The hotel union voted yesterday to ratify a new contract, continuing the hotel industry’s status as a model employer, ensuring the World Cup will not be disrupted, and protecting the livelihoods of nearly 400,000 New Yorkers who rely on the tourism economy
Our Bureau
New York, NY
City leaders are applauding the Hotel Association of New York (HANYC) for its new, nation-leading eight-year contract with the Hotel and Gaming Trades Council, AFL-CIO (HTC), which the union voted to ratify yesterday. Despite the hotel industry’s significant economic headwinds, the new contract continues its long history of providing the best wages and benefits in the country, while adding provisions to keep healthcare costs under control.
With the new contract, HANYC also succeeded in staving off a potential hotel union strike ahead of the World Cup that would have been devastating for the city’s economy, hotels, hotel workers, and the 400,000 tourism and hospitality workers hotels support. HANYC and HTC announced the agreement on Monday.
“This contract is a win for our hospitality industry, our economy, and for a city that works best when the people who keep it running can afford to live here too,” said Mayor Zohran Mamdani.
Speaker Julie Menin also applauded the hotel industry for reaching a contract agreement: “Congratulations to the members of the New York Hotel and Gaming Trades Council and to the hotel industry for reaching an agreement on a new contract for workers. I want to thank the hotel industry for their leadership and the important role they play in New York’s economic vitality.”
HANYC President and CEO Vijay Dandapani and HTC President Rich Maroko also celebrated the win.
“We are proud the New York hotel industry will continue to provide the best pay and benefits in the country, especially since we are facing tremendous economic headwinds and the highest taxes in the nation, have lost 20,000 hotel rooms since COVID, and are still below pre-pandemic demand,” said Vijay Dandapani, President and CEO of HANYC.
“The New York City hotel industry, represented by HANYC, deserves credit for working with us to secure the best pay and benefits in the country, as well as protections for workers that should be a national model-all of which will allow our workers and the city’s tourism economy to thrive,” said Rich Maroko, President of the Hotel and Gaming Trades Council.
Organizations and leaders in the hospitality and tourism sectors applauded HANYC for securing the contract.
“The small businesses represented by the Caribbean American Chamber of Commerce, and the many workers from immigrant communities who have built family-supporting careers in tourism and hospitality, will benefit tremendously from this agreement provided by the hotel industry. This contract helps provide the stability needed for the nearly 400,000 New Yorkers who rely on the hospitality industry for work, as well as the thousands of small business owners across the city whose restaurants and shops have the most to gain from a successful World Cup,” said Dr. Jean G. Joseph, President of the Caribbean American Chamber of Commerce.
“The Yemeni American Merchant Association represents thousands of immigrant small-business owners across New York City – the bodegas, delis, and corner stores that anchor working-class neighborhoods in every borough. Our businesses live and breathe alongside the tourism economy that hotels make possible. When hotels are strong and workers are paid fairly, immigrant small businesses thrive. A strike during the World Cup would have been devastating for the Yemeni American community and for the broader network of immigrant entrepreneurs who depend on a healthy hospitality economy. Thank you to the Hotel Association of New York City for getting a fair deal done and protecting the workers, the visitors, and the small businesses that all rely on a strong hotel industry,” said Joel Feliciano, Chief Operating Officer, Yemeni American Merchant Association (YAMA).
“The Garifuna community is one of the largest Afro-Indigenous immigrant populations in New York City, and the Bronx is home to the largest concentration of Garifuna people outside of Central America. Thousands of our community members work in the city’s hotels and across the broader tourism and hospitality industry – they are housekeepers, banquet servers, bellhops, cooks, and front-desk staff who came to this country to build a better life for their families. The wage increases, the continuation of nearly fully employer-paid healthcare, and the new employer-funded housing and childcare benefits in this contract will make a real, immediate difference in households across the Bronx. Thank you to the Hotel Association of New York City for delivering a deal that honors the dignity of immigrant workers and protects the families who depend on this industry,” said José Francisco Ávila, Chairman of the Board, Garifuna Coalition USA.
“The Queens Hispanic Chamber of Commerce represents Latino-owned businesses across the most diverse county in the United States – and our members know that what happens in the hotel industry shapes what happens in Queens. The hotel workforce is overwhelmingly Latino and immigrant, and the wages, healthcare, and new housing and childcare benefits in this contract will reach families across our borough. With the World Cup arriving this summer, a stable hotel industry is essential for the Latino restaurants, shops, and service businesses preparing to welcome the world. Thank you to the Hotel Association of New York City for delivering a contract that protects both workers and the small-business ecosystem they help sustain,” said Eduardo Giraldo, President, Queens Hispanic Chamber of Commerce.
“This contract is a major win for New York businesses and workers who rely on a strong hotel industry, especially the small businesses that are the backbone of the city’s tourism economy. With the World Cup approaching, neighborhood restaurants and bars, retail shops, and other local businesses are preparing to welcome visitors from around the world. This deal provides the stability and certainty needed to help maximize that economic opportunity for them and the workers and families they support. We’re thankful for the hotel industry’s continued leadership in supporting not only hotel workers, but all of the workers that rely on it,” said Frank Garcia, Chairman of the New York Multicultural Business Coalition.
The new union contract includes continued nation-leading pay for hotel workers. Wages for non-tipped workers will increase by $21.20 over the life of the contract, averaging over 5% each year. Other key details of the agreement include:
- Provisions to keep healthcare costs under control.
- The continuation of nearly completely free healthcare for members and their families for the life of the contract.
- A 0.5% increase in employer contributions to the Pension Fund this January, amounting to nearly $11 million that year.
- Establishment of brand-new Housing and Childcare Funds funded by employers over the life of the contract.
- Additional paid time off, fully paid family leave for new parents, and paid time off to vote in local, state, and federal elections.
The ratified contract comes just weeks before visitors arrive in New York for the FIFA World Cup, helping ensure that hotels, hotel workers, and the nearly 400,000 hospitality and tourism workers supported by the industry can benefit from the once-in-a-generation event. With hotel bookings for the tournament period at 18%, down from 26% at the same time last year, the deal helps avoid labor disruptions that could have further discouraged visitors from staying in city hotels and spending at nearby businesses.
About The Hotel Association Of New York City
Founded in 1878, the Hotel Association of New York City (HANYC) is the oldest hotel association in the United States and one of the oldest professional trade associations in the country. HANYC is an internationally recognized leader in New York City’s $11 billion tourism industry, representing nearly 300 of the city’s finest hotels with more than 80,000 rooms and approximately 50,000 employees. Learn more at hanyc.org and savenychotels.com.
