The Hotel Association of New York City (HANYC) is set to introduce new benefits for employees of the NYC hospitality industry, following talks with the New York Hotel Trades Council.

HANYC has agreed to implement a six-year wage increase contract from 1 July 2006, comprising a 4 per cent increase in each of the first three years followed, by a 3.5 per cent increase in each of the remaining three years. The benefits will cover employees in more than 100 NYC hotels.

In addition, HANYC will increase pension fund contributions by 2 per cent of payroll, and family medical benefits will be maintained throughout the life of the contract, with no premium-sharing nor co-payments by members of the New York Hotel Trades Council. Union hotel workers will also receive an additional sick day and longer holiday entitlement.

HANYC CEO Joseph Spinnato said: “We are very pleased to have reached an agreement on a new labour contract with the council. Both sides have worked long and hard to negotiate a fair and balanced contract which continues to recognise the hard work and dedication of New York City hotel employees.”

Peter Ward, president of the Hotel Trades Council, added: “This is a good agreement for both our members and New York City hotels. It will allow six years of productivity and labour peace in our hotel industry.”

Established in 1878, HANYC has a membership comprising more than 200 hotels in New York City, representing more than 30,000 employees. Details: www.hanyc.org