The owners of nearly 250 New York City hotels reached a tentative eight-year contract agreement this month with the Hotel and Gaming Trades Council, covering 25,000 to 30,000 workers and delivering what the union called the biggest wage increases in its history.
Housekeeper pay to surpass six figures
Under the deal, reported by The New York Times, housekeepers’ hourly wages will climb from just under $40 to more than $61 by 2034, a roughly 53% increase. By year six of the contract, annual pay for room attendants will surpass $100,000.
That deal landed the same week Long Island Rail Road workers, whose average total compensation already exceeds $150,000 annually, launched a brief strike before settling with the Metropolitan Transportation Authority, according to The Times. Together, the two labor actions point to a pattern that HR leaders should keep an eye on as unions secure historic compensation gains for roles that have long been classified as lower-wage service work.
The deal also includes continued fully employer-funded healthcare coverage for all 27,000 workers and their families, according to Hotel Dive. Hotel owners are increasing their contributions to the Health Benefits Fund from 27.25% to 30.25% of payroll.
The compensation benchmark
HR leaders outside of New York’s unionized hospitality sector may wonder what this does to the broader labor market. When housekeepers in one of the country’s most visible cities move toward six-figure total compensation, expectations may shift, including for non-union workers in similar roles elsewhere.
The president of the Hotel and Gaming Trades Council has called the New York City industry-wide hotel agreement “the best contract in the history of our union,” and recent reporting says the latest deal could become a benchmark for hospitality negotiations in Chicago, Los Angeles, Boston and other major markets.
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