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Chicago to force retailers to pay $13/hour

waggy

No Lifer
chicago tribune

Help wanted? Not in Chicago

Published July 18, 2006


Last week, Chicago offered United Airlines $5.25 million in tax incentives to set up its world headquarters downtown. Some 350 corporate jobs will move from the northwest suburbs to the city. Chicago wants those jobs.

Next week, the Chicago City Council is going to tell Wal-Mart and other very large retailers: Pay your workers at least $13 an hour in wages and benefits, or go away. We don't want your jobs.

Now, we're just going to guess that most Chicagoans who are unemployed wouldn't qualify to be, say, a senior vice president for a major airline. Not many people are.

We'd guess, though, that many of the unemployed would be willing to start on the ground floor of a large retail store.

So what in the heck is Chicago doing?

Chicago may want the prestige of having an airline's world headquarters in the Loop. We won't argue with that. (We might argue with the price tag. With help from the state, the total package approaches $7 million.)

But why, in light of the United deal, would the city chase away jobs that unemployed Chicagoans could get?

The proposed ordinance to require that large retailers pay what the Chicago City Council deems a "living wage" is one of the loopiest ideas we've seen from City Hall in a long time. At least give Mayor Richard Daley some credit for saying it's a bad idea. But he doesn't appear likely to dissuade a majority of the City Council from voting for it.

The ordinance would apply to stores of at least 90,000 square feet whose gross sales across the region total $1 billion. About 40 retailers, including Wal-Mart, Target, Sears and Home Depot, would be affected.

If it passes, those companies can either agree to pay what the City Council demands--or take their jobs and their stores and their sales tax revenue to the suburbs. Target has told aldermen that it will hold off on plans for three proposed stores in African-American neighborhoods if the so-called big-box ordinance passes.

Ald. Joe Moore (49th), a sponsor of the ordinance, called that an "idle threat."

He has some allies on this. It looks like the City Council will pass this ordinance, which would initially set wages and benefits at $10.75 an hour, rising quickly to $13. Of course, that only applies to jobs that actually exist in the city of Chicago.





hmm well $13 an hour would be good. but to force a company to pay twice the fed min wage is silly. many places are not going to do it.

 
The costs to build/develop anything in this city are already through the roof and this is a major kick in the shorts to big box retailers. I suspect this is mainly targeted at Wal-Mart since they announced plans to widely expand into the Chicago area.

This is a good way to start killing off the fast rate of development the city has enjoyed up to this point. In the city retailers like this often are part of a larger project, no anchor, no project (and the jobs that go with it).
 
why only retailers?

doesn't quite make sense.
although it is good for the employees. i don't know how anyone can live off of minimum wage.
 
Originally posted by: pontifex
why only retailers?

doesn't quite make sense.
although it is good for the employees. i don't know how anyone can live off of minimum wage.

It's pretty much impossible. Morgan Spurlock's 30 Days show had an episode based on living off of minimum wage. It couldn't be done.
 
Originally posted by: PaulNEPats
Originally posted by: pontifex
why only retailers?

doesn't quite make sense.
although it is good for the employees. i don't know how anyone can live off of minimum wage.

It's pretty much impossible. Morgan Spurlock's 30 Days show had an episode based on living off of minimum wage. It couldn't be done.

You're not supposed to live off of a minimum wage. For a grown adult to be paid minimum wage, there has to be something very wrong with the situation.
 
Originally posted by: PaulNEPats
Originally posted by: pontifex
why only retailers?

doesn't quite make sense.
although it is good for the employees. i don't know how anyone can live off of minimum wage.

It's pretty much impossible. Morgan Spurlock's 30 Days show had an episode based on living off of minimum wage. It couldn't be done.

well hell, half your paycheck probably goes to gas now, if you have to drive.
 
This will end well...


...and by 'well' I mean, "with an amusing slump for a rust belt city"
 
This is how liberals often kill off the tax base of the cities they control.

