Opponents worry measure could drive retailers out of the city
Chicago became the biggest city in the nation to require big-box retailers to pay a "living wage" this week, a move that could push big retailers out of the city.
Opponents, including the city's Mayor Richard M. Daley, warned the measure would drive jobs and development from some of the city's poorest neighbourhoods and lead giants like Wal-Mart to abandon the city.
City council passed the ordinance 35-14 after three hours of debate. The measure requires retailers with more than $1 billion in annual sales and stores of at least 90,000 square feet to pay workers at least $10 an hour in wages plus $3 an hour in fringe benefits by mid-2010. The current minimum wage in Illinois is $6.50 an hour and the federal minimum is $5.15.
"This (ordinance) imposes special interest mandates that will unfairly deny savings and job opportunities to those who need them most," Michael Lewis, Wal-Mart's senior vice-president of store operations, said in a statement. "It's wrong for the city council to tell the people of Chicago where to shop and to make it harder for inner-city residents to find jobs."
His statement went on the say the retailer would try to serve Chicago residents "without subjecting ourselves to a discriminatory marketplace and a competitive disadvantage," indicating the retailer might move out of the city to avoid being subjected to the ordinance.
There are more than 40 Wal-Mart stores within 50 miles of Chicago and the city's first store is set to open in September.
Other cities with living-wage laws include Santa Fe and Albuquerque in New Mexico, San Francisco and Washington.
Opponents, including the city's Mayor Richard M. Daley, warned the measure would drive jobs and development from some of the city's poorest neighbourhoods and lead giants like Wal-Mart to abandon the city.
City council passed the ordinance 35-14 after three hours of debate. The measure requires retailers with more than $1 billion in annual sales and stores of at least 90,000 square feet to pay workers at least $10 an hour in wages plus $3 an hour in fringe benefits by mid-2010. The current minimum wage in Illinois is $6.50 an hour and the federal minimum is $5.15.
"This (ordinance) imposes special interest mandates that will unfairly deny savings and job opportunities to those who need them most," Michael Lewis, Wal-Mart's senior vice-president of store operations, said in a statement. "It's wrong for the city council to tell the people of Chicago where to shop and to make it harder for inner-city residents to find jobs."
His statement went on the say the retailer would try to serve Chicago residents "without subjecting ourselves to a discriminatory marketplace and a competitive disadvantage," indicating the retailer might move out of the city to avoid being subjected to the ordinance.
There are more than 40 Wal-Mart stores within 50 miles of Chicago and the city's first store is set to open in September.
Other cities with living-wage laws include Santa Fe and Albuquerque in New Mexico, San Francisco and Washington.
