Lou Michels and Rod Satterwhite are partners in the Labor & Employment group at McGuireWoods LLP. Both handle employment litigation on behalf of employers, and advise companies on employment issues regularly.
posted on Thursday, July 06, 2006 10:59 AM by Lou Michels

Social Engineering Run Amok

Not content with keeping the citizens of Chicago from eating foie gras and contemplating the removal of trans fat by decree from all Chicago area restaurants, some Chicago aldermen have decided that large retail establishments are "a danger to both our communities' economic standards and our civic life."  Several of them have introduced an ordinance specifically designed to increase the cost of goods to consumers by introducing an artificially high wage and benefit requirement, undercut a private employer's ability to regulate public demonstrations on its property, and require the employment of convicted felons who can present a letter signed by anyone else attesting to their reformed character.

     The proposed Chicago ordinance is clearly aimed at big-box retailers such as Wal-mart, Target, and other large retailers (but which conceivably could apply to stores like Crate & Barrel or Ikea, or other large showroom type facilities with 75,000 sq. ft. or more).  The aldermen, who are generally beholden to the interests of union organizers, also will force store owners to open their "non-business areas" to any citizen to engage in so-called non-commercial speech with customers and employees on matters relating to "community affairs, religion, politics, business practices, workplace rights or topics of public concern."  I wonder if they would allow the Klan to conduct a rally.

      The real foolishness of this ordinance is easily demonstrated -- stores like Wal-mart, Target and others generally provide shopping at a substantially lower cost to local residents, who otherwise frequent small retail establishments that cannot use economies of scale to purchase their goods.  By making it extremely unpleasant for retailers to come into the city, the ordinance effectively mandates that Chicago residents will pay higher prices for everything from milk and toilet paper to clothing and electronics.  Numerous residents have complained at public hearings about riding the bus for miles to get to the nearest Wal-mart where their dollar goes much further than shopping options within the Chicago city limits.  However, there is one type of establishment that has not been subjected to this kind of scrutiny or social engineering -- casinos.  There are several proposals to put a major casino operation in downtown Chicago.  I have yet to see a single ordinance drafted in response.  If the choice for the aldermen is between supporting groceries or gambling, it appears that gambling holds all the cards.

 

UPDATE:  Chicago aldermen with stores in or projected to come into their wards are claiming the stores will close or not build there if the measure, now amended, passes.  The link to the story is here.  What, someone is surprised at the result of this legislative excess?

 

ADDITIONAL UPDATE:  The Chicago Trib is after the City Council now, too.  Here's the story.

 

LATEST UPDATE:  The ordinance passed this week, and will face an immediate legal challenge.

 

LATEST ADDITIONAL UPDATE:  Target bails.

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