A perfect example is to compare Urbana, IL to Champaign, IL. Two cities that have virtually grown into one, with two separate and very different governments. Liberal controlled Urbana is filled with government housing, and has chased out and/or denied entry to a great many industries and retail developments. Champaign, on the other hand, is moderately controlled and has welcomed all comers in industry and retail.

Urbana was forced to raise property taxes on private homes to a rate nearly double what Champaign charges, and because of a mass exodus and huge slump in new housing, was forced to offer 3 year breaks to new home buyers.
 
Originally posted by: So
This will end well...


...and by 'well' I mean, "with an amusing slump for a rust belt city"

i doubt it will be that bad. sure i bet some retailers will scale back. but not to pull out of the city. there is just to much money to be made even with the $13/hour


but i do see a slowdown. But it is good for the Burbs anyway heh.
 
Originally posted by: BigJ
Originally posted by: PaulNEPats
Originally posted by: pontifex
why only retailers?

doesn't quite make sense.
although it is good for the employees. i don't know how anyone can live off of minimum wage.

It's pretty much impossible. Morgan Spurlock's 30 Days show had an episode based on living off of minimum wage. It couldn't be done.

You're not supposed to live off of a minimum wage. For a grown adult to be paid minimum wage, there has to be something very wrong with the situation.


Get a job in a warehouse moving boxes and you'll make way more than national minimum wage.

Retail pays way more than minimum wage.

Only industry I can think of that would actually pay minimum wage would be fast food at the lowest level, maybe some carwash/landscaping places too.
 
laughable, I hope this passes, I hope the retailers move to the suburbs, I hope inner city Chicago see's the full effect of something like this as costs raise because the big retailers are gone.

 
Originally posted by: LordMorpheus
Originally posted by: BigJ
Originally posted by: PaulNEPats
Originally posted by: pontifex
why only retailers?

doesn't quite make sense.
although it is good for the employees. i don't know how anyone can live off of minimum wage.

It's pretty much impossible. Morgan Spurlock's 30 Days show had an episode based on living off of minimum wage. It couldn't be done.

You're not supposed to live off of a minimum wage. For a grown adult to be paid minimum wage, there has to be something very wrong with the situation.


Get a job in a warehouse moving boxes and you'll make way more than national minimum wage.

Retail pays way more than minimum wage.

Only industry I can think of that would actually pay minimum wage would be fast food at the lowest level, maybe some carwash/landscaping places too.

I know people who work in warehouses and make $17/hr. I know people who work in air conditioner factories and make $16/hr. I know people who work in grocery stores and make $24/hr (after a $15/hr raise following a review). And then I work in IT... Previously $6.75, now $9. *shrug*
 
Originally posted by: waggy
Originally posted by: So
This will end well...


...and by 'well' I mean, "with an amusing slump for a rust belt city"

i doubt it will be that bad. sure i bet some retailers will scale back. but not to pull out of the city. there is just to much money to be made even with the $13/hour


but i do see a slowdown. But it is good for the Burbs anyway heh.

If you are working at a retail job which employs primarily adults, you will be making that much money anyways.

I don't really know what the big deal is, living wage ordinances are becoming more and more popular. I don't necessarily agree with the idea, but I do think that the minimum wage is a joke and something needs to be done.

Even with the increased minimum wage here ($6.50), there is no way you could afford to even split an apartment between 2 people. That's just not right... even if there is something seriously wrong with you and you can't get a better job... you should be able to scrape your way by if you are working full time.
 
Originally posted by: PaulNEPats
I'm in favor of anything that stunts the expansion of a sweatshop like Walmart.

Nothing like cutting off your own nose to spite your face.

And if Walmart wasn't a decent employer, they wouldn't be able to staff their stores. Employement is not slavery. It is a mutual agreement.
 
Originally posted by: Amused
Originally posted by: PaulNEPats
I'm in favor of anything that stunts the expansion of a sweatshop like Walmart.

Nothing like cutting off your own nose to spite your face.

