In the summer of 2006, the Chicago Tribune editorial board staunchly opposed the Big Box living wage ordinance passed by the Chicago City Council and ultimately vetoed by the Daley Administration. Calling it "one of the loopiest ideas we've seen from City Hall in a long time," they addressed the city's aldermen in a July 25, 2006, editorial: "[T]hink about those workers ... and think about all the other people still waiting for their chance. They're your neighbors and your constituents. They want jobs. You can help them get to work."
Two years later, the Tribune is beating the same drum, this time after "driving by" a vacant lot on 83rd Street that would have ostensibly housed the city's second Wal-Mart location had the big box fight never occurred. Thinking wistfully about Chicago's lone branch in the Austin neighborhood, they wonder how the South Side community of Chatham could have been transformed:
This thriving Wal-Mart is on the site of what had been a virtually abandoned building. The store provides jobs for more than 440 employees—it's currently hiring more—at average wages for hourly workers of about $12 an hour. In the 18 months the store has been open (through February), it has collected nearly $7.3 million in sales taxes alone—$1.9 million for the city, $3.9 million for the state, $917,000 for the RTA and $583,000 for Cook County. And it's a convenient shopping mecca for Chicagoans.
You would think the City of Chicago would want more of all of this: More jobs. More sales and property tax revenues. More convenient shopping opportunities. You would think the city would want fewer vacant lots.
Now, I didn't major in statistics, but something here just doesn't add up. If the average hourly wage at the Austin location is over $12, why on earth would the Daley Administration put up such a stink over an ordinance that would have raised wages and benefits to $10.75 an hour?
What's more likely is that this average is highly inflated, taking into account a few well-compensated higher ups. In fact, Simon Head of the Workplace at the Century Foundation found that "the average pay of a sales clerk at Wal-Mart was $8.50 an hour, or about $14,000 a year," a job that often comes with few-to-no benefits and little overtime. Another 2007 study from the UC-Berkeley Center for Labor Research and Education reports (pdf) that 58 percent of all Wal-Mart part-time employees make less then $8 per hour nationally. The Tribune itself wrote on June 13, 2006, that the entry-level wage at Wal-Mart in Chicago starts at about $7.25 an hour.
The editorial goes on to trumpet the loss of sales tax revenue, but makes no mention of the loss in state funds stemming from Wal-Mart employees who -- because they lack decent wages and adequate benefits -- become reliant on public assistance. A 2006 University of Illinois at Chicago study pegged the cost to Illinois taxpayers at $40 million annually.
More after the jump ...
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