The Hotel Trades Council (HTC), a major city union advocating for legislation to ban New York City hotels from outsourcing certain front-line jobs, has itself been outsourcing various services for years. Records reveal that HTC has spent over $700,000 on outside contractors for maintenance and cleaning services at its Manhattan headquarters over the past decade.

This includes more than $240,000 paid to Sterling Cleaning Services, a non-union firm, in 2022-2023, and over $53,000 to another non-union company, RJR Maintenance Group.

In addition to cleaning services, HTC has allocated substantial amounts to non-union firms for other essential services. In 2023 alone, the union spent $109,296 on computer services, $83,000 on political consulting, $2,149,365 on legal counsel, and $702,568 on general consulting.

The union manages its properties at 701-707 Eighth Ave. and 709-715 Eighth Ave. through a subsidiary called Hacels, LLC, with Marcia Azeez serving as the chief financial officer for both the HTC and Hacels.

The proposed legislation, backed by HTC, seeks to mandate that hotels retain core employees such as housekeeping and maintenance staff directly, rather than outsourcing these roles. Proponents argue that the bill would enhance security and aid in the fight against issues like sex trafficking, as in-house staff might be better positioned to detect and report suspicious activities.

However, critics argue that the union’s stance on outsourcing reveals a double standard.

They point out that while HTC is pushing for restrictions on hotels’ ability to outsource, it has routinely outsourced key services for its own operations. Charlyce Bozzello, communications director of the Center for Union Facts, criticized the union for this apparent hypocrisy, suggesting that their actions undermine the credibility of their advocacy.

Vijay Dandapani, president and CEO of the Hotel Association of New York City, contends that the flexibility to outsource is essential for managing costs and maintaining operational efficiency in the city’s expensive hospitality sector. He highlighted that deep cleaning tasks and certain types of HVAC maintenance are commonly outsourced in both union and non-union hotels.

Dandapani described the proposed legislation as a “nuclear bomb” for the industry, stressing that many hotels, particularly smaller ones in the outer boroughs, rely on outsourcing to manage high operational costs.

In response to the criticism, HTC spokesman Austin Shafran defended the union’s use of outside services, emphasizing that the comparison between a union’s office building and a hotel is not apt. He argued that office buildings and hotels serve different functions, with hotels requiring a core workforce directly employed by the hotel to handle cleaning and security tasks.

Shafran also pointed out that employing outside legal and consulting services is standard practice, particularly in defending against perceived attacks and managing complex issues.

City Councilwoman Julie Menin, who sponsors the bill, is positioning herself as a candidate for the next council speaker. The proposed legislation reflects her commitment to reforming hotel labor practices in New York City, although it faces significant opposition from industry stakeholders and critics of the union’s approach.