Charlotte Gives $7 Million Rent Break to Airport Companies as Workers Lose Insurance

Charlotte City Council voted Monday night to give HMSHost and other concessions companies at the airport a $7 million break on rent payments without requiring them to keep furloughed employees on health insurance.

That means roughly 700 people — employees and their families — could lose their health insurance on June 4 after more than two months of furlough amid the new coronavirus, according to Unite Here Local 23, the union that represents HMSHost workers at Charlotte Douglas International Airport.

City council had deferred the vote on the rent relief package for almost a week after HMSHost employees protested giving the company a financial boost while they lose insurance.

Lifelong Charlotte resident William Voltz told city council last week he has worked for HMSHost for 12 years as a warehouse supervisor. He’s been working part-time during the COVID-19 pandemic, but could still lose his health insurance through HMSHost this week.

“As I work, I come in contact with hundreds of people, employees and passengers,” he said Tuesday. “And to be putting our health at risk every day and to be in fear that we’re getting ready to lose our health care is unacceptable.”

The Charlotte council put off the vote to look into legal issues surrounding adding a condition to the rent relief to ensure the companies continue paying for health insurance for the furloughed workers.

City attorney Patrick Baker told council Monday the city is not allowed to make labor requirements in the bidding process with companies. Because this rent break would be voluntary relief for HMSHost and Paradies, the health insurance conditions would not necessarily be prohibited, Baker said.

The council voted 7-4 not to add health insurance conditions to the rent relief package.

The rent relief measure that was approved in a 10-1 vote provides airport concessions companies, including HMSHost and Paradies, an estimated $7 million in rent relief and other support.

The health insurance amendment was put forth by council member Matt Newton.

“We’re talking about a multinational company here with revenues of over a billion dollars per year,” Newton said Monday of HMSHost. “… And we’re being told here that somehow $5 to 7 million — upwards of $7 million — of relief is necessary for them to just squeak by.”

Council member Braxton Winston voted with Newton for the health insurance requirement.

“Far too often we are saying we will always side with the businesses and we ignore the situation of the workers, and we say we are legally not able to address those things,” Winston said. “This is the behavior that needs to change.”

But council member Renee Johnson argued the issue was a national crisis that should be addressed at the state or federal level.

“We simply cannot risk losing those businesses in trying to protect a smaller population,” she said. “So I wish we could do more, but I will be voting to pass the relief.”

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