Sunday, January 31, 2010

Exhibitors: Work rules drive up McCormick costs

From the Chicago Sun-Times:

You've seen the signs at the airports welcoming people to Chicago: "We're glad you're here," they say. Some think truth in advertising demands an added line, like: "Now, pay up!"

The convention business in Chicago is reeling as big shows defect from McCormick Place, or threaten to, because of costs. An $8 billion engine of the Chicago economy is seizing up as exhibitors -- the businesses that set up booths at the conventions and literally pay the freight for the privilege -- push trade organizations to move shows to cheaper places, principally Las Vegas and Orlando.

Some exhibitors are bitter, such as the company president who wrote to the head of his trade association after its show wrapped up in 2009. "Having to deal with McCormick Place personnel is more than frustrating," the letter said. "The experience is like being dropped into a den of thieves that pick your pocket at every opportunity, and it hasn't gotten any better."

The letter's contents were shared with the Chicago Sun-Times on the promise of anonymity. Few in the business want to offend the five labor unions that work at McCormick Place, for fear of retaliation at their next show.

The exhibitors and their trade groups complain about expensive work rules, like a minimum of three Teamsters on a crew vs. one in other cities. They cite five-minute jobs that are billed for an hour. They gripe about restrictions about who can do what in setting up or dismantling the show, and about occasional threats and intimidation. Full Article.

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