PANEL URGES `LIVING WAGE' AT HOTELS PROPOSAL WOULD AFFECT AREA NEAR LAX.

Byline: RICK ORLOV Staff Writer

Linking the move to the $4 billion modernization of LAX, a city panel took steps Wednesday to require Century Corridor hotels to pay workers a ``living wage'' as the city seeks to improve the area and boost tourism.

Under the plan, operators of hotels along Century Boulevard near Los Angeles International Airport would be required to pay workers at least $9.08 an hour with health benefits, or $10.33 an hour without health benefits.

The plan by the City Council's Transportation and Tourism Committee also would require hotel operators to ensure employees receive their full wages, in addition to service charges.

``I think that's what finally got to me -- that they weren't even paying these workers the tips they were earning,'' Councilwoman Janice Hahn said.

Hahn was involved in a highly publicized scuffle with LAX Hilton security personnel earlier this year when she tried to talk to hotel management about labor and wage problems. Since then, there have been a number of protests and organized demonstrations over the issue.

Hotel employees at LAX-area hotels now average about $6.75 an hour, without health benefits.

Madeline Janis of the Los Angeles Alliance for a New Economy, called the action a first step to dealing with poverty issues in the city.

``Century Boulevard is the gateway to Los Angeles, and should also be a gateway to the middle class for the hard-working men and women employed in the area's hotels,'' Janis said.

But officials questioned whether the city can legally impose pay requirements on private businesses, and at least one business group said it would oppose the move.

``We're afraid the city could make the same argument about hotels along Ventura Boulevard,'' said Brendan Huffman of the Valley Industry and Commerce Association, adding that the organization will oppose the effort.

``This is the first effort of the city to force the living wage on private industry, and we think it's a dangerous precedent.''

Victor Franco, representing the Central City Association, noted that the hotels have no direct connection to city businesses.

``The hotel operators do believe in (union) organizing and believe these are issues that can best be worked out that way,'' Franco said.

The city's living-wage program was developed more than a decade ago, along with a worker-retention ordinance at LAX, when a group of new concessionaires tried to reduce costs by firing longtime workers and paying less to new employees.

Daniel Blake, of the California State University, Northridge, Department of Economics and director of the San Fernando Valley Economic Research Center, said the program has provided some boost for workers, but the long-term benefits are still unknown.

``What it does is set out to provide an above-the-going-wage in an area, and that benefits the people in those jobs for a while,'' Blake said. ``But what it doesn't account for is that these people might be faced with a loss of job because there will be more competition for the work.

``Also, the hotel operators will look at what it is costing them to operate and they might decide to outsource a lot of the work,'' Blake said. ``So instead of having a cleaning crew on staff, they will hire a janitorial service to reduce their overall costs.''

Blake also questioned the city linking the plan to its LAX renovations.

``It would be up to a court to decide, but it's not often a linkage like this stands up,'' Blake said. ``Usually you need a direct connection.''

The proposal now goes to the full City Council.

The city committee also urged that a study be done to find more funding for streetscape projects along the Century Boulevard corridor as well as creation of a conference center. ``Not everything needs to go downtown to our Convention Center,'' said Councilman Bill Rosendahl, who represents the area. ``I want us to be able to develop this area as a destination, as a place where people want to go to visit.''

rick.orlov(at)dailynews.com

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