New York City aims to regulate non-union hotels by banning the outsourcing of key functions such as housekeeping and food and beverage services. This move is intended to make it easier for workers to unionize, as hiring full-time employees is often more expensive than contracting out specific hours.
This regulation could render non-union hotels less competitive, making it less appealing to remain non-union and facilitating the organization of hotel staff. However, increasing operational costs may force some properties out of business in a city where hotel room availability is already limited.
Several factors contribute to this tight inventory. Over 10% of hotel rooms have been repurposed to house migrants, Airbnb has been largely banned, and new hotel construction faces significant restrictions. Hotel workers' unions have an effective veto over new projects.