Business Leader: Don’t Use Job Training Funds to Plug Deficit

Business Leader: Don’t Use Job Training Funds to Plug Deficit

Local business leaders rallied Thursday at the Statehouse to oppose a plan to suspend the Workforce Training Grant program in 2010. At stake is about $2.5 million used for training and other business support services, according to the East Providence Area Chamber of Commerce. Karl Wadensten, President of VIBCO in Wyoming, RI, spoke with GoLocalProv about why the program is important—and how the business community plans to save it. VIBCO was a recipient of the grant in 2008.  For video of the rally, click here.

1. Given these tough economic times and the struggle with the budget deficit, why is it important to save this one program?

In times of economic distress, it’s always industry that drives progress and restores growth with new technology and innovation, not the government. Ninety nine percent of the time, government is going to get it wrong and industry is going to get it right. In an economic downturn, that’s the time to invest in your people and in your training, not cut dollars.

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2. How has this grant helped your company?

VIBCO used the grant support to transform our organizational culture and train our entire workforce on ‘lean’ manufacturing. As a result, VIBCO has had zero layoffs throughout the economic downturn. We have a 40-hour work week. No one has had their hours cut or been forced to take unpaid leave. We added two new employees. We have a ‘Help Wanted’ sign in front of our building.

3. Why does the General Assembly want to take away these funds?

Because they have gaping holes in the budget and they’re looking for cash wherever they can find it. They saw this pool of money and decided it was takeable ... and I bet there are a bunch of other pools of money that fall into the same category. Right now, I care about this one... because this pool of money was funded by a payroll tax on businesses with the promise that it would be invested in training... and it actually creates jobs and supports growth. I’m sure that that they weren’t expecting the business community to react like we have. 

4. How are you rallying businesses to oppose this?

Word of mouth—the old-fashioned way, like Paul Revere. You know there were two riders when the British came? This is good, old-fashioned networking. We’re telling groups to call everybody and anybody. This is an event that really affects everybody. It affects consultants, it affects universities…. If we can’t rally people on this, then we’re in deep trouble.

5. What message do you hope to send to lawmakers at your rally on Thursday?

I’d hope that the Legislature realizes that business leaders are working very hard to do more with less and that we are expecting the same from them and that they should stop robbing business owners, that they find other avenues of closing the budget gap. If they want to learn about ‘lean’ any one of them can come down to VIBCO and talk to our employees, really see how we are saving minutes, seconds, hours every day to add more value and grow our business. Our doors are always open, we have access to unbelievable ‘lean’ resources and people, and we would love to show each and every legislator that there is a better way.