The Los Angeles City Council is considering delaying a $30 hourly minimum wage for hotel and airport workers, initially set for 2028, to 2030.
This decision comes after a coalition of airline and hotel businesses gathered enough signatures for a November ballot measure to repeal the city’s gross receipts tax. If passed, the repeal could cost the city about $860 million annually.
The council voted 9-6 in favor of an ordinance to postpone the wage increase, which was introduced by Council President Marqueece Harris-Dawson. He described it as a “placeholder” to allow further negotiations between city officials, businesses, and labor unions. The council plans to revisit the discussion on May 19.
The potential delay has sparked opposition from labor groups, who argue that the wage increase is crucial for workers’ financial stability. David Huerta, president of SEIU-United Service Workers West, criticized the business community for holding the city and workers “hostage.”
City Administrative Officer Matthew Szabo warned that losing the gross receipts tax could lead to severe budget cuts, including layoffs and reduced services. He emphasized the need for preemptive fiscal planning.
The decision has drawn criticism from council members Eunisses Hernandez, Ysabel Jurado, Nithya Raman, Hugo Soto-Martinez, Curren Price, and Katy Yaroslavsky, who voted against the motion. Hernandez stated that the move prioritizes corporate pressure over workers’ lives.
Meanwhile, Rosanna Maietta, president of the American Hotel and Lodging Association, argued that relief from higher labor costs is necessary for the struggling industry. She described the tax repeal effort as a “turning point” for businesses.
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