Some Big Apple hotel owners pledged to support the City Council’s plan that has been criticized The housing industry has been called an “atomic bomb”. This will increase room rates in the city.
The Hotel Association of New York City has signed off on a proposal that would create new licensing requirements for lodging businesses after some modifications — though some smaller hotels are still sticking to the controversial plan.
The association president previously called the bill an “atomic bomb” and some owners banded together in an effort to raise $20 million. lobby against the plan,
Councilwoman Julie Menin, the bill’s sponsor, said, “We listened to stakeholders, prioritized their feedback, and now look forward to a hearing on this important legislation that protects hotel guests, workers, and the broader community.”
The Hotel Trade Union, a union for the city’s hotel workers, has backed legislation that would ban establishments from contracting out most services — meaning they would have to employ many workers directly.
The latest version of the bill now clarifies that the Department of Consumer Affairs Commissioner cannot cancel a license for temporary service disruption, such as a leak.
Menin, who served as commissioner of the Department of Consumer Affairs from 2014 to 2016, said hotel stakeholders were worried that minor disruptions in service could lead to them losing their licenses.
The council member, a former regulatory attorney, said the bill was intended to increase security at hotels by adding panic buttons and other security requirements.
Other amendments to the bill include loosening subcontracting restrictions to exclude engineers and other technical workers.
The prohibition on subcontracting for front desk personnel and housekeeping still exists, however, an amendment has been added to the bill to grandfather existing subcontracting.
Menin said hotels are required to rehire front desk staff and housekeepers who work for subcontractors under a pre-existing law called the Worker Retention Bill.
But small hotel owners said the amendments do not go far enough.
Mukesh Patel, a New York City hotelier and founding member of the NYC Minority Hotel Association, said the bill would have a “devastating impact.”
“The new bill does nothing to protect our small businesses and their families and will have a devastating impact on our livelihoods,” Patel said in a written statement shortly after the changes were announced.
Kevin Carey, interim president and CEO of the American Hotel & Lodging Association, said that if the bill passed it would cause “significant economic harm” to small hotels.
“Although we appreciate the Councilwoman’s willingness to listen to industry feedback and work toward more sensible outcomes for New York City hotels, the new version of the legislation still includes language that will cause significant economic harm – Primarily small, family-owned hotels and the largely immigrant and minority-owned businesses that support them,” Carey said.
“There is no doubt that if this bill passes, many small businesses in New York City will close and thousands of hard-working New Yorkers will lose their jobs,” Carey said. “We cannot accept any legislation that would lead to such a disparate impact on the entire industry.”
Thirty-six of the chamber’s 51 members have already signed in support of the bill.
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