When he took over Wells Fargo's regional operations in Davenport, IA six years ago, bank president John Stavnes told the Quad-City Times that his priorities
included economic and community development. Tell that to the workers
at Quad City Die Casting across the Mississippi in Moline, IL. They're
currently fighting for their jobs
because Stavnes' bank has refused to extend credit to the 60-year-old
family-owned business. A new fact sheet produced by Center on Work and
Community Development outlines how the company's liquidation would
effect the regional economy.
Using data from the U.S. Department of Commerce's Bureau of Economic Analysis, CWCD director Robert Ginsburg estimates that closing down the Moline plant would cost the region 169 jobs (incuding 100 positions at Quad City Die Casting, as well as 69 additional jobs supported by spending from the company and its gainfully employed workforce). The lost wages would total $5.3 million per year. United Electrical Workers organizer Leah Fried, whose union is scheduled to unveil the findings of the report in Davenport this afternoon, says the lost tax revenue resulting from those layoffs would also top $1.6 million annually, at a time when state receipts are already declining dramatically. And 15 suppliers and businesses that deal extensivley with Quad City will suffer as well. "The impact of the community is tremendous," says Fried. "[Wells] should be held accountable for that."
Unless Wells Fargo changes its mind, the aluminum factory will cease operation on July 12. To prevent the closure, all the bank has to do is lend thousands to the company's owners. According to Fried, they don't seem ready to do so. "We've told the bank that we'd like to discuss the situation," she tells us, "but they say they will call when they are ready."
We'll have more on this story as it develops over the next month.
Image used under a Creative Commons license by Flickr user ueunion.
Comments
Anonymous (not verified) on Fri, 06/19/2009 - 07:57
Were the union workers willing to make wage concessions to keep their jobs? How did that vote turn out? And how is it the bank's fault? Seems to me that the union should be directing their pleas to the owners of the business. Targeting the lender is a convenient strategy to assess blame and accountability anywhere expect where it belongs - on those who control the overhead (the union and the owner). The problem is that the business cannot produce a profit to continue operations. And the Bank is accountable to its shareholders and the regulators first, to make sure that loans with potential losses are dealt with to minimize shareholder exposure (loss).
Too bad the union leadership can't see that, by taking a cut in pay, these jobs might have been saved.
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