Chicago City Wire

Berlin, an iconic nightclub that has been at the heart of Chicago's LGBT nightlife for nearly four decades, has shuttered its doors.

The announcement of Berlin Nightclub's closure on Nov. 21, marked the end of an era for the LGBT community in Chicago. 

The closure follows a heated labor dispute triggered by the recent unionization of the nightclub's workforce, leading to heightened tensions.

Southport Corridor Chicago reported on the closure, noting the impact Berlin has had on shaping the city's cultural and social landscape since its establishment in 1983.

The management of Berlin addressed the closure in a heartfelt Instagram post, acknowledging the challenges faced by the venue, including increased expenses for security, insurance, licensing, equipment and rent.

The post celebrated the history of the nightclub, recalling diverse performances, themed parties and a unique blend of talent that defined Berlin.

Owners Jim Schuman and Jo Webster had previously responded to the labor dispute in a detailed letter posted on the club's website.

They expressed concerns about meeting the union's demands, citing potential non-competitiveness and significant cost increases.

The owners disputed claims of exploitation, emphasizing that employees worked reasonable hours with competitive compensation and meeting the union's demands would incur over half a million dollars in additional costs in the first year alone.

“In June, the union presented its economic proposals,” Berlin’s ownership said on the club’s website. “These proposals included raises ranging from an additional $10/hour to $13/hour, before tips, equating to an overall 58% to 132% increase in wage expenses.”

“The union has also demanded that every Berlin employee represented by the union who works a minimum of one 7-hour shift per week, be considered full-time and thus receive free healthcare coverage and pensions to be paid in full by Berlin.”

“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. In total, these additional wages, healthcare, and pension benefits would cost Berlin over half a million dollars ($500,000) in the first year of the contract alone. It would be nice to pay the employees what the union wants. Unfortunately, agreeing to the union's demands will make Berlin non-competitive, and result in a large increase of costs to our customers, causing Berlin’s patrons to go to other venues.”

“When some of Berlin’s unionized workers went on strike and picketed on August 4th and 5th, we were shocked. Our entertainers and many of our staff were asked not to perform. As we rent our space, Berlin has high fixed costs and we can ill afford to lose a sold-out weekend in the summer or continue to operate with such uncertainty.”

The club promoted the letter on X.

“If you are a fan of @BerlinNightclub, but feel torn because of the recent news about the Union, please read an open letter from Berlin's owners,” Berlin’s X account noted.

The unexpected turn of events garnered attention on social media, with Plato’s Gooncave providing a take on the situation.

“One of the funniest recent happenings in Chicago is the closing of gay nightclub, Berlin, because the workers unionized and made unreasonable demands. Now, the hospitality union and gay leftists are blaming the owners for not negotiating with unserious people and ‘corporate greed,’” Plato’s Gooncave said on Twitter.

Plato’s Gooncave linked to a post by Glamour Cadaver addressing the issue.

“Berlin closed because of corporate greed,” Glamour Cadaver said on social media.

“Owning and operating a space and business comes with the responsibility and obligation to care for and protect the workers that keep the space running and safe. The owners denied, rejected, and failed this duty. The union deserved better.”

The closure announcement was confirmed by the 16th & 17th District Chicago Police Scanner X account, which reported on the unfolding events.

According to the scanner's report, the nightclub's closure is directly linked to the recent decision by its employees to unionize.

“Berlin Nightclub, which has been in operation for about 40 years, will be closing,” the 16th & 17th District Chicago Police Scanner said on X.

“Recently, employees voted unionize and demanded higher wages, healthcare and pension. According to Berlin ownership, none of the employees worked more than 27 hours in a week and the demands would have resulted in $500,000 in costs in the first year alone.”

“Employees also led a boycott of the club because of the labor dispute.”

The union dispute previously garnered support from various quarters.

In August, Jinx Press openly cheered on a boycott.

”Berlin nightclub workers looking to unionize are on the move on Belmont in Lakeview tonight, marching and chanting, ‘no exploitation! queer liberation!’” Jinx Press said on X.

Without self reflection on their responsibility for the club’s closure, the employee union, UNITE HERE, also released a statement.

“Our union campaign was always centered around creating a Berlin that is better for the workers, better for the artists and performers, better for the patrons, and better for the community. That is still true,” UNITE HERE said in a post.

Following the closure, those former employees now no longer have jobs.