THU AM News: Evers touts role of building trades, importance of child care for workforce; Assembly committee members question elements of child care proposal

— Gov. Tony Evers is touting the role of the building trades in various state economic development efforts, such as expanding broadband and improving transportation infrastructure. 

Speaking yesterday as part of the North America’s Building Trades Unions national road tour, Evers noted construction projects at UW System campuses, state parks and other public facilities “wouldn’t have been possible” without the efforts of partners in the trades. 

“I don’t have to tell you, Wisconsin faces a chronic workforce challenge,” Evers said at an apprenticeship training facility in Milwaukee. “For years, addressing these challenges has been a priority of mine and all of yours … We’ve been working year after year to restore collective bargaining rights and minimum wage protections, as well as supporting project labor agreements and dumping right-to-work laws. And we’ll continue that fight.” 

Much of yesterday’s event focused on the importance of expanding affordable child care to support the workforce. Evers and other speakers noted the state’s shortage of child care options results in more parents staying out of the labor force to take care of their kids, especially women. 

The guv has called a special session of the Legislature on Sept. 20 to take up a workforce development package that would provide state funds for child care provider subsidies. But Republicans have rejected that call, preferring to pare back regulations on these providers. 

Evers yesterday said “we’re fighting like hell to ensure the Republicans in the Legislature understand just how important child care is to the success of our workforce. They’re connected.” 

NABTU President Sean McGarvey highlighted a child care subsidy program being piloted by the Washington, D.C.-based nonprofit TradesFutures and local labor councils in New York City and Milwaukee. 

“The cost of these pilots is significant, extremely expensive,” he said. “We’re funding this ourselves at NABTU, so we can beta test to see what the pluses and minuses are, work with the communities that we’re working in.” 

Nicole Schwartz, executive director of TradesFutures and a former teacher for Milwaukee Public Schools, said the pilot programs aim to identify solutions for supporting women in the industry. According to the nonprofit’s website, the Milwaukee pilot will provide 12 months of financial assistance for child care needs to 10 tradeswomen or apprentices. 

“What we hope to be able to do for this pilot project is to provide data and real guidance to policymakers, local partners, how they can really form the future of care,” she said. 

Dem U.S. Rep. Gwen Moore yesterday applauded the building trades groups “for leaning into” the child care issue. 

“I know there are single male fathers, but let’s face it y’all, this is a problem that primarily falls on the backs of women … We need to have child care, so that we can work too,” the Milwaukee Dem said. 

See more on the pilot project here: https://tradesfutures.org/initiatives/child-care-pilot/ 

— Assembly Ways and Means Committee members cited concerns about a lack of incentives for businesses to participate in a proposal seeking to help Wisconsinites cover child care costs.

AB 387 would create accounts in which parents, guardians, family members, employers and others could contribute a combined $10,000 a year to pay for child care expenses. The proposal would also allow those contributing to the child care reimbursement account with a parent or guardian’s approval to deduct the donation from their state taxes.

Co-author Rep. Joy Goeben, R-Hobart, at yesterday’s hearing said the bill would help ease the economic burden of child care for parents and employers. She noted employers could offer a partial or full contribution to employees as a benefit for employment.

The bill is part of a larger six-bill package to address child care concerns as Gov. Tony Evers pressures the GOP-led Legislature to act on the issue.

Rep. Rob Brooks argued the need to issue a 1099 tax form to be sent to the IRS could discourage businesses from contributing to the accounts, which the Saukville Republican said is “problematic at best.”

Leg Council attorney Scott Grosz explained to committee members child care expenses covered by businesses are considered compensation, similar to a salary. He said state law doesn’t allow deductions for something that is already considered a business expense.

See more coverage at WisPolitics: https://www.wispolitics.com/2023/wed-pm-update-evers-vows-to-veto-gops-3-billion-tax-cut-as-bill-clears-assembly-committee/ 

— Dem lawmakers have reintroduced legislation to eliminate the tipped minimum wage.

During a news conference yesterday, state Sen. Chris Larson, D-Milwaukee, said the change would especially help “women, who are sadly incentivized to tolerate harassment.” He said tipped workers often straddle the poverty line and rely on public benefits to survive. He mentioned that some do not even earn enough to meet unemployment benefit thresholds.

Currently, businesses can pay tipped workers $2.13 or $2.33 per hour — depending on their age and length of employment — if their total weekly pay with tips meets the state’s $7.25 per hour minimum wage. The bill would end that practice.

Bill cosponsor Rep. Francesca Hong, D-Madison, said restaurants are integral to local economies and support other industries such as farming. Hong, a restaurant owner herself who pays her employees at least $15 an hour, argued increasing minimum wage would reduce turnovers and hiring costs.

“I know that creating more financial stability for my workers is good for business,” she said. “Everyone is entitled to a living wage, and we shouldn’t have an industry where workers have to rely on the arbitrariness of tips to live that right.”

Cadre restaurant owner Evan Dannells argued this legislation would make the service industry more career-oriented. He stated most servers view their jobs as transitory because tipped minimum wage means they work for the consumer, not the establishment that hired them.

“Servers will have hours or days where they’re just scraping to make minimum wage, and they’ll have another hour or day where they’ll make a ton of money. It’s at the whims of the consumer,” he said.

— A food and beverage manufacturer called DreamPak has announced plans for a $5 million expansion to its New Berlin facilities. 

The company, which makes drink mixes, liquid creamers, instant meals and dietary supplements, was founded in 2000 by President and CEO Aly Gamay. 

Company leaders and local officials recently broke ground on the 50,000-square-foot addition, the release shows. DreamPak’s current manufacturing headquarters was purchased about 10 years ago, and the company says the extra space will support additional processing, filling and storage for its liquid concentrate business. 

