried this company on our backs for years to make them successful,” said Carlos Castillo, a 21-year bartender for HMS Host at LAX who, like most of his coworkers, has been laid off since March.
While Mr. Valencia had healthcare coverage during the pandemic and at the time of his death, former coworkers say the loss underscores the importance of ensuring that laid-off HMS employees and their families have healthcare coverage throughout the duration of the pandemic.
Last month, a health benefit fund covering HMS Host employees in Los Angeles informed the company that it is delinquent in paying more than one million dollars in benefit contributions required under a City rent relief program for airport concessionaires.
“HMS Host needs to do what other airport companies have done and pay what they owe for their laid-off workers’ healthcare,” said Robin Rodriguez, organizing director at UNITE HERE Local 11. “It’s reprehensible for HMS Host to contribute to workers’ uncertainty during this time. The company has access to billions while their laid-off workers are struggling to stay healthy and housed.”
In October, HMS Host workers filed a class action lawsuit against the company alleging it failed to pay wages they are owed under the Los Angeles Living Wage Ordinance, despite numerous complaints from employees. The still-pending lawsuit also alleges that HMS Host also failed to comply with California labor laws requiring employers to pay final wages to terminated employees immediately.
HMS Host is the largest operator of airport concessions in North America and at LAX. Its parent company, Autogrill (BIT: AGL), is owned by a family of Italian multi-billionaires whose holding corporation had assets valued at $13.8B last year.
HMS Host workers at LAX are over 90% people of color (including over 20% Black) and live in the communities hardest hit by the COVID-19 pandemic. Most of its LAX workforce remains laid off.