Los Angeles unions demand free rent for illegal aliens while pushing for $30 minimum wage, threatening to crush small businesses and property owners already struggling to survive in California’s economic climate.
Key Takeaways
- Unite Here Local 11 is pushing for a citywide $30 minimum wage by 2028, far above the current $17.28 rate, potentially driving businesses out of Los Angeles.
- LA tenant unions are demanding rent moratoriums for illegal aliens, claiming ICE enforcement has created economic hardship despite causing unrest themselves.
- Business leaders warn the extreme wage proposals could devastate the city’s economy, with Stuart Waldman predicting “businesses will close” and “the city will become a barren land.”
- Property owners, 85% of whom are small independent landlords, would face financial ruin if forced to provide free housing while still paying mortgages and maintenance costs.
- Union tactics include ballot initiatives requiring public votes on major development projects, potentially killing job-creating investments including the Convention Center project.
Union’s Radical $30 Minimum Wage Proposal Threatens LA Business Community
Unite Here Local 11 has escalated its battle against Los Angeles businesses by filing paperwork for two aggressive ballot proposals that could fundamentally reshape the city’s economic landscape. The first proposal would mandate a $30 minimum wage for all city workers by July 2028 – nearly double the current general minimum wage of $17.28. The second would require public votes on large hotel and event center projects, particularly those receiving city subsidies, effectively giving unions veto power over major economic development initiatives that could bring jobs to struggling communities.
“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.
These proposals come as a direct response to efforts by the L.A. Alliance for Tourism, Jobs and Progress – a coalition of businesses trying to overturn a city ordinance that would raise the minimum wage specifically for hotel and airport workers to $30 an hour. To place their measures on the ballot, the union must collect approximately 140,000 signatures within 120 days, a hurdle they appear confident of clearing despite widespread concern about the economic consequences.
Business Leaders Warn of Economic Catastrophe
The response from business leaders has been swift and dire. Many warn that forcing a $30 minimum wage across all industries would drive businesses out of Los Angeles entirely, leading to massive job losses and economic contraction at a time when California is already experiencing significant business exodus to more affordable states. The tourism industry in particular fears devastating impacts from the proposed public vote requirement for major projects, which could kill development plans and construction jobs.
“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,” warned Stuart Waldman.
The L.A. Alliance for Tourism, Jobs and Progress has been equally blunt about the consequences: “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.” Currently, hotel workers in Los Angeles 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.
Tenant Unions Demand Free Housing for Illegal Aliens
Adding to the city’s economic pressures, Los Angeles tenant unions including the Los Angeles Tenants Union (LATU) and Service Employees International Union (SEIU) are now demanding rent moratoriums specifically for illegal aliens and low-income residents. The groups are organizing a “citywide day of action” on July 1, encouraging a rent strike and pushing for an eviction moratorium that would force property owners to provide housing without compensation – a move that could bankrupt thousands of small landlords.
“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,” said Kenia Alcocer of LATU.
This narrative conveniently ignores that recent unrest has been caused primarily by anti-ICE rioters, not law enforcement activities. The L.A. County Board of Supervisors has already approved a study on the economic impact of immigration enforcement, signaling potential receptiveness to the unions’ demands despite the catastrophic impact on property owners.
Property Owners Face Financial Ruin
The majority of Los Angeles rental property owners aren’t corporate giants but regular citizens who depend on rental income to pay their mortgages, property taxes, and maintenance costs. Any rent moratorium would effectively force these small business owners to provide free housing while still meeting all their financial obligations – an unsustainable situation that could trigger a wave of foreclosures and further deteriorate housing conditions across the city.
“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.
These combined union demands represent an unprecedented assault on Los Angeles businesses and property owners, threatening to accelerate economic decline in a city already facing serious challenges from high taxes, excessive regulations, and a growing homeless crisis. President Trump’s administration has repeatedly warned that such radical economic policies ultimately harm the very communities they claim to help by destroying jobs and investment opportunities that provide genuine pathways to prosperity.
