My Blog

Category: Business

  • Picketers Demand Local (Union) Labor at Costco

    Seems like the Gazette’s missing the real story here:

    A group of unemployed tradespeople, many with union cards, have been picketing Near West Side construction sites for more than a month, demanding that community workers get a share of both local building jobs as well as permanent retail positions.

    via Gazette Chicago.

    From what I can tell from the photos, not a single non-union person was there standing around doing nothing (a/k/a protesting.)  All the non-union people were working hard building something.

    “Hundreds” of qualified tradespeople in and around the area who “worked on jobs in Roosevelt Square, Fosco Park, and the Engine 18 firehouse” are available to work, Loving said.

    Just exactly what are these hundreds of “tradespeople” qualified to do?  I’m pretty familiar with the area — I’ve lived in and around the area since 1988.  I don’t see a whole lot of pick-up trucks with tools in the back driving around in the area.  I do see a lot of $500 cars with $5,000 kicker boxes in the back.

    And on and on it goes.  It’s basically a PSA for Brother Dickens.  I wonder how I can get the Gazette to give me 300 words to do with what I want.

    The minister and community organizer said he has seen “a lot of dashed hopes” since the area began its current renaissance. “Our people are not working,” Loving added. “Jones College Prep is going up even as we speak. That’s an $85 million project, but we’re not working on that. How’s that happening? All I’m saying is that we need jobs.”

    What kinda skills do these people have?

    Bro. Byron Dickens was protesting to make sure local residents get a fair share of jobs.

    So is this really the issue?  Because there was a lot of news about how Costco got that site.  And the truth is…

    Alderman Robert Fioretti (2nd Ward) earlier predicted Costco can be expected to bring 600 construction jobs, and full- and part-time retail jobs once the 50,000-square foot store opens.

    Fioretti said the first day of Costco’s hiring fair this coming spring will be exclusively for 2nd Ward residents.

    Oh, that.  That’s right, I remember now.  Costco said it would give preferential hiring to residents in the 2nd Ward.

    …  Dickens and Loving said they are out tomake sure the neighbors get their share of those jobs.

    What are they talking about?!  If the local folks are really qualified they have first chance at those jobs.   The even have an entire exclusive day to apply before anyone outside the area can apply.

    Jeesh!!  I mean, what’s it going to take to make you satisfied?

    Loving said the patience of some of the unemployed is wearing thin.

    Uh oh.  What does that mean?  Ya know what I think?  I think that the good Brother Dickens is tied into the whole “protest movement” that we’ve been hearing so much about lately.  His job is to keep the people angry and on edge so they can be “mobilized” for a major event when the time comes.

    We’ll see.

  • Let’s all Welcome ThyssenKrupp to Chicago

    As ThyssenKrupp plans to dramatically increase its presence in Chicago it’s finding out just what life here is really like:

    … [T]he German-based ThyssenKrupp manufacturing company is facing allegations that company supervisors in the city created a hostile and intimidating work environment for an African-American employee.

    A superintendant at ThyssenKrupp used the N-word “routinely” around African-American sales representative Montrelle Reese, according to a November finding by the state Department of Human Rights.

    Another supervisor applied brown make-up to his face to make his skin tone darker during a skit at a sales conference in Indianapolis, according to the report, which concluded that there was “substantial evidence” that Reese was harassed because of his race.

    Though the supervisor later claimed he was impersonating a rapper of Asian descent from the musical group Linkin Park, the skin-darkening showed the company “fosters an environment of accepted racial intolerance,” the report states.

    via Chicago Tribune.

    It goes without saying that there’s just no room for this.  We don’t care what flies in Germany; welcome to America.

    That said… doesn’t it just seem like every time there’s some good news it’s immediately followed by a story about some moron doing something stupid?  We’re going to have to keep an eye on this story to see where it ends up.  If ThyssenKrupp is found not guilty in the end then it stands to reason that this Reese guy should get run out of town.

  • ThyssenKrupp (w/ 100 jobs) Coming to Chicago

    We actually rock (and we kinda know it.)

    Germany-based ThyssenKrupp, a diversified manufacturing company that makes elevators, auto components and carbon steel, will establish a regional headquarters for  North America in Chicago this summer….

    The company did not seek financial incentives as it considered more than 20 cities around the U.S. for the regional headquarters.

    “We’ve learned not to run where the incentives are or where there is the lowest tax rate,” Gessner said.  “We need the overall picture.  “Weighing in Chicago’s favor are its extensive air service and a highly skilled profession labor pool, Emanuel said.

    via Chicago Tribune.

    Any way you want to twist this it’s good news.  But sometime we forget the Chicago is a major player globally.  Yes, we have a political problem; and a pension problem; and a crime problem; and a few other little problems.  But so does every other major city on the planet.

    … ok, our political and pension problems exceed anywhere else.  But sometimes we need to be reminded that we live in a global city with talent and opportunity that simply doesn’t exist anywhere else.  Well, that and it helps to be located in the middle of the country and have a really really big airport.

  • Who’s Pro Business?

    Recently published is a series of stories on where it’s easier/better to start and run a business.  Whether we like it or not, businesses employ people; people do not employ businesses.  Creating and maintaining a pro-business environment is not easy.  But sure Illinois generally, and Chicago specifically, are failing… or are they?

