The San Diego Regional Chamber of Commerce and the San Diego Padres On Tuesday criticized a suggestion that would raise the lowest pay for workers in the hospitality sector to $25 an hour.
As stated by the president and CEO of the chamber Chris Cate A City Council member of San Diego from 2014 to 2022 argued that increasing wages for workers at hotels, event venues, amusement parks, and popular sites like the San Diego Zoo would have an adverse effect on the local economy.
“The stark truth about this policy is unemployment, business shutdowns, and job losses—not only for companies but also throughout nonprofit organizations and service providers that assist our most fragile communities,” Cate stated during a press briefing. “While this policy purports to aid workers, it could end up leaving numerous individuals unemployed altogether.”
Under the provisions of a proposal scheduled for review by a San Diego City Council sub-committee on Wednesday, not every small business would be required to increase wages, nor would all employees necessarily receive a pay hike.
Only staff working at hospitality venues—and those employed by companies leasing spaces within these locations—would be required to pay their employees $25 an hour, as stated in the proposal. proposal , which if approved will come into force the following year.
Employees of the city and government are not subject to the wage increase.
Padres COO Caroline Perry indicated that this exception brings up significant issues regarding the proposal's equity.
The city is excluding almost 900 of its workers from this rule, such as custodial and event personnel who would normally fall under it," Perry stated. "If $25 per hour is indeed necessary for survival in San Diego, then why isn't this applied to the city’s team members? The reason is straightforward: both the city administration and local enterprises recognize they cannot bear those expenses.
The Padres calculated that the lowest possible expense for raising wages would be an additional $10 million annually.
Supporting the suggested boost in the minimum wage
City councilmember Sean Elo-Rivera introduced the proposal in February.
He is among the trio of council members serving on the city’s Select Committee. Committee On Tackling the Cost of Living, Which Will review the proposal Wednesday morning.
According to a report Authored by Elo-Rivera’s team, the raise in wages fights against corporate greed by lessening low-income hospitality employees' dependence on public aid programs.
The report states, “Local taxpayers are providing subsidies to corporations because of the minimal wages they pay to people in San Diego.”
Unclear consequences for San Diego hotels
Motels having less than 150 rooms won’t be required to increase salaries to $25 per hour.
Nevertheless, the city’s separate evaluation indicates that the minimum wage hike "might have considerable implications for hotels in San Diego," leading them potentially to reduce staff numbers or elevate costs.
Although visitors' hesitation to spend extra money on accommodation may gradually reduce related tax income, these revenues are not anticipated to drastically drop.
Contrasting views
Increasing wages to $25 an hour starting next year—an increase of 45% over the current city minimum—could lead to instant upheavals; these issues might be mitigated through a phased rise in pay, as suggested by the city's independent review.
The effect on companies and employees due to the rise hinges on numerous elements, such as how bosses decide to tackle rising costs and the state of the overall economy.
The analysis stated that "there isn't a definitive agreement on whether setting a minimum wage has beneficial or detrimental effects" for employees in the hospitality sector, adding that opinions vary widely instead.