May 19 (Reuters) - New York City hotel operators and unions have reached an eight-year labour deal covering about 25,000 workers, averting a strike over wages, workloads and staffing levels that had threatened to disrupt the city ahead of the FIFA World Cup, the head of the Hotel Association of New York City said on Tuesday.
Vijay Dandapani, the association’s president and chief executive, said the mood among owners was "overall positive" after weeks of negotiations, though the industry made significant concessions.
"We came a long way from where things were," Dandapani said.
While FIFA, soccer’s global governing body, was not involved in the talks, the prospect of an influx of fans raised the stakes. A union campaign had warned of a possible strike and urged visitors to avoid affected hotels.
The potential walkout was a "very real threat," Dandapani said, noting recent labour actions in U.S. cities including Los Angeles and Boston.
The contract’s full wage and benefit details were not immediately available. Dandapani said a figure of about $200,000 reflected compensation at the end of the agreement, not at the outset.
Hotel owners entered the talks aiming to preserve profitability, arguing New York’s lodging market has not fully recovered from the pandemic. Occupancy remains below 2019 levels and inflation-adjusted room rates have yet to catch up, he said.
He also cited broader pressures, including the war in Iran, tariffs and visa issues.
The deal follows the withdrawal of a proposed city measure that operators said would have sharply raised labour costs by limiting room attendants’ workloads and requiring double pay beyond certain thresholds. Owners estimated it could have lifted wage costs by about 40%.
The new pact will still add costs, though operators expect tourism demand and major events to support revenue.
"We believe strongly in the New York City market," Dandapani said, adding that the city needs to become more affordable for businesses.
(Writing by Angelica Medina in Mexico City; Editing by Sanjeev Miglani)
