On behalf the Metropolitan Pier and Exposition Authority, I am proud to announce that a new day has dawned in the Chicago convention industry. On May 27, 2010, the Illinois General Assembly enacted historic legislation in response to your demands for a sweeping transformation in the way business is conducted on MPEA premises. As a result of this legislation, show management, contractors and exhibitors will realize immediate and long-term benefits, and Chicago will become an even more competitive and attractive destination for conventions, trade shows, expositions and meetings.

While this legislation is effective upon enactment, the implementation process has only just begun. Preliminary preparations have long been underway, and the Authority will soon finalize a full-scale implementation plan in cooperation with its key partners. Certain changes will be implemented promptly. Other changes are wholesale modifications to the way business is conducted on our premises and thus will require a lengthier implementation period. The following examples illustrate the myriad complex tasks now required:

• While the legislation expands the type of work that exhibitors may perform in their booths, it directs the Authority to develop rules and regulations to ensure that these new exhibitor rights are exercised consistent with the training and safety requirements for such work.
• Exhibitors may now unload and load privately owned vehicles using non-motorized hand trucks and dollies in areas designated by MPEA for such purposes. The Authority must evaluate the logistics of this new policy and identify the areas where such unloading and loading may occur safely.
• The legislation establishes new rules governing when show managers and contractors may charge exhibitors for labor services on a straight-time, time-and-one-half or double-time basis and how such services must be billed. The implementation of this provision will require an audit of current wage structures and a new communications piece regarding labor costs and billing practices.
• While the legislation eliminates “stand-by labor” and requires all union stewards to be “working stewards,” it authorizes the Authority to exercise its discretion to determine whether more than one working steward may be necessary depending on the building or show at issue. The Authority will develop protocols for evaluating when more than one working steward may be required.
• The legislation establishes a new Advisory Council to represent the interests of all stakeholders and regularly advise the Authority on critical operations issues. To illustrate, the Authority now has the legal right to determine the work jurisdictions of “show labor” and crew sizes when appropriate on MPEA premises. The Authority may only, however, exercise these rights after consultation with the Advisory Council. For this reason, the Advisory Council will be established as promptly as possible to facilitate a resolution of these important policy considerations.
• At present, MPEA’s FOCUS One is the exclusive provider of electrical services to show managers and exhibitors. By virtue of the legislation, MPEA may no longer serve as the exclusive provider, and customers may now choose either an in-house electrical contractor or an outside electrical contractor approved by the Authority. The Authority will begin to develop a list of approved electrical contractors and modify the FOCUS One model to accommodate this change.
• The legislation requires itemized billing statements for utility services provided by MPEA and establishes pricing guidelines for food and beverage contracts. An audit of current practices and new communications pieces are necessary to implement this change.
• The Authority is solely responsible for administering and enforcing these new legislative requirements and must now establish the necessary governing regulations and enforcement mechanisms, including procedures for audits and contract reviews.

As the above issues and others are resolved, the Authority and its partners will then be required to amend current agreements and substantially revise existing MPEA policies and procedures, including, but not limited to, the following:

• License Agreements
• Registration Agreements
• Right of Entry Agreements
• MPEA Meeting Planners Guides
• Exhibitor Manuals
• MPEA Facility Protection Guidelines
• McCormick Place Exhibitor and Utility Ordering Guides
• Informational Publications on the MPEA Website

Undoubtedly, a great deal of work remains to be accomplished. MPEA and its partners embrace this challenge and reaffirm their commitment to implement this historic legislation in the most expeditious, efficient and communicative manner possible. Until further notice, you should continue to rely on existing agreements, arrangements, practices and policies. In the meantime, the Authority will continue to finalize the full-scale implementation plan and will communicate with you promptly upon its completion.

As has been said before, we are truly grateful for your support and diligence in this important endeavor and appreciate your insight and patience as we continue this collaborative venture. The future of Chicago’s convention industry is bright, and the best is yet to come thanks to your dedication and commitment.

Trade show contractors have commissioned a study to look into why and are blaming labor. The following is from an article by Kathy Bergen at the Chicago Tribune:

…the average straight-time labor cost in Chicago is $66.30 an hour, compared with $42.62 in Las Vegas and $26.83 in Orlando, according to the study by two major trade show contractors at McCormick Place: Freeman and GES Exposition Services, which is being renamed Global Experience Specialists. Those figures reflect the cost to the contractors and include benefits and payroll taxes.

These stark differences and others were outlined in a report shared with the Metropolitan Pier and Exposition Authority, the state-city agency known as McPier that owns and operates McCormick Place and is trying to cut exhibitor costs there. A copy was obtained by the Tribune.

The analysis examines pay and rules for the four unions that have contracts with Freeman and GES, including the Teamsters, riggers, carpenters and decorators. And while these cost elements grate on many trade shows and exhibitors, there are other complaints as well, ranging from the in-house electrical service to the price tags on food and beverages.

Still, the analysis shows some big labor-cost gaps between Chicago and its top rivals, which have fewer unions doing the same work. A couple of snapshots:

•Chicago requires the presence of four non-working union stewards for the duration of the show, including setup and tear-down days. The cost for 12 days, in two halls, is an estimated $50,915. In Las Vegas, only one non-working steward is required, at a cost of $8,183; in Orlando, none is required.

•Chicago contracts require a standby labor pool of 10 tradesmen during the event, which can cost at least $40,333 per day for a four-day show in two halls. Las Vegas and Orlando require standby pools of two, at an estimated daily cost of $5,455 in Las Vegas and $3,434 in Orlando.

So which is it? High profits from the presenters or high labor costs? Or both?

For more perspective, we recommend our own look at the topic in Drayage Debate, Part I and Part II.

No wonder exhibitors are upset.

Jay Levine did a segment on (Chicago’s) McCormick Place losing tradeshow business.

Labor is shooting back at the idea that it’s them that’s making all the dough. Their evidence? Drayage bills.

They showed that an exhibitor can send a piece of equipment from China to LA for $4,000. Another $1,800 for truck to McCormick Place from LA. Cost to get it from the dock at McCormick Place to the exhibitor’s booth space? Just $17,000!!!

Then they interviewed the Gen.Mgr at McCormick Place and he said, “No question about it, the contractor for the show is making very big profits.”

Looks like labor and McCormick Place management is so tired of being made the scape goat that they’re both willing to point the finger at the show organizers.

From the book:

Trade show exhibit design is undergoing a revolution bringing new materials and design techniques that are lighter, easier to ship, easier to assemble and are reusable. Moreover, environmental consciousness has become a positive and marketable attribute that touts the cutting edge efficiency of many companies.

In other words, going green at your next trade show may be healthy for the planet, but it may also be healthy for your company’s bottom line.