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November 5, 2007

A Trip to Sikorsky

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.