Wisconsin governor wants to renegotiate Foxconn deal, says promised jobs unlikely

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Wisconsin Governor Tony Evers is calling for the state to renegotiate its deal with Foxconn, arguing that the Taiwan-based manufacturer has broken its end of the agreement and won't be able to create the 13,000 jobs it once promised.

Image Credit: Mike De Sisti/Milwaukee Journal Sentinel
Image Credit: Mike De Sisti/Milwaukee Journal Sentinel


"Clearly the deal that was struck is no longer in play and so we will be working with individuals at Foxconn and of course with [the Wisconsin Economic Development Corp.] to figure out how a new set of parameters should be negotiated," Evers told news outlets including the Journal Sentinel.

The current arrangement offers Foxconn up to $4 billion in state and local handouts in exchange for a factory in Mount Pleasant, as well as a variety of satellite offices. Evers noted that the company is "downsizing the footprint of what they're doing," making it "difficult to imagine" the firm hitting 13,000 jobs.

"I think we're at a point now where we're relatively confident that the original footprint of that project is going to be much smaller but it seems to be a footprint that everybody agrees is likely," the governor added.

Foxconn's Wisconsin project was started under Republican Gov. Scott Walker with the support of President Donald Trump. Evers, a Democrat, won an election in November partly under the promise that he would hold Foxconn accountable for its lack of progress. Meaningful construction has yet to start at the factory and multiple satellite offices are still unoccupied.

Walker effectively sabotaged Evers' power in the matter before leaving office. He signed a bill moving Foxconn's liaison out of the governor's office into the WEDC, while simultaneously making it impossible for Evers to choose a new WEDC CEO until this September.

The factory was originally announced as an LCD production plant, with brief speculation that Apple could become a client. At one point Foxconn admitted it couldn't build LCDs in Wisconsin and stay competitive, and since then promises have shifted to include "AI 8K+5G" research.

Foxconn's development progress has been so slow that the company has yet to meet targets necessary for job creation or investment subsidies. Racine County and Mount Pleasant, however, have already borrowed some $350 million towards buying land and building infrastructure.
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Comments

  • Reply 1 of 71
    We voted the right person into office this time around. 
    tyler82ronnchasmrobertwalterGeorgeBMacbaconstangleftoverbacon
  • Reply 2 of 71
    Scott Walker screwed the citizens of Wisconsin when pushing this deal, knowing it would be no where near the promised levels of job creation.  He further crapped on the citizenry by hamstringing the incoming administration.  Petty ass politician didn't give a crap about the people he was supposed to represent.  But at least he owned the Dems, so it wasn't a total loss.  /s
    ronnn2itivguytmaychasmroundaboutnowStrangeDaysGeorgeBMacbaconstang
  • Reply 3 of 71
    tyler82tyler82 Posts: 876member
    Reminds me of the Amazon boondoggle in New York that was going to cost taxpayers $48,000 per job in subsidies. Some think it is up to the taxpayers to pay for a corporation's costs. I am on the left side of that fence.
    ronnn2itivguychasmbaconstang
  • Reply 4 of 71
    kestralkestral Posts: 251member
    You could say they got outFOXed and CONNed.
    n2itivguychasmGeorgeBMac
  • Reply 5 of 71
    lkrupplkrupp Posts: 7,162member
    Manufacturing is NOT coming back to America, at least not the kind that produces lots of good paying jobs. Why can’t we get this through our thick skulls? We fall for the dog and pony show every time some company waves the “JOBS” flag in our faces. 
    n2itivguymacxpresschasmGeorgeBMac
  • Reply 6 of 71
    lkrupplkrupp Posts: 7,162member
    Scott Walker screwed the citizens of Wisconsin when pushing this deal, knowing it would be no where near the promised levels of job creation.  He further crapped on the citizenry by hamstringing the incoming administration.  Petty ass politician didn't give a crap about the people he was supposed to represent.  But at least he owned the Dems, so it wasn't a total loss.  /s
    The “Dems” would have fallen for it too. Both parties are in lock step when it comes to this sort of chicanery. Promise a chicken in every pot, as the old saying goes. And let’s not forget the current trashcan Mac Pro is “assembled” in the U.S. so Apple can claim it manufactures here. Don’t pay any attention to that man behind the curtain, the Wizard of OZ said to Dorothy.
    edited April 17 chasmGeorgeBMac
  • Reply 7 of 71
    65026502 Posts: 276member
    lkrupp said:
    Manufacturing is NOT coming back to America, at least not the kind that produces lots of good paying jobs. Why can’t we get this through our thick skulls? We fall for the dog and pony show every time some company waves the “JOBS” flag in our faces. 
    Because not all of us are defeatists. Not all of us want to be subservient to China. Can't wait for the next war we lose since we don't know how to make ball bearing anymore.

