City Council To Vote On Big Wage Increase Proposal For LA Hotel Workers
LOS ANGELES (CBSLA.com) — Thousands of hotel employees in Los Angeles will learn Wednesday whether they will receive an increase in wages, as the City Council considers a law that would require big hotels to pay all workers a minimum of $15.37 per hour.
The potentially historic wage increase is not supported by everyone, however, as a number of hotel owners worry about the financial impact it could trigger.
"This is our sole business; it's our No. 1 investment," Beverly Garland Hotel's James Crank said. "So, we would be under tremendous financial strain to meet this new wage."
Labor unions behind the increase, meanwhile, say the increase could help pull some hotel workers' families out of poverty.
"The hospitality industry is one of the few industries that came out of the recession and has been seeing record profit," Raise LA Coalition's Rachel Torres said. "But unfortunately, hotel workers have been living below poverty."
A number of business groups expect that the increase may force hotels to cut back their work force and scare away hotel developers from Los Angeles.
"There is the mayor's proposal of a minimum wage at $13.25," Crank said. "We have factored that in, and that is sustainable, because we are not about not raising the wage. We just want it to be a sustainable economic reality, and we want to be brought to the table and have a discussion about it."
The proposal, which will be voted on at 1 p.m. Wednesday, will affect hotels with 125 rooms or more in Los Angeles and would go into effect in July 2015.