The City Council just voted 14-0 to rescind the living wage ordinance it imposed last year on LAX-area hotels. If the council had not caved, a referendum qualified by business groups would have put the controversial issue before voters. But would it have passed? Both business and labor have polls showing the living wage concept has support with Los Angeles voters. This deal gets the measure off the ballot and avoids a fight. As part of the deal, the council will negotiate a new ordinance with business and labor leaders and hotel workers will get raises anyway. The hotels will get "investment incentives," the Times says.

Updated with new info