Unions say job stimulus bill provides much-needed ‘shot in the arm’

Dubbed the “second phase” of the construction bonding bill passed in March, the job-creation package provides tax breaks to investors who stimulate job growth. The bill rewards small businesses looking to expand, firms doing research and development and developers who renovate historic buildings.

The package also includes measures aimed at preventing the Ford Plant in St. Paul from closing and stimulating expansion of the Mall of America in Bloomington. Incentives are provided to attract a wind turbine manufacturer to launch operations in Minnesota.

Lawmakers estimate as many as 20,000 jobs will be created through the legislation.

Minnesota’s unions lobbied fiercely on behalf of the bill, which Minnesota AFL-CIO
President Shar Knutson called a “shot in the arm” for an ailing economy.

“When times are tough, it’s up to government to give the economy the shot in the arm it needs to get middle-class Minnesotans working in family-sustaining jobs again,” Knutson said. “This legislation lays the groundwork for Minnesota’s employers to create thousands of new jobs.”

Making jobs the focus
Operating Engineers Local 49 made the job-creation package the focus of its second annual lobbying day March 23.

Operating Engineers filled the gallery of a House Tax Committee hearing on the bill. They listened as Jim Brumfield, a member from Kasson, pleaded with lawmakers to do something to help get construction projects off the ground.

“Last year I made $8,400 on a construction salary and supported my family doing odd jobs and collecting unemployment,” Brumfield said. “I don’t want to draw unemployment. That’s no way to live.”

Brumfield and Jason George, Local 49’s political coordinator, reminded committee members that the entire community benefits when building trades workers are on the job.

“When construction workers are on the job, they’re paying taxes, they’re not on the unemployment rolls and they’re spending money in their local communities,” George said.

“Look out the window,” Brumfield added. “Everything you see was built by people like us. We’re the backbone of the Minnesota economy. Put us to work so we can continue to support and build this state’s future.”

Incentives for Ford plant, wind turbines
Workers at the Ford Plant, meanwhile, cheered the inclusion in the job-creation package of incentives to retrofit the plant into a dual-platform facility, which would allow for production of models other than the Ranger truck.

The plant, which employs about 750 workers, is scheduled to close next year, when Ford finally halts production of the Ranger, but the automaker reportedly is searching for a site to manufacture another of its models.

Lawmakers, city officials and members of United Auto Workers Local 879 are hopeful the new incentives, which include exemption from sales tax on construction materials and tax credits for job retention and creation, will lure Ford – or another automaker – to the Highland Park plant.

Illinois, Ohio, Missouri and Michigan have passed similar incentive packages.

"This legislation gives St. Paul the means to do our part in protecting the workers at the Ford Plant," St. Paul Mayor Chris Coleman said. "As Ford continues to look at their options, this bill stands as evidence that the City of Saint Paul, and its world class workforce, are ready to work with them in any way we can to keep this plant open."

Ronda Danielson, president of Local 879, attended a ceremony at which Pawlenty signed the bill into law.

A provision of the bill that would extend the Duluth JOBZ program could help attract a European wind-turbine manufacturing company looking to establish a North American headquarters in northern Minnesota, creating up to 1,400 jobs, said state Sen. Tom Bakk, DFL-Cook, the bill’s chief author.

Minnesota is competing with Ohio to attract the turbine manufacturer and the company is expected to make a decision by this summer, he said.

“This is a great bill that will put people back to work while making sound business and economic-development investments without raising taxes,” Bakk said.

Michael Moore edits The Union Advocate, the official publication of the St. Paul Regional Labor Federation. Learn more at www.stpaulunions.org

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