Changing Gears is a public media project about the future of the industrial Midwest. Each week, reporters Dan Bobkoff in Cleveland, Niala Boodhoo in Chicago and Kate Davidson in Ann Arbor cover issues of interest to the Great Lakes region. Changing Gears also sponsors public events and conversations.
Over the past decade, the Great Recession has perhaps punched Michigan workers the hardest.
Michigan was the only state in the country to lose population in that time span. More than 300,000 residents fled the state. Its peak unemployment rate of 14.1 percent ranks as one of the highest in the U.S. More than 1 in 5 residents in Detroit, its largest city, remain in search of work.
So it’s inexplicable to many in Michigan that one of the lynchpins in Gov. Rick Snyder’s plan to put people back to work is encouraging an influx of immigrants. Snyder touted those plans in an exclusive Dan Rather Reports segment that aired earlier this week.
“I think it’s important for our future,” Snyder told Rather. “We’ve been in a recession for a decade. How do we really reinvent ourselves? One of the keys to how we build ourselves is immigration.”
It’s been a relevant issue in the state’s past. One century ago, immigrants comprised 33 percent of Detroit’s population during its nascent boom years. For a more contemporary example, Snyder gazes beyond Michigan’s borders toward Silicon Valley, and notes 47 percent of its residents are foreign born.
“I am focused on finding more and better jobs for Michiganders,” he tells Rather. “Encouraging legal immigration for advanced-degree people is consistent with that. They’re job creators.”
A study from the Small Business Administration shows immigrants in Michigan are three times as likely as native-born residents to start businesses, and six times as likely to start high-tech businesses. Snyder, a Republican, would like to tap that entrepreneurial spirit.
Can Michigan add auto jobs — or is it destined to lose them to other states and parts of the country?
That topic is on the table Tuesday when Changing Gears joins Crain’s Detroit Business for a breakfast and practical policy discussion.
Senior Editor Micki Maynard will be part of a panel that includes Sandy Baruah, president of the Detroit Regional Chamber; Peter Brown, publisher and editorial director of Automotive News; Neil de Koker, president and CEO of the Original Equipment Suppliers Association, and Doug Smith, senior vice president of the Michigan Economic Development Corporation.
The event begins at 7:30 a.m. at The Henry (formerly the Ritz-Carlton Hotel) in Dearborn, Mich. Find more details here.
Three stories making news across the Midwest today:
1. Report: Indiana sets sights on luring CME headquarters. Indiana is aiming to land another Illinois company with a tax-incentive package. This time, a big one. Crain’s Chicago Business reports today that Indiana has offered CME Group Inc. $150 million per year to move its headquarters to the Hoosier State. CME CEO Terry Duffy did not comment on the report, but earlier this week, said he expects the headquarters issue “to be resolved by year end.” Indiana’s top economic development official, Dan Hasler, neither confirmed nor denied the report when reached.
2. Kasich begins official SB5 defense. On Thursday night, Ohio Gov. John Kasich made his first official campaign appearance to support Issue 2, a state ballot measure that could repeal Senate Bill 5, a controversial law that limits collective-bargaining rights of public employees. Appearing in Toledo with Mayor Mike Bell, Kasich outlined his defense of SB5 – that it helps local governments control spiraling costs. “I believe in unions, I believe they have a place,” Kasich told The Columbus Dispatch. “I am not out, in any way shape or form, to go after and target anybody.”
3. Michigan airport authority announces cuts. The Wayne County Airport Authority said Thursday it would cut costs and raise fees as part of a plan to reduce its expenses by $20 million over the next 12 to 15 months. The Authority, which runs operations at Detroit Metro and Willow Run airports, approved a budget of $292 million for fiscal 2012 that includes wage and benefit changes for employees. Airport World reports at least 100 employees will lose their jobs. “It’s imperative that we re-engineer Detroit Metro and Willow Run Airports so that they become the most competitive in North America,” said Turkia Awada Mullin, the WCAA’s new chief executive officer, who has drawn attention this week for taking a $200,000 buyout from her previous job as Wayne County’s chief development officer to accept the head position at the airport authority.
Back in June, President Obama came to Pittsburgh to tout something called Advanced Manufacturing. He created a group to work on it, made up of government officials, academics, and industry. The point, the president says, is to promote innovation, make the country more competitive. But, we wanted to know:
Three stories making news across the Midwest today:
1. Porsche’s place in Cleveland economy. Is there something illogical about opening a Porsche dealership in the midst of northeast Ohio’s economic turbulence? Not really, says Mark Naymik of The Plain Dealer. Porsche buyers are faring just fine, according to U.S. Census data. Naymik attended the grand opening of a Porsche dealership in suburban Beachwood, and examines the trickle-down role of such luxury purchases and the complexities of the regional economy — while also providing details on the regal evening.
2. Standard & Poor’s upgrades GM. After reviewing the four-year contract agreement between the UAW and General Motors, Standard & Poor’s announced today that it has upgraded the automaker’s debt rating from BB- to BB+. “We believe the contract will allow for continued profitability and cash generation in North America,” S&P’s Robert Schulz said in a written statement.
