New York hotel workers union reaches deal to avoid strike ahead of World Cup

An eight-year contract between a New York hotel workers union and a hotel industry association increases wages and benefits while preventing threatened strike action during the FIFA World Cup. The agreement covers 27,000 hotel workers across 250 hotels and provides 50% wage increases, free family healthcare, higher pension contributions, new benefit funds, and expanded workplace rights. Housekeepers’ pay rises from nearly $40 per hour to more than $61 per hour over eight years. The deal is announced as other labor actions affecting rail service are called off. Hotel industry leaders cite economic headwinds, high taxes, and reduced room demand since the COVID-19 pandemic, with World Cup bookings not meeting expectations.

"An eight-year contract agreement between the Hotel and Gaming Trades Council representing 27,000 hotel workers and the Hotel Association of New York City, which represents 250 hotels, establishes 50% wage raises along with free family healthcare, increased pension contributions, new benefit funds and expanded rights at work, union officials said."

"The hotel workers' deal will raise the housekeepers' pay of nearly $40 an hour to more than $61 hourly over eight years. Wage increases were our primary focus in this contract cycle because the cost of living for our members has been increasing so dramatically, the union's president, Rich Maroko, told the New York Times."

"But Dandapani also cautioned that the group's members were facing tremendous economic headwinds and exceptionally high taxes. He said 20,000 hotel rooms had been lost since the Covid-19 pandemic, and demand had not fully recovered. Anticipated demand for hotel rooms for the World Cup has failed to materialize."

"Data from the commercial real estate company CoStar shows that bookings at many hotels in New York City area are only about one-third filled, or nearly 12% below levels in 2025. New York City's mayor, Zohran Mamdani, said recently that soccer fans may be waiting until second-round matchups are finalized."

Read at www.theguardian.com