Page 5 -- (Labor Pains - The Birth of a Contract)

Hotel workers' Social Security benefits are complicated because many of them recieve part of their income in gratuities or "tips." For years, these workers were unable to have that income credited toward their benefits. The union took up the issue and in 1962, the Hotel Association agreed that beginning June 1, 1963, wages and tips would total at least $70 a week as a basis for Social Security payments. However, the Social Security Administration ruled this plan illegal. In 1964, President Jay Rubin led a "Tip Worker March on Washington," which changed the mind of the Social Security Administration and won approval of the "$70 plan." And two years later Congress enacted a law granting "tip" workers won full Social Security credit on all gratuity income.

Jay Rubin and workers at the Social
Security Administration.
1953 Membership Meeting of Local 6 at
Manhattan Center.

New York's hotel workers have shown enthusiastic support for the union and its programs. In 1962, the hotel workers had to once again demonstrate their unity and strength when the employers tried to back down after agreeing to contract terms, including the 35-hour week. The members showed their support for the union's efforts and the contract was upheld.

Rally at the Hotel Plaza.
 

 

This is the story of the first contract of the Hotel & Motel Trades Council and the Hotel Association of New York and of the impact is has had on the lives of thousands of hotel workers and their families.

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