A campaign aimed at overturning Los Angeles’ Olympic Wage Ordinance has fallen short, with insufficient signatures to initiate a referendum. This decision solidifies plans to gradually increase wages for hotel and airport workers, ultimately reaching $30 per hour by 2028, coinciding with the upcoming Summer Olympics in Los Angeles.
The Olympic Wage Ordinance Explained
Signature Collection Failure
On September 8, the Los Angeles County Registrar-Recorder reported that the petition to challenge the ordinance gathered only 84,007 valid signatures, falling short of the 92,998 required to move forward with a referendum.
Support and Opposition
Prominent backers of the failed referendum included major airlines such as Delta and United Airlines, along with hotel groups represented by the American Hotel and Lodging Association (AHLA). Both associations expressed concerns that the proposed wage increases could severely impact hotel operations. Kamalesh Patel, Chairman of the Asian American Hotel Owners Association (AAHOA), labeled the ordinance “well-intentioned but misguided,” warning of potential staff cuts and higher rates as a result of the increased wages.
Concerns Over Economic Impact
The AHLA highlighted a report from Oxford Economics, suggesting that the ordinance could lead to the loss of approximately 14,000 hotel jobs and a reduction of $169 million in tax revenue, further exacerbating economic concerns.
Call for Intervention
Despite the referendum’s outcome, AHLA President Rosanna Maietta urged Los Angeles Mayor Karen Bass to step in, emphasizing the urgent need to broker a solution that would alleviate the potential negative effects of the ordinance.
Support from Labor Groups
The Defend the Wage LA Coalition, comprising unions like Unite Here Local 11 and SEIU-United Service Workers West, celebrated the failed referendum. Advocates for workers’ rights see the wage increase as a crucial step for tourism workers struggling to keep up with the high cost of living in Los Angeles.
Kurt Petersen, co-president of Unite Here Local 11, remarked, “Workers defeated a $3 million billionaire-backed campaign designed to cut wages and deceive Angelenos. We thank the people of Los Angeles for standing with us, and together we will ensure that the Olympics and Paralympics uplift our city, not merely enrich corporate executives.”
