Mayor Vetoes Chicago "Living Wage" Bill
    By Ashley M. Heher
    The Associated Press

    Monday 11 September 2006

    Chicago - Mayor Richard Daley vetoed an ordinance Monday that would have required mega-retailers to pay their workers more than other employers after some of the nation's largest stores including Wal-Mart Stores Inc. warned the measure would keep them from opening their doors within the city's limits.

    Supporters said the measure would guarantee employees a "living wage," but in a letter to City Council members released Monday, Daley said the ordinance would drive businesses from the city.

    "I understand and share a desire to ensure that everyone who works in the city of Chicago earns a decent wage," Daley wrote. "But I do not believe that this ordinance, well intentioned as it may be, would achieve that end."

    The ordinance was approved by the council in late July and requires so-called "big box" stores to pay workers at least $10 an hour plus $3 in fringe benefits by mid-2010. The rules would only apply to companies with more than $1 billion in annual sales and stores of at least 90,000 square feet.

    The minimum wage in Illinois is $6.50 an hour and the federal minimum is $5.15.

    Chicago has been at the epicenter of a debate about the wages at large retailers ever since the city rejected a proposal by Wal-Mart to open a store on the South Side, prompting the company to open a store just outside the city limits.

    Monday's veto - the first-ever for Daley in his 17 years as mayor - will like set up a showdown during Wednesday's Chicago City Council meeting.

    It takes 34 votes to override a mayoral veto. The measure passed 35-14, but some aldermen have since indicated they might be open to changing their votes and acting against the ordinance.