What's Happening?
In 2025, the hotel industry has seen a significant decrease in union activity compared to the previous year. While over 10,000 hotel workers were on strike in 2024, only about 400 workers from a single hotel have been involved in similar actions this year. The notable exception is the ongoing strike at Hilton Americas-Houston, where workers are demanding better wages. Despite the overall decline, industry experts warn that underlying tensions remain, and hotel owners are advised to stay vigilant. A survey by Littler indicates a decrease in union organizing, but many large employers have updated their labor relations strategies.
Why It's Important?
The reduction in union activity suggests a temporary calm in labor relations within the hotel industry. However, the underlying tensions and potential for future strikes could impact hotel operations and profitability. The industry's response to these dynamics will be crucial in maintaining stability and avoiding disruptions. The political landscape, including changes under the Trump administration, has influenced union activities, highlighting the intersection of labor relations and policy. The potential for a resurgence in union activity, especially with upcoming contract expirations, could lead to significant changes in labor costs and operational strategies for hotels.
What's Next?
The current lull in union activity may not last, as several high-profile citywide union contracts are set to expire ahead of major events like the 2028 Olympics in Los Angeles. Unions are pushing for industry-specific minimum wages, which could lead to further negotiations and potential strikes. The American Hotel & Lodging Association's efforts to repeal wage rules have failed, indicating ongoing challenges for the industry. Stakeholders will need to navigate these developments carefully to mitigate potential economic impacts, including job losses and hotel closures.
