How do you make the most expensive city more expensive? You use government to mandate private businesses pay workers more than they are worth. This officially makes Los Angeles a Socialist city—where government controls the means of production.
“Council members asked Samuel Neal, an economist for the group also known as BEAR, several questions about the study via teleconference. They focused on issues such as hotel operations and developments, potential price hikes, the city’s ability to host the Olympics, and on local taxes, among other topics.
Several council members criticized the report, arguing it lacked sufficient information and failed to thoroughly analyze the potential impacts on the city and industries such as construction.
The Chief Legislative Analyst’s Office noted BEAR used internal city data sources, as well as publicly available information from the U.S. Census, Bureau of Labor Statistics, Quarterly Census of Employment and Wages, among others, for the study.
Neal noted that they were provided with information from some of the labor unions representing tourism workers, as well as data from the hotel industry.
Actually, they are doing this in advance of the 2028 Olympics in the City. Kamala talked about ending price gouging—looks like the City of Los Angeles is among Americas’ biggest gougers!
City Council Delays Vote on Proposed Wage Increase for LA Tourism Workers
CNS, 11/20/24 https://www.westsidecurrent.com/news/city-council-delays-vote-on-proposed-wage-increase-for-la-tourism-workers/article_1fa1bd9a-a7c1-11ef-9be1-1f81fcfcf212.html?utm_source=westsidecurrent.com&utm_campaign=%2Fnewsletter%2Foptimize%2Fdaily-headlines%2F%3F-dc%3D1732203025&utm_medium=email&utm_content=headline
LOS ANGELES – The City Council Wednesday delayed until Dec. 11 its vote on a proposal to increase the minimum wage for tourism workers, including hotel and airport employees, who are seeking better compensation and health benefits ahead of the 2028 Olympic Games in Los Angeles.
The decision to table the proposal came after a lengthy and difficult discussion with city department officials and a representative from Berkeley Economic Advising and Research, a consulting group that conducted an economic impact assessment for Los Angeles. The discussion left elected officials with more questions than answers.
Council members asked Samuel Neal, an economist for the group also known as BEAR, several questions about the study via teleconference. They focused on issues such as hotel operations and developments, potential price hikes, the city’s ability to host the Olympics, and on local taxes, among other topics.
Several council members criticized the report, arguing it lacked sufficient information and failed to thoroughly analyze the potential impacts on the city and industries such as construction.
The Chief Legislative Analyst’s Office noted BEAR used internal city data sources, as well as publicly available information from the U.S. Census, Bureau of Labor Statistics, Quarterly Census of Employment and Wages, among others, for the study.
Neal noted that they were provided with information from some of the labor unions representing tourism workers, as well as data from the hotel industry.
“After the study was completed, the CLA received data from the Hotel Association of Los Angeles that provided occupancy rates and revenue figures for an unspecified subset of hotels,” according to the CLA’s report. “It is unclear how useful this information will be in assessing operational impacts.”
Additionally, the CLA sought but did not receive data from the business community sufficient to incorporate into the study, such as internal estimates of hotel operating costs, payroll records, or employment figures that “could provide insight into its impact on their profitability,” the report added.
Council members also chastised BEAR for not being present in-person for their meeting. Sharon Tso, who serves as Chief Legislative Analyst, explained it was a scheduling conflict, and assured the council that BEAR would be made available for future discussions.
Councilman Paul Krekorian raised concerns of an estimated $21 million decrease in consumer spending due to price hikes, but there could be a $120 million of local, state, and federal gain from the proposed wage increases. Though, it was unclear how much of that revenue the city of L.A. would benefit from.
“We prepare budgets based on actual numbers,” Krekorian said. “`We think it’s going to be positive,’ is not a useful answer.”
He also inquired about the impact of the proposal on the city’s Temporary Occupancy Tax on hotels, which is a tax imposed on hotel/motel guests, as well as home-sharing properties like Airbnb.
There was also concern about the city’s struggling tourism, and how it has yet to recover from pre-pandemic levels.
Councilman Hugo Soto-Martinez, who worked with his colleagues Curren Price, Katy Yaroslavsky, Tim McOsker, Heather Hutt, and Harris-Dawson to champion the wage increase, defended the study and criticized the hotel industry.
Soto-Martinez, who said he was formally employed by hotels, described that industry as the “exploitive” and “abusive.” He called their actions as a “delay tactic.”
“The report is inadequate because the industry did not participate in the level that they should have, so if there’s any anger being aimed at anybody regarding this, it should not be to the researcher that’s here that did the best that he could with the information that he got.”
Council President Harris-Dawson requested the CLA to jot down all their questions, accept inquiries by the end of the day, and provide answers in consultation with BEAR by next week.
The proposal comes as Los Angeles prepares to host major events, including the 2028 Summer Olympics and Paralympics, the Super Bowl, eight World Cup matches, and other events.
Tourism workers represented by labor unions such as Unite Here Local 11 and SEIU-USWW have lobbied for wage hikes and improved healthcare benefits. Meanwhile, hotel owners have argued the increase would negatively impact their operations and could potentially shutter some of their businesses.
Mark Davis, president and CEO of Sun Hill Properties, which owns the Hilton Los Angeles/University City, wrote to the City Council about his concerns on the proposal.
“The Los Angeles hospitality industry is the target of wage and workplace requirements that no other industry is subject to, and we are now at a tipping point, making it less economically viable to continue to do business here,” he wrote. “…We need to be encouraging businesses to invest in our city, not divest.”
Davis has previously noted that it may reevaluate its expansion project for its Universal Hilton project. Hotel owners also warn of other projects being pulled if the ordinance were to pass, as well as ripple effects affecting jobs.
To effectuate changes to workers’ compensation, the city is looking to update its Living Wage and Hotel Workers Minimum Wage ordinances.
The LWO applies to city contractors and ensures that employees are paid a set living wage, setting a cash wage rate and health-related benefits, the other ordinance requires hotel employers with 60 or more guest rooms to pay their employees a minimum wage and provide 96 compensated hours of off time, and at least 80 additional hours of uncompensated time off per year.
Under the proposal, the ordinances would be amended to boost hourly wages to $25 an hour by Feb. 1, 2025, and provide a healthcare benefit payment of $8.35 for airport and hotel workers, respectively. Wages would then increase on a yearly basis through 2028 until reaching $30 an hour, among other mandates.
The city has proposed a carve out for concessionaires with 50 of fewer employees, as well as for some hotel owners under criteria outlined in its Hotel Workers Protection Ordinance.
Currently, airport and hotel workers earn $18.78 per hour and $19.73 per hour, respectively. Airport workers earn a healthcare payment of $5.95 per hour, while hotel workers do not.
