Big Box Ordinance Approved, Retailers Put Plans On Hold
The Chicago, Ill., City Council approved a measure requiring big box retailers to pay workers a “living wage.” Since passing in late July, the measure has caused multiple big box retailers to put their development plans for Chicago on hold. They, along with opponents of the measure, are pushing for a mayoral veto, a right Chicago Mayor Richard Daley has not exercised in his 17-year tenure. At press time, Daley had not stated whether or not he intends to veto the measure; he has until Sept.13, 2006, to decide.
The big box ordinance applies to stores with at least 90,000 sq.ft. that are operated by retailers with $1 billion or more in annual sales. Beginning July 2007, such stores will have to pay employees a minimum of $9.25 per hour in wages and $1.50 in benefits. The numbers will rise to $10 and $3, respectively, by 2010. Automatic annual cost-of-living increases will apply after that, reported the Chicago Tribune. Approximately 40 existing city stores fall under the ordinance, including Wal-Mart, Lowe’s, Menards, Target and Home Depot stores.
Those who oppose the measure worry that big box business will stay out of Chicago. At press time, Lowe’s, Wal-Mart and Target site developments in Chicago have been put on hold. Alderman Howard Brookins Jr., whose ward includes the site of a halted Lowe’s project, told the Chicago Tribune that Lowe’s concerns about the law caused it to shelve plans for stores.
Similar legislation has been introduced in Washington, D.C., and discussed in New Jersey. Other states have passed laws that require certain larger employers to provide health benefits for workers, but none of the laws contains a wage requirement.
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