Q&A
Julie Menin questions Mr. Weil about the impact of subcontracting ban on wages
1:22:19
·
81 sec
Council Member Julie Menin asks Professor David Weil about the potential impact of the subcontracting ban on wages for hotel workers. Weil explains the expected positive effects of the ban on worker compensation and productivity.
- Discusses the quick positive impact on wages after removing subcontracting
- Explains how higher wages can benefit both workers and hotels
- Highlights the relationship between higher wages, lower turnover, and increased productivity
Julie Menin
1:22:19
Thank you so much.
1:22:20
And, Mister Wahl, the work that you have done, the academic research, which I have read through, is incredibly compelling and really seminal on this issue.
1:22:31
In your opinion, when we have the subcontracting that that the ban that we have that is in this bill on housekeeping and front desk staff How quickly will that result in rising wages for workers?
David Weil
1:22:50
Thank you, Chairman, and I think the answer to that, it could be very, very quickly, wages could respond to that.
1:22:57
I think in general, the evidence shows that one of the reasons that wages are pushed downward when you've had subcontracting these.
1:23:07
You have so many people who wanna make their overhead and their profit margin between them Once you remove that, the ability of a hotel to actually compensate workers to labor standards at higher level of wages, therefore increases.
1:23:23
And that can benefit the hotel too because Higher paid workers tend to turnover much less and be more highly productive and and have higher quality.
1:23:33
So it can benefit ultimately workers and higher wages rather quickly and also benefit at both times of the productivity.
