By State Senator
Dan Debicella
Last month I toured
Sikorsky Aircraft in Stratford and had a chance to talk
with both management and union workers. As the largest private
employer in our area, Sikorsky’s success is critical
to our economy and our quality of life. I am delighted to
report that business is booming, employment is increasing,
and much of the management-labor tension of the recent past
is behind us. Equally important, Sikorsky serves as a great
example of how Connecticut government can help promote job
creation and economic growth.
I toured both the military
and commercial aircraft operations, both of which are impressive.
Anyone would be impressed with the engineering and manufacturing
complexity of creating helicopters, but I was also impressed
with how busy the employees were. Everyone was working hard
to ensure that the helicopters were completed on time. I
also felt pride and awe when looking at the flags next to
each military helicopter, indicating whether each was bound
for Iraq, Afghanistan, or elsewhere to transport and protect
our troops.
Sikorsky’s turnaround
over the past two decades has been nothing short of amazing.
After the Cold War ended in 1991, Sikorsky faced several
years of declining revenues in its military business. But
the company began a program of diversifying into commercial
aircraft that now makes up half of its business. Instead
of the end of the Cold War resulting in massive job losses,
Sikorsky has been creating jobs this decade—up to
8,400 employees today from 7,000 in 2005.
I also had a chance to
talk to a large number of people during my tour. I met with
Jeff Pino, President of Sikorsky, to discuss the company’s
strategy. We discussed Sikorsky’s continuing commitment
to Connecticut, and how we in the legislature can make Connecticut
a more business friendly place. I also got to talk with
a number of foremen and employees on the floor, who were
all enthusiastic about their jobs; for many of them, there
was a sense of a larger mission in what they were doing.
Best of all, I go to see my Uncle Tommy, who has worked
at Sikorsky as a foreman for over twenty years.
Sikorsky plays an important
role in our regional and state economy. The key question
for us legislators is how we can help Sikorsky create more
jobs in Connecticut. As Sikorsky expands, it will have the
ability to create new jobs anywhere. We want those new jobs
here in Connecticut. To make that happen, we need to make
sure that Connecticut is competitive with other states and
other countries.
State government needs
to do several things to make Connecticut more business friendly.
First, we have to ensure that we are being thoughtful about
business regulation. I have proposed a new law to require
a cost/benefit analysis on all new and existing regulation—we
should only impose regulations on business if the resulting
benefits to society outweigh the costs.
Second, we need to lower
the cost of doing business in Connecticut. It is no secret
that we have high labor costs, but the real problem is that
we have many other costs that make us uncompetitive with
states like Virginia and Nevada. Our business taxes are
too high. We have high workers’ compensation insurance
costs. Companies need to spend thousands on lawyers simply
to secure permits from state government. The legislature
needs to lower the cost of doing business so that companies
can consider adding jobs in Connecticut.
Third, we need to deal
with the quality of life issues that prevent new businesses
from coming to Connecticut. Traffic and housing costs are
two of the biggest issues. Traffic in Fairfield County is
deterring businesses because it becomes more expensive to
move their products and inconvenient for their employees.
The high cost of housing means companies have to pay higher
salaries to attract good employees. Traffic and housing
costs not only impact the quality of life for our families,
but increases the cost of doing business in Connecticut.
My job creation bill
that became law this year is an example of the pro-business
legislation that we need here in Connecticut. The new law
says that any corporation that creates ten jobs or more
in a given year will get a tax credit equal to those new
employees’ state withholding tax. This essentially
gives companies a “bonus” for creating jobs,
giving them the funds – and the incentive - to hire
still more people. Instead of hiring 20 people in a year,
my tax credit could convince a business to create 25. My
hope is that Sikorsky (and its parent UTC) take advantage
of this tax credit and continue to create more jobs in Connecticut.
My trip to Sikorsky was
great—it gave me both insights into the largest employer
in my district, and it demonstrated to me how we in government
can create the environment that allows business to thrive.
And a strong economy creating good middle-class jobs is
a platform that we can all get behind.
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