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Special Use Permit

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Why We Fight

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The ZBA Grants Labor Ready a Special Use Permit

 

 

 

Photo: Mike Siegel, The Seattle Times

 

 

On March 31, 2008 the Zoning Board of Appeals (ZBA) issued a special use permit to Labor Ready, Inc. granting them the dubious distinction of being the first day labor agency to return to Uptown after many years of community efforts to close these companies down.

 

In their determination, the ZBA stated that Labor Ready must appear before the board again after two years. The ZBA also requested that Labor Ready is to follow a number of conditions set forth by Alderman Shiller.  However, there is no authority which has the power to make them comply with these conditions during the interim period. (Click here for the ruling.) There are also a number of mistakes or inaccuracies in the ZBA ruling. (Click here for a discussion of the ruling.)

 

Labor Ready, Inc. will now be the only for-profit day labor agency north of the Loop and along the lakefront. 

 

 

 

The Community Process Leading to the Hearing

 

 

 

“Despite numerous letters, phone calls and requests for meetings, Alderman Helen Shiller did not agree to meet with any local residents.”

 

No public meetings were held prior to the ZBA hearing.  Despite numerous letters, phone calls and requests for meetings, Alderman Helen Shiller did not agree to meet with any local residents before the hearing. And, unlike other wards, the 46th ward has no transparent zoning process.  Local residents didn’t know whom to ask for more information about the special use permit.

 

Three short weeks before the ZBA hearing was to take place, Labor Ready, Inc. finally agreed to meet with some residents of the Gunnison Block Club.  The meeting took place on January 31, 2008.  However, neither Labor Ready’s zoning attorney, their appraiser nor any elected officials were present at this meeting.  No drawings or further documentation such as exact hours of operation, exact number of parking spaces or other details were provided to the members of the Gunnison Block Club. Labor Ready also did not reveal who else in the community they had spoken to and which organizations would be submitting letters of support on their behalf.  In short, the January meeting provided little new information to the members of the Gunnison Block Club. The meeting was useful for Labor Ready, however, in that they were able to gather information about people’s concerns which they ultimately incorporated into their presentation before the ZBA.  No one bothered to tell the Gunnison Block Club, the staff of the McCormick Boys & Girls Club or the McCutcheon School that Labor Ready would be checking applicants against the sex offender registry. Everyone had to hear about this plan at the hearing.  Opponents therefore never had an opportunity to evaluate the flaws in Labor Ready’s plan. 

We now know that public exhibitionists often do not make it onto the sex offender registry because they must be arrested three times to “qualify.” In addition, some judges are freeing sex offenders who have been arrested for failing to register because the statute is unclear as to whether it applies retroactively to prior sex offenses.  In response to a number of offenders being released, U.S. Senator Kit Bond (R-Missouri) introduced legislation in early 2008 to make all sex offenders register, regardless of the date of their offense. Finally, it is unclear if Labor Ready will be doing a national search or just a cross-reference on the Illinois sex offender registry. The Center for Missing and Exploited Children claims that there are about 100,000 sex offenders whose whereabouts are unknown.  If Labor Ready does not check a national database, it is entirely possible that they could hire one of those “missing” sex offenders.

 

 

 

The ZBA Hearing

 

 

Commissioner Demetri Konstantelos said, “I don't feel they need to have an attorney from the area who knows the problems.”

 

 

 

 

 

 

 

 

“Acting Chair Gigi McCabe-Miele arbitrarily determined before the hearing that she would only allow 4 speakers out of the group of nearly 100.”

 

 

 

Labor Ready testified that they began their work in the community with the local Chamber of Commerce.  However they failed to inform the ZBA that the Chamber came out in opposition to their special use permit.

 

 

 

 

 

 

 

 

 

 

 

 

 

The ZBA allowed hearsay and an incomplete appraisal as evidence.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Even though permitted use is allowed one mile away, the ZBA decided that Labor Ready deserved to have a special use permit for this location.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alderman Shiller got the last word.

