Vermont’s business and government leaders are determined to do whatever they can to maintain employment at the IBM plant outside Burlington.
If it were up to the Greater Burlington Industrial Corp., that would start with a $4.5 million cash payment to IBM or its successor, as soon as possible.
International Business Machines Inc., ensconced in Essex Junction for decades and with satellite operations in Williston, is reportedly looking to unload its computer chip-making division.
The potential sale likely would include the company’s Vermont facilities — and could jeopardize the jobs of an estimated 4,000 people who work there.
“We are primarily concerned with the well-being of the 8,000 Vermonters whose jobs and economic well-being is as a result of the IBM operations in Vermont and IBM investments in Vermont,” said GBIC president Frank Cioffi.
At a press conference Monday afternoon in Burlington, Cioffi unveiled a series of recommended steps to address the possible sale.
“GBIC sees imminent and adverse risks without the State of Vermont’s support of the current IBM Vermont Operations and Campus and for a successor enterprise should a sale occur,” he wrote in “IBM Vermont: The Vermont Plan.” The action plan includes both immediate steps and wish lists for the next legislative session.
IBM is Vermont’s largest private employer, even after halving its workforce from about 8,000 in 2001 to an estimated 4,000 today. The ripple effect on the local economy affects an additional 4,000 families.
Cioffi’s plan is focused on supporting the anchor employer as opposed to creating a contingency plan for the possible closure of the plant.
Earlier in the day, Gov. Peter Shumlin acknowledged GBIC’s efforts and underscored the same goal.
“We’ll do whatever it takes to make sure that we fight for all the jobs that we have now and more in the future,” Shumlin said.
That’s a theme he and others have sounded repeatedly since rumors of a potential sale surfaced in national press reports in February.
Shumlin proposed creating a $4.5 million fund for financial incentives — even direct payments — to a company that may be on the brink of leaving the state or setting up shop here. The fund will become effective July 1 with the start of the 2015 fiscal year.
Cioffi said he’d like to see the money flow immediately. Granting the money “to IBM Campus ownership” is the first step he outlined in GBIC’s proposed action plan to salvage the region’s anchor employer.
It’s unclear what, if any, strings would be attached to the cash infusion. As approved by the Legislature with the FY15 budget in May, Shumlin would have broad discretion in identifying a recipient for the money. A small panel of lawmakers would be consulted for approval.
Cioffi said the enterprise fund is small compared to the billions of dollars New York has funneled to IBM and the company’s sometimes-partner, sometimes-competitor and alleged potential buyer, Globalfoundries.
In addition to mobilizing the incentive fund, Cioffi also recommended finding “a public buyer” for the wastewater and electric infrastructure on the IBM campus, as well as ramping up workforce training programs.
In the event of an ownership change, he recommended swift utilization of the Vermont Employment Growth Incentive “to sustain existing jobs and encourage growth.”
GBIC’s action plan also calls for establishment of two action teams: one regional team; and one statewide team, similar in composition to the one Gov. Howard Dean assembled for Husky.
Looking ahead to the 2015 legislative session, the GBIC plan calls for creation of a “strategic employer designation” to qualify anchor businesses around the state for special incentives. Cioffi also asked for more support for research and development by Vermont businesses, special electric rates, property tax stabilization, and suspension of certain taxes and tariffs.
Shumlin indicated Monday morning the GBIC wishlist had been prepared in consultation with administration officials.
“We’re obviously going to work together (with GBIC) and do whatever makes sense,” Shumlin said. “I’m not saying that we will agree with everything they recommend, but we’ll certainly be deploying good chunks of it.”
Both Shumlin and Cioffi emphasized the priority is preserving jobs.
“We’re committed to trying to keep the jobs,” Shumlin said. “And we really want to be an important part of the future, regardless of whether it’s IBM or whether they choose to partner or sell to some other entity.”
