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Seeing what they want to see

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Illinois

* Seems to be good news…

Cullerton: workers comp costs half what they were 20 years ago

— Bernie Schoenburg (@bschoenburg) April 12, 2016

* But, check this out from the Illinois Policy Institute…

When Marty Flaska moved his forklift-manufacturing business to Illinois 18 years ago, he didn’t think to look at the cost of operating in other states.

In 2014, out of curiosity, his son ran the numbers.

“I didn’t believe him,” said the elder Flaska. His son told him that a short drive east would save the business $2 million per year.

Thus began the journey of Hoist Liftruck to greener pastures in Indiana; a move that resulted from policy mistakes that have made the Land of Lincoln a laggard state when it comes to forging well-paying manufacturing jobs.

On March 31, Flaska cut the ribbon on a massive facility in East Chicago, Ind., the new home of Hoist. The Indiana factory will house nearly 300 manufacturing jobs transplanted from Bedford Park as well as 200 new jobs Flaska plans to create. The average salary for one of those positions is $55,000.

Bedford Park is just down the road from Speaker Madigan’s house.

* The story is confirmed, but the Institute left out a detail…

Indiana is giving the company up to $8.25 million in tax credits as a reward for the hiring, and $200,000 for employee training. East Chicago, the Northwest Indiana Regional Development Authority and NIPSCO also are offering additional incentives.

posted by Rich Miller
Tuesday, Apr 12, 16 @ 11:22 am

Comments

== Indiana is giving the company up to $8.25 million in tax credits as a reward for the hiring, and $200,000 for employee training. East Chicago, the Northwest Indiana Regional Development Authority and NIPSCO also are offering additional incentives. ==

Hard to turn down “free” money.

Comment by RNUG Tuesday, Apr 12, 16 @ 11:29 am
8.25m/55k = 150, so there’s really 50 non-subsidized new jobs being created, if everyone made the average salary. That doesn’t include the unidentified amount of subsides listed at the end.

Also, where is the customer base for this company? How do transportation costs and the opportunity cost of potentially longer transportation factor in?

Comment by Precinct Captain Tuesday, Apr 12, 16 @ 11:32 am
Details…smetails… why let those little bitty incentives get in the way of IPI journalistic integrity. /s

Comment by Anon221 Tuesday, Apr 12, 16 @ 11:36 am
Well if those kind of incentives arent doable then how about we sell employers on Illinois not being backward when it comes to social issues and start poaching businesses opposed to the right-wing culture wars legislation going on in other states… including indiana.

Comment by hisgirlfriday Tuesday, Apr 12, 16 @ 11:37 am
Seeing what they want to see is also the perfect headline for the comment section.

Several years ago Deere, Cat, and Boeing received over $100 million in tax breaks and all companies have had triple digit layoffs since.

Workers Comp needs to be restructured.

Comment by Almost the Weekend Tuesday, Apr 12, 16 @ 11:37 am
Omission of the truth is the same as lying.

Comment by Trolling Troll Tuesday, Apr 12, 16 @ 11:40 am
8.25 million in Corporate Welfare.

Is anyone tested for drugs? After all when you get $180.00 in “Food Stamps” some people are tested.

There should be no difference in administration of any Government Entitlement Program.

Comment by Jack Stephens Tuesday, Apr 12, 16 @ 11:54 am
Yes, our rates are cheaper than 20 years ago….but so are other States’. Significantly moreso. Those incentives likely account for a lot of the cost to move the business, but the long term per year savings will add up to a lot more and are my guess the reason why the company is really moving. If your long term savings are nil, any incentive to move is also negligible, and most sensible companies wouldn’t.

Comment by Anonymous Tuesday, Apr 12, 16 @ 11:57 am
This company sure seems to know how to get its hands on government sweeteners:

http://patch.com/illinois/oaklawn/bp–dan-lipinski-paid-back-for-saving-local-company-w2894ed85f8

I wonder what the folks at the IPI thought about this when it happened?

Comment by Sam Weinberg Tuesday, Apr 12, 16 @ 12:00 pm
Illinois’ main advantage to manufacturers is significantly lower energy costs. What the fork lift company gained due to lower WC costs, it undoubtedly lost in higher energy costs.
Hence the NIPSCO subsidy.
Add in the IN subsidies, and it’s a no-brainer.
So if you want to talk about competitive advantages, Illinois plays that game too.
Not really much new.

Comment by Austin Blvd Tuesday, Apr 12, 16 @ 12:03 pm
Geez, how many times is IPI going to slice the Flaska baloney? It’s getting awfully thin.

If you’ll recall, or if you care to employ the magic of google, Hoist Liftruck only took off after numerous interventions by Rep. Lipinski to clout them big DOD contracts they couldn’t compete for on their own.

Still, when Flaska got a whiff of the corporate welfare in sunny East Chicago, IN, he took it, just like that other free-market warrior, Dick Uiehlein, did in Brat Stop Country.