            

The ZBA made their decision after a hearing held at City Hall on February 15th 2008.  At the hearing, a group of about 100 residents (backed by representatives from local businesses, schools, non-profits and parks) requested a continuance in order to review the appraiser’s report, the Department of Planning’s determination and any other evidence which would be presented in support of Labor Ready’s application for the special use.  The local residents asked to review these materials because no public meeting had been held prior to the ZBA hearing and therefore the residents did not know very much about the evidence that was going to be presented in support of the special use permit. The community’s request was denied with Commissioner Demetri Konstantelos saying, “I don't feel they need to have an attorney from the area, who knows the problems, have a continuance.  I think you know the case.  I think they know how to state their problem to us.  And then we'll take that under consideration.”  So, the ZBA denied a rag tag bunch of citizens the right to be represented by an attorney and to mount the most compelling case possible against Labor Ready.  Apparently, due process wasn’t necessary.

 

After the continuance was denied, the attorney working on behalf of the residents was at a significant disadvantage because she was forced to discover flaws in Labor Ready’s testimony, challenge these flaws and then present new testimony all in a very limited amount of time. There was a limited amount of time for several reasons.  First, Labor Ready signed up for a later time slot. (The hearing does not proceed in a set order.  The applicants are assigned a slot based on when they sign in for the hearing.) Second, Acting Chair Gigi McCabe-Miele arbitrarily determined before the hearing began that she would allow approximately 4 speakers out of the group of nearly 100 that had been in attendance since 8:30 a.m.

 

Labor Ready’s testimony involved a description of the operation by their governmental affairs staff person, Natalie McNair Huff.  She stated that they “reached out to our neighbors through several community-based groups.”  They told the ZBA that they spoke with the Uptown Chamber, but Ms. McNair Huff failed to inform the ZBA that the Uptown Chamber decided not to support Labor Ready.  (We do not have a copy of the official letter because it was only sent to Alderman Shiller, not to the ZBA.)  She also stated that Heartland Alliance and Inspiration Corporation couldn’t be there to speak but that they had letters of support from them.  She also said that Cory Muldoon from ONE was present and could speak about the “good neighbor” agreement that Labor Ready signed.  The signed “good neighbor” agreement was not submitted to the ZBA and Labor Ready did not call Cory Muldoon to speak.

 

After Ms. McNair Huff’s testimony, their appraiser Terry O’Brien gave testimony.  He reviewed all of the conditions that would need to be met in order to grant the special use and he stated that in his opinion Labor Ready met all of them and would be a positive addition to the community for two reasons: 1) there were 2,400 possible workers within the 60640 zip code who would want to use this “service” and 400 businesses in the zip code who would be able to hire them; and 2) because it will put a “productive use to a property that is currently vacant.”

 

After Labor Ready presented their testimony, opponents were given an opportunity to cross-examine the witnesses.  During the cross-examination, the opposition again asked for a copy of the “demographic survey” Labor Ready and the appraiser used for the basis of their “public convenience” claims.  The ZBA denied this request.  The opposition also attempted to demonstrate missing or misleading information contained within the appraiser’s report.  The ZBA indicated that they were satisfied with the appraiser’s testimony, and that since time was limited, members of the opposition should state their case.

