May 19 (Reuters) – New York City \u2060hotel \u2060operators and unions have reached \u2060an eight-year labour deal covering about 25,000 workers, averting a \u200bstrike over wages, workloads and staffing levels that had threatened to disrupt the city \u200cahead of the FIFA World Cup, \u200cthe head of the Hotel Association of New York City said on \u2060Tuesday.\u00a0<\/p>\n
Vijay Dandapani, \u2060the association\u2019s president and chief executive, said the mood among owners \u200bwas “overall positive” after weeks of negotiations, though the industry made significant concessions.<\/p>\n
“We came a long way from where things were,” Dandapani said.<\/p>\n
While FIFA, soccer\u2019s global governing body, was not \u200binvolved in the talks, the prospect of an influx of fans raised the \u2060stakes. \u2060A union campaign had warned \u2060of \u200ba possible strike and urged visitors to avoid affected hotels.<\/p>\n
The potential walkout was a “very \u200breal threat,” Dandapani said, \u2060noting recent labour actions in U.S. cities including Los Angeles and Boston.<\/p>\n
The contract\u2019s 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.<\/p>\n
Hotel owners \u2060entered the talks aiming to preserve profitability, arguing New York\u2019s lodging market \u2060has not fully recovered from the pandemic. Occupancy remains below 2019 levels and inflation-adjusted room rates have yet to catch up, he said.<\/p>\n
He also cited broader pressures, including the war in Iran, tariffs and visa issues.<\/p>\n
The deal follows the withdrawal of a proposed city measure that operators said would have sharply raised labour costs by limiting room attendants\u2019 workloads and requiring double pay beyond certain thresholds. Owners estimated it could have lifted \u2060wage costs by about 40%.<\/p>\n
The new pact will still add costs, though operators expect tourism demand and major events to support revenue.<\/p>\n
“We believe strongly in the New York City market,” Dandapani said, adding that the city \u200bneeds to become more affordable for businesses.<\/p>\n
(Writing by Angelica Medina \u200bin Mexico City; Editing by Sanjeev Miglani)<\/p>\n
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