Los Angeles unions are demanding taxpayers provide free rent for illegal aliens while pushing to raise minimum wages to $30 per hour, setting up a fierce battle that threatens to fundamentally transform the city’s economic landscape.
Key Takeaways
- Unite Here Local 11 has proposed ballot measures to raise the minimum wage for all Los Angeles city workers to $30 by 2028 and require public votes on large hotel projects.
- Los Angeles unions, including SEIU and LATU, are demanding a rent moratorium specifically for illegal aliens and low-income earners.
- Business leaders warn that the proposed wage hikes could cause companies to relocate, leading to widespread job losses and economic decline.
- Property owners, 85% of whom are independent landlords, express concerns that rent moratoriums would devastate their ability to pay mortgages and maintain properties.
- Union activists are organizing a “citywide day of action” on July 1, encouraging tenants to participate in a rent strike.
Unions Push for Radical Wage Increases Amid Business Opposition
Unite Here Local 11 is intensifying its battle against Los Angeles hotel and airline industry groups by filing paperwork for two aggressive ballot proposals. The first 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 proposal would require voter approval for major hotel and event center projects, particularly those receiving city subsidies. These measures directly challenge business interests and represent a significant escalation in the ongoing labor disputes that have characterized President Trump’s economic landscape.
“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 of Unite Here Local 11.
To place these measures on the ballot, the union must collect approximately 140,000 signatures within 120 days. The proposals are a direct response to efforts by the L.A. Alliance for Tourism, Jobs and Progress to overturn a city ordinance that would raise the minimum wage for hotel and airport workers to $30 an hour by 2028. Currently, hotel workers earn a minimum of $20.32 per hour, while private-sector employees at Los Angeles International Airport make $25.23 per hour, including healthcare payments.
Business Leaders Warn of Economic Devastation
Industry representatives have responded with dire warnings about the economic consequences of these proposals. The L.A. Alliance for Tourism, Jobs and Progress argues that the wage hike will harm the industry and lead to significant job losses. The citywide wage proposal has particularly alarmed business leaders who predict it will drive companies out of Los Angeles, creating a downward economic spiral that could permanently damage the city’s economy and tax base.
“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, a business community representative, offered an even more stark assessment: “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.”
Demands for Free Rent for Illegal Aliens
In a parallel and equally controversial campaign, Los Angeles unions including SEIU and the Los Angeles Tenants Union (LATU) are demanding a rent moratorium specifically for illegal aliens and low-income earners. This extreme proposal comes as LATU organizes a “citywide day of action” on July 1, encouraging tenants to participate in a rent strike and demand an eviction moratorium. The brazen demand for taxpayer-subsidized housing for those in the country illegally represents a radical shift in union priorities.
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Union activists have attempted to justify these demands by claiming that immigration enforcement actions have disrupted communities. Kenia Alcocer of LATU stated: “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.”
Property Owners Face Financial Ruin Under Proposed Policies
The proposed rent moratorium has raised serious concerns among property owners, many of whom are independent landlords relying on rental income for their livelihoods. These small business owners would face devastating financial consequences if tenants stop paying rent, potentially triggering a cascade of mortgage defaults, property tax delinquencies, and deteriorating housing conditions that would ultimately harm the very communities the unions claim to support.
“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 of the Apartment Association of Greater Los Angeles.
Meanwhile, the L.A. County Board of Supervisors has approved a study on the economic impact of immigration enforcement, potentially laying groundwork for further policy decisions. As these union-led initiatives gain momentum, the future of Los Angeles’s economy hangs in the balance, with businesses, property owners, and taxpayers facing the prospect of bearing enormous costs to fund these radical proposals that prioritize non-citizens over law-abiding residents and sustainable economic policies.
