Council OKs Cost of Living Increase
By Rick Orlov, Daily News
After listening to a parade of workers and supporters of the living wage, the Los Angeles City Council on Wednesday approved a major raise that will enable LAX-area workers to pay for health insurance.
Under the plan, 5,100 workers employed by the airlines and concessionaires will receive a bump of $4.50 an hour to pay for health coverage.
“This is long overdue,” Councilman Bill Rosendahl said. “As we wait for the federal government to deal with this, we are taking steps to protect our workers.”
Councilwoman Janice Hahn, who pushed for the change, said it was an important step for the city to take.
“We are doing a good thing for the employees of Los Angeles,” Hahn said.
The living wage requires employers to pay workers $10 an hour if insurance is provided. Under the new proposal, they will have to pay $14.50 an hour if insurance is not provided.
The goal, Hahn said, is to ensure the workers have health insurance.
Councilman Bernard Parks said he was concerned that many of the concessionaires would be unable to afford the payments – and would be forced to close – because of limitations. Hahn said her committee would review the issue and come back with a recommendation.
Los Angeles was among the first cities to adopt a living wage program in 1997 and has allowed only cost-of-living increases over the years. Hahn said the new hike was needed to cover the costs of health insurance.
Councilman Richard Alarcon, who was on the council that originally approved the living wage, said it was an important statement by the council.
“I think in 1997 we did the right thing and we are doing the right thing now,” Alarcon said. “Why should workers who provide service not get health care. This is a slam dunk for me.”
Council President Eric Garcetti said the council was acting to “protect our neighbors, our friends and our constituents.”
“What we are doing is recognizing a need and standing up for the working people of Los Angeles,” Garcetti said.
A study by the Los Angeles Alliance for A New Economy found that the current system failed to provide adequate insurance for the workers, with 2,000 relying on public health care and 3,100 others with no health care at all.
