Californian Workers Demand Another Major Increase to Minimum Wage

Now Californians, backed by labor unions, are demanding the minimum wage be increased to $30 as their current hourly rate isn’t enough to pay for all the basic necessities in a state that continues to battle against inflation and ever-increasing prices. 

Throughout the state, fast-food workers now receive an hourly rate of $20 following Newsom’s implementation of Bill 1287. 

Despite the controversy surrounding the decision and the opinion of business owners, Newsom’s wage increase was deemed revolutionary by those working in the industry. 

According to CBS, one reason for this is the sharp increase in menu item prices, which their analysis suggests has “far outpaced inflation.” On average, menu item prices have increased by around 47% over the past ten years. 

He continued, “This is about raising the floor and making sure that $20, the new minimum wage, puts workers on a better economic footing to cover their household needs.”

Hotel workers in Long Beach received a pay raise and now earn at least $23 per hour. However, many are now calling for this to be raised by an additional $6.50 to $29.50 per hour over the next four years. 

According to Fox 11, following lengthy strikes and calls for boycotts, the workers were eventually awarded an increase of around $10 per hour,

Speaking of the major win, “After signing, I felt so much peace knowing that I’ll be able to retire with dignity,”  said Ana Sanchez, a front desk worker at Sheraton Gateway LAX hotel.

The results of such a win appear to have motivated workers in other regions of the state, who are now fighting for their own increased hourly rate. 

If the proposal goes ahead, hotel workers in the city will experience an increase of around 50% on their current wage. Janitors, event center employees, and security workers would also benefit from the increase. 

The increase followed a study conducted by MIT, which suggested that two working adults sharing living expenses in San Diego required a minimum of $30.58 per hour to support their family. 

The college also believes this amount will decrease in the coming years as employees progress in their jobs and move up the pay scale.

Council members Curren Price and Katy Yaroslavsky were behind the introduction of a motion that aims to increase the minimum wage for employees of hotels with 60 or more guest rooms. 

“Tourism brings billions of dollars to our economy, and the businesses benefiting from tourism workers’ labor can afford to provide good jobs with fair wages,” he tweeted.

Not everyone agrees; however, Peter Hillan, spokesperson for the Hotel Assn. of Los Angeles, fired back, stating, “It is proposals like these that have led to the city’s reputation as a difficult place to do business and to work.” He continued, “Enough is enough.”

“We’re essential to the Los Angeles economy,” said Jovan Houston, a customer service employee at LAX. “We bring in, we export, we do everything here, so it’s time for us to get our end of the stick.”

Suppose Californian employees receive an hourly rate of $30. In that case, many small business owners may be forced to close their establishments as they readily admit they won’t be able to keep up with the increased costs. 

According to the study, California’s smaller enterprises may be able to finance the increase in employee salaries through new revenues. Researchers also claim it will not result in mass layoffs. However, others aren’t so sure. 

A company that provides food and drinks at California’s LAX airport claims it would certainly go out of business should the minimum wage see such a drastic increase. 

Unfortunately, a significant increase in minimum wages can lead to inflation in the industry, a loss of jobs, fewer hours, and companies becoming less competitive, all of which are currently experienced in California’s fast food industry. 

People across the state have expressed their concern against this, with one Chipotle customer from Brea writing, “I used to pay $10. Now it’s $13. Over time, that’ll be like $6 more or  $9 – it just keeps going.” They continued, “If I’m going to start paying restaurant prices, then I’m going to have to go somewhere else.”

Speaking on the aftermath, the California Restaurant Association said, “Since it took effect, job losses, reduced working hours, restaurant closures, and higher prices for California’s inflation-weary consumers have been ongoing.”

While this likely won’t affect the nation’s largest hotels, chains, and tourist destinations, smaller family-run businesses may struggle to cover costs and could be forced to downsize or even close up shop simply because they can no longer afford to remain open. 

Everybody wants more money, but several experts have suggested it may come at a grave cost, claiming businesses will shut down and thousands of jobs will be lost. If rushed without proper due diligence, such a drastic increase may seriously affect the long-term health of the economy.