CHICAGO – On September 11, Mayor Richard Daley vetoed a city council-passed ordinance that would require large retailers to pay employees a “living wage” of at least $10 an hour and up to $13 an hour by 2010, reports the Chicago Tribune.

Daley said in a statement that he believes the ordinance would drive jobs away from Chicago and penalize neighborhoods “that need additional economic activity the most.” When the council passed the ordinance in July, Target and Wal-Mart announced that plans for building new stores in the city were put on hold.

“We commend Mayor Daley for vetoing the ordinance and ensuring more jobs, more convenience and more choice for Chicago’s working families,” Michael Lewis, Wal-Mart’s senior vice president of store division said in a statement, adding, “His action encourages desperately needed business investment and development in the city with job opportunities and savings for those who need it most.”

Meanwhile, a supporter of the ordinance, WakeUpWalMart.com, is calling on city council members to override the mayor’s veto.

“It is an incredibly sad day when an elected official would veto Chicago’s working families and taxpayers in favor or rich, powerful corporations like Wal-Mart,” said Chris Kofinis, communications director for WakeUpWalMart.com in a statement. “Rather than require wealthy companies to be responsible, Mayor Daley evidently thinks its okay that big corporations make obscene profits while their workers get paid poverty level wages and cannot afford health insurance.”