>>> RESTAURANT WORKERS IN CHICAGO WHO ARE TIPPED ARE GETTING CLOSER TO A RAISE IF SOME ALDER PEOPLE HAVE THEIR WAY.

KURPTLY TIP WORKERS AND BARTENDERS MAKE A SUBMINIMUM WAGE OF $9.48.

CHICAGO'S CURRENT MINIMUM WAGE IS $15.80 WHEN AN EMPLOYEE'S HOURLY WAGE PLUS TIPS DON'T ADD UP TO $15.80, THE EMPLOYERS HAVE TO MAKE UP THE DIFFERENCE.

THE ORDINANCE WOULD PHASE OUT THE LOWER TIP WAGE OVER A TWO YEAR PERIOD.

IT HAS THE BACKING OF MAYOR BRANDON JOHNSON.

TO TALK ABOUT THE PROPOSAL IS ALDER WOMAN JESSE FENT ES, WHO REPRESENTS THE 26th WARD.

NATACKY WARD IS THE NATIONAL LEAD NETWORK ORGANIZER FOR THE ORGANIZATION ONE FAIR WAGE PUSHING FOR THE CHANGE.

AND MARIE TIEBAL FROM A RESTAURANT AND THE OWNER OF PAKETO BRAND RESTAURANTS, EVERYONE THANK YOU FOR JOINING US.

ALDER WOMAN FUENTES, LET'S START WITH YOU.

WHY IS CITY COUNCIL CONSIDERING THIS NOW WITH SOME PEOPLE STRUGGLING TO COME BACK FROM THE PANDEMIC?

>> ABSOLUTELY.

WE UNDERSTAND THAT THE MINIMUM WAGE IS ROOTED IN SLAVERY.

IT IS WHERE IT STARTED IN THE SIT AY OF CHICAGO.

WE KNOW THAT WOMEN OF COLOR PARTICULARLY SUFFER FROM DISCRIMINATION AND SEXUAL HARASSMENT ON THE JOB AND ARE LESS LIKELY TO GET THE TIPS TO GET THEM TO MINIMUM WAGE.

THE OBAMA ADMINISTRATION FOUND 85% OF THE RESTAURANTS THAT ARE REQUIRED TO GET FOLKS TO THE MINIMUM WAGE ARE IN VIOLATION OF THE POLICY.

WE HAVE SOMETHING HERE THAT CAN WORK, THAT HAS BEEN IMPLEMENTED IN SEVEN OTHER STATES.

LET'S GET THE TIPS ON TOP.

THE ECONOMY IS BETTER FOR FAMILIES AND WE WILL GET FOLKS, PARTICULARLY WOMEN OF COLOR OUT OF POVERTY.

>> MARIO, WHAT WOULD THAT MEAN FOR YOUR THREE RESTAURANTS?

DO YOU ALREADY HAVE TO MAKE UP THE DIFFERENCE IF PEOPLE ARE NOT RECEIVING ENOUGH?

>> GOOD QUESTIONS.

WE SELDOM HAVE TO PAY THE DIFFERENCE BETWEEN $9.48 VERSUS $15.80 PRIMARILY BECAUSE THE STAFF GENERALLY MAKES MORE THAN THAT ON A CONSISTENT BASIS.

THE CHALLENGE WE HAVE -- TO ANSWER YOUR QUESTION, SLOULT, THE STAFF WOULD MAKE LESS MONEY IF WE WERE TO INCORPORATE THE NEW ORDINANCE.

WE BELIEVE WE WILL HAVE TO RAISE PRICES AS A RESULT OF THIS.

I THINK IT WILL BE A TRAGEDY FOR US RESTAURANTEURS IF THIS PASSES.

ONE THING THAT WASN'T MENTIONED IS THAT THE MINIMUM WAGE HAS BEEN GOING UP A DOLLAR A YEAR PER HOUR PER YEAR FOR THE LAST SIX OR SEVEN YEARS.

THAT IS AFFECTING US.

IT IS AFFECTING THE FACT THAT THE BUSINESS, THIS IS JUST SOMETHING THAT WE CAN'T TOLERATE.

>> NAKHAKI, WHAT HAVE BEEN THE RESULT IN CITIES THAT HAVE DONE THIS?

>> IT HAS BEEN A GREAT RESULT.

PRICES, TIPS HAVE GONE UP, BUSINESS IS STILL BOOMING IN CALIFORNIA, ALASKA, OREGON, BUSINESSES ARE STILL BOOMING.

STOP SAYING IT WILL BE A TRAGEDY TO CHICAGO.

YOU OWN THREE RESTAURANTS.

