Chicago’s McCormick Place will not be able to keep work reforms proposed in legislation drafted by the Illinois Legislature last year—even temporarily—the U.S. 7th Circuit Court of Appeals ruled Monday.

This is the third ruling against the venue, it denies  McCormick Place a stay to the injunction on proposed work reforms, prohibiting them from operating under and adopting the rules.

The first ruling against them came in April when U.S. District Court Judge Ronald Guzman ruled the work-reforms, designed to be exhibitor friendly and to keep and attract trade shows, were too far reaching in its scope because the law limited the rights of trade-union employees, who are privately employed, to bargain the terms of their employment contracts—a right guaranteed by the National Labor Relations Act of 1935.

In late June Judge Guzman denied McCormick Place’s request for a stay to his injunction on the reforms, which would have allowed the convention center to continue to operate under the new laws. The Metropolitan Pier and Exposition Authority [MPEA], which oversees the venue (pictured), had filed this additional stay to block the judge’s injunction.

“With today's ruling on denying the motion, we are compelled to seek whatever it takes to save Chicago’s convention and trade show business,” says MPEA trustee Jim Reilly, according to a news release. “Our customers have expressed their needs, we responded with a viable solution to provide a level playing field to help retain our competitiveness. With the support of the entire political leadership of our city and state, we will continue to advocate for our customers and work toward a long-term solution that will ensure the vitality of Chicago's convention industry.”

While the MPEA feels the legislation was “a viable solution,” the Chicago Regional Council of Carpenters and the International Brotherhood of Teamsters Local 727, the groups who initiated the original suit contesting its legitimacy, always believed the venue’s position lacked merit.

“It violated the law,” Brian Rainville, executive director of the Chicago Teamsters Joint Council 25, told EXPO in June. “Just because they were happy with the way they did things doesn’t mean that it’s legal. We made overtures to [McCormick Place] that this is an opportunity to sit down, now that the judge has ruled this is illegal, and make McCormick Place a successful institution, as opposed to the way they went about it in the past. In the judge's decision it says that there’s no evidence that the contractors are passing on any of these labor savings to the actual vendors. That is in the decision. We should take the opportunity, instead of posturing, and sit down with the stake holders, all of the stake holders," to draw up new reforms.

The MPEA estimates the city’s convention industry employs 66,000 individuals and generates $8 billion in economic activity to the state, saying the “spending is far too important to let other, more competitive destinations capture our business.”

At least one show, The World Car Care Expo, has already pulled out since the controversy began last summer.

The exposition industry has already responded, as initially reported by EXPO, and will be hosting an October summit representing all sectors of the industry to address the mounting pressure of the issues at the heart of the initial McCormick Place legislation.

“There’s no better way to resolve them than among the principles of the industry rather than allowing legislators or regulators or some external forces to impose solutions on us,” Steven Hacker CAE, president of the International Association of Exhibitions and Events, told EXPO in late June.

 The appeals process McCormick Place is pursuing is ongoing.

UPDATE:According to the Chicago Tribune, the Machinery Movers, Riggers and Machinery Erctors Local 136 have come to an agreement with McCormick Place and will abide by the proposed legislation, despite it being invalidated by the Court of Appeals. The deal gives exhibitors more autonomy to set up booths and also limits over-time payments and crew sizes.

The agreement, which will take effect retroactively as of July 1, will increase hourly rates for the workers--$1 in year one, $1.25 in year two and $1.50 for the third year of the agreement, the Tribunereports.

Though there will be an increase in payment the workers conceded five state holidays that would've afforded them double time pay.

The contract lays out terms for the workers and GES and Freeman, private contractors who employ them to set up and break down events at McCormick Place.