    First, a national story out of Inc. magazine telling us that  it’s easier to start a business in Rwanda than in the U.S. | Inc.com.  Well that can’t be good.  Perhaps this is why Hillary Clinton recently toured a GM plant in Uzbekistan.  Yep, creating 6,600 jobs and giving away $160k in entrepreneurial awards in Uzbekistan is a sure sign that maybe the U.S. has it’s job creation priorities a little out of whack.  You hard earned tax dollars at work.
    Then we have Crain’s Chicago Business which confidently pronounced that Illinois’ business climate outshines its neighbors.  The three main reasons are low effective tax rates, easy access to capital, and a more educated population.  After telling us how wonderful Illinois is — and after most people have stopped reading — we find out the bad news:

    The costs to operate a business in Chicago are:

    • 25% higher than in Des Moines,
    • 20% higher than in Indianapolis, and
    • 15% higher than in St. Louis.

    Then we get this:

    Catalyst Exhibits Inc., a trade-show exhibit management company, moved last week to Pleasant Prairie, Wis., from Crystal Lake to save money. The company, which employs 92, had been considering Elgin but chose Wisconsin, which provided a $1.2-million low-interest loan and a $500,000 grant.

    “It wasn’t completely incentives,” says CEO Tim Roberts, who estimates he’ll save 20% a month on building costs, not to mention savings on health insurance and workers compensation premiums.

    Oh, cheaper to manufacture in Wisconsin, I see.  I wonder why?

    Illinois has the third-highest workers compensation rates in the nation, at $3.05 per $100 in payroll, though recent reforms are expected to lower those costs by about 9%. Indiana has the lowest in the nation, at $1.16. For a manufacturer, it could mean an extra $900 per employee annually. Wisconsin is in the middle, at $2.21 per $100 of payroll.

    …

    Illinois also is more unionized than neighboring states, with 16.4% of its workforce organized, compared with 15.1% in Wisconsin, 13.8% in Iowa, 12.2% in Indiana and 11.1% in Missouri, according to the Bureau of Labor Statistics. Unionized employees tend to have higher wages and more rigid work rules, driving up labor costs, which are the largest expense for most companies.

    The rest of the article is where things get really bad.

    Business owners worry they’ll have to pay the price for decades of fiscal mismanagement by Illinois’ elected officials. A yawning state budget deficit led to this year’s income tax hike. Even more ominous is the $93.5- billion funding shortfall in state employee pension plans. Illinois’ pensions are only 51% funded, the worst in the nation. Wisconsin’s plans are fully funded, Missouri’s and Iowa’s are about 80% funded, and Indiana’s is at 67%.

    Ya, that’s a problem.  But we’re going to fix that right?

    Indiana Gov. Mitch Daniels and Wisconsin Gov. Scott Walker have moved to rein in pension costs, pushing unions out of government work. Illinois Gov. Pat Quinn, who depended on unions for political support, has been unwilling to go as far.

    Oh, Illinois is just going to keep piling on the debt.  So how do we get out of this hole we’re digging?

    Illinois “won’t have any choice but to raise taxes again, and they don’t seem to be willing to cut,” says Mr. Roberts, a Barrington village trustee. “As far as the next 10 years, the odds in Wisconsin are much better for us.”

    But at least our elected officials and the government bureaucrats are working hard to keep businesses in Illinois right?

    Neighboring states also are developing a reputation for being more business-friendly. “When I call the secretary of state or whatever agency in Indiana, I get a positive response,” says Mark Winzenread, chief financial officer of Indianapolis-based Walker Information Inc., which previously had an Illinois office. “I don’t get that in Illinois. It’s generally a frustrating experience.”

    When the 180-person consulting firm moved its headquarters just a short distance a few years ago, the state provided $600,000 to extend a road two miles. “We had one or two meetings and got it done,” he says.

    Mr. Farrell, the former ITW CEO, says Illinois will have to fix its attitude and its finances or risk losing business to other states.

    “I love Chicago, I really do,” he says. “Do you think I can look another CEO in the eye and say this is a great place to bring a plant? No. Most of the large companies in the state are very nervous about where we are.”

    Oh, ok.  So there you have it. Illinois is broke.  Has access to capital and lots of smart people.  But it’s a financial mess, heading off the cliff, and the politicians and bureaucrats are clueless of how to help business because they’re all beholden to union interests.

    Of course, in May 500 CEOs considered a wide range of criteria and ranked Illinois 48 out of 50 of states for business.  That’s right, Illinois in only behind New York and California.  Well we have to see how our neighbors rank in order to see if the Crain’s story is even close.

    • Indiana  – 6th
    • Iowa  – 22nd
    • Wisconsin  – 24th, and
    • Illinois  – 48th.

    Hummm.  It appears safe to say that the position taken by Crain’s is at odds with the position taken by 500 business CEOs.  Kinda makes me wonder who came up with the Crain’s position and if it was their own idea or if it was provided to them.

    I believe that Illinois has all of the elements needed to be an awesome state for business.  We do have not only manufacturing talent but technical know-how and access to capital as claimed.  What we need to do is balance our budget, reduce our spending, have pension reform, and elect people who really want to help businesses in the state.  It can be done.  We just need different leadership.