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Target threatens to leave city (Chicago) if 'big-box' wage rule passes
Chicago Sun-Times ^ | July 14, 2006 | FRAN SPIELMAN City Hall Reporter

Posted on 07/14/2006 4:02:49 AM PDT by Chi-townChief

Target is putting plans to build three South Side stores "on hold" -- and making veiled threats to close existing Chicago stores -- if the City Council mandates wage and benefit standards for "big-box" retailers, African-American aldermen warned Thursday.

The saber-rattling is intensifying as the clock winds down toward a July 26 showdown vote on plans to make Chicago the nation's first major city to establish a "living wage" for stores with at least 90,000 square feet of space operated by retailers with $1 billion in sales.

Minneapolis-based Target becomes the second retailing giant to threaten to pull out of the lucrative Chicago market in a last-ditch effort to stop an ordinance championed by organized labor that breezed through the City Council's Finance Committee 15-6 and has attracted support from 33 aldermen.

WAGE WAR

The current federal minimum wage is $5.15 an hour. Illinois' minimum wage is $6.50

Most Chicago area Wal-Mart employees average $10.99 an hour, with just a few making the starting wage of $7.25 an hour, Wal-Mart spokesman John Bisio recently said.

As of 2004, Target in many cities had a starting salary of about $7 an hour, published reports said. A few Target workers outside Illinois said they recently started with salaries as low as $6.25 an hour, according to postings on the Target Union! (www.targetunion.org) Web site for store employees.

Wal-Mart has threatened to cancel plans to build as many as 20 Chicago stores over the next five years if retailers are required to pay employees at least $10 an hour and $3 in benefits by July 1, 2010.

'It would be devastation for us'

Mayor Daley is taking the threat seriously. He has challenged aldermen who oppose Wal-Mart's 20-store expansion to describe how they would replace the 8,000 lost jobs.

Target failed to return calls on the admonition communicated to aldermen of the 5th, 9th and 34th wards in recent days. Target real estate executive Chris Case was scheduled to meet with African-American aldermen Thursday, but the meeting was canceled because of scheduling conflicts.

Ald. Carrie Austin (34th) said a Target pullout would be devastating to the 32-acre shopping mall at 119th and Marshfield that developers had hoped to build, with help from a $23 million city subsidy. Home Depot would likely follow Target out the door. As many as 1,000 jobs would be lost, Austin said.

"It would be devastation for us. Our largest employer in the 34th Ward is the Police Department. The second-largest for us would be Jewel. We have no other resources," Austin said.

Referring to the anti-Wal-Mart movement that gave birth to the big-box ordinance, Austin said, "If you want to bully up on Wal-Mart, you've got to bring in the other ones, and damned if you do on them. If they suffer from it, too bad. If you want to control Wal-Mart, you should go about that a different way."

Accused of 'bullying tactics'

Ald. Leslie Hairston (5th) said she has a letter of intent from Target to build a new store at Marquette and Stony Island in her ward. But the developer has told her the store is "on hold" and that Target may close existing Chicago stores if the big-box ordinance goes through.

Hairston called it little more than a scare tactic. And even if the threat turns out to be real, she's standing firm in support of organized labor.

"Wal-Mart and Target could pay their people a living wage. Then we wouldn't have this problem, and people could actually live on the money they made," Hairston said.

Ald. Joe Moore (49th), chief sponsor of the big-box ordinance, accused Target and Wal-Mart of using "bullying tactics" to stop a train that has already left the station.

"It's an idle threat. ... They're clearly trying to ... intimidate members of the City Council. I am very hopeful that members will hold firm. ... The votes are still there," Moore said. He predicted 33 votes for the ordinance, "maybe more," even though Daley has been buttonholing aldermen to try to stop it.

Ald. Howard Brookins (21st) is still searching for a big-box retailer to replace the Wal-Mart his colleagues nixed at 83rd and Stewart.

Brookins said Wal-Mart executives have told him they may take the lead of the riverboat casinos that ring Chicago and run free shuttle buses to their suburban stores if the big-box ordinance passes.

"I don't know if it was in jest, but they did say it. ... That is an option that they could employ. They could set up locations to have pickup and dropoff. I don't think that is that farfetched," Brookins said.

fspielman@suntimes.com


TOPICS: Culture/Society; News/Current Events; Politics/Elections; US: Illinois
KEYWORDS: atlasshrugs; chicago; idiots; socialism; target; tarzhay; walmart
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WOW - 'good' Target is going the same route as bad old WalMart. This should piss off a few lefties.
1 posted on 07/14/2006 4:02:55 AM PDT by Chi-townChief
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To: Chi-townChief
So only the "big" stores have to abide by this law. So every other business in the area better not become too successful or else.
2 posted on 07/14/2006 4:05:29 AM PDT by mainepatsfan
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To: Chi-townChief

For once I'm proud of something "French", showing some brass ones.


3 posted on 07/14/2006 4:07:26 AM PDT by AmericaUnited
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To: Chi-townChief

Maybe the spread of HIV/AIDS after the Gay Games will occupy the time of the alderman who don't like guns, cigarettes, trans fats, or foie gras.

I hope Target and all the big boxes come out to Will County (heavy Republican) where growth is spectacular.


