Massachusetts threatens Hyatt boycott over workers

ATLANTA, Sept 23 (Reuters) - The governor of Massachusetts threatened to halt state business with Hyatt Hotels Corp on Wednesday unless the hotel operator rehires 98 Boston area housekeeping staffers whose jobs were outsourced.

Hyatt Hotels said it outsourced the jobs in late August in an effort to cut costs at its Boston hotels where revenues have dropped.

Massachusetts Gov. Deval Patrick sent a letter to Hyatt Chief Executive Mark Hoplamazian this week asking that the workers be reinstated.

"Barring that, I will direct all state employees not to use Hyatt when traveling or for other purposes for the foreseeable future," Patrick wrote.

Hyatt, whose rivals include Marriott International (MAR.N: 行情), said Patrick's move could put more Hyatt jobs at risk. It also said it had formed a task force to provide retraining and other support to the affected workers.

"We are very disappointed by the governor's decision to threaten a boycott of our hotels since it directly threatens the 600 associates who work in Hyatt properties and who live and work in Massachusetts at a time when businesses and individuals are cutting back on travel during the worst economic period we have seen in decades," Phil Stamm, General Manager of Hyatt Regency Boston, said in a statement.

Hyatt, a private company, in August filed to raise as much as $1.15 billion in an initial public offering. (Reporting by Karen Jacobs, editing by Leslie Gevirtz)