IF YOUR WORKERS RECEIVE $9.48 PLUS GETTING THEIR TIPS, THAT'S NOT A LIVING WAGE.

IF THEY RECEIVE $15 AN HOUR WITH TIPS ON TOP, THAT IS A LIVING WAGE.

FOLKS ARE ALREADY PAYING $15 AN HOUR.

IT IS CALLED THE GREAT RESIGNATION.

PEOPLE LEFT BECAUSE OF LOW WAGES.

THEY ARE NOT COMING BACK BECAUSE OF LOW WAGES.

>> AND I WANT TOCOME BACK TO WHETHER OR NOT RESTAURANTS WOULD STILL -- HOW MUCH WORKERS MIGHT STILL EARN IF TIPS WERE EARNED ON TOP OF THAT $15.80 BUT I WANT TO GET ANN MARIE IN HERE, MANAGING PARTNER AT LET US ENTERTAINMENT YOU, THAT HAS DOZENS OF RESTAURANTS HERE, MORE THAN THE THREE THAT MARIO HAS.

HOW WOULD THAT IMPACT YOUR BUSINESS?

>> I WANT TO MAKE CLEAR THAT I'M A MANAGER OF A HUGE REPRESENTATIVE GROUP BUT I ALSO REPRESENT MY PARENTS WHO HAVE A SINGLE REST SFLVENLT I GREW UP WITH THAT.

THIS PROPOSED ORDINANCE AFFECTS RESTAURANTS OF EVERY SCALE AND EVERY BUSINESS.

I WANT TOCLEAR UP A FUNDAMENTAL MISCHARACTERIZATION OF THE TIP CREDIT.

NO ONE IN THE RESTAURANTS MAKES LESS THAN $15.80 AN HOUR, NO ONE.

IF THERE ARE BAD ACTORS OUT THERE PAYING LESS THAN THE LAW, THE MINIMUM WAGE OF $15.80, LET'S GO AFTER THE BAD ACTORS AND MAKE IT EASIER TO CALL THEM OUT.

BUT ACCORDING TO THE NATIONAL RESTAURANT ASSOCIATION, THE MEDIAN HOURLY WAGE FOR A SERVER IN ILLINOIS WAS $28.50, THAT IS 80% HIGHER THAN THE MINIMUM WAGE IN CHICAGO.

THIS IS GOING TO AFFECT BUSINESSES AT EVERY SCALE.

>> SO IF A WORKER IS MAKING $28 RIGHT NOW, THEY ARE NOT GOING BACK DOWN TO $9.48 AN HOUR.

YOU WILL CONTINUE TOPAY THAT WORKER THE $28 AN HOUR.

WE ARE TALKING ABOUT.

>> THAT COMES OUT AFTER TIPS.

>> SO WORKERS ARE MAKING $9.48 AN HOUR.

>> OUR SERVERS AFTER THEIR TIP CREDIT WAGE AND GRATUITIES ARE MAKING IN THE STATE OF ILLINOIS, OVER $28 AN HOUR.

AND AT LET US ENTERTAIN YOU, EVEN HIGHER.

WE ARE PROUD OF THAT.

I RECOGNIZE THE PROBLEM THAT WE ARE TRYING TO SOLVE BUT I THINK THE ORDINANCE IS NOT ADDRESSING IT IN THE RIGHT WAY.

>> FUENTES, HAVE YOU SPOKEN WITH THE ILLINOIS RESTAURANT ASSOCIATION ABOUT THIS?

>> YES, WE HAVE INVITED THEM AND OTHERS BACK TO THE TABLE.

NEGOTIATIONS ARE NOT DONE HERE.

THE PROPOSAL WE HAVE, THERE IS ROOM TO INCREASE THE THE SCALE.

I WANT TO GO BACK AND SAY LOOK, FOLKS ARE NOT GOING TO MAKE LESS FOR THE ORDINANCE.

WE ARE ASKING FOR AN INCREASE OF MINIMUM WAGE WITH TIPS ON TOP.

WE HAVE NOT SAID THERE ARE NO TIPS ON TOP.

IF OUR FOLKS ARE MAKING GOOD TIPS, THAN WHAT WE ARE ASKING FOR IS TO ALLOW FOLKS TO LIVE IN THE CITY OF CHICAGO.

THE AVERAGE ONE BEDROOM APARTMENT IN SOME OF MY COMMUNITIES ARE $1,800 A MONTH.

WOMEN WITH FAMILIES DESERVE TO WORK IN THE HOSPITALITY INDUSTRY AND PROVIDE FOR THEIR FAMILIES AND NOT HAVE TO WORK TWO OR THROW JOBS TO DO SO.

