May 27--Los Angeles Mayor Eric Garcetti said Wednesday that a proposal to exempt some unionized companies from paying a $15-per-hour minimum wage needs further scrutiny, but he stopped short of saying whether he would support or oppose it.
In response to questions from reporters, Garcetti emphasized that the proposal backed by labor leaders is not currently part of the landmark minimum wage plan. "I think this bears study ... but in the meantime an ordinance that does not include this is moving forward," he said.
The pending ordinance comes up for a City Council committee vote Friday.
The exemption proposal has triggered an outcry among some business groups.
The City Council recently agreed to draft a law that would hike the citywide minimum wage to $15 an hour by 2020, a plan celebrated by labor and community activists.
As lawmakers prepare to vet and approve a draft ordinance prepared by City Atty. Mike Feuer on the minimum wage increase, labor leaders have advocated for an exemption from the law for unionized companies whose employees agree to waive the wage rules.
"With a collective bargaining agreement, a business owner and the employees negotiate an agreement that works for them both," said Rusty Hicks, who heads the county Federation of Labor and helps lead the Raise the Wage coalition.
"The agreement allows each party to prioritize what is important to them," such as "healthcare workers maintaining their own healthcare so they can take their kids to the doctor when they are sick. That is what the City Council should continue to protect," Hicks said in a statement Tuesday night.
Labor representatives said the proposal also would ensure that the city falls in line with federal law. Such an exemption for employers with union workers was included in a wage hike for workers at large hotels approved by L.A. lawmakers last year. And similar exceptions have been included in minimum wage laws in San Francisco and Chicago.
Some business leaders have criticized the proposed exemptions, arguing that they would add pressure on companies to unionize as they seek relief from the wage increases. Los Angeles restaurant owner George Abou-Daoud voiced alarm at the exemption proposal.
"It's insane hypocrisy," Abou-Daoud said. "The unions have put forth an agenda that they themselves don't have to comply with."
Council President Herb Wesson said he expected the issue to be discussed at Friday's council committee meeting.
"We haven't ducked any issue. We would not duck this one. It deserves a conversation. We'll have a conversation," Wesson said.
Times staff writer Peter Jamison contributed to this report.
