Governor Doyle: Calls on Federal Government to Act Now to Stop Loss of Manufacturing Jobs

Contact:
Jessica Erickson, Office of the Governor, 608-261-2156

Wisconsin Has Lost More than 84,000 Manufacturing Jobs in the Last Four
Years;
Joins Michigan Governor Granholm, Pennsylvania Governor Rendell in Meetings
Tuesday in Washington, D.C. with Top Members of Congress and Bush
Administration

WASHINGTON, D.C. – Wisconsin Governor Jim Doyle today joined
with Michigan Governor Jennifer Granholm and Pennsylvania Governor Ed
Rendell in calling on the federal government to provide leadership to stop
the loss of manufacturing jobs and help the nation’s manufacturers stay
competitive in the global economy.

“Manufacturing has been hit very hard around the country by
the recent recession, and Wisconsin is no exception,” Governor Doyle said.
“In the last four years, the United States has lost more than 2.4 million
manufacturing jobs, including more than 84,000 in Wisconsin. Wisconsin is
taking innovative steps at the state level to bolster our traditional
manufacturing base, but we need leadership in Washington to help us save our
manufacturing jobs.”

The three Governors met today with top members of Congress
and the Bush Administration to outline steps the federal government must
take to address the loss of manufacturing jobs across the United States.
They also presented their manufacturing agenda and concerns at a Capitol
Hill Forum on manufacturing with members of Congress.

At the forum, Governor Doyle outlined six action steps the
federal government must take immediately to help upgrade manufacturing in
Wisconsin.

“In Wisconsin, we’ve learned that the way to help
manufacturing is to focus on competing at the high end – through job
training, upgrades in equipment and technology, and access to investment
capital,” Governor Doyle said. “We will never compete for low-wage jobs,
but Wisconsin companies like Harley-Davidson have shown that when you
compete at the high end you can succeed.”

“Unfortunately, the federal government has not had the same
kind of strategic vision when it comes to manufacturing,” the Governor said.
“Industrial states like Wisconsin, Michigan, and Pennsylvania have not had a
strong partner in the federal government. We need a real strategy coming
from Washington that will help our manufacturers move to the high end.”

Governor Doyle’s six action steps are:

1. Restore Full Funding to the Manufacturing Extension Partnership
Program (MEP)

The Governor is calling on Congress to restore full
funding to MEP, which was cut by nearly 63 percent in the fiscal year 2004.
The Administration’s current budget request proposes to maintain those cuts,
not even allowing an increase for inflation. A partnership between the
federal government, the states, and small manufacturers, the program
provides federal funds to local organizations that help small and medium
sized American manufacturers modernize to stay competitive and improve
productivity.

The program is critical to helping these
manufacturers compete in an increasingly competitive global economy. Over
the past year and a half, MEP has helped small manufacturers create or
retain more than 35,000 jobs throughout the country, increase sales by $953
million, and realize $681 million in cost savings. The program has also
helped businesses invest over $940 million in the modernization of plants,
equipment, information systems, and workforce training.

“Now is not the time to turn our back on our
manufacturers,” Governor Doyle said. “I urge Congress to restore funding to
this program, and help our small and medium sized manufacturers remain
competitive and keep jobs here in the United States.”

2. Enforce Trade Agreements and Protect Intellectual Property

Governor Doyle is calling on the Administration to
make certain that trade agreements are enforced, and that new trade
agreements are not negotiated on the backs of workers.

“Free trade must be fair trade. We can’t put up a
wall and stop jobs from going overseas, but we should do everything we can
to help our industries compete,” Governor Doyle said. “This Administration
must focus on increasing our exports, opening up new markets, taking down
non-tariff trade barriers, and improving the balance of trade with the
international community.”

The Governor has sent a letter to U.S. Trade
Representative Robert Zoellick asking him to pursue commitments from China
to reduce piracy in an extensive and meaningful way.

3. Fund Federal Training and Retraining Programs for Manufacturing
Workers

The Governor is calling on Congress to increase
funding for the Trade Adjustment Assistance (TAA) program, which provides
retraining, income support, health insurance tax credits, and other benefits
for workers who lose their jobs due to trade.

“The United States has the best workers in the
world, and we need to give them the skills they need to compete for
high-end, high-wage manufacturing jobs,” Governor Doyle said. “Congress
must fund effective federal training and retraining programs for
manufacturing workers – especially high-wage, high-skill workers.”

4. Extend Unemployment Insurance

Congress must act immediately to extend unemployment
insurance so that those who are unemployed are able to support their
families while they actively seek new employment, Governor Doyle said.

5. Enact Corporate Tax Reform Bill to Protect U.S. Companies from High
Tariffs

Governor Doyle is calling on Congress to pass the
corporate tax reform bill to protect American companies from high tariffs
imposed by the European Union on a broad range of U.S. products.

“This bill would bring us into compliance with
requirements of the World Trade Organization, while also ensuring that we
can continue to reward manufacturers that keep jobs in our country,” the
Governor said.

6. Provide National Leadership to Control the Rising Cost of Health
Care

The Governor is urging the federal government to provide
national leadership and aggressive federal action to control the rising cost
of health care.

“As I travel throughout Wisconsin, one of the key concerns I
often hear from manufacturers is that their health care costs alone often
exceed the entire labor costs of their competitors in other countries,”
Governor Doyle said. “We’re doing some innovative things in Wisconsin to
control these costs, but skyrocketing health care costs is a problem all
across the country, and what we need now is national leadership on health
care.”

Governor Doyle has made revitalizing and upgrading
manufacturing a major part of his economic development initiative, “Grow
Wisconsin.” The Governor’s plan represents a comprehensive effort to
upgrade Wisconsin’s economy and generate a billion dollars in public and
private investment, starting with core industries like manufacturing.

The vast majority of bills the Governor called for in “Grow
Wisconsin” have been signed into law. Successful measures include:
eliminating the tax on creating jobs, modernizing Wisconsin’s financial
industry, expanding broadband and telecommunications services, unleashing
more venture capital in Wisconsin, expanding access to technology zone tax
credits, and providing funding to manufacturing extension programs to help
small manufacturers modernize, stay competitive, and create new jobs.