Governor Kathy Hochul | Official Website
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B. B. Urness | Nov 12, 2024

Port Authority proposes annual minimum wage hikes tied to inflation for airport workers

Governor Phil Murphy of New Jersey and Governor Kathy Hochul of New York have announced a new proposal from the Port Authority of New York & New Jersey to adjust minimum wages for airport workers at John F. Kennedy International, LaGuardia, and Newark Liberty International airports. Starting January 2025, wages will increase annually based on regional cost-of-living adjustments, following the consumer price index (CPI). This initiative aims to enhance worker retention and improve customer service by ensuring fair compensation.

Governor Murphy emphasized the importance of recognizing airport workers' contributions, stating, “Airport work is a difficult and demanding job that deserves our recognition and our thanks.” Governor Hochul added that the proposal would provide "stability" for workers while supporting a fairer economy.

The proposed plan includes initial wage increases of $0.75 in January 2025, July 2025, and January 2026. From January 1, 2027, further increases will align with the CPI's three-year moving average for the Northeast region. The goal is to reach a minimum wage of $25 per hour by January 2032 if not achieved earlier through these adjustments.

Port Authority Chairman Kevin O’Toole noted that consistent wage increases benefit both workers and passengers: “Consistent and planned wage increases for airport workers improve morale and productivity as well as the quality of service.”

Additionally, to offset increased operational costs at airport businesses such as stores and restaurants, a revision to concession pricing policy has been proposed. This change allows businesses to charge up to 15% more than local street prices for comparable products. An Employee Benefits and Retention surcharge not exceeding 3% may also be applied.

Executive Director Rick Cotton highlighted that livable wages would enhance customer service by improving worker satisfaction: “Ensuring livable wages will improve worker satisfaction and increase staff retention.”

The Port Authority’s redevelopment projects are expected to increase demand for skilled airport workers. As part of its multi-billion dollar redevelopment plans at JFK and Newark airports, significant improvements in customer service are anticipated with new terminals opening soon.

A public comment period is open for stakeholders to submit feedback on this proposal via the Port Authority website until December 12th when the Board will review any changes before finalizing decisions.

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