Friday

06-20-2025 Vol 1997

Los Angeles Union Proposes Minimum Wage Increase Amid Industry Backlash

In a significant move to bolster workers’ rights, Unite Here Local 11 has filed proposals aimed at raising the minimum wage for all workers in Los Angeles to $30 per hour by July 2028, while also putting a spotlight on the approval process for major hotel and event center developments.

This initiative comes in direct response to a campaign initiated by the L.A. Alliance for Tourism, Jobs and Progress — a coalition of hotel and airline businesses — which seeks to overturn a recent city ordinance that increases wages for hotel and airport workers to $30 an hour.

The union’s first proposal aims to elevate the minimum wage across the city, seeking to address concerns raised by industry representatives that the tourism sector has been unfairly targeted.

Kurt Petersen, co-President of Unite Here Local 11, underscored this sentiment, stating, “We agree that all workers should make more.” He expressed hope that industry groups opposing the wage hike would find common ground in this broader approach.

The second proposal is designed to allow voters direct input regarding the construction of large hotel projects and major expansions, as well as substantial event centers like stadiums and convention venues.

According to union officials, this measure is intended to ensure that development projects do not overshadow critical housing needs in the city.

If approved, any new hotel development with 80 or more rooms, or expansions of the same size, would require voter approval before receiving construction permits. Additionally, event venues exceeding 50,000 square feet or seating 1,000 or more guests would similarly need public backing, especially if they are associated with city subsidies.

The proposals arrive shortly after the Los Angeles City Council approved a significant wage increase for hotel and airport employees, a move that was fiercely advocated by Unite Here Local 11 and Service Employees International Union-United Service Workers West.

Union leaders framed the wage increase as an ‘Olympic wage,’ aimed at ensuring workers can manage the rising costs of living in light of the upcoming 2028 Olympic Games in Los Angeles.

Following this ordinance’s approval, the L.A. Alliance for Tourism filed to challenge the wage increase, seeking to place the issue on the ballot to gather voter support for its repeal.

This coalition argues that the wage hikes could lead to adverse effects on the hospitality industry, potentially causing layoffs and hindering the development of new hotels.

The alliance characterized the union’s proposals as detrimental, claiming they could ultimately harm job opportunities for union workers within the tourism sector.

In a statement, the alliance said, “The initiative being proposed will kill the Convention Center project that union workers would otherwise have and the tourism industry would benefit from.”

The alliance has raised concerns that such wage increases could drive businesses out of Los Angeles, leading to significant job losses and impact on the local economy.

Stuart Waldman, president of the Valley Industry and Commerce Assn., expressed alarm over the union’s proposal, suggesting it could cause a mass exodus of companies from Los Angeles. “People will lose their jobs. Businesses will close,” he stated, ominously forecasting a future with vacant storefronts and office spaces.

For the proposed measures to make it onto the ballot, the union will need to gather approximately 140,000 signatures within the next 120 days.

Currently, the minimum wage for hotel workers stands at $20.32 per hour, while employees at Los Angeles International Airport earn an effective minimum wage of $25.23 per hour, including healthcare contributions. In comparison, the general minimum wage for most of Los Angeles remains at $17.28, slightly above the state average.

As the debate over these critical wage increases and development measures unfolds, the outcome will likely have lasting implications for both workers and businesses in the City of Angels.

image source from:https://www.latimes.com/business/story/2025-06-17/union-introduces-dueling-ballot-measures-escalating-fight-over-l-a-s-tourism-worker-wage-hike

Charlotte Hayes