Wal-Mart, unions reach deal on second Chicago store (Obama economy trumps unions-YAY!)

Sun Times ^ | 6-24-10 | Frank Speilman

[STARWISE]

The six-year-long battle over Wal-Mart's $1 billion Chicago expansion plan ended Thursday when organized labor folded its tent, freeing its City Council allies to do the same.

Minutes after the Chicago Federation of Labor declared an end to the long-runing Wal-Mart saga, the City Council's Zoning Committee unanimously approved Chicago's second Wal-Mart and first super-center that sells groceries. » Click to enlarge image The Wal-Mart store on North Avenue in Chicago. (Brian Jackson/Sun-Times file)

“This is historic. This is the first time that the world's largest retailer has actually engaged in a dialogue with its opponents,” said Finance Committee Chairman Edward M. Burke (14th), one of labor’s staunchest City Council allies.

The Pullman Park Wal-Mart is expected to be the first of at least 21 Chicago stores large and small — and possibly as many as “several dozen” — within the next five years, creating 10,000 permanent jobs and 2,000 construction jobs.

The world’s largest retailer made no additional concessions beyond its historic offer made earlier this week to pay an $8.75-an-hour starting wage and $9.50-an-hour for its best employees after one year.

But the fact that Wal-Mart moved at all allowed retiring Chicago Federation of Labor President Dennis Gannon to claim victory.

So long as Wal-Mart lives up to those terms and its promises to hire community residents to work in its Chicago stores — and union members to build them — the Chicago Federation of Labor will not oppose the expansion.

“We didn't cave on anything. Take a look at the job market right now. Our communities need jobs. Take a look at food deserts. Our communities need . . . grocery stores. Take a look at no building and construction trade going on in Chicago. Thirty percent unemployment,” Gannon said.

“That cries out that we need to make adjustments to put people to work. We made an adjustment here. We may not be happy with it. But you know what? It's something we all can live with.”

In 2004, a bitterly divided City Council gave Wal-Mart zoning approval to build its first Chicago store in Austin and handed the retailer a one-vote defeat in Chatham.

The controversy gave birth to the big-box minimum-wage ordinance aborted by Daley's 2006 veto. Organized labor subsequently spent millions to elect a more union-friendly City Council.

On Thursday, Gannon made it clear that aldermen who signed on to the Pullman Park deal have nothing to fear.

“We're not gonna target anybody. But we're gonna help people [who] have been labor friendly,” Gannon said.

Sources said the CFL and United Food and Commercial Workers Union Local 881 decided to fold their tent under heavy pressure from aldermen suffering from what one City Council member called “Wal-Mart fatigue.”

Now that Wal-Mart is promising dozens of stores in inner-city neighborhoods desperate for shopping choices and thousands of jobs, they could no longer justify standing in the way.

“This city is hurting. We're about to go into our budget season, and these are dollars that we will truly need in 2011,” said Budget Committee Chairman Carrie Austin (34th), whose ward is one of five targetted for Wal-Mart super-centers.

Burke added, “Politics is the art of compromise. Even though this has taken a long time, I believe that we've come to the right decision at the right point in history.”

As for Wal-Mart, Burke said, “They need to be in the big cities. They can't get into Los Angeles. They can't get into New York. And up until this point, they haven't been able to get into Chicago [beyond Austin]. This is gonna change their opportunities-not only here in Chicago, but nationwide.”

[STARWISE]

UPDATE 2-Mayor Daley favors Walmart expansion in Chicago

CHICAGO, June 22 (Reuters) - Chicago Mayor Richard Daley gave unflinching support on Tuesday for Wal-Mart Stores Inc's (WMT.N) plan to open dozens of stores in the city, despite stiff union opposition that could hurt the retailer's political allies in municipal elections.

The prospect of adding jobs in a down economy and bringing food stores to areas with no existing supermarkets -- neighborhoods known as "food deserts" -- were among the factors leading Daley to support of the big-box retailer.

... = F A I L .... !

[Red_Devil 232]

Negotiated with a union? See the tent? See the camel? See the nose?

[bitterohiogunclinger]

” ..beyond its historic offer made earlier this week to pay an $8.75-an-hour starting wage and $9.50-an-hour for its best employees after one year.”

They could already be paying more in other locations. It depends on the local labor market. Good luck to them trying to find employees who actually want to work in Obamaland.

[NonValueAdded]

“Let ‘em build, get entrenched, and we’ll card-check the lot of them!”

[Chi-townChief]

About time - Chicago could use about 20 Walmarts!!!

[Red_Devil 232]

I bet they have many more show up for jobs than they have openings. If they build it in Obamaland the people will show up for the jobs but the problem will be, will they actually do the work required? As for the $9.50/hr. after one year Wal-Mart will gladely pay that to an employee who actually takes interest showes up and does the work.

I just don't like the camel's nose under the tent Krap!

[dragnet2]

creating 10,000 permanent jobs

Just what America needs....More Walmart jobs selling Red Chinese products.

Wonderful.

[dragnet2]

beyond its historic offer made earlier this week to pay an $8.75-an-hour starting wage and $9.50-an-hour for its best employees after one year.”

So adults that take these jobs will have to live at their mom and dads house, who are now in their upper eighties, just to survive and eat.... lol

[SunkenCiv]

• Hoyer: Permanent middle class tax cuts too costly
• May home sales unexpectedly fall 2.2 percent
• New-home sales plunge 33% to record low in May
• Mortgage rates sink to lowest level on record (lowest since 1971)
• Congress Fails to Pass an Extension of Jobless Benefits
• Judge Robert Bork Blasts Elena Kagan

and:

• Democrats exempt unions in disclosure bill (drive-bys finally confirm what we've known all along)
• House Passes DISCLOSE Act
• Dems tout 'thrilling,' 'inspiration,' 'best caucus' ever

and:

• Is U.S. Now On Slippery Slope To Tyranny?
• 48% See Government Today As A Threat to Individual Rights
• Obama's Radical Agenda Revealed

[Left2Right]

I would like to see Wal-Mart pay its employees more, but no one is forcing anyone to work at Wal-Mart. If that bothers you so much, why don’t you open up a business that pays more? Like the unions, its easier to be a critic than create something economically useful.

[STARWISE]

Yeah .. 11.3% unemployment rate and no jobs for high
school, college kids and out-of-work adults is much preferable.

[Excuse_My_Bellicosity]

Negotiating with the union is like negotiating with the mafia. You show up with hat in hand, they’ll tell you what you have to do to keep from getting your face broken and your house burned down.