I just read an interesting article in the New York Times regarding the recent contract extension between the Hotel Association of New York (about 250 top city hotels) and the Hotel and Gaming Council (representing about 27,000 workers). It is an 8 year contract that will see housekeepers earn more than $100,000 per year by the conclusion in 2034. Calm down, this is actually not surprising.

These are the top New York hotels where the average nightly room rate is an average of $335 per night. New York is a top destination and cost of living continues to soar there. I can attest to that having lived there for a quarter of a century. It is tougher every year for workers to afford to live there. I have bothe been a member of a union and in some jobs represented management in their oversight and negotiating with unions. Quite simply management makes some tough calculations. How much would it cost to hire non union workers with the same skills in their market.

Here, clearly, management knows it can and will pass along the higher costs to consumers and that could mean you if you are traveling there. Though likely if you read this blog, you will not routinely pay those kinds of costs. Meanwhile about 27,000 workers will be able to afford to live in the city and raise a family. This is a good thing.