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Chicago City Council to Vote on Retail Living Wage Law

Strategic Insights

— 1 min read

A proposed minimum-wage law in Chicago is set to target big-box retailers such as Wal-Mart, Target, and Home Depot, marking a new stage in the debate over the social impact of these retailers. The law, backed by a coalition of anti-poverty, religious, and union groups, would set a $9.25 per hour minimum wage for 2007, rising to $10 in 2010, with a $1.50 benefits supplement rising to $3 in 2010. This move comes as the city's retailers, including Wal-Mart and Target, currently pay starting wages of around $7.25 an hour.

Key Takeaways:

  • The proposed law would affect approximately 40 retailers in the city, focusing on those with annual sales of over $1 billion and stores with floor space exceeding 90,000 sq ft.
  • The law would set a minimum wage of $9.25 per hour for 2007, rising to $10 in 2010, with a $1.50 benefits supplement rising to $3 in 2010.
  • Current wages at Chicago stores such as Wal-Mart and Target start at around $7.25 an hour.
  • Supporters of the bill, led by anti-poverty, religious, and union groups, expect it to pass in the 50-seat council, setting up a challenge for the city's Democrat mayor, Richard Daley.
  • The Illinois Retail Merchants Association strongly opposes the law, arguing it would drive retailers out of the city and into the suburbs.
  • Santa Fe, where a similar minimum wage law was introduced, has seen increased spending and continued job growth, according to its mayor, David Cross.
  • Wal-Mart, the largest US retailer, has been pushing to open additional stores in Chicago, but has faced resistance from union critics and local community groups over issues like low wages.

Statistics:

  • 40 retailers in the city would be affected by the law.
  • The minimum wage would rise from $9.25 per hour in 2007 to $10 in 2010.
  • The benefits supplement would increase from $1.50 in 2007 to $3 in 2010.
  • Current wages at Chicago stores such as Wal-Mart and Target start at around $7.25 an hour.
  • The city's retailers have annual sales exceeding $1 billion and operate stores with floor space of over 90,000 sq ft.
  • The law would be the first aimed at retailers specifically, as opposed to general minimum wage laws in other cities.

Sources:

  • [No source date] The Brennan Center for Justice at New York University's law school.
  • The Chicago City Council.

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