Yesterday, by a vote of 44 to 5, the City Council voted to raise the minimum wage to $13-an-hour by 2019, burdening Chicago businesses with a 57 percent hike. The Chicagoland Chamber is sorry to see the Chicago City Council vote for a minimum wage increase that sets Chicago apart from the rest of the state of Illinois.
Together with the Illinois Hotel and Lodging Association, the Illinois Restaurant Association and the Illinois Retail Merchants Association, we urged the City Council to be more thoughtful and deliberative with regard to the impact on small businesses in Chicago. Over the past six months, we engaged in this debate with other business groups, labor unions, activists, and the City. The debate has been civil, informative, and occasionally emotional.
I am down in Springfield right now, still engaged in this debate.
Every Chicago neighborhood that borders a suburb—Rogers Park, Jefferson Park, Beverly, Hegewisch, West Pullman, Riverdale, Mount Greenwood, Morgan Park, Garfield Ridge, Clearing, Austin, North and South Lawndale, Dunning, Montclare, O’Hare, Edison Park, Norwood Park, Forest Glen, North Park, Portage Park, West Ridge—will be in direct competition to lure investment and jobs.
Suburban municipalities levy fees and taxes at lower rates than Chicago, already making them more attractive to new business investment. Chicago businesses are at a distinct disadvantage. Recent obstacles include: increased emergency 911 telephone surcharge, increased parking taxes, imminent rise of Chicago property taxes (likely to go up to pay for pension costs).
Not only will Chicago workers experience a more concentrated labor market as suburban workers seek higher paying job in Chicago, but raising the minimum wage will be damaging to industry.
A Chicago-only wage differential sabotages the efforts to renew manufacturing and invest in small business growth in Chicago. Illinois already has the sixth highest minimum wage rate in the country at $8.25 per hour.
A manufacturer and Chamber member located on the south side of Chicago expressed his concerns regarding a Chicago-only minimum wage increase:
“An increase in the minimum wage would require increasing pay rates for skilled positions in order to maintain a proportionately higher pay scale for experienced workers. I don’t see how we can remain competitive paying higher wages than our competitors. We may have little choice but to move to Indiana if the ordinance is passed. You would think that the City would want to encourage manufacturers that provide relatively good pay and benefits to stay in Chicago. Instead, it appears they are going to cause an exodus of the type of jobs Chicago needs most.”
The Chicagoland Chamber of Commerce will continue to fight for business-friendly policies to improve our communities and economic outlook.
Theresa E. Mintle
President & CEO
Chicagoland Chamber of Commerce
