At the end of July, Wal-Mart won a key battle in its long campaign to solidify their beachhead in Chicago. Along the way, they may have struck a blow that could crack the economic stranglehold of unions in the city.
By shrewdly playing the unions off against each other, Wal-Mart traded the short-term pain of dealing with the construction workers for initial development in return for the long-term gain of not relying on the UFCW for ongoing operations. Once the stores are built the union shakedowns will be limited and they won't have to drag the anchor of a bureaucratized workforce.
Their deal has turned a national spotlight on the labor problems that contribute to Chicago's higher-than-average unemployment and decades-long economic stagnation. It also earned a New York Times piece highlighting the 'insurgent' status of the Chicago business community in local politics.
After so many years of failure, Wal-Mart's new strategy might offer insights for how other businesses can thrive in the city. But there is a long road ahead before Chicago can compete on an even footing with thriving Sun-Belt regions unburdened by entrenched unions and dense political corruption.
Comments