Disclaimer: The comments in this blog are my personal opinion and may or may not reflect an adopted position of the city of Glendale and its city council.

In preceding blogs you’ve learned about the Worker Power Super PAC, what facilities would be affected, the proposed minimum wage and the requirement to create a new Glendale governmental department.

The consequences for the City of Glendale and affected workers are quite consequential. Kamryn Brunner authored the following September 2024 report for the Common Sense Institute Arizona. It is entitled, The fiscal implications of Glendale’s Hotel and Event Center Minimum Wage Protection Act. Here is the link to the entire study: CSI_AZ_REPORT_GLENDALE_MIN_WAGE_SEPT_9_2024_FINAL (1)

Their conclusion is, “Common Sense Institute estimates the Wage Act would reduce Glendale’s economy by between $120 million and $1.9 billion. Associated job losses would be between 1,700 and 32,000; up to 47% of this is a dynamic effect on businesses indirectly supported by the city’s tourism sector.”

I have cited some excerpts from their study:

  • “An analysis of data from hotels.com and Expedia, the Federal Emergency Management Agency, VisitGlendale.com, and other public information sources, CSI estimates that 19% of Maricopa County’s events and accommodation industry can be found in Glendale alone.” 
  • “While Glendale has only 3.4% of the state’s population and 3.3% of state personal income, but approximately 15% of the state’s entire sports and tourism sector is found in Glendale.”
  • “CSI estimates that there are up to 4,954 employees in the City of Glendale who may be directly impacted by this proposal.”
  • “This initiative specifically targets the niche industry into which Glendale has heavily invested and is today heavily concentrated. Because of the significant costs the initiative could impose on targeted businesses, and the relative ease with which affected activity could move to other nearby jurisdictions while staying close to sports and event hubs, the potential negative impacts for Glendale are likely to be more significant than if this were either a more isolated community or a statewide initiative.”
  • “For Arizona to pass a $20 minimum wage for hotel and event center workers in Glendale, it could cost employers up to $10,756 per affected worker -through a combination of either direct increased wage costs or efficiency losses as employers mitigate the impacts by reducing staff, cutting hours, or moving business activity. Much of this cost will likely be passed onto consumers in the form of higher prices and increased fees (as has been the case in California). This may further incentivize both customers and operators to seek alternatives outside the city.”
  • “Ultimately, if enacted, the Act would have dramatic implications for the city of Glendale and its economy. Those implications would likely play out over a period of time, rather than immediately.”                                                                                             “There will be some combination of:
  • Employment losses and reductions in work hours among hotel and event staff.
  • Hotel and event cost increases in Glendale, including price increases.
  • The movement of hotel and event activity outside of Glendale and to nearby cities, particularly over time as part of normal business maintenance and expansion cycle.
  • An increase in the rate of unionization among Glendale accommodation and event staff.”

“Under all outcomes, the nominal wage increase implied by the Act for existing workers never occurs.”

© Joyce Clark, 2024    

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