 

            Four people from the community were given an opportunity to speak at the hearing.  The two residents who spoke discussed the proximity to child-centered spaces, the residential nature of this particular location, the desire of the community to have more pedestrian friendly shops and the number of challenges that the community faces with respect to crime, loitering and vehicle congestion.  These community sentiments are widely shared.  (Click here to learn more about the “lush promenade” that Corridors of Vision imagined for this part of Sheridan Road.)  The two community organizations that testified against Labor Ready were Uptown Chicago Commission (UCC) and Uptown United.  UCC informed the ZBA that there is no need to grant a special use because if Labor Ready is looking to be near transportation, businesses and people living in the 60640 zip code, there is permitted use and available space about one mile west of the location they selected. Uptown United stated that the community has been working very hard to attract businesses to the area and that a day labor agency is incompatible with the pedestrian friendly shops and businesses that belong in a B3-2 Community Shopping District. The ZBA allowed one person to make a concluding statement for the group. The last person to testify indicated the number of workers comp and wage violations that Labor Ready has had to settle in court, the unknown number of people who would be turned down for work everyday and where they would go after visiting this location and that whatever impact there would be would be felt by the public institutions and the residents of the 48th ward---not Alderman Shiller’s ward.

 

Alderman Shiller was allowed the privilege of making her comments in support of the special use after all of the testimony had been given. She reiterated that Labor Ready would provide a “service” that filled a niche in Uptown.  Then she submitted a number of conditions that she was willing to agree to in order to allow Labor Ready to get the special use permit.

 

 

 

What did the ZBA Consider in Making their Decision?

 

 

Almost all of the letters of support came from Indiana.  Only two Uptown organizations wrote in support of the special use permit.

 

In addition to the testimony presented at the hearing, the ZBA considered the determination from the Department of Planning and Development (click here for document), Terry O’Brien’s Appraisal, the annual report of Labor Ready and a court advocacy calendar which identified sexual offenders who were recently arrested in the area.  The ZBA also accepted a binder full of all of the letters people wrote, but the ZBA indicated that the letters would only be considered as evidence of community opposition or support.  Any arguments that people made against the special use permit in the letters were not taken into consideration.

 

Of the 74 letters submitted to the ZBA, only nine were in support of Labor Ready.  As any frequent visitor to stoplaborready.org would know, one of our main strategies was to encourage residents to write letters to elected officials to express their opposition to Labor Ready.  Likewise, Labor Ready attempted to rally its friends.  They managed to get seven businesses or organizations to either sign their form letter or use it as the basis for “talking points.”  (Click here for letters of support.)  It is interesting to note that no one from their nearest branch at Archer & Kedzie submitted a letter of support.

 

The ZBA ruling outlines the facts they took into account when they made their decision.  Click here for a point-by-point discussion of the ZBA decision.

 

 

 

For-Profit Day Labor Returns to Uptown

 

 

 

 

The JOIN Community Union opened up “Just Jobs” at 4431 North Sheridan Road. 

 

It was the first non-profit day labor agency in the nation.  All of the profits went back into the community to help the poor.

 

Historically speaking, Labor Ready has chosen an interesting location. As everyone knows, 4834 North Sheridan Road is right across the street from the McCormick Boys & Girls Club.  What many people may not know is that it was funded in part by W. Clement Stone (founder of Combined Insurance/AON) and the McCormick Foundation in 1959 in order to help children in a neighborhood where day labor was often the only form of employment available.  Labor Ready’s new location is also roughly two blocks southeast of where the old JOIN (Jobs or Income Now) Community Union used to be.  The JOIN Community Union was an organization that sought to bring together the community to fight for workers’ rights, tenants’ rights, welfare recipients’ rights, and improved public schools and parks. After a fire at their first location at Winthrop and Ainslie, the JOIN Community Union moved to 4431 North Sheridan where they eventually set up the first non-profit day labor agency in the nation. (Click here for a historical map.)  This organization went on to become the winner of the James Brown IV Award for Excellence in Community Service from the Chicago Community Trust and a national leader at the forefront of socially responsible solutions to unemployment. Today, this organization runs its own non-profit placement firm and provides training and transportation to workers. They also advocate for workers and are part of a network of non-profit organizations that study and advocate on the behalf of low-wage workers.  Unfortunately, they no longer do it in Uptown.  (Click here to visit the Suburban Job Link website.)

 It is sad to see that Uptown has forgotten its own history. 