3. Michigan banks receive small-business boost. The U.S. Treasury announced today that five Michigan community banks would receive a total of $28.8 million in funding as part of the Small Business Jobs Act that President Obama signed into law. The money, distributed through the Small Business Lending Fund, encourages community banks to help small businesses expand operations and create new jobs. The Treasury said in a release that small businesses account for approximately 60 percent of job creation, but that such businesses are facing “disproportionate challenges in the aftermath” of the credit crisis.
So when contract negotiations began last month, the plant’s 3,430 hourly workers expected they’d be sharing in the company’s improved position. But when they saw the proposed deal between the United Auto Workers and GM, many members of UAW Local 602 here felt jilted instead.
They rejected the deal — a rarity for a contract approved by two-thirds of GM workers nationwide.
“The concessions we’ve made were supposed to be concessions, and with the stroke of a pen, they’ve made it all permanent,” said Jan Ward, a long-time employee who voted against the contract. “We did whatever we had to do to make them viable. Now they’re more than viable, and they just snubbed our nose, and said, ‘Too bad for you.’”
There may be no joy in Boston or Atlanta, but there is plenty among baseball fans in the Great Lakes. The Detroit Tigers and Milwaukee Brewers are headed to division playoff series in the American and National Leagues, respectively.
The Brewers have a leg up on their neighbors across Lake Michigan: they’ve clinched home field advantage in the best of five series. They play the Arizona Diamondbacks on Friday and Saturday at Miller Park in Milwaukee.
The Tigers face the New York Yankees those same days at Yankee Stadium in New York, then return to Comerica Park on Monday.
Both teams have been big economic drivers for their home towns, and both cities will get another economic boost from post-season games, which could last all this month, depending on how far each team goes. That’s good news for everything that benefits from a sports team: restaurants, parking lot attendants, hotels, souvenir sales and the guys who hawk peanuts. Continue reading “Detroit, Milwaukee Get Ready For Post-Season Economic Boost”
General Motors gave some new details today on its just-ratified agreement with the United Auto Workers union. Among them: up to 25 percent of its workforce could be “two-tiers” — new hires at lower rates than veteran workers.
Changing Gears reporter Kate Davidson profiled two-tier workers last year. Right now, they’re only 4 percent of GM’s workforce, but the auto company clearly has plans for more of them.
There’s a caveat, though. In order for GM to hire more workers, auto sales have to pick up, company executives said during a conference call with Wall Street analysts. And it isn’t promising to hire the same number of workers as it sees sales go up: it will study its staffing needs and hire accordingly. Continue reading “One-Quarter of GM Workers Could Be ‘Two-Tiers’”
General Motors became the first domestic automaker to reach an official agreement on a new contract with members of the United Auto Workers union Wednesday afternoon.
The UAW said in a written release that 65 percent of production workers and 63 percent of skilled trade workers voted in favor of the agreement, which had been tentatively agreed upon Sept 16. A four-year contract provides a wage increase for entry-level workers, and goes into effect immediately.
The agreement would create 6,400 jobs in the United States, the release said.
“When it seems like everyone in America is getting cuts in benefits and paying higher co-pays and deductibles, we were able to maintain and improve on our current benefits,” said UAW vice president Joe Ashton.
Three stories making news across the Midwest today:
1. UAW contract with GM nears approval. Late Tuesday night, it appeared members of the United Auto Workers had inched closer to ratifying a four-year contract agreement with General Motors. As voting neared a close, at least 18 major locals supported the deal while three had opposed it, according to the Detroit News. GM CEO Dan Akerson will host a conference call with Wall Street analysts to discuss the deal this afternoon. Talks at Ford continue, while discussions with Chrysler “continue to lag,” according to the newspaper.
2. SB5 opponents link law to Jim Crow. We Are Ohio, the organized labor coalition seeking to repeal Senate Bill 5, is airing a radio ad in six urban markets that says Gov. John Kasich has led Ohio back to America’s Jim Crow past. A portion of the ad states, that Kasich and other politicians “have passed two laws to take us back to the days of Jim Crow,” passing laws that make it more difficult for minorities to vote. In addition to SB5, a law that weakens collective-bargaining rights of public employees, the ad targets House Bill 194. Republican leaders tell The Columbus Dispatch the ad is race baiting. Democrats disagree. “It’s harsh wording, but it’s not necessarily inaccurate,” an Ohio State professor tells the newspaper.
3. Rahm rejects key budget-trimming ideas. Chicago Mayor Rahm Emanuel responded to a watchdog report that offered ideas on how to trim the city’s budget deficit by saying that suggestions to raise income, sales and property taxes are “off the table.” He also rejected the possibility of turning Lake Shore Drive into toll road. Emanuel said some of the other of 63 suggestions are “promising” and will receive “serious consideration,” according to our partner station WBEZ. This is the second year in which the inspector general has produced a budget options report.