McCormick Place is the largest exhibition and convention venue in the US. But the 241,500sqm Chicago venue has had a rocky relationship with its unions (represented labour) in recent years. Chicago counts itself among America’s most heavily unionised cities, and the unions’ power and control has long been a major concern for international organisers looking to launch events in the US.
In August however, the unions and McCormick Place reached an accord, together implementing a new set of reforms resulting from countless hours of negotiation and debate, burying the hatchet and hopefully leading to a new era of competitiveness for Chicago.
The improvements are already apparent. The combined National Restaurant Association and Hotel-Motel Show recently signed a five-year extension that sees the event run up to 2021 at McCormick Place. The International Manufacturing Technology Show has also signed for two more stints at the venue in 2018 and 2020, while the American Library Association agreed to editions in 2020, 2023 and 2026. This prompted Chicago mayor Rahm Emanuel to comment that “The reforms at McCormick Place and Navy Pier have attracted more than US$3.25bn in committed shows and this number continues to grow”.
So what changed? McCormick Place GM David Causton says the reforms, and the involvement of private management firm SMG, appointed to run the venue in September 2011, have created a more efficient way of doing business at the venue.
Fair and efficient
Take the new working hours directive for example. Standard contractor working hours are now 6am until 10pm, and an enforced standard rate applies to the first eight working hours within this timeframe.
“The nature of our business is that not all work is done during standard hours,” says Causton. “We and our clients want more flexibility, so the window has been broadened. If the show ends at 2pm, then previously only work done between 2pm and 4.30pm would have been charged at standard rate. Now the contractor can only charge standard rate for the first eight working hours.” Causton believes the reforms were achievable because the way the market is moving makes it necessary for both parties to adjust they way they’ve been doing business.
“What’s happened is the unions have recognised we’re in a highly competitive environment,” he says. “We’ve achieved flexibility and competitiveness. We want to be as competitive for organisers as possible.
“We’ve always been able to sell Chicago. It’s a great place to do business and easy to market. The amount of business you can write here is huge. It is strong in many industries, including IT and transport, and it has the infrastructure necessary for business events.”
Now it appears to have the service to match.
This was first published in the Issue 4/2012 of Exhibition World. Any comments? Email exhibitionworld@mashmedia.net
