Wednesday, August 09, 2006

Another "big box" bails from Chicago over living-wage ordinance

Last month Chicago's City Council passed a "living wage" ordinance that applies to "big box" retailers such as Wal-Mart and Target. But other retailers are also effected.

As I've note in prior posts, Chicago alderman such as Joe "Empty Storefronts" Moore have claimed that the "big boxes" are bluffing about cutting back on expansion plans into Chicago.

Home improvement retailer Lowe's told Chicago Alderman Howard Brookins that their plans to build two South Side Lowe's stores are now on hold, thanks to the ordinance.

Last week, the same "living wage" bill caused Target to postpone the building of two new Chicago stores.

Ald. Moore is in denial about Target and Lowe's canceling their Chicago expansion plans, telling ABC 7 Chicago:

I think it is just another step in the scare tactics and blackmail that a lot of these multi-billion dollar corporations are doing to try to beat this ordinance.

The four stores that won't be opening in Chicago, unless Daley vetoes Moore's bill, are all in low-income areas of the city. These areas are poorly served by retailers.

Many of the people who could be hired--those living in the community--don't have jobs, and since there is little retail presence in Chicago's poorest neighborhoods, Lowe's and Target won't be driving out many established merchants.

Organized labor is the driving force behind the "big box living wage" ordinance. They've threatened Chicago alderman who vote the wrong way on this bill to fund opponents against them in next year's municipal elections.

Caught in the middle of this dispute is "the little guy," whom liberals like Joe Moore and the unions claim to represent.

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