[Congressional Record (Bound Edition), Volume 151 (2005), Part 5]
[Extensions of Remarks]
[Page 6171]
[From the U.S. Government Publishing Office, www.gpo.gov]




     GOVERNOR GRANHOLM, SBC COMMUNICATIONS, THE MICHIGAN ECONOMIC 
   DEVELOPMENT CORPORATION AND THE COMMUNICATIONS WORKERS OF AMERICA

                                 ______
                                 

                         HON. JOHN CONYERS, JR.

                              of michigan

                    in the house of representatives

                        Tuesday, April 12, 2005

  Mr. CONYERS. Mr. Speaker, I rise today to commend SBC Communications, 
Inc.; its Michigan president Gail Torreano; the Governor of my home 
State of Michigan, Jennifer Granholm; and representatives from the 
Michigan Economic Development Corporation and the Communications 
Workers of America.
  Earlier this month they came together to unveil a ten-year economic 
development project, which will keep 930 metropolitan jobs in Detroit 
and invest over $3.6 million to upgrade seven network facilities in 
Southfield and Detroit. This incredible news comes only four months 
after SBC had initially announced plans to layoff workers.
  Over the past five years, Michigan has lost nearly 300,000 jobs, and 
has had little prospect for significant job growth in sight. My State's 
unemployment rate was nearly two percent above the nation's average. 
That number increasingly looked gloomier with news last week that 
General Motors expects to lose money in this year's first quarter. As a 
result, their stock dropped 14 percent. My distinguished colleagues, 
there is no question about it--jobs in Michigan are in jeopardy.
  But now, the future appears brighter with SBC Communications and 
others leading by example in recognizing that corporations play an 
integral role in their communities, and corporate decisions have 
consequences that reach much further than their own bottom line.
  Such an agreement could not have been reached without strong 
leadership and a shared vision for the future from all parties 
involved. This agreement to keep SBC Communications' business in 
Michigan not only exhibits the great benefits that partnerships between 
the private and public sectors can reap for our nation's metropolitan 
communities, but more specifically, it demonstrates the success of 
Michigan's economic development programs and their capability of 
serving as a prime example for the rest of America's cities and states.
  In agreeing not to move nearly 1,000 jobs out of Michigan, SBC 
Communications will receive a single business tax credit worth 
approximately $18 million from the Michigan Economic Development 
Corporation, in addition to an Economic Development Job Training grant 
of up to $930,000. The proposed cuts had been part of a planned 
company-wide reduction of 10,000 workers by the end of this year. And 
other companies are also staying, too, rather than moving to 
neighboring states as they had once considered. Assay Designs, Inc. 
will be adding 86 new jobs and investing an additional $18 million to a 
new site in Washtenaw County's Pittsfield Township. Faurecia, a 
Michigan auto supplier, will be creating nearly 450 more jobs in 
Sterling Heights as part of a $40 million expansion. Emerald Graphics 
Corp. will be producing an additional 347 new jobs near Grand Rapids, 
rather than in Texas. And with these Michigan fixtures staying, who 
knows what the future holds for our great State.
  The significance of this private-public partnership cannot be 
overstated. In addition to the immediate consequence of job retention, 
the University of Michigan projects that the State's agreement with 
these companies will create an additional 1,210 jobs and generate over 
$97 million in revenue for Michigan over the next ten years, with 
another 1,000 jobs indirectly generated at other area companies. Rather 
than facing the prospect of helplessly watching hundreds of families 
potentially flee the metropolitan area--or even the state--in search of 
new jobs, Michigan's economic future looks brighter with a commitment 
that these hard workers will remain at home and continue to contribute 
to the State's economy. Instead of disrupting their children's lives 
with moves to new schools, SBC employees will continue to root 
themselves in their respective local communities.
  I see no reason why other States cannot create similar incentive 
programs to keep private sector jobs within their borders as well. The 
tax credits that Michigan has extended to SBC Communications, Assay 
Designs, Faurecia, and Emerald Graphics Corp. are just the start. My 
home state recognizes that corporations naturally desire to expand. And 
it also recognizes that the State has too many brownfields that require 
developing. These two are not mutually exclusive. So Michigan has 
decided to invest in its own future. And what will be the reward? An 
anticipated $558 million in private investment! Michigan has proven 
that it is committed to working with labor and management. Our State 
has shown that it truly has an open door policy, and will meet and work 
with all those interested in doing business within its borders, whether 
your company resides there already and is looking to expand, or is 
looking to relocate to a local economy that suddenly has a more 
optimistic forecast.
  I encourage my colleagues in Congress to take a close look at what 
Governor Granholm, SBC Communications, the Michigan Economic 
Development Corporation and the Communications Workers of America have 
accomplished. I see no reason why such a success story cannot be 
replicated in other States as well. In closing, I commend all those 
parties involved; am grateful for their willingness to work together 
for our State's future; and hope that this is just the beginning of 
many success stories to come out of Michigan and America's other 49 
States.

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