LA 2028 Olympics thrown into major chaos after 'withdrawal' threat made

The 2028 Olympics in Los Angeles has been thrown into major disarray after a shock developments in regards to the minimum wage hike.

The City of Angels will host the showpiece for the third time, with as many as 15 million visitors expected.

Although there is still another three years before the opening ceremony kicks off, Los Angeles has already been preparing for hosting duties by announcing plans to bring in a whole new metro and public transport system.

LA, who have said they will need to raise a whopping $7 billion, are set to borrow 3,000 buses from other US cities and are planning for a car-free Olympics.

The area was recently ravaged by wildfires which prompted some to call for the Olympics to be moved, but a separate issue has arisen.

Leading hotels in the city are threatening to withdraw from agreements they made for the Olympics as a dispute over minimum wage rumbles on.

On Friday, the L.A. City Council voted in favour of improving the minimum wage for tourism workers.

It was second and final vote on the topic, which is now awaiting the approval of Mayor Karen Bass. Under a phased approach, the wage will increase to $22.50 an hour next month in 2025, before going up $2.50 annually every July.

The Olympics in Los Angeles is facing a withdrawal threat. Image: Getty

It means the minimum wage for airport and hotel workers will be $30 an hour by the time the Olympics rolls around in July 2028.

However, as per Los Angeles Magazine, major hotel chains such as the Hilton, Hotel Angeleno, Hotel Per La, and the Hollywood Roosevelt are not happy with the proposed change and are threatening to pull out of agreements for discounted room.

At least eight hotels have said they will back out on the arrangement, which would make rooms cheaper for officials, sponsors and media.

“If the City continues down this path and only listens to one side of the equation, there will be hotel closures, lost jobs and lost opportunities for all,”Kara Bartelt, general manager of the Hoxton Los Angeles, said.

Labor unions, meanwhile, believe the wage increase is a huge positively move as it will encourage employees to continue working in the city while helping the economy.