The announcement in September of Squaw Valley USA and Alpine Meadow’s merger — which created two mountains under one pass and the largest ski area in the U.S. — may be a dream come true for skiers and riders. But it also raised some questions. Specifically, since JMA Ventures no longer controls Alpine, which was sold to a newly formed company, what happens to Alpine employees? While some Alpine workers are concerned about their jobs, both ski areas say no employees will lose their jobs due to the merger.
What made Alpine Meadows employees nervous about their job security was a letter sent out by JMA to all of its workers at the end of September. The letter explained that the merger would be complete in mid-November and that, as a result, JMA could no longer offer employees a job.
‘JMA … will stop managing the operations of Alpine Meadows and, accordingly, will not be in a position to offer you employment for the upcoming ski season,’ stated the letter, which was signed by Kathy Chan, JMA vice president of human resources. ‘If you are interested in possible new employment with Alpine Meadows after the transition to new ownership, we understand that the new owners are holding a job fair.’
The letter angered some employees, who felt it lacked reassurance of future employment with Squaw Valley Ski Holdings, the company formed to own and operate the two mountains. (JMA is a minority owner in the new company, while KSL Capital Partners is the majority owner.)
‘Essentially, the letter said ‘so long, it’s been good to know you,’’ said one eight-year Alpine employee who asked to remain anonymous. ‘It could have said ‘we will try to hire back as many people as we can.’ My concern is that in these economic times it seems pretty arrogant not to give any more assurance.’
The letter sent out by JMA was required by California State law, the Worker Adjustment and Retraining Notification Act, known as the WARN Act, which was designed to protect employees by requiring employers to give notice 60 days in advance of plant closings or a mass layoff.
JMA founder Art Chapman said the wording of the letter was unfortunate, but it was prepared in accordance with state law, which ‘fails to recognize and take into consideration that these are human beings with families and are proud of what they have accomplished.’
Chapman, who said he personally looked at the first draft of the letter, insisted that it be changed.
‘It was a lot worse the first time,’ he said.
But not all Alpine employees were put off by the letter. Sean McAllister, a ski patroller at Alpine since 1994, said he perceived the letter simply as a formality and was not worried about his job.
‘They are not rehiring us because they don’t own the ski area,’ he said. ‘I don’t know what’s going to change except the name of the company that owns the mountain. For ski patrol, it will stay exactly the same for now.’
Daphne Haugh, director of human resources at Squaw Valley Ski Corp., said that the merger would not have any real impact on employees at either mountain.
‘No jobs will be terminated because of the merger,’ said Haugh, who was in the process of contacting every year-round Alpine employee and giving them job offers. ‘The hourly, seasonal people reapply each year. Nothing is changing.’
Haugh said that the structural issues would be worked out after the merger is finalized, sometime around Nov. 15. But she doesn’t foresee any major changes at Squaw or Alpine.
‘Both areas are super unique, and we celebrate both,’ she said. ‘Both have two separate brands and clientele and staff. We plan to work together as a team and be one big happy family.’
Chapman said that that the major issue that will arise as a result of the ski resort consolidation will not be about who is going or staying, but about seniority.
‘We will have the same number of vehicle fleets so we have to have the same number of people,’ he said. ‘The question is, who is senior to whom?’
Chapman anticipates retaining all of JMA’s 1,000 Alpine and Homewood employees. Any workers not able to keep their job at Alpine will be offered a position at Homewood, which was not included in the merger.
‘The ones that don’t stay at Alpine we are looking at moving to Homewood,’ Chapman said.
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