Los Angeles labor unions are demanding free rent for illegal aliens while pushing for a citywide $30 minimum wage, threatening to transform the city’s economic landscape and potentially driving businesses away.
Key Takeaways
- Unite Here Local 11 has filed proposals to raise the minimum wage for all city workers to $30 by 2028 and require public votes on large hotel projects.
- The L.A. Alliance for Tourism warns the wage hike could cause widespread job losses and business closures.
- SEIU and Los Angeles Tenants Union (LATU) are demanding rent moratoriums for illegal aliens and low-income residents.
- LATU is organizing a “citywide day of action” on July 1, encouraging a rent strike and demanding an eviction moratorium.
- Property owners, 85% of whom are independent landlords, express concern about their ability to pay bills without timely rent payments.
Union Pushes for $30 Minimum Wage Amid Business Opposition
Unite Here Local 11 is intensifying its campaign against hotel and airline industry groups by proposing two significant ballot measures that could reshape Los Angeles’ economic landscape. The first proposal would raise the minimum wage for all city workers to $30 by July 2028, far exceeding the current general minimum wage of $17.28. The second would require voter approval for major hotel and event center projects, particularly those receiving city subsidies. These measures directly challenge efforts by tourism businesses to overturn a city ordinance that specifically raises wages for hotel and airport workers.
“We agree that all workers should make more. We are hopeful since [airlines and hotels] think that only giving a living wage to one group is unfair, that they will immediately endorse it,” said Kurt Petersen, co-president of Unite Here Local 11.
The union needs to collect approximately 140,000 signatures within 120 days to place these measures on the ballot. Currently, hotel workers in Los Angeles earn a minimum of $20.32 per hour, while airport workers make $25.23 including healthcare payments. The proposed citywide increase to $30 represents a massive 74% jump from the general minimum wage, creating significant concern among business owners and industry representatives who warn of dire economic consequences.
Business Leaders Warn of Economic Devastation
Business organizations have responded forcefully to the union proposals, warning that such dramatic wage increases could devastate the local economy. The L.A. Alliance for Tourism, Jobs and Progress, a coalition of businesses, argues that the wage hike will harm the industry and lead to significant job losses. They also contend that the requirement for voter approval of hotel projects would effectively kill development, including the Convention Center project that would otherwise provide union jobs.
“The initiative being proposed will kill the Convention Center project that union workers would otherwise have and the tourism industry would benefit from. The union can play its games, but we remain focused on protecting L.A. residents from lasting, widespread job loss,” stated the L.A. Alliance for Tourism, Jobs and Progress.
Stuart Waldman, president of the Valley Industry and Commerce Association, offered an even more stark assessment of the potential fallout. “People will lose their jobs. Businesses will close. The city will become a barren land of empty storefronts and empty office buildings as employers go elsewhere,” he warned. Many economists support this view, noting that businesses facing dramatically higher labor costs will likely relocate to more business-friendly jurisdictions, taking jobs and tax revenue with them.
Unions Demand Free Rent for Illegal Aliens
In a parallel and equally controversial move, Los Angeles unions including SEIU and the Los Angeles Tenants Union (LATU) are demanding a rent moratorium for illegal aliens and low-income earners. This demand comes as LATU organizes a “citywide day of action” on July 1, encouraging residents to participate in a rent strike and pushing for an eviction moratorium. These demands place additional pressure on property owners already struggling with rising costs and regulatory burdens.
“We know that many tenants will not be able to pay their rent come July 1. Why? Because this militarization of our communities, this occupation of our community, this terrorizing of our communities have closed down businesses, have taken away street vendors, have separated families — and then people cannot pay their rent. They have barely the minimum to survive,” claimed Kenia Alcocer of LATU.
Alcocer’s claims about “militarization” refer to immigration enforcement by ICE and the National Guard. However, objective observers note that recent unrest in Los Angeles has been primarily caused by anti-ICE protesters rather than law enforcement actions. The L.A. County Board of Supervisors has approved a study on the economic impact of immigration enforcement, a move that appears designed to provide political cover for potential rent moratoriums.
Property Owners Express Concern Over Rent Moratorium
Property owners in Los Angeles have expressed serious concerns about their ability to survive financially if a rent moratorium is imposed. The vast majority of rental property owners in the city are not large corporations but rather individual investors who depend on rental income to meet their own financial obligations, including mortgages, property taxes, insurance, and maintenance costs. A rent moratorium would effectively force these property owners to subsidize their tenants’ housing while still bearing all the costs and responsibilities of ownership.
“Over 85 percent of rental property owners in the city of Los Angeles are independent moms and pops who, for the most part, are already struggling to pay their bills. I understand that people are very scared, and rental property owners are very sympathetic to that. But as I said, you know, property owners are very dependent on receiving timely rent payments just to make ends meet,” explained Daniel Yukelson, Executive Director of the Apartment Association of Greater Los Angeles.
The combined impact of dramatic wage increases and potential rent moratoriums threatens to create a perfect economic storm for Los Angeles. While unions advocate for these policies in the name of worker and tenant protection, the likely result would be accelerated business flight, reduced investment, fewer jobs, and ultimately less affordable housing as property owners exit the market. These economically unsustainable demands highlight the growing disconnect between progressive labor organizations and the economic realities facing one of America’s largest cities.
