On Monday, January 11, Trade Show Executive broke the news that a delegation of leaders from the Metropolitan Pier and Exposition Authority (MPEA) and other stakeholders in Chicago’s convention industry met with Illinois legislators recently at the state capital to discuss a possible new labor policy at McCormick Place.

While there was not a lot of detail that went along with this news flash, the article was headlined “Possible New Exclusive Labor Policy at McCormick Place Concerns Trade Show Industry”, which led me to wonder…

Who’s Worried and Why?

I wonder if those that are worried about this proposed change were also worried when a couple of key shows announced their intentions to leave Chicago, and McCormick Place, last fall because “labor costs were just too high.” (Chicago Sun Times, Dec. 2009)   If so, I missed that part of the story.

I wonder if those that are worried about this proposed change were also worried when it was later announced that the MPEA (the authority that runs McCormick Place) would be trimming 100 jobs from their payroll to address their budget deficit.   If they were, I didn’t see that part of the story either.

The most curious thing: Trade Show Executive quoted Aaron Bludworth, immediate past president of ESCA, saying “ESCA is clearly opposed to exclusive labor agreements and we don’t know of anyone that has produced the desired results.”   If that’s so, why do so many ESCA members employ labor exclusives in their show kits, and on entire shows?

Maybe that’s the nature of worry as described in this article.   It’s the kind of worry that is pretty self-centered – seeing change that they didn’t create themselves as something negative.

Before we can decide if this idea is good or bad, it might be worth looking at it in more detail.

The Essence of the Proposal

There are several components to the proposal made to the Illinois legislature.  They are:

•            Request to refinance some of their debt.   Reported figures of the McCormick Place deficit are exacerbated by an inability to restructure long term debt.

•            Permission to manage labor at McCormick Place in-house.   This proposal includes:

-                collapsing of redundant union jurisdictions

-                authority to hire union personnel as employees of the MPEA

-                authority to negotiate their work rules

-                authority to manage and dispatch labor to trade show contractors.

The Why of the Proposal – It’s All About the Exhibitor

While those are the main tenets of what the MPEA leadership is proposing, much of the detail is still undetermined.     Yet, I have been reassured, that the very core of the proposal is meant to address the concerns of the exhibitors at McCormick Place who have long complained at the escalating costs of show participation there.    One thing is for sure: the MPEA isn’t looking to drive more business away.

They are simply responding to the needs and wants of their customers and aligning their  goals with those of the exhibitor.

Since the late 90s, the MPEA has made other efforts to make their Convention Center the most exhibitor friendly in the land.  Some of the other challenges they have faced and changes they have authored in that time include:

•            working with the hotels to increase the city-wide number of committable hotel rooms.

•            the creation of a bus express lane from downtown to McCormick Place

•            the re-negotiation of union contracts and the creation of the Unified Work Force

•            worked with several unions to restructure union contracts to make them more exhibitor friendly

•            the formation of a Labor-Management Committee to address and discuss new issues and concerns as they arose.

•            the development of a customer service training program for all in-house employees.

It seems to me that the latest change is the continuation of a process that began in Chicago some time ago.   It reflects the changing nature of our industry and comes at the realization that the leadership of the MPEA has recognized for some time now – that the customer’s experience at McCormick Place is inextricably linked to “Chicago.”

If there is a service failure that diminishes the exhibitor’s experience of any part of the show, they don’t necessarily remember if the individual was employed by the building, show management, the general contractor, or any one of the EACs.  They just remember that the bad experience happened in Chicago.

Reason to Celebrate?

So, in spite of the fact there are show organizers who are “adamantly opposed to the idea of in-house labor exclusives that effectively move convention centers out of their traditional role of renting space,” they may want to take a closer look.  It could be the very thing they need most.

Is it really a bad thing if McCormick Place delivers on its promise to reduce an exhibitor’s costs at show site?

Is it really a bad thing if the savings realized enable the show’s exhibitors to spend more of their budget on larger, more elaborate displays – generating more show revenue?

Is it really a bad thing for the contractor community if these changes attract more shows to Chicago, as well as retaining those that are already on the schedule?

There is one thing that has become increasingly certain in this latest economic upheaval:  the old way of doing things is soon to become just that – “old.”   While I’m sure the jury will be out for some time on the proposed changes at McCormick Place, I believe there is a lot to celebrate in any organization in our industry that finds new ways to positively impact the experience our customers.

So, tell us what you think?   Is this proposal reason to worry, or reason to celebrate?   What other suggestions or ideas do you have for change that will improve the exhibitor’s experience at trade shows and events?

Meanwhile, I want to wish the best of luck to the MPEA, and the McCormick Place, in all their endeavors.     And, best of luck to all of us as we manage our way through this time of change.