Wednesday, September 13, 2006

Big Box Blackmail

marjorie says...

A veto by Chicago Mayor Richard Daley of an ordinance passed to raise the minimum wage at large retailers, such as Walmart and Target, was upheld by the City Council this week. The ordinance was passed and subsequently vetoed just as Walmart was about to open a store in a severely economically depressed area of Chicago. Of course, this is an issue we have debated repeatedly...what should the Mayor do when being blackmailed by the big box retailers, in light of the severe need to provide any kind of jobs period to this community? It isn't just Walmart either. Target put their plans to build a store on hold until they saw whether or not Daley would veto the ordinance. With that in mind, let's have a look at the statement Walmart released after the veto was upheld...with my commentary of course in red.


Statement to Mayor Richard M. Daley's Veto of Chicago's Big Box Ordinance
Wednesday September 13, 5:20 pm ET

CHICAGO, Sept. 13 /PRNewswire-FirstCall/ -- The following was released today by Wal-Mart Stores, Inc. (NYSE: WMT - News):
                                Michael Lewis
President, Midwest Division

"This is a great day for the citizens of Chicago. The city council's action to sustain the mayor's veto will ensure more jobs, more convenience and more choice for Chicago's working families.

The city council and the Mayor, of course, acted under threat by Walmart to not locate in the city...it's called blackmail, even if Walmart prefers to think of it as a "great day."

"This opens the door for desperately-needed business investment and development in the city, with job opportunities and savings for those who need it most.

Can someone please enlighten me about what "savings" Walmart is referring to? We all know that poor people generally are not able to save.

"We will open our first store in the city on Chicago's west side later this month. This store will show what a great asset Wal-Mart can be to the community, as an employer and corporate citizen, and as an affordable resource for thousands of Chicago's working families.

Not to mention, as a very effective blackmailer.

"We commend Mayor Daley for vetoing the ordinance and the city council for sustaining the veto to ensure more jobs, more savings and more economic development opportunities for all Chicagoans."

Think about that for a second...they are commending the Mayor for vetoing a city ordinance passed by democratically elected city councilors at the same time they call their store "desperately needed." I guess desperation is still not enough for Walmart to pay a few dollars more.