NYC Hotels, Unions Tentatively Approve Deal

A tentative deal between New York hotels and labor unions was struck on Friday, just two weeks before the current contract was set to expire, the parties announced today.

The Hotel Association of New York, which represents more than 100 hotels in the city, came to terms with labor unions late on Friday, staving off the possibility of a work stoppage. Terms of the deal were not disclosed.

The deal may ease future negotiations between hoteliers and union officials in other cities, as contracts are scheduled to terminate this summer. "We think the uneventful and quick negotiations in New York City bode well for upcoming negotiations," wrote Bear Stearns analyst Joe Greef in a research note.

Talks are underway in Hawaii, where the hotel labor contract expires July 1. While the crux of labor discussions centers on more money for hotel employees, workers in Waikiki are asking for work-related concessions. Citing additional workload borne out of the "bed wars," which necessitates daily top-bedding changes, housekeepers are asking to work in teams of two, rather than alone.