As to this fantasy….

–Thus began the journey of Hoist Liftruck to greener pastures in Indiana; a move that resulted from policy mistakes that have made the Land of Lincoln a laggard state when it comes to forging well-paying manufacturing jobs.–

(seriously, “Thus began the journey…”? Somebody ate their Cliff Notes Homer)

…here are the facts, from the National Association of Manufacturers.

IL:
573,700 jobs
12,853 firms
$78,971 average salary
$100B annual output

IN
521,300 jobs
7,283 firms
$70,333 average salary
$94B annual output

The facts are, though Illinois is a larger manufacturer than Indiana, Illinois’ economy is much larger and more diverse than Indiana’s and not as heavily dependent on manufacturing.

And Indiana can thank Pres. Obama and the Democrats for saving GM and Chrysler, when knuckle -dragging zealots like those at IPI wanted to abandon Midwest workers and leave the U.S. auto industry to Japanese and German manufacturers down in Dixie.

The Big Three in Detroit had it’s best year, ever, last year, and that’s been a boon to the Midwest auto industry that’s been based, forever, in Michigan, Indiana and Ohio.

Good for them.

Comment by wordslinger Tuesday, Apr 12, 16 @ 12:08 pm
I can think of another way to reduce worker’s comp costs, comply with the law.

From 2013
BEDFORD PARK, Ill. – Hoist Liftruck Mfg. Inc. has been cited with 16 health and safety violations, carrying penalties of $235,800, after a March follow-up inspection at its Bedford Park manufacturing facility by the U.S. Department of Labor’s Occupational Safety and Health Administration.

“Failing to provide all employees with personal protective equipment, and not providing proper respiratory training, creates an atmosphere in which workers are vulnerable to illness and injury on the job,” said Gary Anderson, OSHA’s area director in Calumet City. “Hoist Liftruck has also demonstrated a lack of commitment to employee safety and health by failing to correct previous deficiencies OSHA found in past inspections.”

Hoist Liftruck Mfg. was cited for two willful safety violations for failing to provide welding screens for workers exposed to welding arcs and for violations of the respiratory protection program. Those violations included failing to provide medical evaluations, fit test workers, maintain respirators in a sanitary condition, store them properly and provide training on their use prior to work assignments. A willful violation is one committed with intentional, knowing or voluntary disregard for the law’s requirements, or with plain indifference to employee safety and health.

Four repeat violations involve failing to provide hazard communication training, ensure equipment is properly grounded, conduct daily and shift inspections of powered industrial vehicles and document monthly crane and hook inspections. A repeat violation exists when an employer previously has been cited for the same or a similar violation of a standard, regulation, rule or order at any other facility in federal enforcement states within the last five years. The same violations were cited in April 2012 at the Bedford Heights facility.

A total of 10 serious safety violations including failing to provide machine guarding; remove damaged powered industrial vehicles from service; conduct personal protective equipment assessments or provide adequate protective equipment; label chemical containers; provide hazard information; and failure to implement an effective hearing conservation program, including providing adequate hearing protection. A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known.

Comment by What the What Tuesday, Apr 12, 16 @ 12:13 pm
So according to Word’s own numbers, Indiana has nearly as many manufacturing jobs as Illinois, even being a much smaller State

Comment by Anonymous Tuesday, Apr 12, 16 @ 12:48 pm
8.25m/55k = 150, so there’s really 50 non-subsidized new jobs being created, if everyone made the average salary. That doesn’t include the unidentified amount of subsides listed at the end.

Meeting payroll also means paying FICA, paying for insurance, paying health insurance, paying retirement, paying other benefits…

Comment by A Modest Proposal Tuesday, Apr 12, 16 @ 1:08 pm
Do we know what Illinois offered to keep them here?

Comment by A. Staller Tuesday, Apr 12, 16 @ 1:54 pm
Anon - “So according to Word’s own numbers, Indiana has nearly as many manufacturing jobs as Illinois, even being a much smaller State”

Not after you subtract those announced Carrier / United Technology jobs moving to Mexico.

Comment by Chicago 20 Tuesday, Apr 12, 16 @ 2:14 pm
If my state senator thinks that Illinois work comp rates are good, and if he thinks our causation criteria is good, we have bigger problems than the lack of a budget. And I sort of liked JC.

Comment by blue dog dem Tuesday, Apr 12, 16 @ 9:08 pm
Indiana can afford incentives.

Comment by yup, that makes a lot of sense. Tuesday, Apr 12, 16 @ 11:02 pm
So what you’re saying is that Indiana’s tax breaks are better than Illinois’s

http://www.voices4kids.org/profitable-companies-in-illinois-not-paying-their-fair-share-of-state-income-taxes/

http://www.chicagobusiness.com/article/20140205/NEWS02/140209918/more-than-a-billion-reasons-to-debate-illinois-corporate-tax-breaks

Comment by rick schmend Wednesday, Apr 20, 16 @ 6:01 pm