An Iconic 40-Year-Old Chicago Nightclub Has Closed Because Its Workers Unionized And Made Some Eye-Popping Demands
Chicago Tribune - Famed Northalsted nightclub Berlin has closed a month into a boycott called for by newly-unionized bar staff who said the club has stalled contract negotiations.
A Tuesday afternoon post on the club’s Instagram page announcing the closure did not directly reference the union campaign or boycott.
“The expenses of increased security, insurance and licensing, equipment, rent and more cannot be overestimated and we could not imagine morphing the bar into a bottle service, VIP area venue,” the post read. “So the doors are locked. The music is silenced and our dreams are now memories.”
The letter said the clubs owner Schuman had stage 4 cancer and that co-owner Webster was his primary caregiver.
Workers at the club, which was for nearly four decades a haven for Chicago’s alternative queer community, launched a union campaign this spring. Bar staff told the Tribune they were seeking higher wages, health care and a voice in the day-to-day running of the nightclub. The workers — including bartenders, barbacks, security staff and coat check workers — voted 16-4 to unionize with hospitality union Unite Here Local 1 in an April election held by the National Labor Relations Board.
Workers called for a boycott of the club beginning Oct. 25 over what they described as stalled contract negotiations. Bar staff had previously gone on strike over two nights this summer.
One of the biggest eye-openers of owning your own business is how many expenses factor in to actually being able to run said business. Back when I was on the vendor side of the bar and nightclub industry, djing and throwing parties, I thought owners and GMs were the cheapest motherfuckers alive who couldn't be trusted to give legit financial reports because I could see with my own eyes the hundreds of people coming through the doors and tens of thousands going across the bar and out to tables in bottles.
Fast forward some years later while transitioning to the ownership side and holy shit man is it tough. You've got the hard costs built in just to open- construction, labor, materials, equipment. Plus the soft ones- like all the legal shit, permitting, design work, insurance, and every other indirect cost you could never think of, but is very very real, popping up.
Once you do get your doors open, if you're lucky enough to be busy and generate revenue, you've got rent, taxes out the ass every which way on every single thing, more insurance, licenses, entertainment, and your prime costs which is your labor and your cost of goods/inventory.
Believe it or not, all that money that comes in, goes out pretty fucking fast.
I'm sure it's a similar situation in other industries.
Factor in repaying loans, debt servicing, or paying investors back and there's even less to go around after.
Obviously, a venue with a historic 40-year run such as Berlin probably wasn't carrying much debt. But between the fact of how low margins are to begin with, squeezing patrons who are already bitching about paying $12 for a vodka and redbull, and oh, you know, HAVING STAGE 4 CANCER, I don't blame Berlin's owners one fucking iota for deciding to close its doors rather than play hardball with a bunch of bartenders, go-go dancers, djs, and security who works 1-2 shifts a week, and demanded a fucking pension with a straight face.
In an open letter posted to the club’s website, Berlin said the union’s economic proposals had included raises from $10 to $13 an hour before tips and included an ask for health care coverage and pensions for all staff members who worked at least one shift a week. The club said coat check employees typically make $35 an hour after tips, on average, while bartenders make around $57 an hour.
“This point alone would amount to an additional cost to Berlin of $1,600 per employee per month in the first year of the contract,” the letter read. “In total, these additional wages, health care and pension benefits would cost Berlin over half a million dollars ($500,000) in the first year of the contract alone.”
In typical fashion, you have the virtue crusaders in every Chicago media post's comments just killing Berlin's owners for "not even having the decency to negotiate with the union."
Which again, is kind of a lot to ask when you're terminally ill no? But maybe that's just me being a pussy?
(Fun fact- The first labor movements in the U.S. can be traced back to the early 19th century. These were typically local and focused on specific trades. Craftsmen like printers, carpenters, and tailors formed the first unions to protect their trades and negotiate better working conditions. As the Industrial Revolution progressed, working conditions in factories became increasingly harsh. Workers faced long hours, low pay, and unsafe conditions. Child labor was also rampant. This led to growing worker discontent. In response to these conditions, workers began organizing more broadly. The National Labor Union, formed in 1866, was one of the first national labor federations in the U.S. followed by the AFL. (Not the football league). The AFL focused on bread-and-butter issues such as higher wages, shorter hours, and better working conditions. It was more structured and pragmatic than its predecessors, advocating for skilled workers. They basically invented strikes. A key event in labor history was the "Haymarket Affair of 1886 in Chicago", (shout out senior year elective "Chicago History" course at Loyola), where a bomb was thrown during a labor rally, leading to deaths of several police officers and workers. The event brought national attention to labor issues and was a catalyst for May Day labor movements worldwide. Part of FDR's "New Deal" was the National Labor Relations Act which legitimized unions and collective bargaining. What began as an altruistic concept to defend the "little guy", ensure safe working conditions, and fair wages, transitioned into a still noble way to attract talent to help man civic institutions like Fire and Police departments (pensions).)
This is where we're at today.
A nightclub closing because it's workers felt the need to unionize may just be a sign of the times. But either way, it's sad to see the spot familiar to everybody who's ever driven down Belmont Ave shuttered now.
p.s.- my Berlin story is pretty good. Freshman year at Loyola, I knew how to get around Rogers Park and that was about it. Anything south on the Red Line was uncharted territory for me first semester. I made friends with a bunch of Detroit guys at the basketball courts and the only real places we had to go out to were The Pumping Company (R.i.p.) and Hamilton's (r.i.p.) the only two bars on/near campus. We had this blazing hot girl in our class who was from the Caribbean, named Dre. Picture Rihanna but with curly hair. Being one of like 10 hot girls in the entire school, she had every guy on the North Side of Chicago kicking it to her. My friends and I obviously had to shoot our shot one night with her and her friends. Her and one of her friends Jayna told my friend Joe and I to meet them that Friday night at this club right off the Belmont L stop called "Berlin". They said it was their favorite spot to go in the city and they'd be there around 11. That Friday Joe and I met up, he brought his other Detroit buddy Larry with us for some reason, (more dudes), and we hopped on the L down to Belmont. Again, I had no clue where we were going or what we were in for. As we exited the Belmont station and walked across the street to Berlin, I could tell as we approached the door something wasn't right. The doorman, a massive guy in leather chaps saw us approaching and cleared the line for us, ushering us right to the front. I immediately knew what it felt like to be a freshman girl walking up to a frat house party. He told the cashier "no cover" for us three, didn't even bother to check our IDs (which were fake), and walked us inside. As we entered the venue I heard Louie Devito blasting over the speakers, and hairy guys in thong banana hammocks swinging around dance poles in each corner of the room. It felt like every eye in the place was on us and they knew, we knew, we were out of place. We had no other option but to tip our cap and admit we got played by those girls. So we mozied up to the bar, order some Schmidt's and enjoyed the sounds of "Menergy".