Friday, June 15, 2007

Nice Dow Jones Average - What's Wrong With Michigan

The Dow Jones and inflation is doing great, so why is Michigan leading the nation in unemployment? The state government that is trying to tax its way into prosperity. A workforce with an entitlement mentality. High health insurance costs. A workforce belief that they need a labor union that extorts them and the company. Why would you build a manufacturing plant in Michigan? Let alone keep the plant you already have in Michigan and not relocate it?

Don't get me wrong, I love living in Michigan. I love the schools for my kids. I love the people. I love the beauty the Michigan has in it seasons and all of its lakes.

As a case in point of taxing its way into prosperity, the Kalamazoo Airport (AZO), It costs nearly $100 more per ticket to fly out of Kalamazoo versus Grand Rapids (GRR) due to the landing fees at Kalamazoo. Continental Airlines left Kalamazoo Airport over that alone. The Kalamazoo area also lost the GM Plant because the township sued to recover some of the tax abatements, because they felt GM did not live up to its end of the agreement. GM shut the plant down two years later.

Kalamazoo used to have over 15 paper plants; I think only one or two are left.

Benton Harbor, there is no more Whirlpool manufacturing left, why do you think there was the riots a few years ago? There are no jobs for the general laborer. The absenteeism, union mentality, theft and more are part of the reason. I never worked with Whirlpool, but I have worked with Collins & Aikmen (bankrupt and plant shut down in St. Joe). Bosch is in a slow process of shutting down its plant in St. Joe. Wolverine Plastics has shut down in Stevensville.

Trying to hire people (300-400 jobs) in South Haven. We battled with candidates not able to pass drug tests and very simple math tests. Once the ones that did pass the test and get hired, started to abuse the absenteeism policy right away. You would not believe how many excuses they would come up with for medical restrictions upon getting out of their probation period. Ones that lasted a year came up with so many excuses to get on FMLA, it was amazing. The fall out rate was shocking too.

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