CHICAGO — A big-box ordinance requiring retailers such as Wal-Mart to pay a minimum wage of $10 an hour and $3 an hour in benefits by 2010 is dead. The City Council on Thursday failed to override a veto of the measure by Mayor Richard Daley.
Wal-Mart, Target and other major companies are arguing that the ordinance unfairly singled them out. Wal-Mart and Target put development plans on hold pending the outcome.
The council vote on Daley’s first veto in 17 years as mayor was 31 to 18, three votes short of the 34 needed to override.
Daley said the ordinance, which passed the council 35 to 14 in July, would hurt business development and stifle economic growth.
Supporters of the “living wage” ordinance, which applied to companies with gross revenues of $1 billion or more and stores of at least 90,000 square feet, said they will continue the fight.
Alderman Joe Moore, sponsor of the ordinance, said he will introduce broader legislation that will apply to businesses with more than 1,000 employees. The details have not yet been determined. “This issue will not go away,” he said.
Wal-Mart, which plans to open its first store in the city’s West Side later this month, said the veto will guarantee more retail growth in the city.
The decision “will ensure more jobs, more convenience and more choice for Chicago’s working families,” said Michael Lewis, senior vice president of store operations.