Johnson Controls Just Latest Example of Need for Bill Banning Outsourcing
Company outsourcing 277 WI jobs despite record profits and millions in taxpayer support
(Madison)—Recent reports that Johnson Controls will outsource 277 Wisconsin jobs despite posting record profits and receiving over $2.4 million in state taxpayer-funded tax credits is yet another example of the need to ban companies that outsource Wisconsin jobs from receiving any kind of state taxpayer assistance said State Senator Dave Hansen (D-Green Bay).
“It seems like every week there is more bad news about WEDC and our economic development policies,” said Hansen author of legislation that would ban companies that outsource jobs from receiving state assistance. “The recent news that Johnson Controls will outsource 277 Wisconsin jobs to countries like Mexico and China despite the millions they have received from state taxpayers is shameful. It is bad enough that they are
Wisconsin has seen an increasing number of layoffs since 2011 with over 10,000 layoffs already occurring in 2015 alone. Hundreds of Wisconsin jobs have or are planned to be eliminated by companies that have received state taxpayer assistance in favor of taking advantage of cheaper labor in foreign countries.
- Kohls Secured Up To $62.5 Million in state tax credits to keep its headquarters in Menomonee Falls. Kohls later notified the federal government it would cut 67 jobs and outsource its Milwaukee-based accounts payable and sales audit functions to India.
- WEDC awarded up to $17 million in tax credits to Plexus Corp. In July of 2012, Plexus announced it was laying off 116 workers from its Neenah facility.
- Eaton Corp. sent over 250 Wisconsin jobs to Mexico on three separate occasions despite receiving over $370,000 in tax credits from WEDC—some of which were given to Eaton after they began outsourcing Wisconsin jobs.
“Using workers’ own tax dollars to pay for the outsourcing of their jobs to countries like China and Mexico is the cruelest of all jokes. And the state should have no part in it. It is time for the Legislature and this Governor to pass strong laws against the giving of any state tax dollars to companies that outsource Wisconsin jobs.”
Under Hansen’s bill any company that is found to have outsourced jobs from Wisconsin after receiving taxpayer funded assistance would be banned from applying for future taxpayer help for five years.
“This should be a bi-partisan issue. One that none of us on either side of the aisle accept. Many of the jobs that are being sent to Mexico and China are from Republican districts. All of our constituents, no matter their political leanings, should not have to pay to have their own jobs shipped overseas.”