Deal On Table To Hike Minimum Wage At NJ, NY Airports, Governors Say

NEW JERSEY/NEW YORK — There is a deal on the table to beef up the minimum wages for workers at three major airports in Newark and New York City, possibly by tying them to the cost of living. And yes – a raise to $25 per hour is part of the equation, Gov. Phil Murphy of New Jersey and Gov. Kathy Hochul of New York announced Tuesday.

The Port Authority of New York and New Jersey, which runs Newark, JFK and LaGuardia airports, is proposing a new minimum wage policy for workers. It would give annual increases to the wages of thousands of airport workers starting in January 2025, with automatic raises tied to the regional cost of living in both states.

The announcement comes as unionized security officers, cleaners, baggage and cargo handlers and wheelchair agents continue to protest for a new contract. See Related: NJ, NY Airport Workers Demand $25 Per Hour, May ‘Walk Off Jobs’

Here’s what to know about the proposed deal, Murphy and Hochul said:

“The new proposal provides for three upfront increases of $0.75 in January 2025, July 2025, and January 2026. Beginning Jan. 1, 2027, annual increases would be tied to the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI) three-year moving average for the Northeast region, consistent with the two states’ minimum wage policies.”

One of the biggest demands that workers are making – raising the minimum wage to $25 per hour – is part of the deal, officials added. The proposal provides for the wage to automatically increase to $25 in January 2032 if that level has not already been reached through the annual CPI increases.

The Port Authority’s annual budget includes no tax revenue from either the states of New York or New Jersey or from the City of New York, relying mostly on tolls, fares, user fees, retail stores, consumer services and facility rentals.

Stores and restaurants at the three airports will be allowed to tweak their prices to help pay for the higher wages, officials noted:

“To offset the added cost to businesses operating stores and restaurants at Port Authority airports, the Port Authority also proposed a revision to the agency’s policy that regulates concession pricing at the agency’s airports. The revised policy will allow concessionaires to charge prices to their customers at a level not to exceed 15 percent of 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 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.”

“Our region’s airport system serves as one of the nation’s largest distribution and transportation hubs, but it is only as efficient as the men and women who work each day to keep operations running smoothly,” Murphy said.

“This proposal guarantees annual wage increases tied to the cost of living, providing workers with the stability they need to thrive, while ensuring their pay rises alongside the economy,” Hochul agreed.

According to the governors, airport workers aren’t the only ones who will benefit from higher wages. It will also help to attract and retain more skilled employees at the three busy airports, which are seeing record passenger numbers.

This leads to less turnover – and a better overall experience for passengers, Murphy and Hochul said.

The Port Authority said it saw significant improvements in customer satisfaction following the previous minimum wage increases beginning in 2018. Read More: Surprise – Newark Airport Is Among Nation’s Best, New Ranking Says

Meanwhile, 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.

• See Related: Over 60 Restaurants, Retailers To Be Added At JFK Airport's Terminal 8
• See Related: Major Upgrade Plans For Newark Airport Unveiled (See What’s Coming)

The Port Authority Board of Commissioners last adopted an expanded minimum wage policy in 2018, which brought the wages of airport workers to a minimum of $19 per hour as of September 2023 but did not provide for any further increases without additional board action.

The board will take public comments on the proposed deal for 30 days, and plans to take action on the proposal at its Dec. 12 meeting.

MINIMUM WAGE ON THE RISE

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.

It wasn’t only union members who benefitted; the move impacted about 40,000 workers at Newark, JFK and LaGuardia airports.

Now, with rent and housing costs skyrocketing across the Tri-State area, it’s time to hike the minimum wage again, union leaders say.

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.

• See Related: Airport Workers Rally For Minimum Wage Hike In Newark, NYC
• See Related: NJ Raises Minimum Wage To $15 – But It Still Isn’t Enough To Live On

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