And if Walmart wasn't a decent employer, they wouldn't be able to staff their stores. Employement is not slavery. It is a mutual agreement.

I think their turnover rate would paint a picture in stark contrast to the rose-colored drivel you're trying to push on me.
 
Originally posted by: PaulNEPats
Originally posted by: Amused
Originally posted by: PaulNEPats
I'm in favor of anything that stunts the expansion of a sweatshop like Walmart.

Nothing like cutting off your own nose to spite your face.

And if Walmart wasn't a decent employer, they wouldn't be able to staff their stores. Employement is not slavery. It is a mutual agreement.

I think their turnover rate would paint a picture in stark contrast to the rose-colored drivel you're trying to push on me.

Again, no one is forced to work at Walmart. They are there because they want to be.
 
Originally posted by: waggy
chicago tribune

Help wanted? Not in Chicago

Published July 18, 2006


Last week, Chicago offered United Airlines $5.25 million in tax incentives to set up its world headquarters downtown. Some 350 corporate jobs will move from the northwest suburbs to the city. Chicago wants those jobs.

Next week, the Chicago City Council is going to tell Wal-Mart and other very large retailers: Pay your workers at least $13 an hour in wages and benefits, or go away. We don't want your jobs.

Now, we're just going to guess that most Chicagoans who are unemployed wouldn't qualify to be, say, a senior vice president for a major airline. Not many people are.

We'd guess, though, that many of the unemployed would be willing to start on the ground floor of a large retail store.

So what in the heck is Chicago doing?

Chicago may want the prestige of having an airline's world headquarters in the Loop. We won't argue with that. (We might argue with the price tag. With help from the state, the total package approaches $7 million.)

But why, in light of the United deal, would the city chase away jobs that unemployed Chicagoans could get?

The proposed ordinance to require that large retailers pay what the Chicago City Council deems a "living wage" is one of the loopiest ideas we've seen from City Hall in a long time. At least give Mayor Richard Daley some credit for saying it's a bad idea. But he doesn't appear likely to dissuade a majority of the City Council from voting for it.

The ordinance would apply to stores of at least 90,000 square feet whose gross sales across the region total $1 billion. About 40 retailers, including Wal-Mart, Target, Sears and Home Depot, would be affected.

If it passes, those companies can either agree to pay what the City Council demands--or take their jobs and their stores and their sales tax revenue to the suburbs. Target has told aldermen that it will hold off on plans for three proposed stores in African-American neighborhoods if the so-called big-box ordinance passes.

Ald. Joe Moore (49th), a sponsor of the ordinance, called that an "idle threat."

He has some allies on this. It looks like the City Council will pass this ordinance, which would initially set wages and benefits at $10.75 an hour, rising quickly to $13. Of course, that only applies to jobs that actually exist in the city of Chicago.





hmm well $13 an hour would be good. but to force a company to pay twice the fed min wage is silly. many places are not going to do it.

Honestly, do you believe Walmart and other retailers are going to pick up shop and leave? Fat chance of that happening. They will pay, but they will try to make do with fewer employees or increased prices. Probably a combination of both, actually

Chicago is a major city with tons of job opportunities, reducing the number of Walmart employees will send them to one of hundreds of other opportunities in the Chicago area. If they're willing to work on the retail floor, then they should be willing to work in the fast food restaurant, too.
 
Originally posted by: PaulNEPats
Originally posted by: Amused
Originally posted by: PaulNEPats
I'm in favor of anything that stunts the expansion of a sweatshop like Walmart.

Nothing like cutting off your own nose to spite your face.

And if Walmart wasn't a decent employer, they wouldn't be able to staff their stores. Employement is not slavery. It is a mutual agreement.

I think their turnover rate would paint a picture in stark contrast to the rose-colored drivel you're trying to push on me.

That doesn't change the fact the employment is a voluntary agreement, that not everyone is the primary wage earner of their own household (duh, hehe 😛), and that not every job is objectively worth a 'living' wage.
 
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