Amid the debate over Wisconsin Governor Scott Walker’s signing of the state’s new Right-to-Work law, the pro-union left is attempting to score points against the Right-to-Work measure by citing the threats by a Wisconsin business to leave the state for Minnesota.
For example, the Leftist website Crooks & Liars posted a piece entitled Wisconsin Loses Jobs To Minnesota Due To ‘Right To Work’ Bill, wherein the liberal site cites a (unionized) construction firm, Hoffman Construction Company (whose owner has been a vocal critic of Wisconsin’s passage of Right-to-Work legislation), which is threatening to move to Minnesota.
Likewise, the Marxist-driven Daily Kos is running a piece about the same company entitled First WI casualty of Right to Work, Major company moving to Minnesota.
The meme was also picked up on Twitter by Jeesica Arp, a news reporter for WISC-TV in Madison, WI.
#BREAKING: President of Hoffman Construction says he’s accepting @PatGarofalo‘s offer and is moving some operations to MN after #RightToWork
— Jessica Arp (@news3jessica) March 10, 2015
Despite the fact that this one company’s “business decision” is garnering some press, the Left’s hyperbole does not tell the full story.
In fact, not surpisingly, there are a few important points that the Left is leaving out of the meme about “moving to Minesota” (as the Daily Kos puts it).
So, what is story?
First, the company is not leaving Wisconsin entirely as is inferred by the Left. Rather, it is merely relocating “a portion” of its business to Minnesota.
Secondly, it appears from both the company’s website, as well as The Capital Times, that Hoffman Construction Company does government work (using strictly union labor) and is dependent on the government for its business.
According to the company’s website, Hoffman Construction Company “manages 30-50 major highway and site development projects each year with our fleets of scrapers, dozers, off-road trucks, backhoes, and dump trucks.”
As a result, any cutback on government spending (or “prevailing wage” work)–no matter how beneficial to taxpayers it may be–would likely be detrimental to this firm, as the firm’s president states here.
It’s not just right-to-work driving Hoffman’s decision, he said. The possibility of repealing the prevailing wage, as some Republican lawmakers have indicated, also has him concerned, as does the level of bonding proposed in Walker’s transportation budget.
Thirdly, like many businesses that thrive on government for their sustenance, the company (which already has an office in Minnesota), appears to be going where the money is because Minnesota will be spending more of its taxpayers’ money on its transportation budget–which appears to be the company’s primary source of revenue.
“This isn’t a political decision, it is a business decision,” Hoffman wrote in his response to Garofalo. “I understand the MN Governor & Legislature are debating a funding INCREASE for transportation investments, while the Wisconsin Governor has proposed bonding (i.e. credit card) to solve the transportation funding problems. That, combined with Right to Work and proposed repeal of Wisconsin’s Prevailing Wage statute lead to my plans to relocate a portion of our business to Minnesota.”
The company has a regional office in Lakeville, Minnesota, which employs two full-time salaried employees and 10-12 hourly staff, Hoffman wrote.
Lastly, while James Hoffman says “it’s not political,” the question remains, is it?
Companies that rely on government spending for their business—whether they be defense contractors, website contractors, or highway construction companies—thrive or die by the politicians who are in office.
According to online sources, the company’s senior executives donated several thousand dollars to Democrat Representative Ron Kind’s campaign in the past and, although there have been some contributions made to Repblicans, the company has also, apparently, supported former Democrat Senate majority leader Russell Decker who drew the ire of state unions back in 2010.
While the Left wants so desperately to use Hoffman Construction Company’s threat to “relocate a portion” of its business to Minnesota against Scott Walker and the passage of Right-to-Work, while there may be some correlation, the company’s expansion into Minnesota to chase more government money appears to be more of a sound business decision than anything else.
Just as importantly, however, it does not appear that the company will be closing its Wisconsin operations entirely anytime soon.
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“Truth isn’t mean. It’s truth.”
Andrew Breitbart (1969-2012)
The quotes from Mr Hoffman contradict your conclusion and validate that it was right to work and the upcoming prevailing wage bill that were his reason to relocate his “corporate offices” (you left that part off – meaning they are exempt from taxes here). Minnesota has increased taxes on the top 2% and reduced taxes for the bottom 98% while building a surplus in the process. That was all passed by both republican houses btw. Minnesota is kicking our ass in jobs and businesses are flocking there. Good for Hoffman. And ps, if you don’t support gov’t financed roads, stop driving or get used to paying huge tolls based on who uses the roads and who doesn’t.
Hoffman just picked up a $48 Million contract from Wisconsin DOT. They aren’t leaving Wisconsin.
Typical leftist propaganda they only show what makes them sound better. Right to work is the best thing to do. I kmow many whonhave union jobs but do not want to be in a union but have to because they will lose their jobs. I have walked out of interviews the moment they sayit is part of a union i am not giving my hard earned money to pad someone’s pocket
@nick – Oh, so do I understand that you want the wage and benefits of the union WITHOUT having union membership and pay union dues? That’s good except that it doesn’t fit the definition of ‘fair’ and qualifies you as a bona fide FREE LOADER ! But, I know you won’t see it that way. Let me know how you’re doing when the jobs available only offer you a sub-standard wage with no benefits and you have to have 2 of them to support you lifestyle.
btw: get a dictionary and look up ‘oligarchy’ and ‘plutocracy’
never mind, I did it for you:
Oligarchy – government or control by a small group of people
Plutocracy – a country that is ruled by the richest people
Ultimately, the real reason is that fact that Minnesota’s economy is doing well BECAUSE of liberal politics as compared to Walker’s (and many other Red State governors) destruction of the state economy. You can pick apart the details all you want to no good end. This piece does nothing to counter the reports about the company supposedly leaving the state of Wisconsin and only serves to bolster the reality that Repiglicans CANNOT do economy.