4 posted on 07/14/2006 4:08:56 AM PDT by toddlintown
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To: Chi-townChief
"Chicago...." "big-box...." "wage rule...." the race of the alderman was specified (why is that newsworthy if color isn't supposed to matter?) --- all the buzzwords of a fat, lazy, dog-days shakedown.
5 posted on 07/14/2006 4:09:07 AM PDT by the invisib1e hand (dust off the big guns.)
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To: AbsoluteJustice; Augie76; Barnacle; BeAllYouCanBe; BillyBoy; Bismarck; bourbon; cfrels; ...

CHICAGO PING


6 posted on 07/14/2006 4:10:32 AM PDT by Chi-townChief
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To: Chi-townChief

The minimum wage is going to be at $7.25 everywhere in short order anyway. I don't think they are actually going to leave. They'll threaten. But there is no where to run.


It really doesn't make sense to leave even if the minimum does not go up everywhere else. You just raise your prices to cover it, and you give that as your reason.


7 posted on 07/14/2006 4:11:08 AM PDT by Brilliant
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To: Chi-townChief

"Ald. Joe Moore (49th), chief sponsor of the big-box ordinance, accused Target and Wal-Mart of using "bullying tactics" to stop a train that has already left the station."

Gotta love the way the libs insist that they have the right to demand that Target and Walmart build in their area, all the while giving up any rights to make their own decisions in regards to running the store. As far as I can see, if a person doesn't want to work for $8 an hour, they simply don't apply for the job. Raising the wages would only result in higher product cost - that way everyone gets to move backward.


8 posted on 07/14/2006 4:11:22 AM PDT by onevoter
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To: AmericaUnited
For once I'm proud of something "French", showing some brass ones.

Target is not French-owned. That's an urban legend.

9 posted on 07/14/2006 4:11:48 AM PDT by Egon (We are number one! All others are number two... or lower.)
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To: Chi-townChief
Our largest employer in the 34th Ward is the Police Department.

Maybe they should open another Bix Box Police Department.

The city is lucky that ANY business wants to open in this district.

10 posted on 07/14/2006 4:14:04 AM PDT by Mr. Brightside
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To: Chi-townChief

WOW - 'good' Target is going the same route as bad old WalMart. This should piss off a few lefties.



And a few Freepers.


11 posted on 07/14/2006 4:15:32 AM PDT by John D
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To: Brilliant
The minimum wage is going to be at $7.25 everywhere in short order anyway.

But the city is also demanding another $3 in benefits for every employee.

Plus, these stores will have higher insurance, higher rates of theft and vandalism, and higher employee turnover.

Something will have to give. There's not that big of a margin.

12 posted on 07/14/2006 4:17:10 AM PDT by Mr. Brightside
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To: Brilliant

"But there is no where to run."

Will and Kendall counties are waiting...


13 posted on 07/14/2006 4:17:16 AM PDT by toddlintown
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To: Chi-townChief
What makes this story so delicious is that so many lefties seem to worship Target as the anti-Walmart. I have long wondered why some embattled larger corporation did not exercise a boycot of their own and simply refuse to do business in states or cities where they are harassed. Can you imagine if one (or better yet all) of the tobacco comapnies just decided they would no longer sell their legal products in a state? Tax revenues would plummet and government officials would be demanding the resumption of sales.
14 posted on 07/14/2006 4:19:40 AM PDT by rhombus
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To: Chi-townChief
The saber-rattling is intensifying as the clock winds down toward a July 26 showdown vote on plans to make Chicago the nation's first major city to establish a "living wage" for stores with at least 90,000 square feet of space operated by retailers with $1 billion in sales.

So build 89,999 SF stores with the design ability to shed SF, based on changing standards....

15 posted on 07/14/2006 4:21:02 AM PDT by cbkaty (I may not always post...but I am always here......)
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To: Chi-townChief
I love the idea of running a shuttle bus from Chicago to the Walmart in the suburbs.!!!

I figure it would take a few months for the liberals to find a law squashing that..but it would be great to see....they could make a point to drive by city hall and maybe have a counter on the bus to show how many shoppers they pull from the city everyday!!!
16 posted on 07/14/2006 4:22:02 AM PDT by conservativehusker (GO BIG RED!!!!)
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To: Egon; AmericaUnited

True, the French do not own Target.

http://www.snopes.com/politics/military/target.asp


17 posted on 07/14/2006 4:22:39 AM PDT by dmw (Aren't you glad you use common sense, don't you wish everybody did?)
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To: Chi-townChief
"Wal-Mart and Target could pay their people a living wage. Then we wouldn't have this problem, and people could actually live on the money they made," Hairston said.

Well, geez, Ms. Hairston, you seem to know so much about how to run a Walmart or Target store, why don't you just step in and take over as CEO?

Typical liberal the state should run everything mindset.

18 posted on 07/14/2006 4:23:43 AM PDT by Marathoner
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To: onevoter
"Ald. Howard Brookins (21st) is still searching for a big-box retailer to replace the Wal-Mart his colleagues nixed at 83rd and Stewart."

This WalMart ended up at 95th & Western with hundreds of employees, thousands of happy customers, and of course, millions of tax dollars for Evergreen Park instead of Chicago.

Protesters bash Wal-Mart's attempt to open 2 stores in Chicago
19 posted on 07/14/2006 4:24:12 AM PDT by Chi-townChief
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To: Egon; dmw

Wow! I never knew that. The French story is just so pervasive. I looked at Target's "About Us" and just read that they are the old Dayton-Hudson and Marshall Fields.


20 posted on 07/14/2006 4:25:16 AM PDT by AmericaUnited
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