L.A. labor leaders seek minimum wage exemption for firms with union workers

Labor leaders, who were among the strongest supporters of the citywide minimum wage increase approved last week by the Los Angeles City Council, are advocating last-minute changes to the law that could create an exemption for companies with unionized workforces.

The push to include an exception to the mandated wage increase for companies that let their employees collectively bargain was the latest unexpected detour as the city nears approval of its landmark legislation to raise the minimum wage to $15 an hour by 2020.

For much of the past eight months, labor activists have argued against special considerations for business owners, such as restaurateurs, who said they would have trouble complying with the mandated pay increase.

But Rusty Hicks, who heads the county Federation of Labor and helps lead the Raise the Wage coalition, said Tuesday night that companies with workers represented by unions should have leeway to negotiate a wage below that mandated by the law.

“With a collective bargaining agreement, a business owner and the employees negotiate an agreement that works for them both. The agreement allows each party to prioritize what is important to them,” Hicks said in a statement. “This provision gives the parties the option, the freedom, to negotiate that agreement. And that is a good thing.”

Coalition representatives said the proposed exemption would ensure the city complies with federal laws which they say give collective bargaining agreements precedence over local ordinances. They also contend that it would keep L.A.’s ordinance consistent with previous city wage laws.

Some business leaders criticized the proposal, however, calling it ironic in light of union leaders’ past opposition to special considerations for some employers.

“I’d refer everyone back to the statements of labor leaders over the past seven months that no one deserves a sub-minimum wage,” said Ruben Gonzalez, senior vice president for public policy and political affairs with the Los Angeles Area Chamber of Commerce, which opposed the minimum wage increase passed by the City Council.

Gonzalez said the change sought by labor officials could pressure companies into letting employees unionize as a way to seek relief from the mandated wage hike.

“Once again, the soaring rhetoric of helping the working poor is just a cover for city government acting as a tool of organized labor,” he said.

The City Council voted last week to gradually increase the hourly minimum wage to $15 over the next five years. Since then, City Atty. Mike Feuer has prepared an ordinance that would put the increases into effect. The council’s Economic Development Committee is scheduled to review the language on Friday.

Last fall, the council approved an ordinance increasing the minimum wage at large hotels to $15.37 per hour. That law says that provisions of the hotel wage hike may be waived in workplaces that have collective bargaining agreements.