A coalition of business interests aiming to overturn a recently enacted $30 per hour minimum wage for hotel and airport workers in Los Angeles has fallen short in their efforts, as confirmed by city officials on Monday.
The L.A. Alliance for Tourism, Jobs and Progress sought to place a repeal measure on the ballot but failed to obtain the required 93,000 signatures, falling short by approximately 9,000, outlined in a statement from interim City Clerk Petty Santos.
City Councilmember Hugo Soto-Martínez, who has a background in labor organizing for hotel workers, celebrated the outcome, interpreting it as a definitive message against corporate pressures.
“This outcome sends a clear message to corporate interests in LA and across the country: working people can fight and win, no matter how much money or misinformation is used to stop us,” he stated.
The City Council had previously approved the $30 minimum wage ordinance in May, which includes incremental wage increases over several years, to support workers at hotels and Los Angeles International Airport.
According to the approved ordinance, the hourly wage will reach $22.50 starting in July this year, followed by increases to $25 in July 2026, $27.50 in July 2027, and ultimately $30 in July 2028, just ahead of the anticipated Olympic Games.
However, following the submission of the business coalition’s signatures, the wage measure was put on hold.
The tourism alliance, backed financially by major players such as Delta Air Lines, United Airlines, and the American Hotel & Lodging Association, requested Mayor Karen Bass to mediate a compromise that could mitigate the implications of the higher wage on the tourism sector.
They argued that the ordinance could threaten job security, drive hotels close to closure, cut vital tax revenue, and leave the city underprepared for the upcoming Olympics.
In contrast, supporters of the minimum wage, represented through the Defend The Wage LA Coalition, heralded the announcement of the failed signature campaign as a significant triumph against powerful corporate entities that allegedly spent more than $3 million to mislead voters.
“It’s unprecedented. It’s historic. It speaks volumes about Angelenos and their support of working people,” declared Kurt Petersen, co-president of Unite Here Local 11, which advocates for hotel employees.
He emphasized that the corporate opposition, despite its financial might, was countered by the moral rightness and the solidarity of Angelenos.
Advocates for the increased minimum wage contend that this measure will significantly enhance the financial stability of tourism workers who struggle to meet rising housing and living costs.
On the flip side, critics vocalized concern that the ordinance could lead to layoffs within the tourism industry and halt developments for new hotel constructions in Los Angeles.
The victory in passing the minimum wage law is regarded as a significant achievement for labor unions such as Unite Here and Service Employees International Union-United Service Workers West, which fought tirelessly to assure that voters could retract their signatures from the business coalition’s petition if they regretted their initial support.
Additionally, Unite Here filed formal complaints with city and state officials, alleging that petition circulators had made deceptive statements to gather support for the repeal.
In parallel, the group opposing the minimum wage requested an investigation by L.A. County District Attorney Nathan Hochman into potential fraudulent activities and illegal conduct by those seeking to undermine voter support for the referendum.
The contentious battle over the $30 minimum wage has intensified a fierce conflict between organized labor and business groups.
Following the initiation of the tourism alliance’s referendum, Unite Here proposed several ballot initiatives aimed at imposing additional regulations on businesses in the city.
Among these proposals is a plan to require voter consent for a range of real estate projects, alongside a separate initiative that seeks to raise the minimum wage for all workers in Los Angeles to $30 by 2028.
In response, business leaders also filed paperwork for a different ballot measure aimed at repealing the city’s business tax, which if passed, would result in an $800 million loss to the city’s general fund, thus jeopardizing essential public services such as police and firefighting.
Mayor Bass and other city officials have opposed the business tax repeal, asserting that it would necessitate severe cuts to public safety, an essential component of community well-being.
Petersen, from the hotel workers’ union, indicated intentions to pursue their additional ballot initiatives, emphasizing that community support for workers and the demand for corporations to fulfill their responsibilities are clear.
The business coalition echoed this sentiment, asserting they would explore further proposals aimed at decreasing operational costs in Los Angeles to preserve the city’s affordability for residents and workers alike.
image source from：latimes
