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Hotel settlement.

A new 5-year agreement was reached between the New York Hotel and Motel Trades Council and the Hotel Association of New York City, Inc., covering some 20,000 workers at 100 hotels in the city, 4 months before the current contract was due to expire. The contract was opened early for two reasons: the Council's health and welfare funds were reportedly bankrupt and the parties felt it was time to settle a 5-year equal pay lawsuit. The suit was filed in 1985 against 11 New York hotels charging that they paid maids (currently called "female room attendants") less than their male counterparts, housemen (currently called "male house attendants"). Under terms of the agreement, which must be approved by the courts, room attendants' pay will be boosted to equal the rate for house attendants.

Another stumbling block in th-. dispute, considered by the union to be a strike issue, was the companies' proposal for an employee health insurance copayment. Besides dropping the copayment proposal, the hotels agreed to increase contributions to the health and welfare plan to 10.5 percent of payroll on January 1, 1990 (previously, 8.5 percent), 12 percent on January 1, 1991, 13.5 percent on January 1, 1992, 15 percent on January 1, 1993, and 16.5 percent on January 1, 1994. The parties also agreed to create a joint labor-management committee to study cost containment measures and make recommendations to hold down health and welfare costs.

Besides the equal pay settlement and preservation of current health and welfare benefits, the employees will receive a general wage increase of 5.5 percent on August 1, 1990, plus $18 a week for nontipped employees and $12 a week for tipped employees on August 1 of 1991, 1992, 1993, and 1994. Four $200 lump-sum payments, with the first payment on July 1, 1990, and the remaining three on August I of 1991, 1992, and 1993 will be made to employees with at least I year of service on the scheduled dates. Employees with less than 1-year's service receive a lump-sum payment equal to $16.67 for each month of service. In addition, the maximum monthly pension rate will increase $300 (to $600).

The companies also pledged neutrality in future organizing drives by the Council's unions at hotels the Association's members build, purchase, or open in New York City.
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Title Annotation:Developments in industrial relations; New York Hotel and Motel Trades Council-Hotel Association of New York City, Inc. agreement
Author:Cimini, Michael H.
Publication:Monthly Labor Review
Article Type:column
Date:May 1, 1990
Words:390
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