The Hotel Trades Council, a powerful city union, has been pushing legislation to ban Big Apple hotels from contracting out certain front-line jobs, claiming it is necessary to ensure the safety and stability of workers. However, records show that the union itself has been outsourcing work to manage its Manhattan headquarters. Over the past 10 years, the union has spent more than $700,000 on maintenance and cleaning services from outside firms, including non-union companies such as Sterling Cleaning Services and RJR Maintenance Group. Additionally, millions of dollars have been spent on legal, consultant, and computer services per year.
The union, represented by HTC/Unite Here Local 6, owns the building where its headquarters are located through a subsidiary called Hacels, LLC. The chief financial officer of both groups, Marcia Azeez, oversees the financial operations. In addition to the maintenance and cleaning services, the union has also spent significant amounts on computer services, political consulting, legal counsel, and general consultants. The total amount spent on these services in 2023 alone was over $2.1 million.
The proposed hotel legislation supported by the union would require hotels to directly employ core employees such as housekeeping and maintenance workers, rather than contract out these services. Supporters believe this measure could help combat issues like sex-trafficking, as hotel workers who are directly employed are more likely to spot unusual and potentially illicit activities. However, hotel owners oppose the legislation, arguing that it would have a detrimental financial impact on the industry.
Critics of the legislation and the union’s stance on outsourcing accuse the HTC of hypocrisy, as they are advocating for regulations that they themselves do not adhere to. The Center for Union Facts, a watchdog group, criticized the union for its double standard and questioned its true intentions. The Hotel Association of New York City also emphasized the need for hotels to have the flexibility to outsource work for various reasons, including cost control and completing tasks that union labor may not be able to do.
The union defended its outsourcing practices by stating that the comparison to hotels is invalid, as office buildings have different needs and requirements. A spokesperson for the HTC emphasized that the core job of hotel workers is to clean and spot criminal activity, which is why the proposed legislation focuses on directly employing these workers. The union also justified its use of outside services such as lawyers and consultants as common practice to protect against greedy hotel owners and media attacks.
The proposed hotel legislation is sponsored by City Councilwoman Julie Menin, who is aiming to become the next council speaker. The debate over the bill highlights the complex dynamics between unions, hotel owners, and lawmakers in New York City, as they try to navigate issues related to outsourcing, worker safety, and industry regulations.Overall, the controversy surrounding the union’s outsourcing practices and its support for legislation banning hotel outsourcing raises questions about consistency, transparency, and the true motivations behind the proposed regulations.
