Minimum Wage Increase Advised For Los Angeles Hotel Staff
This motion would raise the hourly wage at 87 hotels from $8 to $15.75. It already set to rise in the state to $9 this summer.
“This is both a moral and economic necessity for LA,” said David Graham-Caso, the Communications Director for councilman Mike Bonin, who backs the bid.
The councilmembers pointed to a study that showed 43 percent of the city’s hotel staff did not earn adequate wages to keep them above the federal poverty line, which dragged on the overall Los Angeles economy.
“When a woman who works in a hotel can’t afford groceries, then the grocery store also loses out,” Graham-Caso said as an example.
The hotel sector spoke out against the proposal, arguing that targeting one industry is not fair, and that it would force hotels to cut jobs to save money.
Graham-Caso said that this would likely not happen. He points to a study about the aftermath of a wage increase for the staff in hotels surrounding LAX. As of 2007, these workers’ hourly rate rose to a minimum of $15.37, the same as the amount proposed now for workers in any city hotel.
While the employment rate at other Los Angeles hotels decreased during the recession, it increased at the ones near LAX from 95 percent in 2007 to 99 percent in 2009.
Graham-Caso also said that a high employee turnover rate leads to higher costs for the hotels to retrain new workers. And if employees are receiving better wages, they are less likely to quit their jobs. Currently, the city is providing training for almost 300 hotel workers at an average cost of $2,305 each.
If City Council passes the measure, Los Angeles hotel staff would earn the industry’s highest minimum wage in the nation.
Reach Executive Producer Anne Artley here.