Interesting N&R letter to the editor on the TIMCO-Honda Aircraft controversy:
The last time I checked, Americans were free to be employed by anyone who wanted to hire them. Imagine my surprise to find out that John Cawthron, TIMCO CEO, seems to think otherwise.
Remember that Cawthron cited incentives offered up to Honda as a major factor in his competition’s ability to lure engineers. But this thread over at the N&R’s Debatables blog indicates that working conditions at TIMCO might be causing employees to jump ship.
That said, “Off the Point” has the fundamental point in mind:
The fundemental issue is the fairness of subsidies. We all want to see the Triad grow and prosper. When subsidies are provided to companies entering the area they are based on job growth. The problem is that there is not a distinction between new jobs created and employees hired from other local companies. So the new company locating in the Triad receives incentives like a 75% reduction in state payroll taxes (Honda’s incentive). This means that the new company can pay its employees more than the existing company creating an unfair advantage. Now the existing company is forced to replace their lost worker and incur employment and or training costs while not recieving any subsidies to do so. TIMCO has a point and has raised a very difficult issue to the surface.
