Powerful union demands 'New Deal' for the 2028 LA Olympic Games, threatens to strike

A powerful hotel workers union and its allies are escalating their demands ahead of the 2028 Olympic Games in Los Angeles.

They're asking the International Olympic Committee and private Olympics organizer LA28 to give $5 billion to build housing in Los Angeles. They're also demanding a citywide moratorium on Airbnb, and want the International Olympic Committee to end its partnership with the short-term rental giant.

Unite Here Local 11 announced the "New Deal for Our Future" campaign alongside other unions and community groups Thursday morning outside the Coliseum, which will co-host the Opening Ceremonies.

That union's co-president, Kurt Petersen, emphasized its key piece of leverage going into the Games: dozens of Unite Here's contracts with local hotels, airports and stadiums expire in 2028 ahead of the Olympic Games.

" If LA28 and their billionaire backers refuse to change course, we will take this fight to the streets and to the Games," he said. " When the world's eyes are on Los Angeles in 2028, we will not hesitate to strike."

Tourism workers gathered outside the Coliseum said they expected the Olympic Games would mean more work for them, and in return they wanted to see more benefits.

" A lot of people are gonna stay in our hotels," said Emmanuel Cabrera, a bellman at the Westin Bonaventure and organizer with Unite Here said. "We're just asking for our fair share."

An LA28 spokesperson responded to the rally in a statement, saying the Olympic and Paralympic Games would "mean good-paying jobs and real opportunities for working people in Los Angeles." The International Olympic Committee did not immediately respond to a request for comment.

Controversy over minimum wage

The "New Deal" campaign comes as different groups jostle to influence and benefit from the Olympic Games, less than three years out from the mega event.

A major political fight over the Olympics is already playing out at City Hall, after the L.A. City Council passed a $30 minimum wage for airport and hotel workers earlier this year. A group of business interests backed by Delta and United Airlines launched a referendum to overturn the minimum wage law. Delta Airlines is a corporate partner of LA28.

Unite Here Local 11 responded by filing paperwork for new ballot propositions, including raising the minimum wage for all L.A. workers, requiring Angelenos to vote on new hotel and event venue developments, and taxing companies with CEO pay that far exceeds worker pay. A group representing business interests shot back with its own ballot proposition to eliminate the city business tax, which brings in hundreds of millions of dollars each year.

Those propositions aren't guaranteed to reach the ballot, but they have city officials on high alert. Mayor Karen Bass warned that losing the city business tax would disrupt city services. Former City Councilmember Paul Krekorian, who now oversees the Olympics for the city, said that voting on event venues would be a costly challenge for Olympics planning.

Monica Lira, a 23 year-old makes around $21 an hour working for a company that provides meals for airlines at LAX.

" I'm really excited and also nervous, because it's more work for us too," Lira said Thursday about the 2028 Games.

Airbnb is pushing to expand short-term rental market

That's not the only political struggle citing the Olympic Games. Airbnb recently launched a shadow campaign to allow for more short-term rentals in Los Angeles, citing the city's $1 billion deficit and the upcoming mega-events in the city.

"With hundreds of thousands of tourists planning to attend the 2026 World Cup, 2027 Super Bowl and 2028 Olympics, L.A. has an opportunity to maximize the benefits of tourism to save city services," that effort's website states.

That campaign is backed by a coalition that also includes labor unions and community groups. It seeks to change an L.A. ordinance restricting homeowners from renting out second homes as short-term rentals. Airbnb's name is mentioned on the group's website, and it confirmed its involvement to LAist last week.

Unite Here's "New Deal" proposal accuses Airbnb of removing homes from the long-term rental market, threatening renters. Justin Wesson, Airbnb Senior Public Policy Manager, responded in an emailed statement.

“Airbnb is focused on ensuring Los Angeles’ visitors have an affordable place to stay, while the city gets the revenue it needs to prevent cuts to public services — all without taxing Angelenos," Wesson said. "UNITE HERE continues to put hotel special interests ahead of what's best for locals.”

A privately funded Olympics — with a public backstop

While debate over how the Olympics will look continues, one fact isn't changing: the city of Los Angeles is on the hook if the Games go over-budget.

LA28 has pledged the Games will be entirely privately funded, and earlier this month announced that for the first time, the IOC would allow naming rights for Olympic venues to raise revenue. Comcast and Honda have already secured naming rights.

"These groundbreaking partnerships with Comcast and Honda, along with additional partners to come, will not only generate critical revenue for LA28 but will introduce a new commercial model to benefit the entire Movement," LA28 President Casey Wasserman said in a statement.

Kurt Petersen with Unite Here painted a less rosy picture outside the Coliseum on Thursday.

" LA28, as we speak, is literally auctioning off our city," he said. "What's next? Welcome to 'Airbnb Los Angeles?'"