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This is our Chance

April 22, 2014

by Gary Toebben

Last Friday, the State Employment Development Department issued its employment numbers for March. The good news is that employment increased once again in California and Los Angeles County. The bad news is that California still has 84,300 fewer jobs than it had at the start of the Great Recession, and L.A. County has 75,200 fewer jobs, almost 90 percent of the State total. 

L.A. County employment peaked seven years ago in March 2007 and hit bottom in February 2010. During that time, L.A. County lost 356,100 jobs, which represents more people than the population of New Orleans, Tampa, St. Louis, Pittsburgh or Cincinnati. 

Last week, the Sriracha plant in Irwindale and the 200 people it employs, was in the news because there is a possibility that the plant may be shut down or moved. I am not an expert on the details of this story, but I do know that 200 jobs is a big deal for 200 families and there must be a way to keep these jobs where they are or find another home for the Sriracha plant in L.A. County. 

This is an opportunity to show that business and government can work together to find environmental and economic solutions when 200 jobs are at stake. It is an opportunity to show states like Texas that neither business nor government in L.A. County simply rolls over or runs when faced by challenges or competition. 

We shouldn't be subtle in making this statement. We should be loud, gregarious and forceful. Rep. Tony Cardenas has the right idea. He was quick to get out in front to welcome the plant to move to his district in the San Fernando Valley. Rep. Cardenas' desire to save 200 jobs should be an example to us all including the Governor's Office of Business and Economic Development, and every mayor, City Council member and economic developer in L.A. County.

Manufacturing is still a very significant economic engine in L.A. County, but it won't be for long if we can’t find solutions to challenges like we face at the Sriracha plant. We need to fight for manufacturing jobs with solutions that address the public's concerns and make plant operations economically viable in our county. If we engage with the will to create win-win situations for manufacturers in L.A. County, we will be on the right path to replacing the jobs we lost during the Great Recession.

And that's The Business Perspective.

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The State of California has been pushing companies out due to high regulations and being a high taxing state. In the Sriracha plant issue it is an over reaching government that does not care about the businesses who are trying to survive here, but rather a political agenda of their own. This is the case on many issues that affect the businesses operating in the State of California. Look at what the State as done with the Franchise Tax Board, they can now go back 20 years and examine individuals and businesses. Again, an over reaching arm of the State. When you write to your State Senators and Representatives you get no answer back. If it is a business issue they have a deaf ear. It is time for the Chamber of Commerce to be very aggresive with the State and Local Governments to cut the costs of spending the State spends, and start being more friendly to businesses that are trying to stay alive here and create jobs. I it time for the Chamber to have a louder voice on what the State and local governments are doing to the businesses here in California.
Posted by: Michael Lodge @ 5:33:00 pm