 

 

 

Why We Fight

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Why not improve the Northside Chicago Workforce Center at 4740 North Sheridan Road?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Labor Ready is not a “service” to low-wage workers.  It is a billion-dollar company listed on the New York Stock Exchange.

 

 

 

 

 

 

 

 

 

Each morning, Labor Ready operates as a holding cell of low-wage workers from which employers can draw.  There is no systematic effort to make sure any one worker gets the work they need.

 

 

 

 

 

 

 

 

 

 

A local study and national statistics suggest that workers don’t want day labor jobs.  Day laborers say they want help getting full time jobs that pay a living wage.  Labor Ready has a poor track record doing this.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Chicago Jobs Council has lots of recommendations for improving Chicago’s workforce.  None of them include bringing for-profit day labor agencies into poor neighborhoods.

 

 

 

 

 

 

 

 

Although superior alternatives exist, Labor Ready’s supporters are trying to make it look like the people who demand the best for Uptown are against the poor. The opposite is true.

 

 

 

 

 

 

It is a question of bad jobs.  Labor Ready and its Uptown supporters are ignoring the problem of “bad jobs” and are furthering the problem rather than offering a solution.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Photo: Chicago Journal News-Star

 

 

Facing a multinational corporation and a powerful alderman, our rag tag group of local citizens was denied due process.

 

 

 

 

 

 

 

 

 

 

 

There are several reasons why Uptown residents are angered over the ZBA decision.  They are: Lack of Community Input, Incompatible Use, Insufficient Due Diligence & Inadequate Due Process.  Please stand with us and fight for democracy and socially responsible public policy in Uptown.

 

Lack of Community Input

 

Despite the fact that this location is on the very edge of the 46th ward, there was no coordination whatsoever between the 46th ward Alderman and the 48th Ward Zoning and Planning Committee.  Are the ward boundaries brick walls dividing little fiefdoms, or are we one community?  If we want to be one community, we should endeavor to treat our neighbors with dignity and respect.  We should also respect each other enough to recognize that everyone deserves fair representation and due process at City Hall.

 

 

 

Incompatible Use

 

Much has been said about the proximity to the McCormick Boys & Girls Club, the McCutcheon School and the Buttercup Playlot. Given that these empty storefronts are located within a nexus of child-centered spaces and residences, the community wants businesses that will enhance the quality of life for the people who live in the immediate area. Residents want pedestrian friendly businesses that will protect and support the residential character of the neighborhood. These sentiments are widely held. Read what Corridors of Vision imagined for these blocks of Sheridan Road. No one envisioned a day labor agency as part of the “lush promenade.”

 

 

 

Insufficient Due Diligence

 

Inspiration Corporation and Heartland Alliance wrote letters of support for Labor Ready.  As respected social service agencies in our community, we rely on them to make socially responsible decisions on behalf of the entire community.  This is an especially heavy responsibility when parts of the community are not invited to provide any input. We contend that these organizations failed to conduct due diligence in offering their opinions to Alderman Shiller, other leaders in the community and to the ZBA.

            Unemployment, skills rehabilitation and getting access to living wage jobs are major issues for some people living in Uptown.  Despite the fact that there are many resources to assist people, some residents still struggle to make ends meet.  One of the ways that the City has tried to address these issues is through the Chicago Workforce Centers (CWC). The Chicago Workforce Centers and affiliate organizations comprise the largest component of Mayor Daley's WorkNet Chicago, a citywide service delivery system of over 130 community-based and private organizations. WorkNet Chicago also has special programs for ex-offenders.  Heartland Alliance and Inspiration Corporation are Affiliate Organizations of WorkNet Chicago and work with ex-offenders as well.

The Northside CWC is located at 4740 N. Sheridan Road---approximately one block south of Labor Ready’s intended location. 

