Dear International Show Exhibitors:

While serving as Communications Director, I authored this letter (and a related exhibitor-experience survey) on behalf of the Chicago Regional Council of Carpenters' leadership to engage trade show exhibitors in dialogue regarding state legislation and labor policy reforms affecting McCormick Place. It served as both advocacy and outreach communication.

My name is Frank Libby, and I am president of the Chicago Regional Council of Carpenters.  It is with the utmost sincerity and interest that I write to you today with an invitation to participate in our newly designed Trade Show Chicago Thought Exchange.  The Thought Exchange was designed to give exhibitors a direct line of communication to the Carpenters’ labor force that plays a significant role in your Chicago trade show experience.  Additional Thought Exchange details including a link to the site are included below.  We hope you’ll participate.

As you are probably aware, the Illinois Legislature enacted a law that was to address the outcry from show organizers that the cost of conducting trade shows in Chicago had escalated, and that labor work rules were too restrictive.  The new Metropolitan Pier and Exposition Authority (MPEA) legislation was purported to address these concerns when it was enacted on May 27, 2010.

Prior to the state and the MPEA pushing through this legislation, the unions representing workers at McCormick Place had called for a customer “bill of rights” for exhibitors, as well as greater transparency and auditing, as part of the major reforms that must be implemented in order for Chicago to remain a top destination for conventions and trade shows. 

The unions proposed:

•           A customer “bill of rights” that clearly delineates standards by which labor and management must work with the customers to maximize their satisfaction while doing business at McCormick Place.

•           Audits of charges and fees to determine whether savings and lower labor costs are in fact passed along to customers.

It is important to emphasize that over the last 15 years the unions have agreed to three separate rounds of major contract adjustments including reducing overtime hours, reducing overtime rates, giving exhibitors the ability to do more of their own setup work and removing jurisdictional designations between trades.  We have always negotiated in good faith, and will continue to do so in the future for this important industry.

WHERE WE ARE TODAY

On March 31, 2011, a federal district court overturned key parts of the new Illinois state law that was legislated to purportedly address trade show costs to exhibitors. In the ruling of the presiding judge the hastily enacted legislation “does not cap the markups show contractors can apply to labor charges before passing them on to the exhibitors” and that “the record shows that there are a number of other ways for the state to reach that goal (exhibitor cost reductions) that intrude less on labor.”

The judge also ruled that many cost-saving opportunities were ignored including “reducing or eliminating MPEA profits from facility rentals and parking services, eliminating MPEA’s subsidy of the Chicago Convention and Tourism Bureau, and streamlining MPEA’s governance structure.”  It was also the opinion of the court that “there is no evidence that the state considered acting on any of them instead of, or as a precursor to, enacting (this legislation.)” These were conclusions cited by an objective judge in an impartial federal court. The ruling of the court serves to reinforce the proposal by labor to have a tangible, transparent customer bill of rights that includes cost-saving audits that weed out markups to your bill that too often are defined as “labor charges.”

A May 8, 2011, Chicago Tribune article points to continued exhibitor complaints about high costs.  While the MPEA is set to receive a state subsidy of $80 million for five years, despite what the agency wants shows and exhibitors to believe the angst over costs remain. 

According to the Chicago Tribune investigative report:

•           “While the law aimed to rein in costs for labor, electrical and food, it left other sorts of costs relatively untouched, a situation that continues to rankle some exhibitors.”

•           “The law forced McCormick Place to slash its electrical service prices and to allow private contractors to compete for the business. Now, many shows are opting for the private firms, which are not obligated to keep prices low.”

•           “While anecdotal evidence points to cost savings for shows and exhibitors, there is no documentation because mandated audits have not occurred.”

WE WANT TO HEAR FROM YOU

Unfortunately, labor has little to no opportunity to communicate with exhibitors, yet the importance each plays in this industry is immeasurable. As such, we have established the Trade Show Chicago Thought Exchange (or https://www.surveymonkey.com/s/KXTN7Z8). 

The Thought Exchange was designed for you to speak directly with us about your experience while conducting business at McCormick Place and Navy Pier. You are welcome to leave your contact information or share feedback anonymously, but what we want most is to hear directly from valued exhibitors (you!)—to learn what’s working and what could be improved, and how we can help make your convention experience both enjoyable and rewarding.  Thank you in advance for your time, consideration and contributions to the Chicago trade show industry.

Sincerely yours,

Frank T. Libby

President

Chicago Regional Council of Carpenters