Groundbreaking Victory for Chicago Workers

Yesterday was a great day in the Windy City. No, the Cubs didn't win. The Chicago city council did what the U.S. Congress has refused to do for years - make big retailers pay their fair share. By a vote of 35 to 14, the Chicago city council yesterday approved a new ordinance requiring large retailers in the city to phase in a living wage for their employees of $10 per hour plus $3 per hour in benefits-- the highest minimum wage established for any industry sector in the country. If signed by the mayor, the law would raise pay for tens of thousands of workers in retailers such as Wal-Mart, Target, Toys R Us, Lowe's and Home Depot. A broad coalition of organizations including ACORN, labor unions and church groups worked together for its passage.

As we discussed over at Progressive States Network last month, this law is part of an emerging trend of states and local governments establishing different, higher minimum "living wage" standards for selected industrial sectors, from larger employers to tourist zones to hotels.

You'll hear a lot of whining and crying about this legislation from the large retailers claiming they'll refuse to build in places that have these types of wage requirements because they can't make a profit. Hogwash! Take a look at New Mexico, after Santa Fe created a living wage of $9.50 per hour for large employers, Wal-Mart asked for approval to build a new Supercenter. The fact that leading retailer Costco already pays all its employees a living wage of $10 per hour plus benefits nationwide emphasizes that "big box" retailers can thrive paying a living wage.

Good for you Chicago! Let's hope more cities and states follow their lead.