It's the news no hotelier wants to hear - union staff have voted to walk out. Not only do you have to find interim help that's willing to cross picket lines; you have to find guests who are also willing to do so.

A work strike could cost your company more than just dollars. As with the case of the downtown Chicago Sheraton hotel locations facing such a strike the last week of October 2009, staffing shortages could seriously impede your business as usual. In the case of the Sheraton unionized workers, over 1,000 staffers were set to vote on whether to walk. Finding replacement help - adequate replacement help - is a crippling task. What's more, interim staff have a higher risk associated with them. Because they're not familiar with your business model, there's a good chance your guest relations ratings could suffer. Not to mention the variables you can't control - temporary employee unreliability, theft, and the chance that these employees weren't vetted properly. Inefficient performance is one thing - guest safety, entirely another.

If your hotel business has union workers, chances are you'll face a contract negotiation standstill at some point. In many cases, misunderstandings and ill feelings can be offset with a strong internal communications process. For Sheraton workers, the issues were benefits cuts and job losses. While it's unknown how well Sheraton's management handled each issue, it stands to reason that an informed employee is a more content employee.

Work with your hotel insurance broker to discuss the processes of dealing with union workforces. In most cases, the hotel insurance broker will recommend a risk management assessment or consultation, which could reduce significantly your exposure to strike-related losses. Also, if your workforce is in danger of striking, check with your hotel insurance broker to understand your coverage options and additional coverage requirements during any strike.