Mayor Saves Chicago From Its City Council

I've posted before about Chicago's "big box" ordinance that was designed to impose harsh taxes and regulatory requirements on Wal-Mart, and how that ordinance would drive the giant retailer, and others in their category, out of the city. Today, Mayor Daley saved the city from its city council and vetoed the measure:

Mayor Richard Daley today vetoed the "big-box" minimum wage ordinance, setting the stage for a veto override vote at Wednesday's City Council meeting.

But Daley's action signaled he has the necessary support on the council to sustain the veto.

The ordinance requires that beginning next July, employees will be paid a minimum of $9.25 an hour in wages and $1.50 in fringe benefits, figures that will rise to $10 and $3, respectively, by 2010. Automatic annual cost-of-living increases will apply thereafter.

By comparison, the federal minimum wage is $5.15 an hour, while the state minimum is $6.50 an hour—but both amounts can be less if employees receive tips.
"I understand and share a desire to ensure that everyone who works in the city of Chicago earns a decent wage," Daley said in a letter addressed to the council that was filed with the City Clerk's office. "But I do not believe that this ordinance, well intentioned as it may be, would achieve that end.

"Rather, I believe it would drive jobs and businesses from our city, penalizing neighborhoods that need additional economic activity the most," Daley said. "In light of this, I believe it is my duty to veto this ordinance."

The mayor's take on the results from this legislation is exactly correct. He probably just saved the city millions in potential tax revenue, not to mention saving the lower wage citizens of Chicago a lot of money that they could save by shopping at Wal-Mart.

And don't forget, when Wal-Mart advertised for jobs at a new Chicago-area store, 25,000 applicants showed up.