Airport and hotel union workers, who have been demanding significant pay increases, achieved a significant victory on Friday when the Los Angeles City Council went ahead and approved a significant pay increase.
There will be a 56% increase in the minimum wage for airport and hotel workers over the next three years as a result of the new ordinance.
The previous minimum wage was twenty dollars per hour. There is a possibility that they will earn thirty dollars per hour by the time the Olympics arrive in Southern California.
In the discussion that took place at City Hall the previous week, union workers argued in favour of the ordinance that would raise the minimum wage.
“People understand the concept that when people have more money in their pockets, they spend it,” according to a particular employee.
Hotels that have more than sixty rooms, private companies at Los Angeles International Airport, airlines, and concessions will all be subject to the new minimum wage.
The ordinance was criticised by a number of council members as well as the Los Angeles Tourism and Convention Boards.
An Oxford University study demonstrates that the wage increase would be catastrophic for an already fragile business that has been severely impacted by the wildfires and national politics. The board of directors issued a warning about this.
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“A $30 an hour wage would result, on an annual basis, in the loss of $2.3 billion in local business sales, $55 million in local tax revenues and most unfortunately, the loss of 15,000 jobs,” tourism board CEO Adam Burke stated.
It is evident that the higher wages are meant to send a message because council members rejected multiple attempts to amend the ordinance.
“When we talk about who talks about who deserves a living wage, it’s anybody in the boundaries of that workplace, within the hotel,” Councilman Hugo Soto-Martinez stated.
“The wage increases are going to scare away investors and possibly kill a $250 million expansion project at my property,” the CEO of the company that operates the Hilton in Universal City told.
