Raising the minimum wage to $25 an hour for hotel and event center workers in Anaheim could cost the city $8.6 million more a year to pay employees at the Anaheim Convention Center, according to a new report commission by the City Council.
The council is set to decide on Tuesday, June 13, whether to increase the minimum wage locally for hotel and event center workers or put the question to voters. Councilmembers asked last month for the report on the implications for the Convention Center before deciding.
Unite Here Local 11, a labor union representing service industry workers, developed the minimum wage ordinance and gathered enough signatures to place it on a ballot.
Some Anaheim businesses are arguing against raising wages, claiming it would make it harder to make ends meet. The report to the council warns other event centers – which are defined as large facilities such as concert halls, stadiums or other meeting places – may struggle to raise prices because of existing contracts to cover the wage increases, yet cautioned that further analysis was needed to assess the complete effect on the city’s economy.
While the report, which was done in three weeks, focused solely on the Anaheim Convention Center, it notes the proposed ordinance would apply to more city-owned facilities. It projected labor costs could go up by 19% for Angel Stadium and the Honda Center.
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