PANYNJ proposes annual minimum wage increases for NYC-area airport workers to boost worker retention, improve customer service

December 2, 2024 — Governor Kathy Hochul and Governor Phil Murphy recently announced a proposal from the Port Authority of New York and New Jersey (PANYNJ) for 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 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 new proposal provides for three upfront increases of $0.75 in January 2025, July 2025, and January 2026. Beginning January 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. The proposal provides for the wage to automatically increase to $25 in September 2032 if that level has not already been reached through the annual CPI increases as of January 2032.

The wage increase for airport workers is highly beneficial in helping to attract and retain more skilled labor to airport businesses, leading to improved customer experiences within the airports. A fairly compensated airport workforce leads to reduced turnover, resulting in a well-trained and experienced work force that can help to provide stable airport operations and an important supplemental security presence. Similarly, the Port Authority saw significant improvements in customer satisfaction following the previous minimum wage increases beginning in 2018.

The proposal we put forward today reflects our recognition and appreciation for the airport employees who work hard to look out for tens of millions of travelers at our region’s airports. Ensuring livable wages will improve worker satisfaction and increase staff retention, in turn enhancing customer service and advancing our goal of a world-class airport experience from curb to concession to gate.

Port Authority Executive Director Rick Cotton

Concession pricing

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.

The permitted adjustments to pricing reflect the added costs of doing business in the airport environment, which include unique factors such as additional security, training, logistics, and higher construction expenses. Per Airports Council International North America, more than 80 percent of U.S. airports employ a “street pricing plus” policy to allow concessionaires to offset those added costs. The current policy caps all concession prices at local, off-airport “street prices” plus a maximum of 10 percent.

To ensure compliance with fair market pricing policy for goods sold at airport concessionaires, the Port Authority conducts routine monitoring to enforce compliance of the agency’s street pricing standards. Additionally, the agency reviews customer complaints from feedback forms and social media. If a concessionaire is found in violation of the pricing policy, the Port Authority, terminal operators and/or concessions management companies may take corrective action to ensure compliance.

PANYNJ airport redevelopment

The Port Authority’s redevelopment of its airports prioritizes significant improvements to customer service and experience, underscoring the need for highly skilled workers employed at its airports. So far, the agency’s focus in transforming its airports into best-in-class gateways has yielded internationally recognized accolades. These include the 2024 Skytrax honor naming Newark Liberty’s Terminal A as the world’s best new airport terminal, an honor similar to Skytrax’s award in 2023 to LaGuardia Airport’s Terminal B, as well as Skytrax’s highest rating at five stars for facilities, service and customer experience for both terminals at the two Port Authority airports based on traveler surveys.

The need for additional skilled airport workers will grow in the coming years as new or expanded terminals open as part of the Port Authority’s multi-billion-dollar redevelopment of John F. Kennedy International (JFK) and Newark airports. Within JFK’s $19 billion transformation, Terminals 1 and 6 are scheduled to open in 2026, while Terminals 4 and 8 are in the process of expansions and renovations that include new retail overhauls and opportunities for more airport businesses. At Newark Liberty, further redevelopment planning is underway with the release of the Port Authority’s EWR Vision plan following the 2023 opening of the new Terminal A.

The Port Authority is committed to soliciting public input as it considers these changes. Members of the public and all interested parties are invited to submit comments via the Port Authority website during a 30-day comment period. All comments received about the proposed policy will be submitted to the Port Authority commissioners for consideration of changes, if any, to the proposal. The Board will then take action on the proposal at its December 12 meeting.

32BJ reaction

In response to the announcement that the Port Authority of New York and New Jersey is proposing an annual increase to the minimum wage for airport workers at JFK, LaGuardia and Newark Liberty airports beginning in January 2025, 32BJ President Manny Pastreich released the following statement:

For years, 32BJ has been leading the fight to improve conditions for the thousands of essential workers that make our airports a safe, clean and world-class travel hub. We are very proud that our efforts have now resulted in a proposal by the Port Authority, with the support of Governor Murphy and Governor Hochul, to significantly increase wages and ensure that airport workers are fairly compensated for the vital services they provide. With airlines raking in record billion dollar profits, the family-sustaining wages this plan will lead to is not only equitable but also what workers who keep our airports running have earned. This workforce investment will help the airports retain the experienced and well-trained personnel needed to safeguard the Port Authority’s critical infrastructure and deliver the highest caliber of customer service.

32BJ President Manny Pastreich