Hire Here's New Report Is Not So Surprising - And Response

Tuesday, November 03, 2009

Regarding the recent economic impact study commissioned by Hire Here, I say, "No kidding." Of course, more local money spent locally drives economic growth. That is a very reasonable assumption and a very worthy goal. So is business growth outside of any jurisdictional boundaries. Our local companies are not solely seeking business in Chattanooga and Hamilton County; they’re looking for it everywhere.

Remember, Hire Here is an organization funded by unions to benefit closed union shops and to try to drive up union membership. The ordinance they seek to pass through the Chattanooga City Council gives a 10% bidding preference to every local unionized firm on contracts and 5% to any unionized firm regardless of where they’re from. So basically, a local open shop is on even par with a out-of-town union shop.

Hire Here’s union benefactors are not without political support. At least three members of the City Council received over half of their campaign funds from unions. One of their state legislative supporters, State Sen. Andy Berke, received over $52,000 of union PAC money – including from the United Auto Workers PAC.

It should arouse some curiosity that union-funded office holders praise the concept, but stop short of endorsing, the specific legislation Hire Here and the unions advocate. Is this leverage to obtain more campaign funding, an attempt to gain some publicity or is it merely playing to both sides? Hopefully they’ll make a stand one way or the other.

No one opposes economic growth in their community, but that growth is long-term. Short-term thinking and union influence are two very big reasons we’re in this economic disaster.

Craig Carroll
Chattanooga
Alamo3csc@yahoo.com

* * *

Mr. Carroll,

HireHere is a coalition of local businesses, unions and volunteers, gaining new partners every day. Hire Here is an awareness campaign that recognizes that when government spends taxpayer dollars in contract awards, there should be reasonable rate of return for the local community.

HireHere is largely funded by labor organizations or unions that represent the people at the bottom of the pay chain. I cannot imagine what pay and benefits would be for teachers without the Hamilton County Teacher Association, policemen without the Fraternal Order of Police, or without organizations that promote responsible contracting to include quality of life benefits for workers.

As a non paid volunteer, I believe that it is a reasonable expectation that tax dollars generated from our community should benefit and return to the community to the maximum extent possible.

HireHere does not take the approach of hire local or die. If local companies and workers are qualified to perform contracts funded with tax dollars, then why not ensure that a reasonable portion of the taxpayer investment is returned to benefit the community? After all, our community made the initial investment and is paying the bill. Where possible, hire local. It is that simple.

The study produced by UTC Economics professor, Dr. Bruce Hutchinson, quantifies what common sense would dictate. According to the study, for each $1 million of taxpayer funded contracts awarded by our local governments for goods and services, $23,000 will return to local taxes if local companies and workers are employed.

Last year alone, the city of Chattanooga spent $40 million in taxpayer funded projects, non VW contracts. It is time to have a conversation about ensuring that contract opportunities are adequately advertised for the opportunity to be known, and they should be structured (similar to WWTA $40 million) to allow local businesses and workers to compete. The old "the locals cannot make the bid bond" is a tiresome excuse, when the bid structure is driving the exclusion of local companies.

Like many, I am glad VW is in Chattanooga, but I wish that our church ($1,500 to $3,800), my son's school and existing industry did not have to subsidize VW's stormwater fees for the next 30 years.

April Eidson
Hire Here Volunteer
E3.Sciences@comcast.net


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