The summer of heated debate over minimum wage initiatives in Los Angeles has reached its peak.
For the past three months, labor unions have engaged in a contentious battle with business groups regarding a newly approved law that raises the minimum wage for hotel employees and workers at Los Angeles International Airport to $30 per hour by 2028.
This protracted fight has led both sides to propose ballot measures that would significantly impact the city’s economy, stirring concern over the potential long-term consequences for workers and businesses alike.
The Unite Here Local 11 union, a powerful entity representing hotel and restaurant workers, aims to present four ballot proposals to voters.
Critics argue these proposals could wreak havoc on the city’s economic landscape.
On the flip side, business leaders are under scrutiny for their petition to repeal a substantial $800 million business tax—an initiative that city officials warn could drastically reduce funding essential for public services like police and fire protection.
City Councilmember Monica Rodriguez expressed concern over the spiraling conflict, attributing it to a lack of effective leadership from City Hall.
She noted the absence of mediators willing to negotiate a balanced resolution that would support both the workforce and local businesses, describing the current situation as “reckless, sloppy and dangerous.”
In response, aides to Mayor Karen Bass emphasized that she has fostered new business investments in Los Angeles and is actively in discussions with both labor and business groups on various issues.
Bass’s spokesperson suggested that Rodriguez’s remarks could reflect her own inadequacies in fostering collaboration among her fellow council members.
City Council President Marqueece Harris-Dawson offered a more measured statement, indicating that efforts are underway to find solutions amid the ongoing strife, urging stakeholders to remain hopeful.
The battleground for this voter referendum began quietly in May when a coalition representing hotels and airlines filed the initial paperwork shortly after the City Council approved the minimum wage hike.
The business community has voiced concerns that the wage increase, combined with a healthcare obligation estimated to exceed $8 per hour next year, could lead to layoffs and closures across the sector.
Unite Here Local 11 has vigorously contested this narrative, claiming that the raised wages are necessary for workers who have long battled low pay in an increasingly expensive city.
In response to the initial referendum, Unite Here launched its own package of four ballot proposals. Among these is a plan to mandate citywide elections for any major hotel or entertainment venue expansions.
The union also seeks to extend the $30 minimum wage to all workers in Los Angeles, a change that could potentially alter the economic balance of the city.
Additionally, they are proposing measures aimed at addressing discrepancies in executive compensation, including mandates for corporate approval by voters if a company’s CEO earns disproportionately more than its median worker in Los Angeles.
Another idea involves increasing the city’s business tax on companies demonstrating excessive CEO pay.
As Unite Here pushed its initiatives, business leaders escalated their strategy by proposing the repeal of the city’s business tax, a move that critics warn could strip $800 million—or approximately 10%—from the city budget, severely impacting vital services.
Bass has cautioned against the impacts of such a repeal, arguing it would devastate the funding for public safety and essential city services.
David Green, president of Service Employees International Union Local 721, decried the business tax repeal as “irresponsible” and “retaliatory,” indicating it would further strain city resources in the wake of a significant $1 billion budget shortfall.
He challenged those supporting the repeal, questioning why they would risk harming the community they serve through their actions.
Business leaders defend their pursuit of the repeal as a necessary means to stimulate economic activity and foster growth within the city.
Christopher Thornberg, an economist whose firm offers economic insight to both industry and government, expressed skepticism about the repeal, citing greater underlying issues that have held back Los Angeles’s economy.
He acknowledged, however, that businesses may feel compelled to wield the repeal as leverage to capture the attention of city officials, particularly as they feel marginalized in decision-making processes.
As the competitive landscape intensifies, Thornberg has voiced concerns regarding Unite Here’s proposals.
He believes initiatives requiring public votes on large projects would complicate the city’s ability to attract economic development and warned that the proposed broad minimum wage increase might compel businesses to relocate.
Additionally, he suggested that policies addressing extreme CEO pay could discourage film and media productions in Los Angeles due to increased costs of securing city permits.
Meanwhile, Unite Here spokesperson Maria Hernandez countered claims of recklessness, asserting that the current struggles of workers warrant bold action and that the union’s initiatives resonate widely with public sentiments amidst challenging economic circumstances.
Asserting that the community yearns for hope, she highlighted the inspirational nature of the fight for fair wages, emphasizing that workers are in dire need of improved financial conditions.
Councilmember Hugo Soto-Martínez, a prominent advocate of the $30 minimum wage initiative, rejected claims about the battle being out of control.
He supported the union’s advocacy for higher taxes on companies with significant executive pay discrepancies, denouncing the repeal initiative as “despicable.”
The airline and hospitality sectors have mobilized considerable resources into their signature collection effort, successfully gathering over 140,000 signatures to advance their petition.
Soto-Martínez raised concerns about the disproportionate power of corporations, reminding the public that their financial might allows them to influence political outcomes in ways that can undermine community welfare.
As the Los Angeles County Registrar-Recorder/County Clerk undertakes official verification of signatures for the repeal measure, uncertainties remain about its path forward.
Unite Here and the Service Employees International Union-United Service Workers West are actively working to persuade voters who may have been misled during the signature gathering process to retract their signatures, potentially undermining the measure’s viability.
Recent assessments by county officials revealed that more than 4,000 signatures among the submissions were invalid, leading some union leaders to feel optimistic about blocking the referendum from reaching the ballot.
Kurt Petersen, co-president of Unite Here Local 11, expressed confidence that the opposing coalition would struggle to qualify for the ballot given their current numbers.
Even if the repeal fails to advance, the union plans to proceed with its ambitious proposals.
Petersen indicated that the momentum generated by the fight for fair wages has energized their membership, paving the way for future signature gathering campaigns for additional initiatives.
He noted that public support for fair wages and increased taxation on corporations has shown strong backing among the community.
In contrast, industry representatives like Stuart Waldman expressed belief that voters would ultimately reject the union’s proposals once they realize their potential to drive companies away from Los Angeles.
Waldman characterized Unite Here’s actions as less about worker support and more about seeking revenge on their adversaries in a manner that could jeopardize local employment.
The unfolding scenario presents a significant test for Los Angeles’s leadership amidst a complex interplay of labor rights, business interests, and economic resilience.”
As the ballot measures loom closer, all eyes are on the negotiations to seek a path forward that balances the needs of both workers and businesses.
image source from：latimes
