Committee on Workforce Development meeting, September 20, 2023
- When: Wed, Sep 20, 2023, 9:30 AM (Chicago time)
- Where: City Council Chamber, 2nd Floor, City Hall, 121 North LaSalle Street - Chicago, IL 60602
- Status: Scheduled & Published
- Committee: Committee on Workforce Development
- Video: https://vimeo.com/manage/videos/864559828
- Transcript: full text (18,993 words, official captions)
Meeting notes
AI-written from the transcript. Speakers are inferred from cues in the recording, so treat names as estimates and check the video at the linked time.
The Committee on Workforce Development met on September 20, 2023, to consider a substitute ordinance amending the minimum wage provisions of the Municipal Code to phase out the tip credit for tipped workers by July 1, 2028, a five-year phase-in negotiated among the sponsors, worker advocates and the Illinois Restaurant Association. Ten public commenters spoke, including restaurant industry representatives, tipped workers on both sides, advocates and business owners, followed by testimony in support from the BACP commissioner, One Fair Wage, a Minneapolis council member and a Chicago business owner. Committee and non-committee members debated effects on workers, especially women of color, wage theft and harassment, along with restaurant margins, border-ward competition with suburbs, and the speed of the negotiations. Alderperson Brendan Reilly asked colleagues to delay or vote no, while sponsor Alderperson Jessica L. Fuentes and others urged passage. The substitute ordinance was recommended for passage on a roll call announced as 9 ayes and 3 noes, and the committee also approved its September 7 Rule 45 report.
Topics: tipped minimum wage, One Fair Wage, tip credit phase-out, restaurant industry, wage theft, sexual harassment, border wards, small business support, public comment
Agenda items discussed
- 38:16 Approval of the Rule 45 report from the September 7, 2023 meeting: passed
- 38:44 Amendment of Municipal Code Chapter 6-105, Section 6-105-030, regarding the minimum hourly wage in tipped occupations (substitute) (O2023-0002995): passed
Alderpersons who spoke
- Michael D. Rodriguez (chair): Introduced the substitute ordinance as the result of negotiations between the sponsors, labor and the restaurant industry, and noted the restaurant industry had been offered the chance to provide expert comments. (38:44); Thanked both sides of the audience for being respectful and engaging in democracy before calling the vote. (2:07:22)
- Carlos Ramírez-Rosa (alderperson): Said many tipped workers, especially Black and Latina women, do not reach the minimum wage and face wage theft, and cited cities with one fair wage where restaurants are growing. (1:02:03); Thanked the One Fair Wage coalition, the Illinois Restaurant Association, the mayor and Alderperson Jessica L. Fuentes for reaching a compromise. (1:06:46); Asked the One Fair Wage president to explain the grants Alderperson Derrick G. Curtis raised and the data on tipping and restaurant performance in states without a tip credit. (1:43:59)
- William E. Hall (alderperson): Supported the ordinance, citing his family's reliance on tips and saying workers in neighborhood restaurants should have the same income floor as those downtown. (1:12:40)
- Brendan Reilly (alderperson): Said he grew up in the restaurant industry, that restaurants operate on thin margins, and that new costs are likely to be passed to customers. (1:14:48); Cited surveys from Washington, D.C. and Chicago on planned price increases, staff reductions and diners' likelihood of tipping less or dining elsewhere. (1:16:52); Said the negotiations happened quickly and not publicly, and asked colleagues not to vote that day or to vote no to allow more public discussion. (1:19:26)
- Nicholas Sposato (alderperson): Said he does not question colleagues' intentions but does not support the ordinance, and suggested teaching customers to tip properly and in cash. (1:21:58); Asked why the city does not pursue bad actors who fail to pay the minimum wage, drawing on decades working as a tipped worker. (1:23:35); Called the ordinance a job and business killer for border wards competing with nearby suburbs and warned of a wage chain reaction for other restaurant staff. (1:24:10)
- Andre Vasquez Jr. (alderperson): Thanked organizers and sponsors and respectfully disagreed that the conversation had been quick, saying it had been discussed for years. (1:27:01); Described a 'tale of two cities' in which some tipped workers do well while others rely on tips to survive and face harassment. (1:28:43); Noted other countries operate without tipping systems and said adjustments can be made as the policy is implemented. (1:31:06)
- Marty Quinn (alderperson): Said as a border ward alderperson he competes with nearby suburbs to recruit restaurants and would vote no because of the expected impact on recruitment. (1:33:22)
- Derrick G. Curtis (alderperson): Said he was an early sponsor but finds it challenging as a border ward alderperson to attract businesses, and welcomed the five-year phase-in. (1:34:46); Asked to learn more about a grant to help businesses transition under the ordinance. (1:37:54)
- Desmon C. Yancy (alderperson): Supported the ordinance, saying workers should not have to rely on patrons' kindness or government assistance to make a living. (1:38:35)
- David H. Moore (alderperson): As a co-sponsor, described his own low-wage restaurant job and said the restaurant industry will adjust and workers should receive at least the minimum wage. (1:50:32)
- Ruth Cruz (alderperson): Supported the ordinance, citing family members who worked as servers, while saying the city also wants businesses to do well. (1:54:48)
- Jessica L. Fuentes (alderperson): As sponsor, thanked the chair, advocates, small businesses and the mayor and said passing one fair wage is what is needed for communities across the city. (2:02:07); Said the effort had been underway for years and that businesses that eliminated the subminimum wage are doing fine. (2:03:38); Said women of color in the industry disproportionately face discrimination and harassment and deserve financial security. (2:05:34)
Exchanges between members
- 1:21:29 Alderperson Nicholas Sposato said Alderperson Brendan Reilly must have been looking over his shoulder, indicating similar views.
- 1:27:19 Alderperson Andre Vasquez Jr. thanked Alderperson Jessica L. Fuentes for her work on the ordinance.
- 1:27:31 Alderperson Andre Vasquez Jr. thanked Alderperson Brendan Reilly for his points but respectfully disagreed that the conversation had been quick.
- 1:28:27 Alderperson Andre Vasquez Jr. agreed with Alderperson Nicholas Sposato that restaurant workers are the best tippers.
- 1:33:38 Alderperson Marty Quinn echoed Alderperson Brendan Reilly point that restaurants are community anchors.
- 1:35:22 Alderperson Derrick G. Curtis said that, like Alderperson Marty Quinn, he represents a border ward where attracting businesses is difficult.
- 2:01:18 Alderperson Nicholas Sposato referred to Alderperson Derrick G. Curtis as a generous tipper like himself.
- 2:01:46 The chair told Alderperson Nicholas Sposato that they may not always agree but he respects him.
- 2:03:38 Alderperson Jessica L. Fuentes agreed with Alderperson Andre Vasquez Jr. that the effort did not happen overnight.