This morning, the Chicago Federation of Labor (CFL) and United Food and Commercial Workers (UFCW) Local 881 held a press conference at City Hall to announce a "historic" agreement with Walmart that would clear the way for the mega-retailer to build a store in the Pullman neighborhood on the South Side. 

"This has been a long fight for all of us," said CFL President Dennis Gannon (pictured above). "We wanted to make sure we could get an 'urban wage' -- one dollar over the minimum wage.  We wanted to get a community benefits agreement, so the people from Walmart could invest in the city of Chicago.  And we wanted to get a 'project labor agreement.'  And you know what?  We have been successful on all fronts."

The announcement diffused the ongoing fight over Walmart's expansion into the city, which featured the multi-billion-dollar corporation and certain South Side aldermen on one side, and Chicago labor unions and community groups on the other.  As reporters arrived at the press conference, they were met by simultaneous chants from both supporters ("Walmart is better than welfare!) and opponents ("Just vote no!"):

Here is what the deal includes, according to the CFL:

- An $8.75 starting hourly wage for workers at the Pullman store, with a $.40 to $.60 raise after a year of employment.

- A $20 million community investment by Walmart to provide "job training and economic programs in the Pullman community."

- An "project labor agreement" brokered by the Chicago Building and Construction Trades Council in which Walmart would use union labor on any new stores in 20 counties in Northeastern Illinois.

"This wouldn't have happened without organized labor and our community and religious partners making a stand," Gannon told reporters. "Organized labor has never been against jobs.  Jobs is what we fight for day in and day out.  But good jobs is what we strive for."

Anthony Guest of SEIU Healthcare (whose Illinois state council sponsors this website) harkened back to the big box living wage fight of 2006. "If we had not been out there fighting then," he said, "this would not be happening today."

"This is a historic step forward," added Ron Powell, president of UFCW Local 881. "It's the first time in American history that Walmart has sat down for discussions with a local union."

Questions remained, however, about how the wage terms would be enforced.  Before the details were announced, Diane Doherty of the Illinois Hunger Coalition (a member of Good Jobs Chicago) told us that she would be concerned about any agreement that was not legally-binding. "Without that, it's just a promise," she said.

As of yesterday, Walmart representatives were already downplaying the $9.50 wage figure, as the Sun-Times' Fran Spielman reported:

Wal-Mart spokesman Steven Restivo refused to confirm or deny the $9.50-an-hour offer. He would only say that, based on performance, a “majority” of Wal-Mart associates get hourly-raises in the 40-to-60-cent range after one year on the job.

And they continued to do so today.  From Greg Hinz' latest:

Meanwhile Wal-Mart, trying to spin the day's events, is insisting it didn't cut any deal, that it almost always gives its "associates" a raise after a year, and that it already had agreed to use union folks to build its stores in Northeastern Illinois.

You could call that spin. Or you could call it sore winning.

Beyond releasing (somewhat questionable) average wage figures, Walmart has been extremely secretive about its wage distribution.  So it's not clear at this point how the agreement will be enforced -- particularly if Walmart is saying they didn't actually "deal." 

But the labor leaders emphasized that they would keep the heat on the mega-retailer as they attempt to expand further into the city.  (Walmart officials have said they want to build "dozens" of new stores here.)  "We are going to hold them accountable in every zoning hearing and every TIF hearing -- every step of the way -- to make sure that they live up to their side of the agreement," said Gannon.

"Around the world, this corporation has routinely mistreated its employees and violated its labor laws," said Powell.  "We're not going to let that happen here in Chicago." 

Meanwhile, Ald. Joe Moore (49th Ward) celebrated the agreement -- but only as a starting point. "Clearly it is not everything we wanted," he said.  "But it provides a base for future battles."

Shortly after the announcement, the Zoning Committee passed an ordinance green-lighting the Pullman development.  It will go before the full City Council next Wednesday.