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Target new bull's-eye in wage dispute
Group says subsidies helping big-box store
By Sandra Jones
Tribune staff reporter
Published August 9, 2006
A group of union leaders and grass-roots organizers rallying behind Chicago's big-box wage law have turned their attention away from Wal-Mart Stores Inc., for the moment at least, and are taking aim at Target Corp.
The Living Wage Coalition, an organization of 35 community groups and union locals fighting to raise starting wages, released a report on Tuesday charging Target with "all take and no give."
The report notes that Target received $9.9 million in tax-increment financing subsidies to build stores in the city at the same time it is opposing the new wage law that advocates say will allow workers to earn enough in pay and benefits to keep them off public aid.
The charges are part of a growing chorus of discontent against the Minneapolis-based discount chain that so far has managed to avoid becoming a high-profile lightning rod alongside Wal-Mart, the world's largest retailer. Wal-Mart, as the nation's largest private employer, remains the most prominent focus of attention of consumer and labor activists.
But worker advocates in Chicago have given Target a new name: "Tar-mart."
The United Food and Commercial Workers union, which has been trying to break into Wal-Mart for years, also is stepping up efforts to organize Target workers in the Detroit area and in St. Paul, Target's own back yard.
Target did not return calls for comment Tuesday about the Living Wage Coalition report, and the company has tried to keep a low profile for more than a month as the big-box controversy has gained national attention.
In contrast, Wal-Mart has been making clear efforts to soften its image to win public support. In July, the Arkansas-based company hired former Democratic adviser Leslie Dach as a public relations strategist, reporting directly to H. Lee Scott, the company's chief executive. Scott also has been making media appearances.
Earlier this week, Wal-Mart raised the starting pay for workers at 1,200, or about one-third, of its stores nationwide by an average 6 percent.
In focusing on Target, the nation's second-largest discount retailer behind Wal-Mart, the Living Wage Coalition's report highlighted two Target stores that received assistance: a $5.3 million TIF subsidy for a Target store at 1940 W. 33rd St. at McKinley Park in the Pilsen industrial corridor and up to a $4.6 million subsidy for a store on West Peterson. The report was prepared by the Neighborhood Capital Budget Group, a non-profit organization that tracks the city's TIF programs.
"There is very little transparency in city's TIF programs," said Jacqueline Leavy, executive director of the Neighborhood group. "The taxpayers are not part of the decision-making process. If we're going to give public assistance to Target or some other profitable corporation, there should be some standards as to what benefits these corporations are going to deliver."
Target has seven stores in the city and at least one under construction, though the company has indicated it may stop building stores in Chicago if the big-box ordinance takes effect. Wal-Mart is preparing to open its first store in Chicago on the West Side in September.
Chicago passed a law late last month that requires stores that are 90,000 square feet or more to pay a minimum wage of $9.25 an hour and $1.25 in benefits starting next July, rising to $10 and hour and $3 in benefits by 2010.
heh looks like Chicago is takeing everyone down!
Group says subsidies helping big-box store
By Sandra Jones
Tribune staff reporter
Published August 9, 2006
A group of union leaders and grass-roots organizers rallying behind Chicago's big-box wage law have turned their attention away from Wal-Mart Stores Inc., for the moment at least, and are taking aim at Target Corp.
The Living Wage Coalition, an organization of 35 community groups and union locals fighting to raise starting wages, released a report on Tuesday charging Target with "all take and no give."
The report notes that Target received $9.9 million in tax-increment financing subsidies to build stores in the city at the same time it is opposing the new wage law that advocates say will allow workers to earn enough in pay and benefits to keep them off public aid.
The charges are part of a growing chorus of discontent against the Minneapolis-based discount chain that so far has managed to avoid becoming a high-profile lightning rod alongside Wal-Mart, the world's largest retailer. Wal-Mart, as the nation's largest private employer, remains the most prominent focus of attention of consumer and labor activists.
But worker advocates in Chicago have given Target a new name: "Tar-mart."
The United Food and Commercial Workers union, which has been trying to break into Wal-Mart for years, also is stepping up efforts to organize Target workers in the Detroit area and in St. Paul, Target's own back yard.
Target did not return calls for comment Tuesday about the Living Wage Coalition report, and the company has tried to keep a low profile for more than a month as the big-box controversy has gained national attention.
In contrast, Wal-Mart has been making clear efforts to soften its image to win public support. In July, the Arkansas-based company hired former Democratic adviser Leslie Dach as a public relations strategist, reporting directly to H. Lee Scott, the company's chief executive. Scott also has been making media appearances.
Earlier this week, Wal-Mart raised the starting pay for workers at 1,200, or about one-third, of its stores nationwide by an average 6 percent.
In focusing on Target, the nation's second-largest discount retailer behind Wal-Mart, the Living Wage Coalition's report highlighted two Target stores that received assistance: a $5.3 million TIF subsidy for a Target store at 1940 W. 33rd St. at McKinley Park in the Pilsen industrial corridor and up to a $4.6 million subsidy for a store on West Peterson. The report was prepared by the Neighborhood Capital Budget Group, a non-profit organization that tracks the city's TIF programs.
"There is very little transparency in city's TIF programs," said Jacqueline Leavy, executive director of the Neighborhood group. "The taxpayers are not part of the decision-making process. If we're going to give public assistance to Target or some other profitable corporation, there should be some standards as to what benefits these corporations are going to deliver."
Target has seven stores in the city and at least one under construction, though the company has indicated it may stop building stores in Chicago if the big-box ordinance takes effect. Wal-Mart is preparing to open its first store in Chicago on the West Side in September.
Chicago passed a law late last month that requires stores that are 90,000 square feet or more to pay a minimum wage of $9.25 an hour and $1.25 in benefits starting next July, rising to $10 and hour and $3 in benefits by 2010.
heh looks like Chicago is takeing everyone down!
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