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News :: Miscellaneous |
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At The Corner of Hard Times and Fewer Jobs |
Current rating: 0 |
by Michael Feltes
Email: mfeltes (nospam) gmx.net (unverified!) |
07 Nov 2001
Modified: 10:45:34 PM |
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The Decatur Trades and Labor Assembly and O'Charley's Restaurants, a chain based in Nashville, TN, are locked in a standoff after the corporation's use of non-union, non-local labor. |
At The Corner of Hard Times and Fewer Jobs
“It’s got to be a two way street”
A standoff between O’Charley’s Restaurants and the Decatur Trades and Labor Assembly exists where cooperation and mutual benefit could have arisen. Local unions have declared O’Charley’s a “do not patronize” zone, while O’Charley’s management has called for police escorts to remove union leaders from the new Decatur location. The
unions are planning to indefinitely picket the right-of-way along US Route 51 as O’Charley’s makes an effort to reach out to the community through charity. As the closing of the Bridgestone-Firestone plant looms over the city’s economy, strife between this business and local unions worsens the atmosphere.
O’Charley’s (NASDAQ: CHUX) is a restaurant chain based in Nashville, Tennessee that operates 161 locations in 14 states, with the slogan, “At the corner of Good Food and Good Times”. In addition to the newest location in Decatur, the corporation currently operates in Springfield, Champaign, O’Fallon, and recently opened a Stoney River
Legendary Steaks restaurant in suburban Deerfield. In the 12 week period ending 15 June 2001, the company earned $4.3 million after taxes. (Meg Bayless, a media contact for O’Charley’s, had no comment after a preliminary phone interview, other than to refer to information on the
O’Charley’s web pages at http://www.ocharleys.com)
Mike Shampine, Secretary of the Decatur Building and Trades Assembly, an association of Macon County construction unions, approached O’Charley’s about the contract for the construction of the new restaurant in August 2000, shortly after the company announced its plans
to expand its Central Illinois locations. Their overtures were quickly rejected, and the contract for the project was awarded to an out-of-state contractor, who employed workers from across the country to complete the task.
O’Charley’s is located near Hickory Point Mall, which has a contractual obligation with the Decatur Building and Trades Assembly for all construction work done on its property. Shampine points out that the construction unions have done excellent work at a number of stores in and
around the mall, including a massive renovation of the interior of the mall and construction of Pier One Imports, Cheddar’s Restaurant and Toys ‘R’ Us locations. However, O’Charley’s bought its lot from Hickory Point outright, and chose not to employ local union labor as its neighbors did.
Shampine and his fellow union officers in the Decatur Trades and Labor Assembly, an umbrella organization of all Macon County unions, warned that local union members, who number 14,000 in Macon County, would be asked not to patronize the restaurant if Building and Trades was frozen
out, but O’Charley’s continued on its course. According to Shampine, the unions did not want to begin a boycott of the restaurant, but felt that it was the best means of defending the gains for workers’ rights that they have
made in Decatur. “I think that [not using union labor] is a short-sighted view. Maybe it flies in Mississippi or the West, but not here... if we cost the restaurant 50 customers a night, they’ll go under in six months.”
O’Charley’s traditionally holds VIP parties on the night immediately preceding the opening of a new location, asking the local Chamber of Commerce to send invitations to local businesses and organizations for a fund-raiser for local charities. The Decatur Trades and Labor Assembly
was sent an invitation for the October 7 gala, but when Shampine and other union officials showed up with handbills explaining their objections, they were stopped at the door by O’Charley’s management and the police were called. Not withstanding their written invitations, the police escorted the union officers from the premises.
At the grand opening on October 8, Trades and Labor began a two-week campaign of picketing urging customers not to support O’Charley’s. Macon County deputies were on hand to make sure that protesters did not trespass or violate other laws, but made no arrests. Shampine says that following the protests, Trades and Labor sent a letter
to O’Charley’s restating their grievances, but have not received a reply. Shampine does take heart that contracts for construction of new locations in Bloomington and Collinsville have been awarded to local unions. (It
should be noted that the O’Charley’s web site makes no mention of restaurants being opened in these locales.) The picketing, however, will continue on an occasional basis to remind the public of the “no patronage” zone declared by local unions. Shampine does regret the choice now before the federation of unions, in that while hurting the corporation, a boycott also hurts the laborers serving food inside. “We could cost jobs, and we’re cognizant of the issue. There’s a downfall [to this approach].” However, he realizes that there is a larger principle at stake, that
maximizing profits cannot be the sole factor in business decisions, that ultimately, our communities are better places when unions and corporations work together. “The equation can’t always fall on the business side of economics.”
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Just A Reminder |
by ML
(No verified email address) |
Current rating: 0
07 Nov 2001
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Great story. I wonder why I didn't read about this in the News-Gazette?....
People in the Urbana-Champign area should remember this when considering whether to dine at the Champaign O'Charley's. |
