The Los Angeles Municipal Council voted on Wednesday to approve a scanning of minimum wage increases for workers in the tourism industry, despite the objections of business leaders who warned that the region was already faced with a slowdown in international trips.
The proposal, invoiced by labor leaders as the highest minimum wage in the country, would require hotels with more than 60 rooms, as well as companies that do business at Los Angeles International Airport, to pay $ 30 to their workers by 2028.
This results in an increase of 48% of the minimum wage for hotel employees over three years. Airport workers would see an increase of 56%.
In addition to this, hotels and airport companies would be required to provide $ 8.35 per hour for the health care of their workers by July 2026.
The increase package was approved during a vote of 12-3, the members of the John Lee, Traci Park and Monica Rodriguez council opposed. Because the count was not unanimous, a second vote will be necessary next week.
Rodriguez, which represents the Northeast Valley of San Fernando, told its colleagues that the proposal would cause hotels and airport companies to reduce staff, resulting in job losses. The same thing happens at the Town Hall, elected officials considering cuts for staff to cover the cost of employee increases, she said.
“We are currently faced with 1,600 imminent layoffs because income simply does not correspond to our expenses,” said Rodriguez. “The same goes in the private sector.”
The member of the Council Hugo Soto-Martínez, supporting himself in front of a crowd of unionized workers after the vote, celebrated his victory.
“It’s been far too long, but ultimately, today, this building works for people, not for companies,” said Soto-Martínez, a former organizer of the hotel and restaurant unit local 11.
Hotel owners, business groups and airport concession companies have predicted that salary increases will be new to an industry that has never completely recovered from the cocovio pandemic. They underlined the recent drop in tourism from Canada and elsewhere that accompanied President Trump’s trade war and the tightening of the American border.
Adam Burke, President and CEO of Los Angeles Tourism and Convention Board, said that Canada, France, Germany, Ireland, the Netherlands and the United Kingdom-Nations who send a large number of visitors to Los Angeles-have published official councils on the visit of the United States
“The prospects of 2025 are not encouraging,” said Burke.
Several hotel owners have warned that higher salary will encourage them to reduce their restaurant operations. Some categorically declared that hotel companies would avoid future investments in the city, which has long served as a global tourist destination.
Jackie Filla, president and chief executive officer of the Assn hotel. From Los Angeles, said that she thought hotels will close restaurants or other small businesses in their premises – and, in some cases, will close completely.
In the short term, she said, some will tear their “chamber block” agreements, which will put aside the rooms for the 2028 Olympic and Paralympic Games.
“I don’t think anyone who wants to do this,” said Forla. “Hotels are delighted to welcome guests. They are delighted to participate in the Olympic Games. But they cannot go and lose money. ”
Jessica Durrum, director of Los Angeles Alliance for a New Economy, a defense group for unions of unions, said that business leaders had also issued disastrous warnings from the economy when the previous wage increases were approved – only to be wrong. Durrum, which is in charge of the growing campaign of tourism workers in its group, told the council that a higher salary would only benefit from the region.
“People with more money in their pockets-they spend it,” she said.
Wednesday’s vote won a huge victory to unite the local section 11 here, a powerful political force at the Town Hall. The union is known to have hit doors for favored candidates, spending six figures in some cases to make them elected.
Unite here, the local section 11 had presented the proposal as an “Olympic salary”, which would guarantee that its members have enough money to follow inflation. The union, working with airport workers represented by employees of the International Service Service Service Service Union-United West, also said that companies should not be the only ones to benefit from the Olympic Games in 2028.
The workers of these two unions have testified to their difficulties in paying the increase in household costs, including rent, food and fuel. Some have pleaded for better health care, while others have spoken of having to work several jobs to support their families.
“We need these wages. Please do what is good, “said Jovan Houston, a customer service agent at Lax. “Do it for workers. Do it for single families. Do it for parents like me. “
Sonia Ceron, 38, a dishwasher from the Airline Flying Food Group catering company, said that she had a second job to clean the houses in Beverly Hills for about 32 hours a week. Ceron lives in a small studio in Inglewood, which was difficult for her 12 -year -old daughter.
“My daughter, like every child, wants to have her own room, be able to call her friends and have her privacy. Right now, it’s impossible,” said Ceron.
Political leaders have promulgated a number of wage laws in recent decades. The minimum wage of the hotel, approved by the Council in 2014, currently amounts to $ 20.32 per hour. The minimum wage for private sector employees in Lax is $ 25.23 per hour, once the payment of hourly health care of $ 5.95 required is included.
For almost everyone in Los Angeles, the hourly minimum wage is $ 17.28, 78 cents more than that of the State.
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