Chicago City Council approves building the city’s 2nd Walmart store

Chicago aldermen approve city’s 2nd Walmart store

CHICAGO — The Chicago City Council approved building the city’s second Walmart store on Wednesday, a victory that overcame labor opposition and promises jobs on the city’s struggling South Side.

“Who else is creating jobs?” asked Alderman Anthony Beale, imploring his colleagues to vote for the project, a supercenter that will sell groceries and could open in the first quarter of 2012.

The council’s unanimous vote — although some aldermen gave support grudgingly — also was an important win for the giant retailer that has said it hopes to build dozens of stores throughout Chicago.

Approval for the store came after labor leaders dropped their opposition when Wal-Mart Stores Inc. agreed to pay starting wages there of $8.75 an hour, coupled with raises of 40 cents to 60 cents an hour after the first year. Illinois’ minimum wage increases Thursday to $8.25 an hour.

Some aldermen, including Ed Smith, said a company that pays its CEO millions of dollars each year should be able to fork over more money for front-line workers at the low end of the pay scale.

“The poor people in this country are having all kinds of problems and Wal-Mart is part of it. And if you’re going to be the largest corporation in the world, the largest retail corporation in the world, you ought to be able to pay some people some decent salaries,” Smith said.

Wal-Mart’s expansion in the city has been a political battle because of labor opposition since the chain opened its first store on Chicago’s West Side in 2006.

Earning approval for a second store was a consequence of the city’s tough economy, said Chicago Mayor Richard Daley.

“The No. 1 issue in America is jobs,” said Daley, who has blasted critics of Wal-Mart’s expansion in the city, saying shoppers and jobs go to stores in surrounding suburbs.

Wal-Mart praised the vote.

“Today is a huge victory for the residents of the South Side of Chicago,” said company spokesman Steven Restivo. “They are one more step closer to having affordable groceries in their own neighborhood, quality jobs.”

Still, some aldermen wonder if Walmart stores will engulf city neighborhoods.

“If we become a city of Walmarts, what happens to our small businesses?” Alderman Virginia Rugai said.

In spite of the concerns, Alderman Mary Ann Smith said officials have heard from South Side residents who desperately want the new Walmart store and the jobs that will come with it.

“Who are we to say ‘Oh this isn’t good enough, you can’t have it,’” she said.