Judge Rules Against McCormick Place Labor Changes

New work rules put into place last year by the Illinois General Assembly that gave exhibitors more rights to do their own work at Chicago’s McCormick Place have been struck down. A federal judge ruled that the National Labor Relations Act preempts state law from enacting legislation that interferes with the collective bargaining process.

 “All of us at the Metropolitan Pier and Exposition Authority are greatly disturbed at today's ruling by the U.S. District Court overturning the labor reforms enacted by the Illinois General Assembly last May,” said Jim Reilly, the trustee overseeing the revamp at McCormick, in a statement.

He added, “As all observers of the convention and trade show business are aware, the implementation of those reforms has, virtually overnight, transformed McCormick Place from a great convention and trade show facility that was rapidly losing its customer base into an industry powerhouse.”

The ruling was in response to lawsuits filed by Chicago-area Teamsters Local 727 and by the Chicago Regional Council of Carpenters that challenged McCormick’s new work rules.

The new work rules were enacted after two major trade shows pulled out of Chicago, citing high labor costs and others threatened to also leave if changes weren’t made.

The labor rules that are in question with the judge’s decision include straight-time, overtime and double-time provisions and expanded exhibitor rights that allowed them to do more work in their booths.

What the ruling doesn’t impact is the nonexclusive electrical contract, changes in food service, the power of the Interim Board to put in place a private firm to manage McCormick Place and MPEA’s ability to enter into a lease with Navy Pier and the recently formed nonprofit corporation governed by a board of local businesspeople.

“The ruling doesn’t impact shows immediately,” said David Causton, McCormick Place’s general manager. “This is a process that occurs throughout the court.”

MPEA will ask for a stay on the ruling for everything to remain the same until the authority has an opportunity to appeal, he added.

“We’ve also talked to labor in the building and everyone is proceeding status quo,” Causton said.

After the labor reforms took effect last year, Chicago was on a roll, not only booking new shows, but luring back a big one – the Healthcare Information Management Systems Society’sshow – that previously had decamped.

“We believe the ruling is faulty in several ways and are very hopeful that it will be overturned on appeal,” Reilly said. “On Monday, we will ask the District Court to stay execution of the order pending appeal to the Seventh U.S. Circuit Court of Appeals. We are confident that we have ample grounds to support that request.”