Glendale’s hard-working voters have rejected a ballot measure that would require a $20 minimum wage to be paid to employees of hotels and event centers. The measure, supported by the progressive Worker Power organization, would have also required “other labor regulations.”
Save Glendale Jobs Chair Kim Grace Sabow, who opposed the expensive and job-killin measure, said “Glendale voters saw how damaging Proposition 499 would have been to their city’s tourism industry, to essential city services, and to their community’s quality of life. This is a victory for Glendale.”
“I extend my sincere appreciation to Glendale voters, who chose to preserve and protect the jobs our industry creates,” said Sabow. “I want to thank the many supporters of our effort, without whom this result would not have been possible, including key business leaders, elected officials, and law enforcement. I also want to thank our dedicated campaign team, which expertly managed every aspect of this campaign, and our volunteers, who spread the word across the city about how damaging this measure would be. Together, we formed a mighty coalition.”
“I am thrilled for Glendale, which I am certain will not only continue to grow and create more outstanding destinations, attractions, and experiences for visitors but will also continue to deliver more great jobs and career opportunities for Glendale residents,” concluded Sabow.
Prior to this week’s General Election, the Common Sense Institute of Arizona published a detailed report examining the potential economic impact of the Hotel and Event Center Minimum Wage Protection Act, which Glendale voters will decide on this November.
The measure, opposed by small and large businesses in Glendale, included specific provisions governing how workers’ are allocated.
According to the Common Sense Institute Arizona (CSI), the findings raise significant concerns about the broader economic effects on Glendale’s tourism and events sectors.
Report’s Key Findings:
- Economic Impact: The wage protection act could reduce Glendale’s Gross Domestic Product (GDP) by between $120 million and $1.9 billion. The city’s events and accommodation sectors, which account for 8.2% of Glendale’s economy, would be the most affected.
- Job Losses: Depending on industry responses to the new policies, the city could see between 1,700 and 32,000 jobs impacted. These effects range from job losses to reduced work hours and relocation of jobs outside of Glendale.
- Cost to the City: This initiative would also impose significant costs on the City of Glendale, requiring the creation of a new Department of Labor Standards to enforce the act’s provisions. The city would need to spend an estimated $995,000 to $1.9 million annually to manage these new requirements.
- Tourism and Sports Industry: Glendale, home to key venues like State Farm Stadium and the Westgate Entertainment District, has invested heavily in its tourism sector. While Glendale only comprises 3% of the state’s population, it hosts 13% of Arizona’s sports and tourism industry. The proposed measure could significantly hurt this sector.
The report also highlights how Glendale’s unique location within Arizona’s urban core and its proximity to competing jurisdictions make it especially vulnerable to economic shifts. If businesses move just outside city limits to avoid the new regulations, Glendale could face long-term revenue losses and diminished economic prospects.