Hotel workers at Baltimore’s downtown Hilton reached an agreement with the company for a new union contract after months of bargaining, picket lines and a one-day strike on Labor Day.

The new four-year contract includes wage increases for non-tipped and tipped hotel workers and more funding for workers’ pension and health care funds, according to Unite Here Local 7 President Tracy Lingo. It also includes language to ensure fair pay for banquet workers at the city-owned hotel.

The deal for workers in Baltimore comes amid a national labor push involving thousands of hospitality workers across the U.S., who are demanding better pay and benefits. Lingo called the newly ratified deal a victory for workers.

“This contract sets a new standard for Baltimore hotel workers, and will ensure that our members at the Hilton can go to work proudly with their heads held high for years to come,” she said.

Negotiations for a new contract began in November 2023, but after several months union workers and Hilton failed to reach an agreement, even as the previous contract was extended through August. The lowest-paid workers at the 757-room Hilton had previously only made $16.20 an hour, while those in nearby cities, like Washington, D.C., and Philadelphia, make at least $10 more per hour.

With no deal in place, Baltimore Hilton workers held a daylong Labor Day strike, making it the first strike in 54 years at any hotel in Baltimore. Roughly 200 unionized workers participated in the strike at the Hilton, joining roughly 10,000 workers in eight cities across the country who went on strike over Labor Day weekend. Strikes remain ongoing in Boston, Honolulu and San Francisco, where negotiations have stalled for hotel workers demanding higher wages and better working conditions.

Lingo declined to share an exact dollar amount for how much Hilton workers settled on with the company, but said the union met all of its goals in the new deal.

“This is a really historic contract. We’ve met all of the goals that we set out to meet to change the lives for Baltimore hotel workers and to make sure that we were narrowing the gap with other nearby cities between wages,” Lingo said.

Baltimore Mayor Brandon Scott had previously been open to selling the city-owned Inner Harbor hotel after it struggled financially since the start of the pandemic, and the city has been stuck with annual payments to help cover its debt. In 2023, the city earmarked $7 million for the hotel from its annual budget, in addition to $16 million the property had reportedly already received to help pay its debt.

Despite the hotel’s financial woes, Scott said in a statement Monday that he was “proud” that Hilton and Unite Here reached an agreement that puts hospitality workers first and makes Baltimore more competitive regionally.

“This commitment reflects my promise to work hand-in-hand with labor and business to ensure Baltimore — and especially our city-owned assets — continue to live up to that commitment and support all of Baltimore’s hard-working families,” Scott said.