We have all heard about the large number of high paying jobs that will be found at any new intermodal or logistics facility in LaPorte County. In fact, the vast majority of positions offered will be in the $9 to $13 per hour range ($18720 to $27040 annually) with little or no benefits - as reported by the Elwood Village administrator (Aimee Ingalls) in regards to the CenterPoint facility. This was stated during the Task Force visit to Elwood, IL early in the spring of 2008.

You could see the disappointment on Matt Reardon's face when Ms Ingalls provided this figure. Yet, how could he not have known the actual wage range in advance? Check for yourself - try to find a warehouse job paying over $13 per hour:
 

We ask where he got his information? We know he was sincere but we think he was just plain wrong. The $18.00 per hour jobs would be temporary construction work - not permanent jobs with the opportunity to advance.

Wal-Mart has two warehouses at Elwood with about 1.5 million square feet of floorspace - EACH. Wal-Mart has eight managers on site (for 3 million square feet of warehouse) and all other employees (with a few exceptions) are employed by contractors who provide the entire warehouse labor force. Let's assume the managers are "well paid."

The remainder of the workforce at Wal-Mart will be in the range described by Ms. Ingalls.

It has been suggested that an intermodal facility here in LaPorte County would pay higher wages than in Elwood. We ask why they would do us any favors? Why would they pay more than prevailing wages? They will come here to take advantage of the lower cost of doing business. Not to pay our workers a penny more than they need to.

INDIANA BUSINESS OPERATING COST SAVINGS VS. ILLINOIS:

1. Payroll = 16% average savings

2. Average Manufacturing Workers' Compensation = 57% savings

3. Average Unemployment Insurance = 58% savings

4. Average Workers' Compensation Rate for Manufacturing = 48% savings

5. State Business Tax = 37% savings

6. Average Industrial Electricity = Up to 4%

7. Water = 6% average savings

8. Cost of Living Index = 11% savings

9. Average Industrial Building Construction = 16% savings NW Indiana vs. Greater Chicago

10. Property Taxes = 58% average saving LaPorte County vs. Greater Chicago 

They can't have it both ways - our wages ARE lower for warehouse jobs. Why would a labor contractor pay more?

Look, a simple professional study can provide an accurate indication of wages paid in such a facility. Don't depend on anecdotal figures provided by those either in favor or against logistics development. The figures are out there.

GET THE FACTS, Task Force, GET THE FACTS. Don't approve a logistics facility for $11.00 poverty level jobs.

You see a lot of wage figures trotted out to support one argument or another in regards to who makes what while working warehouse jobs. Let us provide some basics to work with.

First of all, a work year is considered to have 2080 work hours which would include two weeks of paid vacation. Not all beginning employees will be elegible for one week of vacation (after a year), much less two weeks of vacation. One question to consider is whether a particular job offers any vacation at all - or for that matter, any health benefits.

For practical purposes, then, divide an annual salary by 2080 hours in the year and you have your basic hourly rate of pay. This may or may not include a week or two of vacation pay.

Poverty Level, 48 contiguous states:

Persons in  Family Unit	Annual Income	Hourly Wage
1	$10,400	5.00
2	$14,000	6.73
3	$17,600	8.46
4	$21,200	10.19
5	$24,800	11.92
6	$28,400	13.65
7	$32,000	15.38
8	$35,600	17.12

For each additional person, add  $3,600
SOURCE:  Federal Register, Vol. 73, No. 15, 
January 23, 2008, pp. 3971–3972.

There were 2,658 unemployed people in LaPorte County in 2007. How many are qualified to hold the positions to be created? All jobs require drug clearance, a majority will require certain physical abilities? How many unemployed people live in Union Mills?

The first question for the task force - and the commissioners - is how many jobs will be created at each level over time. Some of the job creation figures we've all heard would indicate there are not enough unemployed people in LaPorte County to fill the number of positions promised. Where will the remaining needed employees live? Where do they live now? How will they get to work?

People living below the poverty line (remember the figures above don't take into account the doubling of the price of gasoline and heating fuels (electricity, oil, natural gas) in the last year. What happens if crude oil goes up to $200 per barrel next year? In two years? 

Will a logistics facility stand empty and unleased if employees cannot afford to get to work? Shall we have a federally subsidized bus route from Gary, Michigan City and LaPorte to bring workers to Union Mills?

Joliet has such a bus service to Elwood - subsidy paid by the taxpayers. The Elwood Village Adminstrator tells us no one rides that bus - in spite of the fact that the scheduled runs coincide with shift changes at CenterPoint. I suspect there are at least SOME riders, right?

Why isn't the task force finding out the answers to these basic questions?