- NYC hotel housekeepers set to earn more than $100,000 a year.
- Eight-year contract raises wages by more than 50 percent.
- Deal covers nearly 250 hotels represented by HANYC.
HOUSEKEEPERS AT UNIONIZED New York City hotels are set to earn more than $100,000 a year under a labor agreement between hotel owners and workers. The eight-year contract raises wages by more than 50 percent and averts a summer strike ahead of the FIFA World Cup and America 250 celebrations.
The agreement covers nearly 250 hotels represented by the Hotel Association of New York City and 30,000 workers represented by the Hotel and Gaming Trades Council, according to The New York Times. Hotel owners will continue covering health-care costs for 27,000 union members and their families.
“Wage increases were our primary focus in this contract cycle because the cost of living for our members has been increasing so dramatically,” said Rich Maroko, the union’s president.
The agreement comes six weeks before the current labor contract expires. Meanwhile, union members are scheduled to vote on the contract after the hotel association board approved the deal.
Under the agreement, union housekeepers’ hourly pay would rise from under $40 to more than $61 by 2034, the Times reported. Hotel workers would earn more than $100,000 annually by the sixth year of the contract and about $110,000 by its end.
The wage package amounts to a 52 percent increase over the contract period or compounded annual growth above 5 percent. The agreement also preserves employer-funded health coverage for hotel workers and their families.
Union officials also launched a campaign warning of labor disruptions during the World Cup. They pushed to raise New York State’s maximum weekly unemployment benefit to $869 from $504 to reduce the financial impact of a strike on workers.
The agreement comes amid labor pressure in New York City. Failed negotiations this year led to strikes by nurses, university faculty and rail workers. A strike by doormen and apartment building workers was avoided last month after a wage agreement.
“We are proud the New York hotel industry will continue to provide the best pay and benefits in the country,” said Vijay Dandapani, the hotel association’s president.
He said hotel operators continue to face “tremendous economic headwinds” along with taxes, operating costs and the loss of 20,000 hotel rooms since the coronavirus pandemic.
Industry leaders also argue tourism demand has yet to recover fully from disruptions caused by Covid. Analysts said higher labor costs could lead hotels to raise room rates to offset expenses, The Times reported.
New York City hotels already have the country’s highest average room rates among major cities at about $335 a night, according to hospitality market research cited in the report. Occupancy rates stand at about 84 percent.
The contract offers larger increases than the union’s previous deal, which began in 2012 and included annual raises of 3.5 percent to 4 percent. The agreement was later extended by seven years.
The hotel industry has argued inflation, taxes and regulations are increasing pressure on businesses. In April, the industry launched a $500,000 campaign called “Save NYC Hotels.”
In January, New York City Mayor Zohran Mamdani announced a rule banning hidden hotel fees and undisclosed credit card holds or deposits, effective Feb. 21. The rule applies to hotels and booking platforms advertising to New York consumers, regardless of location.