In a statement on the expansion, Gamay says the move will add “many jobs” to the local economy. 

“We have a very ambitious goal of becoming the go-to partner for our retail partners in several major center store categories, and we could not start this journey without the commitment of everybody standing here today,” Gamay said. 

According to the release, the business also plans to continue developing the six-acre land parcel in the coming years and lease space in the local business park for other projects. 

See more details in the release, including a photo of the groundbreaking: https://www.prnewswire.com/news-releases/leading-beverage-manufacturer-announces-5-million-facility-expansion-301917746.html 

— The boards of Froedtert Health and ThedaCare have finalized an agreement detailing the planned merger between the two health systems. 

The move comes after the two organizations earlier this year announced they had signed a letter of intent to combine into a larger health system. Froedtert is currently based in Milwaukee, and ThedaCare is based in Neenah. 

Jud Snyder, chair of Froedtert Health’s board of directors, says the merger aims to “make a lasting impact” on the future of health care in Wisconsin. 

“This milestone represents important progress towards achieving that goal, and we are excited to have reached this point,” Snyder said yesterday in a statement. 

The health systems are still planning to launch as a combined entity by the start of 2024. 

See the release: https://www.wisbusiness.com/2023/froedtert-health-thedacare-sign-definitive-agreement-to-combine-organizations/ 

See an earlier story on hospital mergers in Wisconsin: https://www.wisbusiness.com/2023/hospitals-merging-amid-industry-challenges/ 

<br><b><i>Top headlines from the Health Care Report…</b></i> 

— State health officials are tracking a rise in COVID-19 virus levels in wastewater across Wisconsin as hospitalizations increase in some areas. 

<i>For more of the most relevant news on COVID-19, reports on groundbreaking health research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics.com and WisBusiness.com.</i> 

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#TOP STORIES#

# DSPS licensing times down, number of approvals up, Evers says

# Bradley Corp. to be acquired in $303 million deal

# Eight short term, high impact projects at UW–Madison funded by state sponsored Dairy Innovation Hub

http://wisconsinagconnection.com/story-state.php?Id=823&yr=2023 

#TOPICS#

# AGRIBUSINESS 

– Prairie Farms Dairy wins big at World Dairy Expo

http://wisconsinagconnection.com/story-state.php?Id=825&yr=2023 

# CONSTRUCTION 

– Milwaukee seeks ‘landmark quality’ development proposals for Marcus Center parking structure

https://www.bizjournals.com/milwaukee/news/2023/09/06/marcus-performing-arts-center-downtown-development.html

– City seeks redevelopment proposals for Marcus Performing Arts Center parking structure

# ECONOMY 

– Despite low unemployment, new report shows Wisconsin’s economy is leaving some workers behind

https://www.wpr.org/despite-low-unemployment-new-report-shows-wisconsins-economy-leaving-some-workers-behind

# ENVIRONMENT 

– A Great Lakes wetland monitoring program is aiding efforts to clean up a polluted hotspot in Wisconsin

https://www.wpr.org/great-lakes-wetland-monitoring-program-aiding-efforts-clean-polluted-hotspot-wisconsin

– PFAS found in Wisconsin River, several North Woods lakes

https://www.jsonline.com/story/news/local/wisconsin/2023/09/06/pfas-found-in-wisconsin-river-several-lakes-near-stella/70716694007/

# FOOD AND BEVERAGE

– The Buzz: What we know about Taste of Thai reopening

https://www.postcrescent.com/story/money/companies/buzz/2023/09/06/taste-of-thai-is-reopening-in-a-new-location/70741272007/

# HEALTH CARE 

– Froedtert Health, ThedaCare ink definitive merger agreement

https://www.bizjournals.com/milwaukee/news/2023/09/06/froedtert-thedacare-on-track-to-close-merger.html

– Frodtert, ThedaCare sign definitive agreement to merge into one health system

# LABOR 

– Here’s what 4 employees hope to remember about Day Street Mill’s 122 years

https://www.greenbaypressgazette.com/story/money/2023/09/06/as-georgia-pacific-closes-day-street-mill-employees-share-memories/70552489007/

# MANUFACTURING 

– Menomonee Falls-based Bradley Corp. to be acquired for $303 million

https://www.jsonline.com/story/money/business/2023/09/06/menomonee-falls-based-bradley-corp-to-be-acquired-for-303-million/70776089007/

– Rockwell Automation to acquire Canadian robotics company

# POLITICS 

– Roadside zoos would be exempt from DNR licensing requirements under GOP proposal

https://www.wpr.org/roadside-zoos-would-be-exempt-dnr-licensing-requirements-under-gop-proposal

# REAL ESTATE 

– Pabst Farms development unveiled with town center, innovation hub, food hall and apartments

https://www.bizjournals.com/milwaukee/news/2023/09/06/pabst-farms-wingspan-development.html

# RETAIL 

– Milwaukee food hall owner leaves trail of broken promises, vendors say

https://www.jsonline.com/story/entertainment/dining/2023/09/06/milwaukees-paper-table-owner-breaks-promises-vendors-say/70598766007/

# SMALL BUSINESS 

– Alamo Pizzeria moved to University Avenue in Green Bay in search of a restart l Streetwise

https://www.greenbaypressgazette.com/story/money/companies/2023/09/06/alamo-pizzeria-family-owned-restaurant-thrives-at-green-bay-location/70712168007/

# TECHNOLOGY

– German firm testing battery tech in Milwaukee expands U.S. pilot efforts

https://www.bizjournals.com/milwaukee/inno/stories/news/2023/09/05/wec-teams-with-cmblu-energy-long-duration-storage.html

# PRESS RELEASES

<i>See these and other press releases: 

https://www.wisbusiness.com/press-releases/ </i>

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