JEFFERSON CITY, Mo. — A former employee of TWA knows that the aerospace manufacturing jobs promised in legislation approved Wednesday are widening the eyes of former co-workers.
Bill Caldwell, chairman of the Buchanan County Central Democratic Committee, went from a TWA to an American Airlines time card in April 2001 and now represents Transport Workers Local No. 530.
The union negotiator/maintenance and engineering worker already has heard great interest from folks interested in taking up Bombardier on its pledge of 2,100 jobs if it relocates a jet plant to green space near Kansas City International Airport. The average wage is expected to be $63,000 a year.
“We have a lot of licensed mechanics working in lower-paying, lower-class jobs — like aircraft cleaning,” Mr. Caldwell said.
In a 138-14 vote, the Missouri House of Representatives sent a massive incentives package aimed at attracting Bombardier on Wednesday to the governor’s desk. The Senate approved the measure last Thursday on a 24-8 vote. Bombardier hasn’t yet committed to Missouri, as the state is competing with Canada, where Bombardier already operates.
Regardless, lawmakers sang the legislation’s praises, saying it would signify to other companies that Missouri’s ready to play in the big leagues of economic development.
“We are here to celebrate one of the greatest bipartisan successes of this year or any year,” Lt. Gov. Peter Kinder said during a news conference. “We have not been in the game ... Missouri is back in the game.”
Proponents also touted 5,000 additional jobs that could come as a result of the plant in the form of supplying operations, a key carrot for the St. Joseph business community because of its proximity to the airport.
But Mr. Caldwell is hesitant to pop open the champagne.
He, along with other legislators, question the stability of the company. Mr. Caldwell said he plans to stay at American, even if Bombardier comes to Missouri.
“I’m never opposed to people going back to work, but I have second thoughts about the state of Missouri investing tax money in Bombardier. It is a risky undertaking,” Mr. Caldwell said.
Rep. Ron Richard, R-Joplin, and Sen. Charlie Shields, R-St. Joseph, handled the legislation that now offers Bombardier up to $240 million in tax credits over a period of eight years, beginning in 2013. Those credits will be tied to the company’s payroll. The proposal caps any of the state’s potential negative cash flow to $155 million.
Unlike other Missouri tax credits, the plan includes a repayment mechanism that could recoup the state’s money by charging royalties on sold planes. The state would mandate an internal rate of return of 5.1 percent if Bombardier accepts the offer.
“We’ve done it in a way that protects the taxpayers,” Senate President Pro Tem Mike Gibbons said.
Mr. Shields said Bombardier will make an announcement by December, but he’s anticipating a summer announcement from an air show in England.
Every member of the Northwest Missouri delegation voted for the bill.
“I’m not blindly for it, but I think we should do what we can to get developments like Bombardier,” said Democratic Caucus Chairman Ed Wildberger, of St. Joseph. “My fear all along was that they were using us as bait or a ploy to get more money out of Canada.”
Alyson E. Raletz can be reached
at alysonraletz@npgco.com.
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