SAN JOSE, CA— Labor strife in the hotel industry is moving down the Coast from San Francisco to San Jose where unionized workers are now in talks with three South Bay hotels. The major issue here is health care insurance and the employers would like employees contribute more to the coverage. The union has warned this past week that the hotel labor strife entering its ninth month in San Francisco could spread to San Jose if hotels here follow through on threats to make employees pay significantly more for health care coverage. The hotel workers say their wages are so low they cannot afford to pay more. Earlier this week, employees marched on two of the three hotels now in contract negotiations. The union has been in negotiations since contracts expired Dec. 31 with the San Jose Hilton and Towers, the Wyndham Hotel San Jose and the Four Points by Sheraton in Sunnyvale. UNITE HERE is bargaining on behalf of 350 housekeepers, waitresses, bellhops, cooks, desk clerks and maintenance workers. Fernandez said hotel workers currently dont have to pay for their individual health insurance coverage but must pay about $70 a month for family coverage. Under the hotels latest offers, he said, employee payments for family coverage could more than quadruple to as much as $300. Morever,a labor contract is set to expire May 31 at a fourth hotel, the Hyatt San Jose. The union represents about 150 workers there. Health care is expected to be a major issue in the contract talks, said Don Corbosiero, general manager of the 512-room Hyatt San Jose.