Mayor Richard Daley on Saturday lashed out at supporters of the “big-box” wage law, but he declined to say whether he would veto the controversial measure, meaning that a new round of political jockeying is likely under way.
Aldermen expect that the mayor will try to sway a few key votes that would allow him to effectively veto the bill, which will require big retailers to pay a higher minimum wage than most other Chicago employers. If last week’s margin of 35-14 holds, a rare open defiance of Daley, the City Council could override a veto.
In the meantime, addressing the topic for the first time since the council’s vote Wednesday, the mayor threatened that the big retailers would simply pull out of the city.
“Everybody can go out to the suburbs. They’ll take all the money you want,” said Daley, who said the big-box stores will build outside the city, costing jobs and tax money if the law goes through. Daley said the stores generate $51 million in sales tax for the city each year.
Political insiders expect a busy month of backroom dealing. A veto override would require 34 votes, meaning that Daley would have to persuade two aldermen to change their positions to make a veto stick.
Asked whether he’ll veto the ordinance at the next council meeting scheduled for Sept. 13, Daley said Saturday: “I don’t know. I’ve got time.”
“He’s not going to do it unless he knows he has at least a third of the council lined up,” said Ald. Burt Natarus (42nd), who voted against the ordinance.
“I think he might talk to some of the people he thinks he can talk to” to see if a veto would hold up to a challenge, he said.
Ald. Joe Moore (49th), the ordinance’s primary sponsor, does not expect a veto from the mayor. But he does expect a lawsuit from retailers.
“I would be surprised if there wasn’t a lawsuit,” Moore said. “Business is going to do anything to fight this, unfortunately.”
Natarus agreed.
“The worst thing that could happen is if the retail people decide not to sue,” Natarus said. “Because then we’ll be stuck with this law.”
The so-called big-box ordinance applies to stores of at least 90,000 square feet operated by firms with $1 billion or more in annual sales.
Beginning next July, employees must 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 can be less if employees get tips.
“These are all beginning jobs,” Daley said. “Young people, starting out for the first time. Now, I tell them you can’t be here in Chicago.”
Moore said the point of the law is to “have a wage people can live on.”
———-
jlong@tribune.com
