Wal-Mart sparks Chicago politicians to set minimum wages for the city's big box stores

The Chicago City Council will vote this week on a city ordinance, which would make Wal-Mart and other large retail enterprises pay their workers a living wage. This comes as pressure is mounting on the Bentonville based commerce giant to start treating its workers and their families fairly. The company's share prices are once again down, closing at 43.72 USD on Friday. This is over five per cent lower than at the same time one year ago. A little more than a week ago, Merrill Lynch lowered its rating from buy to neutral.

Wal-Mart could find itself forced to pay an hourly living wage of at least 10 USD if it wants to keep and expand its store network in Chicago. In addition, the Bentonville-based multinational will have to pay at least 3 USD per hour in benefits.

This is the scenario if the City Council approves of a proposed ordinance when it votes later this week. The ordinance would require all so-called 'big box stores' with a floor space over 90,000 square feet (10,000 m²) to pay a living wage and use a minimum amount for benefits.

Chicago has already enacted an ordinance some ten years ago, like a large number of other communities across the United States, establishing minimum wages for suppliers to the city. For the first time, a local authority is now using the same approach to support private sector workers.

A year ago, on the streets of Chicago, UNI congress delegates rallied against poverty. The manifestation, as well as the World Congress itself, marked the launch of a concerted global effort to combat Walmartization and to promote economic and social justice and well-being. The host city, well known for its proud labour history, has not deceived their expectations now but instead acted decisively against the giant retailer's social dumping.

The Chicago Tribune says that the initiative was sparked by Wal-Mart's entry to the city two years ago. The company got permission to build a store on the West Side while its request for another store on the South Side was rejected. It then turned out that when the West Side store opens, workers will get only 7.25 USD per hour as an entry level wage, a dollar less than comparable unionised competitors are paying.

Apparently, Wal-Mart is nervous that the Chicago City Council will approve the ordinance this week. In a recent telephone conversation, its CEO Lee Scott is believed to have asked Mayor Richard Daley to veto the bill if it is passed. And yesterday's Chicago Tribune ran a full page ad against the initiative, in the name of a coalition of black ministers, TV-station ABC7 reports on its website, telling that it was paid by Wal-Mart.