Union leaders, workers, business owners demand $25 hospitality minimum wage

Support for the Hospitality Minimum Wage Ordinance Grows

As the City Council prepares to vote on a significant piece of legislation, Councilmember Sean Elo-Rivera has taken a strong stance in support of the Hospitality Minimum Wage Ordinance. This initiative, proposed by Elo-Rivera, aims to gradually increase the minimum wage for San Diego’s hospitality and tourism workers to $25 over a five-year period. The ordinance is designed to ensure that those who contribute to the city’s vibrant tourism industry receive fair compensation.

The staff report outlines that the ordinance would apply to large establishments such as hotels with at least 150 rooms, amusement parks like SeaWorld, and event centers including Petco Park. Elo-Rivera emphasized that this measure is not just about wages but also about dignity and fairness for the workers who keep the city running.

“For decades, the tourism industry has known that city hall worked for them, much more than the city worked for its workers and everyday San Diegans,” Elo-Rivera stated during a briefing. “Those days are over. No more. We work for the people. We work for San Diegans, and because we work for San Diegans, we’re going to fight to ensure that every worker in the city has the dignity they deserve, the fairness they deserve and the future that San Diego’s working families deserve.”

Initially, Elo-Rivera's proposal aimed to establish the $25 minimum wage on January 1, 2026. However, following opposition from local hotels, businesses, and the San Diego Regional Chamber of Commerce, the ordinance was revised to reflect a gradual increase. Critics argue that such a wage hike could lead to higher prices and job cuts, negatively impacting the local economy. Yet, labor researchers and small business owners at the rally presented a different perspective.

“Research shows that increasing wages not only lifts individuals and families out of poverty, but it also boosts local economies,” said Satomi Rash-Zeigler, executive director of University of California, San Diego’s Labor Center. “When workers earn more, they spend more in their communities on groceries, healthcare, education and housing, invigorating our local businesses. An increase to $25 per hour would enable nearly 70% of hospitality workers to afford basic essentials.”

Rash-Zeigler also highlighted the financial struggles of many hospitality workers in San Diego. She noted that 75% of these workers spend more than half their income on rent, and nearly a third have experienced homelessness. These statistics underscore the urgent need for change.

Emily Renda, board chair of Business for Good and owner of a local operations agency, also spoke about the benefits of a higher minimum wage for businesses. “What’s good for workers is good for business,” she said. “At Business for Good, we reject this outdated thinking because we’ve seen the evidence in our own companies. When workers earn living wages, they become better employees, more stable, more motivated, with lower turnover. That means better service for customers and lower hiring costs for employers.”

Renda and other speakers pointed out the strong opposition from multinational hospitality chains. Brigette Browning, president of the San Diego and Imperial Counties Labor Council, emphasized the economic impact of the tourism industry. “According to the San Diego Tourism Authority, the tourism industry had a $22 billion impact in San Diego last year,” she said. “If corporations can afford billions in stock buybacks for wealthy shareholders, they can afford to pay the workers who generate that wealth at least a basic wage.”

Genoveva Aguilar, vice president of the Service Employees International Union’s California sector, argued that the $25 minimum wage is “the least the billionaires can do.” She stressed the importance of fairness and dignity for workers. “San Diego indeed is a beautiful city, but the workers who make our city an attractive destination for so many tourists cannot afford to be tourists in their own city,” Aguilar said. “Raising the floor for hospitality workers raises the floor for every worker in San Diego. The time is now for the billionaires in the hospitality industry who [are] cashing in tremendous profits to pay workers what they deserve.”