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Alabama Secretary of Commerce Ellen McNair discusses state’s economic vision, threats from unionization effort



Alabama Secretary of Commerce Ellen McNair appeared on Alabama Public Television's Capitol Journal last week to discuss her professional background in economics, her efforts in developing strategies and the ongoing efforts by the United Auto Workers (UAW) to unionize the Mercedes-Benz manufacturing plant outside Tuscaloosa.

“My experience, I hate to use that figure, is 40 years, working in economic development at the local level, primarily with the Montgomery Chamber of Commerce,” McNair said. “I've also worked for the Department of Commerce twice in my career, once as a project manager and once as a research division leader, so I have some statewide experience in the past. I think my background as a regional economic developer will be very helpful in this role because I'll really understand the challenges and opportunities at the local level.”

“Frankly, much of the work has been done – site preparation, community engagement and all the partners we need to work with at the local level.”

McNair detailed the role Gov. Kay Ivey has given her in developing economic and workforce-related development policy.

“When I joined the team, Governor Ivey asked us to develop a new strategic plan for economic development for the state. The last plan was 'Accelerate Alabama,' which was developed in 2012 and then tweaked and revised a little bit in 2016.”

“The world has changed so much in the last few years. It's time for a different approach.”

She acknowledged that effectively planning for the state's future economic development is a “big job,” but said a highly capable and experienced group has been brought in to carry out the task.

“Bill Poole is, obviously, the state treasurer, but the reason I asked him to come on board is because of his role with Innovate Alabama. He's currently the chair of that effort and has been going through a strategic planning and implementation process for the last three years.”

“His expertise and experience in that process will be extremely helpful.”

“Greg Barker, chairman of AEDPA. Of course, AEDPA has been a great partner to the Department of Commerce and the private sector contributions that AEDPA brings are fantastic. Greg himself is one of the best economic developers in the state.”

“Then the third person I asked is Dr. David Bronner. I can't overstate the impact he and his organization have had on economic development in the state of Alabama and the resources they've brought to the table. So I really wanted to bring in some great thinkers, great economic development thinkers and people who get things done.”

“These three organizations and individuals are not only visionaries, they are the people who actually make things happen.”

RELATED: Industrial investment in Alabama to exceed $6.4 billion in 2023

The Secretary also said the Department of Commerce has hired a top consulting and accounting firm to collect and analyze data relevant to developing the state's future strategic economic plan.

“We've hired McKinsey & Company, a world-class consultant, to help us with the quantitative piece and really look at both what these goals should be and some of our goals, the opportunities and the challenges that we might face with these goals,” McNair said. “We want McKinsey to come in and help us forecast the future and really help us see where the opportunities are.”

“Then we needed a process to get everyone's voice on this. There are so many groups, individuals and organizations across the state that really needed to have input into this strategic plan, so we contracted with Troy University and Alabama A&M University to help lead this process. Because we needed a very thoughtful and strategic process to get all the input to the McKinsey team to be able to build this strategic plan and have input.”

“We'll be reaching out across the state throughout the spring and summer to get all the input we need from the various partners and incorporate that into what we do at McKenzie.”

She detailed the partnership that will help realise a comprehensive economic plan for the future.

“Once the plan starts to develop a little bit more, we'll then look at how commerce needs to be structured and is it structured appropriately to be able to execute this strategic plan and really look at how our organization is structured and how we relate to the BCA, the AEDPA, the Alabama Economic Development Association, Alabama Manufacturing, how do we work with these groups, because we're very blessed to have the leaders of these groups right now. They're very like-minded and very willing to partner, but we want to build an ongoing, sustainable partnership after those of us sitting in this chair right now are gone.”

McNair then spoke about the important issue of the UAW's unionization efforts not only in Alabama but across the South.

“Nationally, UAW membership has been steadily declining,” McNair declared, which is why the organization needed new members to join.”

“They've openly admitted to spending over $40 million on unionizing international manufacturers, primarily in the South, and as you said, they were specifically targeting Volkswagen, Mercedes and Hyundai initially. It's very disturbing to us that organizers from out of state, out of the South, are coming into our state and really trying to disrupt an industry that's supported our state for decades. And over 50,000 people in Alabama enjoy careers in the auto industry.”

“It's really a driving force. It's just an amazing area for our state and the growth we've had.”

RELATED: Alabama produced nearly 1 million cars last year, drawing $14.2 billion in new investment

McNair said progress could be halted at one of the state's plants where the UAW is trying to unionize, which has provided big benefits to Alabama's capital city.

“Obviously, Hyundai here in Montgomery has invested over $5 billion in the city of Montgomery just in the last 20 years of expansion. We've had 18 expansions in the last 20 years of operation. We employ over 4,000 people. So the impact of the auto industry on communities across the state is enormous. We've been very successful and to have this kind of outside pressure is a real concern. Mercedes and Hyundai have never had layoffs.”

She detailed the impact unionization has already had in the U.S. and how it could impact Alabama.

“Since the Big Three contracts were signed last fall, there have been more than 18,000 temporary and permanent job cuts at the Big Three. So, of course, there will be job cuts, but also potential investments in other plants in other parts of the country or in other countries.”

“Already General Motors has said it's going to move outside the U.S. — the ability to innovate and change gears quickly when needed. Our automakers have enjoyed incredible flexibility, but having a union allows them to respond to customer demands, which will slow it down. And team members who had direct communication with the company will no longer have that direct communication, and union dollars will be leaving our state.”

“These are payroll revenues that we'd be happy to have circulating within the state of Alabama that would otherwise go out of state and be used for other union activities, many of which are not necessarily activities that Alabamians support, but this is a really important point.”

RELATED: Gov. Kay Ivey and five other governors oppose UAW expansion into the South

McNair praised Governor Ivey's response to the UAW threat and called the unionization effort a “wake-up call” for the state's manufacturing industry.

“Governor Ivey spoke to leaders at both Mercedes and Hyundai on the phone and said if there is a problem, it needs to be fixed. She is being very bold in calling on Mercedes and Hyundai to do what is necessary to stop this from happening.”

“People are coming in and they want jobs. Can their system be better? Can they do things better? Yes. And this is a wake-up call for them to respond to the needs of their employees and listen to them.”

“It has to be done, but I think it would be nice to do it one-on-one, without a third party interfering.”

Austin Shipley is a staff writer for Yellow Hammer News.

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