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≡ “OLYMPIC WAGE” MOTION ≡
It’s never over.
On 27 May, the Los Angeles City Council approved an ordinance which raised the minimum wage for airport and hotel workers in the City to $30.00 per hour in 2028 in stepped increases beginning in 2025.
Known as the “Olympic Wage” ordinance because of the final stepped increase in 2028, the ordinance was suspended in view of a referendum attempt filed by business interests in the airline and hotel sectors. The filing failed due to the lack of sufficient signatures to put the question on the ballot in June 2026 and the ordinance became effective on 8 September.
However, in July, another initiative petition was filed, to repeal the City’s Business Tax, which was projected to collect $805 million for the City for the 2026 fiscal year, and the loss of which would be devastating to City finances and cause a drastic reduction in services … which would also impact the planning and support operations for the 2028 Olympic and Paralympic Games.
That petition was certified for circulation on 22 October and signature collection could begin.
The threat of losing the business tax revenue concerns City officials and apparently in response to the possible inclusion of the question on a future ballot, a motion was made on Friday (5th) by L.A. City Council President Marqueece Harris-Dawson to stretch out the minimum wage increases to 2030:
● $24.00 per hour on 1 July 2026 (vs. $25.00 in the current ordinance)
● $25.00 per hour on 1 July 2027 (vs. $27.50)
● $27.50 per hour on 1 July 2028 (vs. $30.00)
● $29.00 per hour on 1 July 2029
● $30.00 per hour on 1 July 2030
A further change in the ordinance concerning exempting “commercial restaurant lessees” in hotels and at the airport, along with the Hollywood and Westwood Village areas is also to be undertaken.
The motion was assigned to the Council’s Economic Development and Jobs committee and the Trade, Travel and Tourism committee
The reply from labor, notably the UNITE HERE Local 11 union, the L.A. County Federation of Labor and others was predictable fury. A statement issued later on Friday included:
● “The disappointing move to do this comes on the heels of Delta and the American Hotel and Lodging Association’s blackmail of the city to amend the Olympic wage law or face a referendum to repeal the gross receipts tax that would take $742 million out of the General Fund annually- effectively, the equivalent of defunding the fire department. The referendum has been approved to circulate.”
● “[A]fter failing in their attempt to overturn the Olympic Wage in an unsuccessful nearly-$3 million bid to qualify a referendum this summer, the tourism industry is now trying to extort City Council into gutting the policy. This coalition strongly opposes this effort.”
Kurt Petersen, co-president of UNITE HERE Local 11, added:
“Anyone who supports this move to gut the wages and undermine the ability for working families to stay healthy and housed is siding with billionaires over the people of this city. Tourism workers are the backbone of this city’s thriving tourism economy and asking them to wait longer for what they have already won means they will have less money to house and feed their families.”
Supporters of the labor position sent 21 identical messages to the L.A. City Clerk criticizing the motion.
The motion is now starting its journey through the Los Angeles political process, with the committee hearings to come first.
The LA28 organizers are simply bystanders in this fight between business and labor, but there are calls for a possible national strike on 1 May 2028 dealing with general labor issues and not about the 2028 Olympic and Paralympic Games.
But the Olympic and Paralympic organizers will be impacted if labor unrest reaches into the summer, with the Olympic Games starting on 14 July 2028.
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