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Groundbreaking: Chicago Orders Megastores to Raise Min. Wage

 
 
nimh
 
Reply Sun 30 Jul, 2006 04:40 pm
Raising the minimum wage state by state when the federal government cant be buggered to sounds good to me, and has become common practice in the US already.

However, one common objection against raising the minimum wage is that it will hit - and close down - small businesses, who provide a crucial community role, especially in disadvantaged areas, provide many low-skilled jobs, and are already under threat from large corporations.

Under pressure from a long-lasting campaign of unions and others, the City of Chicago has now taken this dilemma head-on. It raises the minimum wages further, but specifically for "stores that occupy more than 90,000 square feet and are part of companies grossing more than $1 billion annually".

Heartening to see such activism on a bread-and-butter issue -- and see it achieve a success that will directly improve the lives of hard-working people, who live on the edge of poverty.

Quote:


July 27, 2006

After months of fevered lobbying and bitter debate, the Chicago City Council passed a groundbreaking ordinance yesterday requiring "big box" stores, like Wal-Mart and Home Depot, to pay a minimum wage of $10 an hour by 2010, along with at least $3 an hour worth of benefits.

The ordinance, imposing the requirement on stores that occupy more than 90,000 square feet and are part of companies grossing more than $1 billion annually, would be the first in the country to single out large retailers for wage rules.

A gallery packed with supporters of the bill broke into cheers as the measure passed, by a vote of 35 to 14, after four hours of intense speeches and debate.

http://graphics8.nytimes.com/images/2006/07/27/us/27chicago190.1.jpg
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Type: Discussion • Score: 0 • Views: 532 • Replies: 8
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realjohnboy
 
  1  
Reply Sun 30 Jul, 2006 05:23 pm
We touched on this topic, nimh, a few days ago in another thread (the increasingly nasty one re immigration). I didn't comment about this there because the thread has long since degenerated into a bunch of personal attacks back and forth. But, here are my thoughts:
1) The Chicago ordinance, if signed into law, will be challanged in court and I think it will be struck down.
2) The issue here may overtly be the minimum wage/living wage thing. But lurking under that are the unions' interest and also, I would add, the folks who are tilting at the windmill of the "wal-martization" of America.
3) The US Congress got into this on Friday. Some Republicans indicated that they might be willing to see a gradual increase in the Federal Minimum Wage over a several year timeframe but only if the inheritance tax on rich people was repealed immediately. Talk about handing an election issue to the Dems!

Anyway, I am a liberal who believes in the concept of a minimum wage/living wage. I also am a small business owner (retailer; 35 employees). And I know a bit about economics.
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Lash
 
  1  
Reply Sun 30 Jul, 2006 05:27 pm
btw, the mob in Chicago is just pressing for a raise.

Very Happy
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kelticwizard
 
  1  
Reply Sun 30 Jul, 2006 06:56 pm
It's a nice idea, but the idea of one place having to pay a higher minimum wage than a place next door might have difficulty getting through the courts.

In a related development, Connecticut is raising a cry because Wal-Mart doesn't pay medical benefits, and the employees' paychecks are so small that the state ends up subsidizing the employees' medical care.
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nimh
 
  1  
Reply Mon 31 Jul, 2006 04:17 am
realjohnboy wrote:
1) The Chicago ordinance, if signed into law, will be challanged in court and I think it will be struck down.

kelticwizard wrote:
It's a nice idea, but the idea of one place having to pay a higher minimum wage than a place next door might have difficulty getting through the courts.

Well, in one of the bits I snipped for brevity, the article adds:

A legal brief prepared recently for the Illinois Retail Merchants Association said the bill would violate equal protection guarantees in the Constitution, but a legal analysis by the Brennan Center at New York University said there was ample precedent for selective imposition of minimum wages by size of business.
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McGentrix
 
  1  
Reply Mon 31 Jul, 2006 07:29 am
If the chicago city government wants to raise the minimum wage, they should do so. Otherwise, they should piss off and leave the business community alone.
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Chai
 
  1  
Reply Mon 31 Jul, 2006 07:33 am
I listened to this story last week on the radio....I'll be reading this thread with interest.
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jpinMilwaukee
 
  1  
Reply Mon 31 Jul, 2006 07:57 am
I don't understand how seemingly intelligent people always fall for this crap. Last time they tried this in Chicago, Walmart simply moved out of the lower income neighborhood they planed to build in which was inside city limits and into the business friendly city next door. All that was accomplished was the people who could use the low prices and jobs that Walmart provides got nothing... not even the "non-living wage" jobs.

It isn't Walmart's responsibility (or any other retailer for that matter) to provide salary to raise a family of 4 for being a door greeter. It is called a minimum wage job for a reason. It is an unskilled job that anybody over the age of 16 could do with relative ease.

The minimum wage scam does nothing but raise prices and screw with the market.
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paull
 
  1  
Reply Mon 31 Jul, 2006 09:20 am
The Brennan Center is the Brennan Center for "Justice"..........there isn't much doubt their analysis of this matter is skewed in favor of the city. I would love to hear some of their precedents for this. This will eventually eat up more money in attorney and court time than it is worth to the workers.
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