Like everyone else in Ohio, we are happy to hear news about big companies bringing lots of jobs to our state. And the latest announcement that General Electric plans to open a new Global Operations Center in Cincinnati is no exception.
But let’s not get ahead of ourselves here.
I know John Kasich and JobsOhio are feeling proud that they landed this big fish, but given their past record on these types of deals, I’d hold off on popping the Champagne for awhile.
For starters, these are just “job commitments”. The same type of commitments made by Diebold and JPMorgan Chase and American Greetings. All three of those companies were given huge financial incentive packages by the Kasich Administration. All were touted as huge wins for JobsOhio. Diebold and American Greetings even promised to build shiny new HQs to house all those new employees.
And what happened?
Diebold cancelled plans to build. American Greeting delayed and then severely scaled back its plans. And all three companies began laying off Ohioans. Within two years of announcing big incentive deals with JobsOhio and Kasich, we saw 876 jobs lost at JPMorgan Chase, at least 1,100 jobs lost at Diebold and over 2.000 jobs lost at American Greetings.
The new GE facility isn’t scheduled to be completed until 2017. They haven’t even decided on a site yet. A lot can happen in three years.
Also of note: most of the reporting on job commitment numbers has been misleading. While the facility is planned to employ 1,400 people, only about 300 of these would be new jobs. “Most of the new employees will relocate from elsewhere in the United States,” reports the Enquirer. Which means GE may be creating jobs in Ohio, but it will be “foreigners”, as Kasich likes to call them, taking those jobs, not Ohioans.
“Most of the new employees will relocate from elsewhere in the United States, but about 300 new jobs also will be created”