Core services available free to Chicagoans at Workforce Centers include:

  • Computerized listings of local, state, and national job openings
  • Seminars in resume writing, job search, and interviewing skills
  • Free faxing, copying, telephone, and internet services for job searches
  • Unemployment Insurance information
  • Basic job skills courses, such as English as a Second Language (ESL)
  • Veterans Services

Job Seekers may also be eligible for skill development through local training providers certified by the Illinois Department of Commerce and Economic Opportunity (DCEO). 

However, The Chicago Coalition for the Homeless found that the City’s CWC (or “one stop” centers) are not fully meeting the needs of today’s workers. They found that homeless people did not receive the services they requested and did not get enough specific help with job leads. The homeless people in the study said they couldn’t realize the “career plans” they developed with the counselors because they had difficulty accessing the training and education opportunities they needed.  Finally, the length of time between when a person list their job and when they found a new one through the CWC was simply too long. These low-income workers didn’t have enough savings to carry them through a period of unemployment. (If you’d like to read their study, click here.)

In light of these conditions, organizations like Inspiration Corporation and Heartland Alliance may have been willing to support Labor Ready because they know their clients need faster ways to clear a paycheck. Instead of working to improve the CWCs, however, these organizations took the easy way out. Labor Ready surely will provide “cash today” but it will do so under conditions that will hurt low-wage workers in the longer term. As organizations that are well-versed in the conditions for low-wage workers, it is breathtaking that they would not only support the for-profit solution to these problems but also uncritically accept Labor Ready’s self-serving descriptions of itself.

For example, Heartland Alliance’s letter states “Labor Ready exists because there is a market for low-skilled workers in neighborhoods similar to Uptown who could benefit from this kind of employment option.”  This is not true.  Labor Ready’s business model is unequivocally not organized around providing a service to job seekers.  If it were, it would create a pool of people looking for work and then go look for opportunities for them as individuals. It would start from what they have to offer and then seek out employers who could use their services. Unfortunately, Labor Ready’s approach happens the other way around.  They start with a demand for low-skill/low-wage workers on the part of employers and then they open up shop in neighborhoods that have these kinds of workers.  They offer a service to the employers in that Labor Ready sorts the workers and then gathers them together on a daily basis so that they can dispatch people “on-demand.” Each morning, Labor Ready operates as a holding cell from which employers can draw. There is no organized and systematic effort to make sure than any one worker develops skills and experiences over time so as to become a more marketable worker.  (Click here for a supply and demand graph which describes the economic conditions that have led to the emergence of for-profit day labor companies.  Click here for a website that discusses how day labor fits into the global economy.)

The Heartland Alliance letter is even so callous as to imply that this system is organized around worker preferences.  It says, “given Labor Ready’s flexible work schedule, it is likely that the population we serve will find this flexibility attractive.”  This may be how Labor Ready and employers want to paint the conditions for low-wage workers, but it is not what workers themselves are saying.  They are saying that they want to work well-paying full time jobs but they can’t find them. (Click here for a study by the Chicago Coalition for the Homeless.)  Likewise, national statistics show that of all people who do “flexible work” people who work on-demand are the most likely to want to work in another way.[1]  This preference is only to be expected because on-demand workers have no job security, experience more on-the-job injuries[2], receive no benefits and are paid very poorly.

While a small minority of workers can pick up day labor jobs to supplement their regular income, day labor has become the employment of last resort for many low-skill workers.  Organizations trying to help these people should know these facts and use them when they make decisions on behalf of their workers and the wider community.

If Heartland Alliance and Inspiration Corporation made a mistake in supporting Labor Ready, what other options should they have advocated instead?  The Chicago Jobs Council has been studying this very question and came up with a list of 17 recommendations for improving Chicago’s workforce. Nowhere in this extensive list did they recommend that for-profit day labor agencies should be attracted into low income neighborhoods.  (Click here for a copy of the recommendations.)

