For scores of contractors at Los Angeles International Airport, paying L.A.’s living wage for its passenger service workers may not be enough.

If union allies and some city officials have their way, about 200 airline contractors serving LAX would have to pay their 6,000 workers who perform baggage handling, security and janitorial duties more than the living wage, especially if they don’t provide health benefits.

In a recent motion, Los Angeles City Councilwoman Janice Hahn citing a study that indicated low wages were leading to rapid turnover at these contracting companies asked City Attorney Rocky Delgadillo to report back with ways to boost wages and benefits for workers at airline service companies.

These contractors, who are paid by the 120 airlines operating at LAX, provide baggage handlers, skycaps, terminal security officers, janitors, airplane cabin cleaners and wheelchair lift operators to the airlines. Because they all work at a city-owned facility, the workers must be paid the city’s living wage, which is $10 an hour with health benefits and $11.25 an hour without health benefits.

Four passenger service contractors did not return calls seeking comment and only one airline out of four, Southwest, responded with a “no comment.”

Gary Toebben, chief executive of Los Angeles Area Chamber of Commerce, said any move to require higher wages for airline service contractors could backfire.

“It’s simply terrible economic policy to target airlines at a time of record financial losses,” Toebben said. “This would force carriers to cut more flights at LAX or simply move services to airports outside of Southern California. We hope that the mayor and City Council will exercise sound judgment and not move forward on this misguided effort.”

In addition, contractors are facing an airport administration overhaul of contracting operations. In order to be considered for future airline contracts at LAX, these companies may have to pay to provide more intensive training for their workers and invest in equipment upgrades.

Among the standards airport staff is considering: Requiring a certain number of hours of training per month and a certain number of training classes certified by the federal Transportation Security Administration.

This proposed contracting overhaul will likely be approved by the Board of Airport Commissioners late this fall and could go into effect early next year.

All of this is taking place against a backdrop of tense contract negotiations between the Service Employees International Union Local 1877 and nine major airline service contractors employing about 2,500 workers at LAX. All of the contracts have expired. The bargaining committee of the union acted on a previous authorization vote by its members and called a strike on Aug. 28 after talks broke off. At press time, no new talks were scheduled. The union had won a pledge from the L.A. County Federation of Labor to provide financial support to workers during the strike.

Higher wages would hit the industry as airlines are facing intense cost pressures from soaring fuel prices and demanding price cuts from their contractors. Industry analysts say they expect several airlines will file for bankruptcy protection in the months ahead. Many airlines have been slashing routes and adding charges for checked baggage and carry-ons. Some are even charging fees for blankets and pillows.

Hahn acknowledged that imposing additional standards and requiring higher wages would pose a financial burden on the airlines.

She said her proposal was driven by her concern over airport security, citing the study showing high turnover among workers who are on the front lines of passenger screenings.

“I know that the airlines are currently facing tough times due to increased oil prices,” she said. “This is why I have reached out to the airlines myself to try to find a way to address these ongoing problems with the passenger service workers. Unfortunately, they have not been receptive. However, I continue to hope that we can find a compromise that will keep our airlines flying, keep our passengers safe and also keep our workers working in good, stable jobs.”

Hahn’s proposal could have impacts far beyond airline contractors.

The prospect of raising the city’s living wage beyond the annual cost of living increases already written into the law has alarmed local business leaders. They fear this could be a first step in dramatically increasing required wages for other groups of businesses operating in the city.

“We are at very precipitous point in our economy with many companies facing serious financial challenges,” Toebben said. “This effort will only succeed in making Los Angeles more unfriendly to business thereby threatening the very jobs that it seeks to protect.”

Response to study

Hahn said her proposal came in response to a study last year from the Los Angeles Alliance for a New Economy, an organization closely tied to local unions. The study claimed to have found problems with turnover and security-related training among airline service workers and attributed these problems to wages that were too low to retain workers.

“Despite the city’s living wage ordinance, most airport service workers earn under $19,000 per year,” Hahn said in introducing the motion.

Hahn denied that her motion was an attempt to facilitate further unionization of the airline service workforce. She said her focus was on maintaining security at the nation’s third busiest airport. Frequent staff turnover is one of the biggest obstacles to ensuring that security, she said.

One airline service worker said that a majority of people in her company’s LAX operations stayed less than a year.

Robin Wilson checks passenger boarding passes as a security officer with Irving, Texas-based G2 Secure Staff LLC. She said the basic pay of $11.40 an hour without health benefits makes it difficult to retain workers.

“Most of the workers see what the working conditions are like and leave after three to six months,” Wilson said. “That’s a big problem in terms of training workers.”

The Alliance for a New Economy provided Wilson’s contact information for this article.

Although she has been with G2 for six years, Wilson said she has to use county health clinics whenever she needs to see a doctor.

G2 Secure Staff did not return repeated calls last week seeking comment. Nor did any of three other airline service contract companies the Business Journal contacted. Designated spokespeople were on vacation or other executives at the companies did not call back.

Only one of four airlines responded to inquiries about the Hahn motion or the airport’s proposed overhaul of the airline contracting policy. Southwest Airlines spokeswoman Whitney Eichinger said the company would not comment on either issue. Representatives from American Airlines, Delta Airlines and United Air Lines did not return calls or e-mails seeking comment.

Meanwhile, union spokesman Mike Chavez denied any connection between the contract talks and the Hahn motion. He also said the union was not at present seeking to expand its membership rolls by organizing other airport service contractors.

“We’re focused on getting the best possible contract for the workers we now represent,” he said. “And that’s all we’re focused on right now.”

Union officials and their allies at Los Angeles Alliance for a New Economy say they want wage levels similar to those for airline service workers at San Francisco International Airport: $11.88 with health benefits and $13.13 without health benefits.

They say the living wage paid to workers who don’t receive health benefits must increase, because the $1.25 per hour spread is a disincentive for contractors to provide health insurance. It costs much more than that to provide health benefits.

Hahn agreed, adding that the $1.25 per hour was too little for workers to go out and buy their own health care.