New York City Targets Hotel Labor Sub-Contracting
Skift Take
A proposed bill in New York City aims to ban nonunion hotels from outsourcing key functions, potentially disrupting hotels that subcontract consumer-facing work to firms that pay employees lower wages for tasks like housekeeping and security.
The DJIA fell 49 points, Nasdaq was up 12, the S&P 500 rose 4 points, and the 10-year treasury yield was down .02 to 4.18%. Lodging stocks were modestly higher. BHR traded up to a new 52 week high but AHT was down -7% on the day.
A new bill that would regulate New York City’s nonunion hotels is sending shock waves through the lodging market, where hotel owners say it will upend their business, according to the Wall Street Journal. The proposed legislation would ban nonunionized hotels from contracting out most of their functions, such as housekeeping, cooks and bartenders, and security, which many of these hotel operators now outsource. Subcontracted agency staff typically earn less than full-time hotel employees. Officials in the Hotel and Gaming Trades Council, the union representing hotel staffers, say the bill is necessary to protect workers and shut down a small subset of hotels rife with drugs an
