By Gary Washburn 

Mayor Richard Daley today formally vetoed the controversial "big-box" minimum wage ordinance, setting the stage for a veto override vote at Wednesday's City Council meeting.

But Daley's action signaled he has the necessary support on the council to sustain the veto.

"I understand and share a desire to ensure that everyone who works in the city of Chicago earns a decent wage," Daley said in a letter addressed to the council that was filed with the City Clerk's office. "But I do not believe that this ordinance, well intentioned as it may be, would achieve that end.

"Rather, I believe it would drive jobs and businesses from our city, penalizing neighborhoods that need additional economic activity the most," Daley said. "In light of this, I believe it is my duty to veto this ordinance."

It was the first time in Daley's 17 years as mayor he exercised his veto power. By law, the mayor had until Wednesday's council meeting to issue his veto.

In a rare display of defiance, aldermen had voted 35-14 on July 26 to pass the minimum-wage law over the mayor's opposition.

The ordinance applies to stores of at least 90,000 square feet operated by firms with $1 billion or more in annual sales.

It provides that beginning next July, employees will be paid a minimum of $9.25 an hour in wages and $1.50 in fringe benefits, figures that will rise to $10 and $3, respectively, by 2010. Automatic annual cost-of-living increases will apply thereafter.

By comparison, the federal minimum wage is $5.15 an hour, while the state minimum is $6.50 an hour—but both amounts can be less if employees receive tips.