Judge rejects McCormick Place work rule revisions.

Impact on trade shows unclear; convention center officials plan appeal.

Efforts by Illinois to preserve McCormick Place’s position as one of the country’s premier trade show venues were upended Thursday when a federal judge ruled that the state overstepped its bounds by revising work rules for unionized tradespeople on the show floor.

The ruling threw out passages of the law enacted last year that allow exhibitors to do more of their own booth setup and limit labor overtime and crew sizes.

The decision, which appeared to stun state political leaders, is a clear setback for efforts by Chicago and the state to remake the image of the convention center as a less expensive and more accommodating facility for trade shows and conventions. The city was taking a beating as high-profile trade shows left or threatened to leave for lower-cost cities such as Orlando and Las Vegas.

Now a major component of the changes that already were proving popular with show organizers and exhibitors has been tossed aside.

U.S. District Court Judge Ronald Guzman ruled that the National Labor Relations Act pre-empts states from enacting legislation that would interfere with the ability of private-sector employees to negotiate the terms of their employment. Most of the trade-union employees that set up and tear down the shows work for private contractors.

Guzman’s ruling in parallel cases brought by Teamsters Local 727 and by the Chicago Regional Council of Carpenters throws a wrench into the revamped show-floor rules and gives a boost to organized labor.

“The state can’t legislate workers’ rights,” said Terrance McGann, an attorney representing the carpenters. “This is exactly what they are trying to do to public employees in Wisconsin, in Indiana, in Ohio.”

Marvin Gittler, an attorney representing the Teamsters, said, “At a minimum, it seems clear at this point that the changes the legislature sought to make in the (work) terms and conditions of the covered employees cannot be made.”

Officials at the Metropolitan Pier and Exposition Authority, the state-city agency that owns and operates the convention center, are “greatly disturbed” by the ruling, said Jim Reilly, the trustee overseeing the 18-month revamp of convention center operations. The aim of the overhaul is to cut exhibitor costs and hassles.

“The implementation of those reforms has, virtually overnight, transformed McCormick Place,” he said in a statement. “Not only were our existing customers convinced to keep their events in Chicago, but new shows have been rapidly signing up.”

The authority is planning to appeal and will ask the court to delay execution of the order pending appeal, he said. The ruling does not affect other aspects of the overhaul, including the planned move toward private management of the convention center.

It’s not clear what the response will be from trade show officials who had recommitted to Chicago after the changes were enacted. But the prospect of a rollback in the labor rules is worrying political leaders of both parties, who are reviewing the ruling.

“We are hopeful the authority wins a quick stay and that the decision is overturned on appeal,” said Senate Minority Leader Christine Radogno, R-Lemont. “The bipartisan legislation passed by the General Assembly is critical to the viability of McCormick Place.”

A spokeswoman for Senate President John Cullerton, D-Chicago, said the revamp helped the convention center book shows that together will bring about $1 billion in consumer spending to the state.

“After overhauling the union work rules at McCormick Place, cutting bureaucratic red tape and lowering costs for conventions, the results were immediate,” she said in a statement.

Since the law took effect in May, a number of high-profile shows that had been on the fence, including the restaurant and housewares shows, signed on for future years. The city also lured back some shows that had headed elsewhere, including a health care technology show, and it won some first-time business. In all, more than a dozen shows have signed on for future years so far.

And a number of show managers and exhibitors have expressed pleasure with the changes.

“We anticipate 15 to 20 percent savings for exhibitors, for sure,” Paul Dykstra, chief executive of Cosmetologists Chicago, said recently. His organization owns America’s Beauty Show, which is facing head-to-head competition with a new show in Rosemont that is touting itself as a lower-cost alternative.

Frank Libby, president of the carpenters council, said union members feel the state revamp puts too much of the cost-cutting burden on workers, who have seen their hours reduced.

“We were willing to work with them (on changes) but they took one-size-fits-all and hit labor,” he said.

McGann, the attorney who represents the carpenters, said the state should have remained at the bargaining table with labor to reach an agreement on revised work rules instead of imposing legislation. Now, he said, he expected to be talking Friday with attorneys representing McCormick Place “to see what the state wants to do to make it right.”

Article originally posted in Chicago Tribune by K. Bergen.  Also, reporters Monique Garcia and Ray Long contributed.