The San Diego Regional Chamber of Commerce and the San Diego Padres have voiced strong opposition to a proposed minimum wage increase for hospitality employees, arguing it would negatively impact the local economy.
The proposal aims to raise the minimum wage for workers at hotels, event centers, amusement parks, and attractions like the San Diego Zoo to $25 per hour.
Chris Cate, President and CEO of the Chamber and a former San Diego city councilmember, stated at a press conference that such a significant wage increase could result in layoffs, business closures, and job losses not only in the hospitality sector but also among nonprofits and service providers that aid vulnerable populations.
“This policy claims to help workers, but would actually leave many of them without work at all,” Cate warned, highlighting the potential unintended consequences of the measure.
Under the terms of the proposal, only workers employed at designated hospitality venues and those working for businesses that lease space within them would be subject to the new wage requirement, should it pass the City Council sub-committee’s review on Wednesday.
Notably, city and government employees would be exempt from the wage increase.
Caroline Perry, COO of the Padres, raised concerns regarding this exemption, questioning the proposal’s fairness.
“The city is exempting nearly 900 of its own employees, including janitorial and event staff who would otherwise be covered,” Perry pointed out.
She further questioned, “If $25 an hour is truly what it takes to afford to live in San Diego, why doesn’t it apply to the city’s own workforce? The answer is simple: the city knows it can’t absorb that cost — and businesses can’t either.”
The Padres have estimated that the proposed minimum wage hike could cost the organization at least $10 million annually.
The proposal’s origin lies with city councilmember Sean Elo-Rivera, who introduced it in February as part of his efforts on the city’s Select Committee on Addressing Cost of Living.
His staff’s analysis argues that implementing a higher minimum wage would combat corporate greed and reduce low-income hospitality workers’ reliance on public assistance programs.
According to the analysis, local taxpayers have been subsidizing corporations that pay low wages to San Diegans, raising questions about fair compensation in the hospitality sector.
While hotels with fewer than 150 rooms would be exempt from the wage increase, the potential effects on larger establishments could be significant.
San Diego’s independent analysis has suggested that the wage bump could lead hotels to either reduce their workforce or increase prices, potentially impacting tourism revenues as guests may be hesitant to pay higher rates for accommodations.
Though it is anticipated that tax revenues would not plummet drastically, the market reaction to price increases remains uncertain.
The proposal’s immediate implementation would mark a 45% increase from the city’s current minimum wage.
This swift change could lead to disruptions that might be alleviated through a more gradual approach to wage increases, as per the city’s independent analysis.
This report underscored that there is no clear consensus regarding the impacts of increasing minimum wages on businesses and workers, highlighting that perspectives vary widely on the potential outcomes of such a dramatic policy shift.
image source from：timesofsandiego
