LOS ANGELES, CA — A proposal to boost wages and enhance health benefits for numerous tourism workers at airports and hotels has been moved forward by a Los Angeles City Council committee.
After three hours of public feedback on Wednesday, the five-member Economic, Community Development and Jobs Committee voted unanimously to send the proposal to the entire council.
This decision comes as tourism workers advocate for increased wages in preparation for significant sporting events in the upcoming years, while hoteliers express concern that this could jeopardize their business operations.
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“This is a significant move. It’s not the only one, but it’s a vital step,” said Councilman Curren Price, committee chair.
If the City Council gives its approval, the City Attorney’s Office will be tasked with revising two laws that regulate wages for airport and hotel employees, specifically the Living Wage and Hotel Worker Minimum Wage ordinances.
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The Living Wage Ordinance affects city contractors, ensuring employees receive a fair living wage along with designated health-related benefits.
The Hotel Worker Minimum Wage Ordinance mandates that hotel employers with 60 or more guest rooms pay their staff a minimum wage and provide 96 hours of paid time off, in addition to at least 80 hours of unpaid leave per year.
According to the proposal, the minimum wage would increase to $25 per hour by 2025, ultimately reaching $30 per hour by 2028. Furthermore, employers would need to offer health care benefits of $7.51 per hour and $8.35 for airport and hotel workers, respectively.
Currently, the minimum wage for airport workers stands at $18.78 per hour, while hotel workers receive $19.73. Airport employees are granted a health care benefit of $5.95 per hour, while hotel employees currently do not receive any, as stated in a report by Sharon Tso, chief legislative analyst.
While the committee approved the proposal, Councilwoman Imelda Padilla expressed concerns regarding the health care aspect and requested a separate vote on that matter, which was accepted with a 4-1 outcome.
Additionally, the proposal includes a requirement for Public Housekeeping Training, which would require hotel owners to inform their employees about their rights, mirroring existing laws in Santa Monica and West Hollywood.
Council members warned that certain details of the proposal may change as it progresses, including possible exemptions for hotel owners with fewer than 50 rooms and the manner in which training will be administered, among other points.
In September, a report released by Tso in collaboration with Berkeley Economic Advising and Research examined the projected wage increase and its effects on the local economy. The findings indicated that the policy modification would “significantly enhance equity in both pay and benefits for workers in the designated sectors.”
Since then, airport and hotel employees have gathered at City Hall to implore council members to endorse the wage hike. Labor supporters and union representatives, such as SEIU-USWW and UNITE HERE Local 11, maintained their presence during the committee meeting on Wednesday.
Maria Romero, a single mother with a 7-year-old daughter, was among those advocating for change. Tearfully, she appealed to the committee to support the proposal, stating that she and her colleagues at Los Angeles International Airport deserve dignity and improved working conditions.
Other workers highlighted that higher wages would enable them to manage fundamental expenses like rent, food, and offer a chance to save for emergencies or the future.
Conversely, hotel owners argued that the study was based on flawed data and expressed concern over the adverse effects on their businesses.
“From an operational perspective, we are still coping with the repercussions of the Hotel Worker Protection Ordinance,” stated George Unself, general manager of the Hotel Per La located in downtown Los Angeles.
“As a result, we’ve had to reduce services, hours, and positions, as we struggle to meet our mortgage obligations and to allocate reserves for asset maintenance,” Unself continued. “We risk having to close, jeopardizing over 100 jobs.”
Kara Bartelt, general manager of The Hoxton, a boutique hotel in downtown Los Angeles, commented: “”Hotels support fair wages for everyone, but we cannot prioritize one group at the expense of others and the sustainability of jobs.”
Additional critics suggested that the proposal might hinder the construction of new hotels and worsen existing challenges within the city’s tourism sector.
“My group is currently assessing the economic feasibility of land acquisitions for building elsewhere compared to continuing to invest in Los Angeles, where the hospitality sector is facing wage and workplace regulations unique to us,” said Mark Davis, CEO of Sun Hill Properties, who is looking to add an 18-story extension to the Hilton in Universal City.
“If we halt our hotel development, it would be a regrettable loss for Los Angeles concerning construction jobs, permanent employment, sales, and transient occupancy taxes,” he added.
By JOSE HERRERA, City News Service
