Workers at the three major New York City airports will get a much-needed pay raise starting in January, New York and New Jersey Governors Kathy Hochul and Phil Murphy announced Tuesday.
Through a new initiative with the Port Authority of New York and New Jersey, thousands of employees at John F. Kennedy International, LaGuardia, and Newark Liberty International airports are set to receive annual wage increases linked to the regional cost of living, mirroring the minimum wage policies of New York and New Jersey.
The Port Authority’s last major update to airport workers’ wages came in 2018, when the minimum wage was raised to $19 per hour as of September 2023. However, this policy did not include provisions for further automatic increases. The new proposal changes that, ensuring sustained wage growth without the need for additional Board approval.
“Today, we are taking a significant step forward in ensuring that the hardworking individuals who serve in the region’s airports are paid fairly and equitably for their contributions,” Hochul said on Nov. 12. “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.”
The new wage policy outlines three initial raises of $0.75 each in January 2025, July 2025, and January 2026. Beginning Jan. 1, 2027, wages will be adjusted annually based on the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI) three-year moving average for the Northeast region.
Additionally, if the wage has not reached $25 per hour by September 2032 through these adjustments, it will automatically increase to that level.
Supporters of the proposal highlight the broader impacts on airport operations and customer service. Higher wages are expected to attract and retain skilled workers, fostering a more stable and experienced workforce. This is anticipated to enhance overall airport operations and bolster security.
The Port Authority has previously observed improvements in customer satisfaction following the implementation of wage increases beginning in 2018.
Port Authority Chairman Kevin O’Toole underscored the significance of the measure.
“Our airports serve as international front doors for this region, as well as engines for economic opportunities benefitting the communities nearby. Consistent and planned wage increases for airport workers improve morale and productivity as well as the quality of service for the millions of passengers who use our airports every year,” O’Toole said.
To address the potential financial impact on businesses operating within the airports, the Port Authority has proposed changes to its concession pricing policy. The revised policy will allow concessionaires to set prices up to 15% above local “street prices” for comparable goods, aligning with practices at other major U.S. airports. Currently, the cap is set at a 10% premium. Concessionaires can also implement an employee benefits and retention surcharge not exceeding 3% of a customer’s pre-tax bill.
These pricing adjustments are designed to account for the higher operational costs associated with running businesses in airport environments, which include additional security measures, specialized training, logistics, and more expensive construction. According to Airports Council International North America, more than 80% of U.S. airports utilize “street pricing plus” models to help vendors manage these additional expenses.
The demand for more skilled airport workers is expected to rise with ongoing and future expansions. As part of JFK’s $19 billion redevelopment project, new terminals 1 and 6 are slated to open in 2026, with significant updates underway for terminals 4 and 8. At Newark Liberty, the Port Authority’s EWR Vision plan outlines further redevelopment, following the 2023 debut of the new Terminal A.
Manny Pastreich, President of 32BJ, strongly supported the proposal, noting the union’s longstanding advocacy for fair wages.
“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 Governor Murphy’s and Governor Hochul’s support, to significantly increase wages and ensure that airport workers are fairly compensated for the vital services they provide,” he said.
Pastreich also highlighted the importance of investing in the workforce to sustain high standards of service and safety at the airports.
“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,” he said. “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.”