>> WOULD IT HELP IF IT WAS PHASED IN OVER A FEW YEARS BE IT TWO OR FIVE?

>> MAYBE.

HERE'S THE CHALLENGE.

WE HAVE GONE TO $9.48 TO $15.80 AT LIGHTNING SPEED, OVER 60% INCREASE.

THIS IS THE PROBLEM THAT OPERATORS CAN'T ABSORB.

THERE IS ANOTHER WAY OF DOING THIS, I WELCOME THAT.

BUT IT IS A SIGNIFICANT PROBLEM.

ADDITIONALLY, WE HAVE BEEN CHALLENGED WITH THE PANDEMIC AS YOU KNOW.

WE ARE DEALING WITH INFLATION, CRIME, PROPERTY TAXES AS WELL.

WE ARE THE EMPLOYER AND TAKES THAT AS AN EMPLOYER RATHER SERIOUSLY.

THEY ARE FAMILY TO US.

WE ARE HERE TO PROTECT THEM, ABSOLUTELY WHICH IS WHY WE SAID EARLIER, WE ARE IN FACT MEETING THE MINIMUM WAMG AND THEN SOME.

THE BEST THING TO DO QUITE FRANKLY IS TO ABOLISH THE ORDINANCE, LET IT GO AWAY.

>> EVERY TIME IT IS TIME TO RAISE THE MINIMUM WAGE, IT IS ALWAYS, YOU ALWAYS SAY THAT YOU ARE GOING TO CLOSE THE RESTAURANT, WORKERS ARE NOT GOING TO MAKE IT.

THIS IS NOT THE FIRST TIME.

THIS IS THE SECOND ADMINISTRATION THAT HAS IGNORED AND ALWAYS LEADS TO WORKERS OUT.

I AM A WORKER MYSELF.

I WAS MAKING $4.95 HERE IN CHICAGO.

I HAVE STRUGGLED.

I HAVE BEEN IN CHICAGO 51 YEARS OF MY LIFE.

AND I HAVE STRUGGLED WHEN I DECIDED TO BE A TIP WORKER.

AND WE SHOULD WORK WITH DIGNITY.

WE SHOULDN'T JUST BE PAID LOW WAGES.

>> WE ALL AGREE THAT WE WANT OUR EMPLOYEES TO MAKE A FAIR WAGE.

WHAT I HAVE SEEN THROUGHOUT MY CAREER AND --.

>> I HAVE BEEN IT IN FOR 15 YEARS.

>> EVERYONE AGREES WHAT IS BEST FOR OUR GUESTS AND BEST FOR OUR EMPLOYEES IS ALSO WHAT IS BEST FOR OUR BUSINESSES.

>> AND THEY WANT TO KNOW THAT YOU CAN PAY WORKERS WITHOUT LIVING IN POVERTY.

THAT'S WHAT GUESTS WANT TO KNOW.

>> I WANT TO GET TO -- WE ONLY HAVE ABOUT A MINUTE LEFT, ANN MARIE, WOULD TIPPING LIVE ON IF THE RAISE WERE TO GO INTO EFFECT?

>> LET'S TALK ABOUT THE PLACES WHERE ORDINANCES LIKE THIS HAVE PASSED.

WE TALKED ABOUT SEVEN CITIES AND STATES ACROSS THE COUNTRY.

ON THE WEST COAST, CALIFORNIA, OREGON, WASHINGTON, AND WASHINGTON D.C. >> AND MINNESOTA.

>> WE HAVE SEEN IN THOSE PLACES MENU PRICES INCREASE DRAMATICALLY.

WE SEE HOURS BEING CUT, PEOPLE WITH LESS SENIORITY AND PEOPLE WITH LESS EXPERIENCE.

WE SEE TECHNOLOGY AND AUTOMATION REPLACING HUMANS.

WE DON'T WANT THAT.

>> AUTOMATIC IS NOT GOING TO REPLACE SOMEONE SITTING DOWN TO EAT.

>> IT ALREADY IS HAPPENING.

IT IS ALREADY HAPPENING AT GROCERY STORES AND BANKS.

>> IT IS NOT GOING TO DO THAT.

THAT'S NOT TRUE.

>> I WANT YOU TOLOOK AT ALL OF THE STORES THAT ARE CLOSED.

>> IT IS NOT CLOSING BECAUSE THEY RAISED RATES.

>> IT IS BECOMING VERY EXPENSIVE TO DO BUSINESS.

>> YOU HAVE TO PUT MONEY INTO THE WUSHERS.

>> NATHANK YOU SO MUCH.

YOU HAVE THE BACKING OF THE MAYOR