A Jan. 8 article in the New York Times ("Private Sector Gets Jobs Skills; Public Gets Bill," by Motoko Rich) questions whether job-training programs benefit individual workers and states, which carry most of the costs. The article profiles a program in North Carolina that trains workers for the international company Caterpillar:
Some of Caterpillar’s newest factory workers are training inside a former carpet warehouse here in the heart of tobacco country. In classrooms, they click through online tutorials and study blueprints emblazoned with the company’s logo. And on a mock factory floor, they learn to use wrenches, hoses and power tools that they will need to build axles for large mining trucks.Read the full article
The primary beneficiary is undoubtedly Caterpillar, a maker of industrial equipment with rising profits that has a new plant about 10 miles away in Winston-Salem.
Yet North Carolina is picking up much of the cost. It is paying about $1 million to help nearly 400 workers acquire these skills, and a community college has committed to develop a custom curriculum that Caterpillar has valued at about $4.3 million.
Caterpillar is one of dozens of companies, many with growing profits and large cash reserves, that have come to expect such largess from states in return for creating jobs. The labor market is finally starting to show some signs of improvement, with the government reporting on Friday that employers created 200,000 jobs in December.
Although the sums spent on training are usually small compared with the tax breaks and other credits doled out by states, some critics question the tactic. ... In North Carolina, for example, people are still smarting from the departure of a Dell factory that put nearly 1,000 people out of work just five years after the state spent close to $2 million on training. ...
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Is this what is going on with Linamar as well ....
By LOKEL
01/09/2012