Anaheim voters are deciding if hotel and event center workers in the city should get a $25 per hour minimum wage, along with several other workload regulations, now that ballots are out for an Oct. 3 special election.

Measure A has pitted labor union Unite Here Local 11, which gathered enough signatures to put the ballot initiative before voters, against city hoteliers.

If passed, housekeepers in Anaheim would start earning $25 an hour immediately, with annual wage increases being 3% or tied to the consumer price index, whichever is higher. It would also entitle workers to double pay if they clean more than 3,500 to 4,000 square feet of rooms a day, depending on the hotel’s size.

Measure A would also require panic buttons to be provided to housekeepers, 24/7 security guards and paid time to report incidents to the police. The City Council this summer adopted many of the safety measures in a separate resolution that will go into effect next year.

The measure’s proponents argue the cost of living has skyrocketed in Southern California, and passing the initiative would be a step toward helping housekeepers be able to afford to live where they work. Hoteliers are countering by arguing the workload regulations would make it harder to keep their businesses running, which would harm the city’s hotel tax revenue, because they would end up paying many workers double pay.

The minimum wage in California is $15.50 an hour; a June study by Beacon Economics found that room attendants make on average $18.50 an hour. Any Anaheim resort-district hotels that benefit from city tax rebates must pay a minimum of $19.40 per hour under an earlier measure approved in 2018 by voters.

The minimum wage rules would also apply to event center workers, which are defined as large facilities such as concert halls, stadiums or other meeting places more than 20,000 square feet. Examples include the Anaheim Convention Center and even the Anaheim Family YMCA.

The special election, which is expected to cost the city about $1.5 million, will have all the typical voting centers and ballot drop-off boxes active. People can vote in person starting Sept. 23 and through election day on Oct. 3.

Arguments for Measure A

The push behind Measure A is largely driven by Unite Here Local 11. It has engaged in rolling strikes throughout the summer in Southern California against hotels that haven’t reached agreement on new labor contracts, including the Hilton and Sheraton Park hotels in Anaheim.

Unite Here Local 11 Co-President Ada Briceño, who is also the Democratic Party of Orange County chair, said Measure A is about raising wages for workers who are struggling and argued that the safety ordinance the City Council adopted on its own doesn’t go far enough.

“The industry, these corporations, developers, have made out, (and) have banked in Anaheim for such a long period of time,” Briceño said. “They have not compensated the workers fairly.”

In the official statements that accompany the ballot materials, the proponents argue that similar initiatives passed in Los Angeles County and Irvine are needed in Anaheim. “We deserve fair pay. Anaheim’s hotels are doing better than ever. Yet many of our friends and coworkers live paycheck to paycheck.”

Irvine last year approved its own version requiring panic buttons and square footage limits to what housekeepers can clean in a day. Long Beach voters will consider next year setting a $23 per hour minimum wage for hospitality workers, which was also backed by Unite Here Local 11.

Briceño said housekeepers engage in difficult physical labor and experience health problems such as needing knee replacements or arthritis. She argued that workers cannot afford to live in Anaheim under the current economic conditions, and Measure A is a step toward bettering that.

Briceño said the housekeeping industry is primarily women of color who often commute long distances to their jobs.

“We need dignified work and protection of those workers,” Briceño said. “The industry has looked the other way for such a long time.”

Arguments against Measure A

The city of Anaheim and hoteliers are both arguing against the ballot initiative. Hotel operators have said they already struggle with staffing and wouldn’t be able to hire enough workers to avoid paying mandatory overtime, thus they would rent out fewer rooms and that would reduce the tax revenues to the city.

Bharat Patel, owner of the Castle Inn & Suites, said if Measure A passes he would have to consider closing down part of his hotel and possibly lay off staff since the new rules “would make operations almost impossible.”

“I would have to make the tough decision,” he said. “If you can’t clean (the rooms), you can’t rent them.”

City-commissioned studies on the possible effects of the initiatives said if the minimum wage hike occurs, the city’s general fund should get more money in the short term from taxes on the resulting higher hotel room rates, but not in the long term, because of less long-term investment in the hotel industry because profits would fall.

An Oxford Economics study hoteliers commissioned said Anaheim could lose about $475.2 million a year in visitor spending, lost tax revenue and reduced investment in construction.

“We expect hotels and event centers will increase prices and reduce service offerings in response to a situation with substantially higher payroll costs,” the study’s report said.

It also expected hotel room rates would go up by around 14%.

Disneyland President Ken Potrock argued against Measure A in a July op-ed, writing “if a housekeeper cleans one extra square foot — yes, just one — beyond the set maximum, double pay (at least $50 per hour) would be required for the entire shift.”

Wincome Hospitality, which owns the Anaheim Hotel, already plans to pay workers $25 an hour by the end of 2024, said Tina Riley, director of sales and marketing for the Anaheim Hotel.

But it would be impossible to hire enough workers to ensure no one eclipses the square footage allotments per day, which would cause the double pay provision of the measure to be triggered often. She said the hotel would have to take a hard look at laying off workers and the benefits being provided if voters approve Measure A.

“Our bottom line profit will be cut by about 50%, and it’s just not healthy for business,” Riley said.

“We can’t raise prices enough to make up the difference,” she said. “It’s going to hurt our occupancy as well, which means fewer tourists to Anaheim.”

Ballots have been mailed to all registered voters in Anaheim. If Measure A is approved, the wages and rules would go into effect 10 days after the certification of the election.

The first wave of vote centers open Sept. 23 and more will open as of Sept. 30. Ballots may be left in one of the many official, secure drop boxes around town through 8 p.m. on Oct. 3 to be counted.

Ballots may be returned by mail, but must be postmarked no later than Oct. 3 and received by Oct. 10. Information: ocvote.gov.

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