Wednesday, July 21, 2010

Do Unions Bust Convention Business?

July 20, 2010 - 8:00 AM | by: Michael Tobin

Chicago had been steadily losing conventions to the glitz of Las Vegas as well as sunshine and theme parks of Orlando, Fla., even though exhibitors preferred to show their wares in the city of big shoulders.

"They wanted to come to Chicago, because the people will actually look at their exhibits," said Illinois Senate President John Cullerton.

But Chicago is a union town -- to do business here means playing by union rules.

So, an exhibitor needed to pay the teamsters to haul his exhibit to the convention center and the carpenter's union to set up a booth. If the carpenters worked past 4:30, they went on overtime, even if they started at 3:00.

Now, you need to plug in your booth to make the whole thing work - you need to pay someone else to do that.

"Instead of a few $100 that it might be in other cities that person is literally spending over $1,200 just to have a computer connected to the Internet and have the power for it," said exhibitor Mathew Cohn. "It's a very expensive place to do business."

One by one, the conventions -- which drive 66,000 jobs and generate $251 million in tax revenue -- fled for Mickey Mouse and the rolling dice.

When two major conventions pulled out, Illinois got nervous. Continue.



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