 

Heartland and Inspiration could also have recommended that Uptown’s leaders investigate the possibility of opening up a multicultural worker center that would help place workers into temporary positions but also advocate for worker rights at the same time. Labor Ready uses a portion of its profits to support political action committees and lobbying efforts that further its interests as part of the temporary staffing industry. It goes without saying that increased worker protections and living wage ordinances never make it to the top of the American Staffing Association’s legislative agenda.  Worker Centers (like Chicago’s San Lucas Worker Center and Chicago Workers Collaborative, the Latino Union of Chicago and Suburban Job-Link Corp. and the Primavera Foundation [which also has an ex-offender program]) provide resources for workers in addition to linking them to temporary assignments. As noted earlier, this approach to day labor was pretty much invented right here in Uptown on Sheridan Road. Why have our social service agencies and a local alderman ignored this approach and argued before the ZBA as if Labor Ready is the only option?

Steven C. Pitts of the University of Berkeley is a vocal critic of the kind of “jobs” that Labor Ready would be bringing to Uptown. His perspective deserves to be quoted at length because it is particularly suited to what is happening in Uptown. He says,

 

“An important crisis facing the Black community is the crisis of bad jobs: jobs that pay poorly; jobs with few benefits; jobs that offer no protection from employer harassment; jobs whose only future is a dead-end.

 

During the expansion of the 1990s, the U.S. economy generated a large number of these bad jobs. At the same time, persons of color received a disproportionate number of the bad jobs. Hence, the expansion of the 1990s could be characterized as a “racially polarized job expansion.” By 2000, many of the occupations, where a significant number of African Americans maintained employment, paid wages that made it difficult to sustain a family.

 

Research indicates that a large number of organizations with African American constituencies focus on issues other than work. These groups deal with crucial concerns such as housing, environmental justice, the criminal justice system, drug counseling, and education. Most of the organizations that do have programs addressing issues of work do not attempt to improve the jobs held by Black workers. Instead, the emphasis is on the individualized provision of job readiness counseling, soft skills, and hard skills. There are some examples where organizations take up a transformative approach to bad jobs. While there are a variety of ways to transform jobs, the activities fall under two broad categories: building worker organizations to directly engage employers and enacting public policies.”

The Labor Ready “solution” does not solve what Dr. Pitts calls “the problem of bad jobs.”  Why should the people of Uptown have to accept slip-shod public policy when we have the knowledge and the infrastructure right here to really address the problem?  Don’t we all deserve better? (If you would like to read more of Dr. Pitts’ research, click here.)

 

 

Inadequate Due Process

 

            Labor Ready was given an unfair advantage before the ZBA and our rag tag group of local citizens was denied due process. We failed to receive an impartial hearing because:

 

  • We were denied a continuance so we could have an attorney properly present our case.

 

  • We were deprived of the right to fully cross-examine Labor Ready’s witnesses.

 

  • We never were granted an opportunity to refute the demographic study which provided the basis for Labor Ready’s “public convenience” claims.

 

  • The appraiser only included abutting properties and not enough of the surrounding area in order to arrive at his conclusion that there would be “no significant adverse impact on the general welfare of neighborhood or community."  

 

  • About 100 citizens appeared to testify but only 4 were granted an opportunity to speak.  

 

  • Our statements were dismissed as opinion and hearsay but Labor Ready witnesses were permitted to make hearsay statements and express wide-ranging opinions. The ZBA applied a different evidentiary standard to witnesses on behalf of Labor Ready and the opponents. 

 

 

 

 



 

 

 

 

 

 



[1] Source: Bureau of Labor Statistics, Current Population Survey (CPS) Supplements: Contingent and Alternative Arrangements, Employed Workers with Alternative Work Arrangements by their Preference for Traditional Work Arrangement, February 2005.

[2] Source: Waehrer, Geetha M. et al. 2007. “Occupational Injury Costs and Alternative Employment in Construction Trades,” Journal of Occupational & Environmental Medicine. 49(11):1218-1227.