Chicago ? The so-called “living-wage” ordinance that would have required mega-retailers here to pay their workers higher wages was successfully turned back Wednesday as supporters on the City Council could not muster enough votes to override Mayor Richard Daley’s veto.

Daley, who vetoed the ordinance this week saying it would cost the city jobs and hurt people who need those jobs the most, was able to convince enough aldermen who voted in favor of the ordinance in July to change their votes. The vote was 31-18 in favor of overriding the veto – three short of the necessary votes to do so.

Some of the nation’s largest store operators including Wal-Mart Stores Inc. warned the measure would discourage them from opening their doors within the city’s limits.

In California, Gov. Arnold Schwarzenegger vetoed legislation on Wednesday that would have required Wal-Mart and other large employers provide health care benefits for their employees or pay into a state health fund.

In a veto message, Schwarzenegger said the bill was the wrong approach to tackling spiraling health care costs.

“Singling out large employers and requiring them to spend an arbitrary amount on health care does nothing to lower costs or guarantee that even one more person has health care coverage,” Schwarzenegger said.