After a six-hour meeting, the Los Angeles City Council voted 12-3 to increase the hourly wage of approximately 23,000 hotel and LAX workers to $30. The $30 minimum wage will go into effect by July 2028, when the city will host the Summer Olympics.
Wages will begin rising this next year.
There will be an additional healthcare benefit starting at $8.35 per hour for employees of businesses that do not provide health insurance.
Companies Don’t Get a Vote
Businesses say the large wage increases will lead to closures, scaling back employees, and hotels backing out of agreements put in place for the 2028 Olympics. It could threaten the city’s budget. Some hotels say they’ll become shelters instead.
“Payroll for hourly employees alone will increase by more than 70% from current costs by the time the $30/hour wage is achieved in 2028,” wrote the Los Angeles Chamber of Commerce in opposition. “[Transient Occupancy Tax] revenue is the city’s largest unrestricted General Fund revenue source. This revenue is already in decline.”
“The proposed ordinance will only further reduce revenue at a time when the city is facing a half-billion-dollar deficit,” the Chamber of Commerce said.
During a meeting that lasted more than five hours, council members touted the economic benefits of a higher tourism wage, saying it would prompt workers to spend more money across the region — and, as a result, spur the creation of thousands of new jobs.
“When we support low-wage workers, they can contribute to our economy and bolster the city,” said Councilmember Ysabel Jurado, who took office on Monday and represents part of the Eastside.
According to the LA Times, it was spearheaded Unite Here Local 11, which represents hotel and restaurant workers, and United Service Workers West, a local of the [hardcore leftists] Service Employees International Union whose members work at Los Angeles International Airport.
Companies have no rights in California. Politicians can do whatever they want, and it’s never pro-capitalism.
Subscribe to the Daily Newsletter
wpDiscuz
