Minimum Wage Hike Will Boost Airport Workers In NJ, NY
NEW JERSEY — Thousands of airport workers in New Jersey and New York will get raises that are tied to the “cost of living,” with a guarantee to hit $25 per hour by 2032, officials announced this week.
Nearly six years ago, the Port Authority of New York and New Jersey approved a plan to raise the minimum wage at its airports to $19 an hour: the highest in the nation at the time. The climb ended in 2023 when the minimum wage reached $19. The move impacted about 40,000 unionized and non-union workers at Newark, JFK and LaGuardia airports – which are each run by the Port Authority.
Now, with rent and housing costs skyrocketing across the Tri-State area, it’s time to hike the minimum wage again, workers and labor leaders have been demanding. See Related: NJ, NY Airport Workers Want $25 Per Hour, May ‘Walk Off Jobs’
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Gov. Phil Murphy of New Jersey and Gov. Kathy Hochul of New York supported the airport workers last month, announcing that a proposal was on the table.
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That deal has now come to fruition, the Port Authority announced Thursday:
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“Following a month-long public comment period, the Port Authority of New York and New Jersey Board of Commissioners today approved an expanded minimum wage policy at John F. Kennedy International, LaGuardia and Newark Liberty International airports that provides annual increases to the wages of thousands of airport workers starting in January 2025, with automatic increases tied to the regional cost of living, consistent with the minimum wage policies of the states of New York and New Jersey.”
The wage increases will begin in January, with three upfront increases of 75 cents in January 2025, July 2025 and January 2026. Starting in January 2027, annual wage increases will be tied to the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI) three-year moving average for the Northeast region.
Wages will automatically increase to $25 per hour in September 2032 if the CPI hasn’t already reached that level.
Stores and restaurants at the three airports will be allowed to tweak their prices by 5 percent to help pay for the higher wages, officials noted:
“The revised policy will allow concessionaires to charge prices to their customers at a level not to exceed 15 percent more than the local, off-airport ‘street prices’ for comparable products. This rate is consistent with several other U.S. airports that share similar regulations seeking to set rate ceilings and prevent price gouging … The previous policy capped all concession prices at local, off-airport ‘street prices’ plus a maximum of 10 percent.”
The Port Authority will also allow airport concessionaires to add an “employee benefits and retention surcharge” not to exceed 3 percent of a customer’s pre-tax bill.
Prices for food at Newark, LaGuardia and JFK airport has been a constant gripe among travelers over the years. See Related: Viral Meme About $78 Meal At NJ Airport Stirs Up The Internet
The Port Authority said it conducts routine monitoring to enforce compliance of the agency’s street pricing standards. The agency also reviews customer complaints from feedback forms and social media – and takes “corrective action” to make sure the price caps are being followed. See Related: Port Authority Agrees With Social Media: $27 Airport Beer Is A Ripoff
BOOSTING WORKERS BENEFITS TRAVELERS
The Port Authority held a month-long public comment period on the wage hike, with most of the comments “generally supporting” the proposal, officials said.
According to the Port Authority, there were “significant improvements in customer satisfaction” following the previous minimum wage increases. This was partly due to reduced staff turnover, officials said. See Related: Surprise – Newark Airport Is Among Nation’s Best, New Ranking Says
“Our airports are not just transportation hubs but also key drivers of regional prosperity, supporting local communities and local workforces,” Port Authority chair Kevin O’Toole said.
“By introducing structured wage increases for airport personnel, we can boost worker spirits and in turn, boost customer service, ultimately delivering even better experiences for the millions who travel through our airports annually,” O’Toole said.
U.S. Sen. Cory Booker, who has written letters of support for the airport workers in the past, cheered for the new wage hike.
“Port Authority airport service workers play an indispensable role at three of our nation’s busiest airports–from cleaning cabins and handling sensitive cargo, to escorting passengers with disabilities, assisting with security and so much more,” Booker said.
“The Port Authority’s decision to adopt wage increases for airport service workers affirms their commitment to uplifting working people and families across New Jersey and New York, strengthening our local and state economies, and maintaining the standards we have long championed at our airports,” the senator added.
The need for more skilled airport workers is only expected to grow in the coming years, with major expansions planned at JFK and Newark Airports.
As local airports get busier and busier, the airlines that are making huge profits need to also dig deeper into their coffers in the name of fairness, advocates urge.
The difference in pay between executives and other airport workers is staggering, 32BJ SEIU spokespeople recently said:
“With tens of millions of travelers passing through Newark International Airport annually – making them the busiest aviation hub in the country – the workers who maintain the safety and cleanliness of these facilities play an essential role in our tourism and travel industry. However, their service has not been fairly compensated even as airlines like American, Delta and United rake in multi-billion-dollar profits. American Airlines CEO Robert Isom, for example, had a pay package of $31.4 million in 2023, roughly $15,000 an hour compared to the $19 an hour that airport workers at JFK, LGA and EWR are paid.”
“In other words, he was paid 789 times the salary of airport service workers in the Tri-State area,” the union said.
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