The D.C. city council voted on an absurd law that forces big box employers to pay workers what the council and the unions deem a 'living wage.' Union speak for wage extortion.
The gist of the law is to drive business out of business, of course. Wal-Mart's margins are razor thin and can't take a full 50% hike in their labor costs.
Wal-Mart delivered an appropriate ultimatum to city lawmakers promising to kill plans for at least three of the new stores if the super-minimum-wage proposal becomes law. D.C. passed the law despite the warning. And now Wal-Mart made good on it's threat - it killed those plans.
The D.C. law singles out retailers with sales of $1 billion to pay employees a minimum of $12.50 an hour. The city’s minimum wage is $8.25.
Though the law affects Home Depot, Costco and Macy’s too - unions made it clear the real target is Wal-Mart in specific. Wal-Mart was scheduled to open six stores, employing up to 1,800 people. But with the defiant city thumbing their collective noses at Wal-Mart the big employer is gonna move to Maryland no doubt.
Such wage extortion is deja-vu for Wal-Mart. The giant discounter went through this in Chicago last year. Chicago backed down smartly when faced with the job losses. D.C. made a mistake and kissed their union pals asses so now the city will destroy far more jobs and lose far more tax revenue than any tiny wage extortion will muster.
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D.C. FAILS TO PAY 'LIVING WAGE' ITSELF
