Monday, November 15, 2010
The machinists union is asking the U.S. Attorney General to investigate the use of federal funds to “steal other state’s jobs.” At issue is Louisiana’s “Hawker offer” to move the Wichita company to Baton Rouge, Louisiana.
The president of the International Machinists Union, Tom Buffenbarger, says it isn’t the intent of Congress for federal tax dollars such as hurricane relief or stimulus funds to be spent to lure companies across state lines.
Buffenbarger says that Louisiana violated the law by using federal Katrina funds to relocate companies like Hawker Beechcraft. He says the state offered $100 million to move the operation to Baton Rouge.
While it’s acknowledged that states are always competing with each other for jobs, Buffenbarger says federal funds should not be used to do so. He says Congress prohibits the use of Katrina funds to relocate an industrial or commercial plant from one area to another if it results in a significant loss of employment in the area it’s moved from.