Posted on 06/02/2015 3:50:27 PM PDT by conservativejoy
UPDATE: WEDC award recipients outsourced Wisconsin jobs
MADISON (WKOW) -- At least two companies that received financial awards from the Wisconsin Economic Development Corporation (WEDC) later outsourced jobs to foreign countries, with one of those companies receiving a second WEDC award after the fact.
A 27 News investigation has uncovered that both the Eaton Corporation and Plexus Corporation received millions of dollars in financial awards from WEDC, only to later lay off workers whose jobs were taken by employees at the companies' foreign facilities.
In 2011, WEDC awarded Eaton Corp. with up to $1 million in tax credits if the company met job creation and retention goals at its manufacturing facility in Menomonee Falls. WEDC officials say the company has received $190,000 in tax credits so far.
In April of 2013, Eaton laid off 163 employees at its Cooper Power Systems plant in Pewaukee and announced it was moving those jobs to Mexico. Less than a year later, WEDC awarded Eaton Corp. with up to $1.36 million in additional tax credits for a proposed $54 million expansion at that same Pewaukee plant. But on Wednesday, WEDC Spokesperson Mark Maley told 27 News Eaton Corp. "recently notified WEDC it will not seek any tax credits for this project."
Eaton Corp. is based in Dublin, Ireland, but has numerous offices and interests in the United Kingdom, United States, Indonesia, Singapore, France, Germany and Mexico.
WEDC awarded Plexus Corp. of Neenah with tax credits of up to $2 million in 2011 and up to $15 million in 2012. Maley says Plexus has received $4.7 million in tax credits to this point.
In July of 2012, Plexus announced it was laying off 116 workers from its Neenah facility. The U.S. Department of Labor has since ruled those employees, as well as all Plexus employees laid off since December of 2011, are eligible to receive federal Trade Adjustment Assistance (TAA) benefits. Those benefits are only available to employees who were laid off because their jobs were outsourced to foreign countries.
Plexus Corp. did not identify where it relocated those jobs to in 2012, but also has offices and interests in the United Kingdom, China, Germany, Romania, Malaysia and Thailand.
"Clearly, the taxpayers of this state want to know that their money is helping to build our economy here at home," said Rep. Peter Barca (D-Kenosha), the Assembly Minority Leader who also sits on the WEDC Board. "And so, when I hear this, it really makes my blood boil."
Rep. Barca says he intends to bring the issue up at the next WEDC Board meeting.
Maley says even if a company has plans to relocate jobs at one of its state plants or divisions, WEDC will still work with that company if it has plans to expand and create jobs in other parts of its Wisconsin operations.
"Even the loss of one job in Wisconsin is one too many, and the WEDC routinely works closely with companies that are considering other options to ensure that those jobs stay in the state. In fact, in the last fiscal year, our efforts have resulted in more than 26,000 job being retained in state of Wisconsin - jobs that were in jeopardy of going elsewhere," said Maley. "If a company makes a business decision to move some of its jobs out of the state - despite our best efforts - we will continue to work with that company to ensure that as many jobs as possible remain in Wisconsin."
But Democratic gubernatorial candidate Mary Burke calls that practice "appalling".
"As Governor, I will insist that every WEDC award protects against the outsourcing of Wisconsin jobs and companies that don't live up to their end of the deal give back every tax dollar they received," said Burke in a statement released to 27 News.
The Republican Party of Wisconsin has criticized Burke for outsourcing jobs to China as an executive at Trek Bicycle and Gov. Scott Walker's campaign blasted Burke for her comments.
"This is the height of hypocrisy coming from Mary Burke," said Alleigh Marre, a spokesperson for the Walker campaign. "Trek Bicycle, the company that Mary Burke shamelessly makes millions of dollars off of, received $875,000 in taxpayer money from the State of Wisconsin and has outsourced hundreds of jobs overseas."
Marre is referring to the $875,000 the state loaned Trek so it could build a facility in Whitewater in 1995.
But politics aside, the leader of one Wisconsin business group calls the news disturbing and says the practice has to end.
"What's troubling to me about this is that these companies were given tax dollars explicitly to keep jobs here in Wisconsin," said Lori Compas, Executive Director of the Wisconsin Business Alliance. "To take taxpayers' money and then turn around and fire hundreds of Wisconsin workers is a real slap in the face."
Officials from Eaton Corp. and Plexus Corp. have yet to respond to 27 News on questions regarding this story.
Who do they think they are??? Mary Burke???
The Wisconsin legislature removed Scott Walker from his Chairman position in the WEDC this week.
This agency was created by Walker with the promise of 250,000 new jobs for Wisconsin.
Nineteen Million Taxpayer dollars has been paid to Walker campaign supporters with only about 7,000 jobs created. These were supposed to be loans, but there is no record of any of them being paid back.
The state level investigation has now requested a federal investigation be done, due to the overwhelming evidence their audit uncovered of “Pay to Play”.
When I hear Walker say he is on the side of the American worker, I think of this.
I feel bad for Scott Walker ... sounds like he might have been set-up ...
Love you sense of humor. :)
I forgot to add that several of his campaign staff are currently doing time.
This is nothing.
The biggest outsourcer of jobs in the entire world is California and it is ruled by Democrats.
In the last 10 years, Intel alone has outsourced probably 10k jobs to India each paying over 100k/person.
Do the math..that is over $1B in yearly salary gone from the USA forever.
From one company.
The point is these are companies belonging to supporters of Walker’s campaign. He paid these companies with Tax Payer Dollars to do something that they have not done..Create Jobs! “Pay to Play” is illegal. That is why investigators have now called for a federal investigation.
Several of Walker’s campaign staff are already doing time.
it this why he’s delaying his POTUS campaign announcement ? unable to connect with a mega-donor ?
that’s not good for walker at all. I just hope it’s not good for Bush.
Thanks for reminding me. I gotta find that article about Roves Super Pac being in talks with Walker.
Can you detail what they are doing time for?
“The requested document does not exist on this server.”
You are sounding more and more like a troll, by using Democratic talking points.
In fact, the only place I have seen this is over on BlueCheddar, a far left wing gripesite for teachers unions in WI.
Now that’s funny! I am a volunteer for the Cruz campaign. See my tagline.
Both Sen. Cruz, (who wants 500% more H1B workers plus Obamatrade immigrants) and Gov. Walker need to understand if they want to be POTUS, they need to put Americans first.
From the article you linked:
Kelly Rindfleisch was convicted of illegal campaign activity . . . while on the clock and being paid to administer state services. Sentenced to six months in jail. Walker’s deputy chief of staff.
Tim Russell was convicted to two years in prison for stealing more than $20,000 from a nonprofit group Walker put him in charge of. A deputy chief of staff.
Darlene Wink was found guilty of engaging in campaign work for Walker’s 2010 gubernatorial race while on county time. Received a year of probation. Constituent services director.
Kevin Kavanaugh was found guilty of embezzling more than $51,000 in donations intended for military veterans and their families. Sentenced to two years in prison. Former Walker appointee served on the Milwaukee County Veteran Service Commission (not a Walker campaign staff).
Bill Gardner . . . violated campaign finance laws by laundering tens of thousands of dollars for Walker’s first gubernatorial campaign. Sentenced to two years of probation. Former president of Wisconsin & Southern Railroad (not a Walker campaign staff).
Brian Pierick sent lewd text messages to a 17-year-old boy. Community service and a $2,100 fine. “Partner” of Tim Russell. Was, for a time, listed as the registrant for Walker’s gubernatorial website.
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