The 250 caddies who ply their trade at California’s iconic Pebble Beach Golf Links face a big decision today, one that could have big ramifications at your favorite golf destinations.
They’re voting on whether to unionize.
It’s the first known attempt by elite caddies at a high-level golf resort to join a union in order to secure collective bargaining rights.
Today’s vote is a major turning point in a nearly five-month-long dispute between the caddies, the resort and an organization called CaddieMaster, a third-party company that administers the caddie program at Pebble.
This one requires some background and context so let’s dive in.
Why are the caddies holding this vote?
For decades, caddies at Pebble Beach have worked as independent contractors, a typical arrangement for caddies at major courses. Each caddie was paid a flat fee per loop plus their tip received directly from the golfer. That flat fee represented most of the caddie fee the golfer paid directly to Pebble.
This past February, however, CaddieMaster informed the caddies that as of May 1, the system would be changing. The caddies would no longer be independent contractors. Instead, they would be absorbed as full-time CaddieMaster employees and paid an hourly wage as opposed to a flat fee. The tip structure remained in place. In addition, CaddieMaster would implement a new set of work rules, including scheduling protocols and dress codes.
Our sources tell us the caddies are upset about two specific issues. First is that these changes were imposed, not negotiated. The caddies have long had their own board of representatives that worked with CaddieMaster and Pebble to set policy and resolve any problems or concerns. They claim their board was not consulted about these changes.
Second, and more importantly, the caddies say the new work rules and hourly wage rate represent a pay cut that is being forced upon them.
These changes also come at a time when Pebble Beach is raising caddie fees for golfers.
As you’d expect, CaddieMaster rejects the notion that caddies are taking a pay cut.
Points and counterpoints
Today’s vote is whether the caddies should join Unite Here Local 19. Unite Here represents hotel, casino and sports arena workers in the U.S. and Canada including hospitality workers at the Pebble properties.
Earlier this spring, the caddies signed a petition declaring their intention to unionize and presented it to CaddieMaster. If a simple majority vote in favor today, the caddies will be represented by Unite Here Local 19. The union will then be authorized to negotiate a contract with CaddieMaster.
According to sources, the new work rules pay the caddies anywhere from $17.54 to $24.98 per hour before tips. The minimum wage in California is $16.90 per hour. Under the old independent contractor system, a caddie would get most of the caddie fee a golfer would pay to Pebble. For a double-bag loop, a caddie could earn approximately $188 plus tip. Under the new structure, the caddies say that has dropped to less than $130 plus tip, despite the higher caddie fee.
CaddieMaster disputes that assertion. It says that in the most recent pay period, gross caddie pay increased by more than 15 percent with some caddies earning up to 50 percent more. CaddieMaster also says that, as employees, caddies have income and Social Security taxes withheld by the company, as any employee. Under the independent contractor system, caddies were responsible for making their own tax payments at the end of the year. Additionally, CaddieMaster says caddies will be eligible for a 401(k) plan with company contributions and have access to health coverage, paid sick leave and cell phone and uniform allowances.
“CaddieMaster is proud to have voluntarily and proactively transitioned our caddies to valued employees,” CaddieMaster CEO Dan Costello said in the prepared statement. “Caddies are now receiving better pay and valuable new benefits.”
The caddies’ conundrum
If you’ve ever been to Pebble or any other golf destination that offers caddies, you know your caddie is central to your overall experience. You spend upwards of five hours walking the grounds with them. They’re a coach, friend, companion, storyteller and therapist who also can read greens.
Ask any caddie and they’ll tell you the job is about the lifestyle. The caddie life is one of freedom and flexibility. It’s also one they feel is being taken away from them. Instead of it being a job they love, the fear is that it’s now just a job.
“Caddies are an important part of delivering the special experience that defines Pebble Beach,” says Pebble CEO David Stivers. “That has been true for over a century and is true today. The goal is to create a caddie program that is better for caddies and better for guests.
“We recognize the rollout of the new program was difficult, and there were several significant issues raised. CaddieMaster knows it, takes it seriously and is working to get this right.”
It’s important to remember when reading that statement that the caddies may be employees of CaddieMaster but CaddieMaster is employed by Pebble Beach.
“CaddieMaster is proud to have voluntarily and proactively transitioned our caddies to valued employees,” adds Costello. “We believe the best outcomes for caddies are achieved through collaboration and communication without an outside third party between those conversations.”
What happens after the vote?
Today’s union vote is held by secret ballot. If the caddies vote in favor of the union, Unite Here Local 19 and CaddieMaster will begin the collective bargaining process. Both sides will be legally required to bargain in good faith.
First contracts in these situations can take as long as 18 months to hammer out.
In reality, it’s unrealistic for caddies to expect a return to the old independent contractor system. The best they can hope for is a louder voice in shaping a new work system. They’re likely to get concessions on items such as call times, loop assignments and seniority rights as well as formal protections for grievances, discipline standards and scheduling rules.
As for compensation, the two sides could negotiate a new hybrid pay system that combines hourly wages with guaranteed minimums as well as greater transparency on payouts.
A strike or lockout, while always a possibility, is a last resort.
Why the vote today matters
Our sources tell us some caddies are reporting income drops of 30 percent or more since the switch. CaddieMaster, as mentioned, disputes that. It’s important to note, however, that CaddieMaster is a for-profit business. It’s owned by Troon, the largest golf course management company in the world. CaddieMaster is a turnkey provider. Its services include recruitment and hiring, training and certification, daily operations, payroll, human resources management, customer service and quality control.
Caddiemaster operates caddie programs at Pinehurst, Whistling Straits and 70 other private clubs and public access resorts.
If the union vote succeeds, it will set a fascinating precedent. High-level destinations such as Bandon or the Old Course use a traditional caddie system. Bandon manages its system in-house and caddies receive a sizable chunk of the caddie fee plus their tip. At the Old Course, caddies are independent contractors. They keep nearly all of the caddie fee plus the tip.
If the new work rules imposed at Pebble become the norm, it’s a clear indication that resorts will consider their caddie program to be a new revenue stream as opposed to an experiential service. If that spreads to other properties, those caddies could consider unionizing as well.
In the end, this may be as much about caddies losing freedom and changing workplace conditions as it is about money. Make no mistake, when you mess with someone’s money, you’re poking a very cranky bear.
However, mess with someone’s way of life and you poke something deeper. No one likes it when their work routine changes. If you’ve enjoyed the freedom to make your schedule and develop ongoing relationships with golfer-clients, it’s natural to resist when someone tries to take it away.
In some cases, you might resist like hell.
Leave A Reply