Urban Fold

Will Chicago's New Living Wage Law Hurt The City?

Recent announcements from big box retailers withdrawing or delaying plans to build stores in the city have given pause to supporters of controversial living wage ordinance, with some considering withdrawing their support.

"Target was the first big chain to react, recently cancelling plans to open a new superstore in a run-down area on the city's North side. Only a few months ago the project was hailed by city leaders as an anchor for redeveloping that depressed neighborhood...Wal-Mart has also announced that its plans to build 20 new stores in the city over the next five years are 'on hold' until the wage issue is resolved."

The moves by the retail giants, desirable for the sales tax revenue they generate, counters assurances from supporters that the new law, which will require non-union big box retailers to pay a minimum wage of $13/hr by 2010, would not impact the city's attractiveness to retailers.

Chicago Mayor Richard Daley and several of the city's Alderman are considering withdrawing their support.

Thanks to Peter Gordon

Full Story: Big Box Rebellion

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