    But sure, I'm happy our largest employer is Walmart and not GM or US Steel.
    tmaybaconstangleftoverbacon
  • Reply 8 of 71
    65026502 Posts: 276member
    tyler82 said:
    Reminds me of the Amazon boondoggle in New York that was going to cost taxpayers $48,000 per job in subsidies. Some think it is up to the taxpayers to pay for a corporation's costs. I am on the left side of that fence.
    That would have been made back in a year or two, if it was even that much. It's call return on investment.
    GeorgeBMac
  • Reply 9 of 71
    65026502 Posts: 276member
    Scott Walker screwed the citizens of Wisconsin when pushing this deal, knowing it would be no where near the promised levels of job creation.  He further crapped on the citizenry by hamstringing the incoming administration.  Petty ass politician didn't give a crap about the people he was supposed to represent.  But at least he owned the Dems, so it wasn't a total loss.  /s
    Kinda like Solyndra. Oh wait, we don't talk about that because that was a democrat screw up.
  • Reply 10 of 71
    eriamjheriamjh Posts: 1,138member
    Tax breaks and benefits should always be contingent on the company meeting their side of the bargain FIRST.  
    chasmbaconstang
  • Reply 11 of 71
    65026502 Posts: 276member
    eriamjh said:
    Tax breaks and benefits should always be contingent on the company meeting their side of the bargain FIRST.  
    If they can build it and hire 3000 people then they wouldn't need the tax breaks to begin with. But I agree more assurances are needed and maybe a cancelation fee too.
  • Reply 12 of 71
    dewmedewme Posts: 2,123member
    lkrupp said:
    Scott Walker screwed the citizens of Wisconsin when pushing this deal, knowing it would be no where near the promised levels of job creation.  He further crapped on the citizenry by hamstringing the incoming administration.  Petty ass politician didn't give a crap about the people he was supposed to represent.  But at least he owned the Dems, so it wasn't a total loss.  /s
    The “Dems” would have fallen for it too. Both parties are in lock step when it comes to this sort of chicanery. Promise a chicken in every pot, as the old saying goes. And let’s not forget the current trashcan Mac Pro is “assembled” in the U.S. so Apple can claim it manufactures here. Don’t pay any attention to that man behind the curtain, the Wizard of OZ said to Dorothy.
    Politicians of every ilk are just as vulnerable to short term quick fix mentality as the rest of society and business. Very few people have the intestinal fortitude to take on difficult, grind-it-out, focus on winning-the-protracted-war projects anymore. I've experienced the same mindset at every single organization that I've been associated with throughout my life, regardless of political affiliation, nationality, education level, or whatever human attribute you want to pick. Nobody wants to take on hard challenges or wait for the fruits of their labor to pay back over time. Everyone wants a quick fix, immediate gratification, and an ROI that pays back over the next quarter at worst. If the task at hand is very hard to accomplish they'll just kick the can down the road and leave things that are breaking or already broken in a state of decay. It's not laziness either, it's just basic human nature. The sad part is that people fritter away a great deal of time, effort, and resources on an infinite number of easy tasks in pursuit of celebratory champagne toasts and cake cutting ceremonies while the hard stuff continues to pile up in an ever expanding dung heap around them. The primary focus of leaders, followers, and the average slobbish inhabitant of Earth is to always stay one or two steps ahead of the constantly growing stench of the dung heap while the taste of cake and champagne is still somewhat fresh in their memory.

    How many times have you been working on a tough project that had gotten into the "death march" or "trench warfare" grind only to have management start looking for ways to harvest the "low hanging fruit" just to deliver somewhat of a victory sooner rather than later? As it turns out, the easiest to harvest "low hanging fruit" is the fruit that has already fallen from the tree and is rotting on the ground. So that's what you start picking up. The deal that Wisconsin cut with Foxconn is a bushel of rotten fruit, but what the heck, at least someone got to taste the champagne and cake and fondle a golden shovel in front of the cameras. 
  • Reply 13 of 71
    6502 said:
    Scott Walker screwed the citizens of Wisconsin when pushing this deal, knowing it would be no where near the promised levels of job creation.  He further crapped on the citizenry by hamstringing the incoming administration.  Petty ass politician didn't give a crap about the people he was supposed to represent.  But at least he owned the Dems, so it wasn't a total loss.  /s
    Kinda like Solyndra. Oh wait, we don't talk about that because that was a democrat screw up.
    We probably don't talk about Solyndra because this is an article about Foxconn, Wisconsin, and Scott Walker's screw up.  But hey, if you want to deflect to Solyndra, nobody's gonna stop you.
    fastasleeproundaboutnowopa karlmuthuk_vanalingamGeorgeBMacbaconstang
  • Reply 14 of 71
    lkrupp said:
    Scott Walker screwed the citizens of Wisconsin when pushing this deal, knowing it would be no where near the promised levels of job creation.  He further crapped on the citizenry by hamstringing the incoming administration.  Petty ass politician didn't give a crap about the people he was supposed to represent.  But at least he owned the Dems, so it wasn't a total loss.  /s
    The “Dems” would have fallen for it too. Both parties are in lock step when it comes to this sort of chicanery. Promise a chicken in every pot, as the old saying goes. And let’s not forget the current trashcan Mac Pro is “assembled” in the U.S. so Apple can claim it manufactures here. Don’t pay any attention to that man behind the curtain, the Wizard of OZ said to Dorothy.
    You're misinterpreting what I meant.  "Owning the Dems" has nothing to do with falling for empty promises.  "Owning the Dems" is a reference to the scorched earth actions of  Walker and outgoing members of Wisconsin's legislature.  They made policy to hamstring the incoming administration, screwing the citizens even further... but they owned.
    n2itivguyfastasleeproundaboutnowbb-15GeorgeBMacbaconstang
  • Reply 15 of 71
    lkrupp said:

