New York City hotel workers have ratified a new eight-year labor contract, averting the threat of a strike ahead of the FIFA World Cup and securing updated wages and benefits for thousands of employees, industry and union officials said Thursday.
The agreement between the Hotel Association of New York City (HANYC) and the Hotel and Gaming Trades Council, AFL-CIO (HTC), was approved by union members Wednesday. The deal comes as the city prepares to host World Cup visitors this summer and amid ongoing economic challenges in the hospitality sector.
Mayor Zohran Mamdani said the contract supports both workers and the city’s broader economy. “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,” he said.
City Council Speaker Julie Menin also welcomed the agreement, calling it an important step for workers and the city’s economic stability.
Under the contract, wages for non-tipped hotel workers will rise by $21.20 over eight years, averaging annual increases of more than 5%. The agreement maintains employer-funded health coverage for workers and their families and includes measures aimed at controlling healthcare costs. Employers will also increase contributions to the union pension fund and establish new funds for housing and childcare.
Additional provisions include expanded paid time off, fully paid family leave for new parents, and paid leave to vote in elections.
HANYC President and CEO Vijay Dandapani said the agreement preserves what he described as industry-leading pay and benefits despite high taxes, reduced hotel capacity since the COVID-19 pandemic, and demand that has not fully recovered.
HTC President Rich Maroko said the contract includes worker protections that could serve as a national model while supporting the city’s tourism economy.
Business and community groups representing immigrant and small-business constituencies said the agreement would provide stability for workers and employers tied to the tourism sector, which supports an estimated 400,000 jobs across the city.
The deal also eliminates the possibility of a labor disruption during the World Cup, which industry leaders warned could have harmed hotels and nearby businesses. Recent reports have shown hotel bookings for the tournament period lagging behind last year’s levels.
The Hotel Association of New York City, founded in 1878, represents nearly 300 hotels with more than 80,000 rooms and about 50,000 employees.
Susan Shrestha
View More PostsSusan Shrestha is a Europe-based journalist. He covers a wide range of topics, from local matters to global affairs. Shrestha previously worked as a reporter for Khasokhas in Nepal.
