Group: LAX Hotel Workers Have Lost Millions
Daily News - March 17, 2008
By Rick Orlov |
A group seeking to impose a "living wage" on hotels near Los Angeles International Airport is estimating workers there have lost more than $4.6 million over the past 17 months as legal challenges over the issue continue and one hotel has agreed to unionize.
The New Century Coalition, which has been behind the effort to get higher wages for workers at the seven LAX-area hotels, was set to formally release its findings today.
The group said its study found the hotels' workers lost an average of about $2,300 each as a result of the lower pay, with the range of pay loss coming in at a low of $648 for night cleaners to as much as $3,964 for food servers.
The case is now before the state Supreme Court on an appeal by the hotels that say the City Council acted improperly in amending the measure to void a referendum that had qualified for the ballot.
A decision on whether the court will hear the case is expected in April.
The city had argued the hotels benefit from billions of dollars of investment in LAX and should be required to pay the higher wages - $9.39 an hour with health benefits or $10.64 an hour without benefits - to their workers.
The LAX Westin last week announced it was opting out of the legal challenge and agreeing to allow its workers to unionize.
The New Century Coalition said its study dates back to November 2006 when the City Council first approved the living-wage requirement.
In that period, the group said the hotels saw a $30.1 million increase in revenue - six times more than it would have had to pay its workers.
The hotel industry has argued it should not be subject to such city regulations since the LAX-area hotels do not have a direct contract with the city and the requirement would place them at a competitive disadvantage with other hotels.