    The “Dems” would have fallen for it too. .
    No. Not. At. All. Trust me on this. 
    baconstang
  • Reply 16 of 71
    sflocalsflocal Posts: 4,674member
    Typcial finger-pointing politics.  If a democrat was the governor when Foxconn first came around, they too would have grabbed their ankles as well.  This finger-pointing is absolutely childish and is exactly the problem with politics today.

    Just deal with the aftermath and move on.  I just hope that whatever contract was signed has contingencies all over the place in case Foxconn doesn't keep up to their side of the deal.

    This is where a politician that was saavy with technology would have been handy.  I myself would not have trusted any asian company that does what Foxconn does to say they can bring manufacturing jobs into Wisconsin.  American labor is just too expensive.  The politicians regardless of partisan just saw an opportunity to look good in front of the camera.
  • Reply 17 of 71
    apple ][apple ][ Posts: 8,687member
    tyler82 said:
    Reminds me of the Amazon boondoggle in New York that was going to cost taxpayers $48,000 per job in subsidies. Some think it is up to the taxpayers to pay for a corporation's costs. I am on the left side of that fence.
    It's subsidies, a tax break.

    Now the city will have lost many billions in tax revenue and many tens of thousands of lost jobs thanks to idiot politicians like that dumb bartender from the Bronx, AOC, who actually thought that there was millions of dollars lying around someplace that the city has now saved and can now be spent on other projects. You can't fix stupid.
    sdw2001anantksundaramGeorgeBMac
  • Reply 18 of 71
    stevenozstevenoz Posts: 237member
    This has Donald's cheese-burger-greasy finger all over it.

    He kills any good will with China and Taiwan (where Foxconn is located) and deals are aborted.

    I hope Trumpers take note. He is killing the Earth, and is a deal-breaker, not deal-maker.

    opa karlGeorgeBMacbaconstang
  • Reply 19 of 71
    maestro64maestro64 Posts: 4,640member
    tyler82 said:
    Reminds me of the Amazon boondoggle in New York that was going to cost taxpayers $48,000 per job in subsidies. Some think it is up to the taxpayers to pay for a corporation's costs. I am on the left side of that fence.
    Actually, the math works something like this. Amazon would have paid into NY state and city tax coffers about $20B over about 10yrs and in exchanged the State and city said they would give them $3B in incentives. The idiots in the city who made a big deal about how that $3B could be better spend on other things, true if NY had the other $20B in taxes the 25,000 jobs making on average of $125K a year brought to the city/state plus the corporate taxes Amazon was still required to pay NY city/state. NY state budget is 2.5B in the hole right now because all the high paying income earners including company are exiting. BTW NY is one of the few states which tax companies base on what they make in the US even if they are not incorporated in NY. Most companies incorporate in Delware since it does not have state income tax and states only tax companies based on what they make in their own state. Amazon would had to pay NY no matter what.

    In the end NY will be out $20B, plus the additional taxes they would have collected from Businesses who would have popped up around the area to support all the people who were working at Amazon. How smart was that. I personally thought it was stupid for Amazon to set up shop in NYC, there were far better choice than the hell that NYC is for companies doing business there. 

    You could argue if Amazon was actually bringing 25,000 jobs like the 13,000 in Wisconsin, I think everyone from day one was skeptical about 13,000 high paying jobs in the middle of Wisconsin since the manufacturing most likely would have been automated and the support for this does not required 13,000 jobs. 
    edited April 17 tedz98sdw2001GeorgeBMac
  • Reply 20 of 71
    65026502 Posts: 276member
    6502 said:
    Scott Walker screwed the citizens of Wisconsin when pushing this deal, knowing it would be no where near the promised levels of job creation.  He further crapped on the citizenry by hamstringing the incoming administration.  Petty ass politician didn't give a crap about the people he was supposed to represent.  But at least he owned the Dems, so it wasn't a total loss.  /s
    Kinda like Solyndra. Oh wait, we don't talk about that because that was a democrat screw up.
    We probably don't talk about Solyndra because this is an article about Foxconn, Wisconsin, and Scott Walker's screw up.  But hey, if you want to deflect to Solyndra, nobody's gonna stop you.
    The article is about Foxconn and the comments are about gov't subsidies to corporations and how Republicans are at fault pointing to Foxconn and Amazon. I'm pointing out it happened under Obama's watch too. I noticed whenever someone brings up something you don't like, it's "deflecting". I see that consistently here, twitter, and other comment boards.
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