Midwest Memo: Monday, April 18, 2011

It’s Tax Day, and Chicagoans are protesting various tax-related issues. Members of the Tea Party are gathering for the Chicago Tax Day Tea Party, while same-sex couples are protesting at post offices nationwide that they cannot file federal joint tax returns. WBEZ’s Eight Forty-Eight took a look at what’s behind those complaints, and the history of tax day protests.

Photo courtesy of Steve Rhodes via Flickr.

McDonald’s is hiring 50,000 people nationwide – 10,000 in the Midwest – thanks to a sales hike of five percent last year. The company is promoting tomorrow, April 19th as National Hiring Day as it looks to hire people for everything from kitchen staff to cashiers.

The emergency manager of Benton Harbor, MI has stripped the power of local elected officials. It’s the first time an emergency financial manager is using the newly granted powers recently passed by legislators and Governor Rick Snyder.

Do you have a mortgage? So do two out of three Americans. What does it take to own your home free and clear? According to this family, it’s forgoing things you can’t afford and living just a bit below your means.

Michigan’s for-profit hospitals didn’t make as much as they usually do in 2009. Detroit hospitals alone lost $58 million. Most of those losses were a result of the stock market crash, not a lack of patients, though the Michigan hospitals lost patients too. That’s most likely because many unemployed people lost their health insurance, or employers switched to high-deductible plans.

Opponents of the recently passed Ohio law that limits the collective bargaining rights of public employees have gotten the go-ahead for a referendum drive. Union supporters need to get the names of 231,000 registered voters by June 30th. If they succeed, the law will be temporarily blocked from taking effect, and the issue would go to the ballot in November for voters to approve or reject.

Ohioans hoping to cross Lake Erie to visit Ontario, Canada may get a chance to do just that. The “Short Sea Shipping Act” would establish a ferry service that carries cars and trucks across the lake, and it’s starting to gain momentum in Congress. But these ferry services have a rocky history. A ferry between Toronto and Rochester, N.Y., a few years ago ended in failure.

The Ohio Consumers Council is facing a 50 percent cut in Governor John Kasich’s budget. That would mean laying off 50 of the 75 people that work at the watchdog agency. The governor’s office says state regulators with the Public Utilities Commission already perform such watchdog duties.

McDonald’s to hire 10,000 across the Midwest

 

Would you like fries with that?

CHICAGO – Would you like some fries with that? That’s the phrase many are perfecting for April 19, which McDonald’s has dubbed National Hiring Day. Here’s a quick story on where the jobs will be here in our region.

McDonald’s got its start here in the Midwest, and it has a substantial presence throughout the Great Lakes states. That’s why 10,000 of the 50,000 new workers the company wants to hire will be based across Illinios, Indiana, Ohio, Michigan and Wisconsin.

On a recent weekday morning at the McDonald’s on Chicago Avenue & State Street in downtown Chicago, business is steady. It’s 11 a.m., and people are ordering everything from coffee to crispy chicken sandwiches.

McDonald's franchise owner Nick Karavites demonstrates the company's mobile hiring app. (Niala Boodhoo)

Owner-operator Nick Karavites and his family own this location and 18 others in the Greater Chicago area.

“Fifty thousand is a lot of people,” Karavites said. The Karavites need about 100 workers for their 19 restaurants, and are looking for everyone from cashiers to kitchen staff. Across the country, the fast food chain needs all levels of workers, including managers.

As the employment market improves, job seekers can get more selective about where they work. That’s part of the idea behind promoting the day, said company spokeswoman Nicole Curtin.

Karavites said pay at their restaurants averages $9 an hour, and that all of their workers can participate in a McDonald’s Insurance program.

McDonalds is selling a lot of fries, and other stuff - 2010 global sales were up 5 percent (Niala Boodhoo)

McDonald’s says the company needs the employees because of how good business is.  The company’s sales last year were up five percent.

Many reported on the National Hiring Day as McDonald’s attempt to get over the idea of the “McJob”, which Merriam-Webster actually defines as “a low-paying job that requires little skill and provides little opportunity for advancement.”

Coming up, I hope to do a little more reporting on McDonald’s and its Hamburger University, where owner-operators and managers, and yes, restaurant workers, go for training. It’s actually one of the oldest corporate training programs out there and this year celebrates its 50th anniversary.

In the meantime, let us know: Have you worked at McDonald’s?

Reinvention Recipes: Patricia Wells

Say the name Patricia Wells to a foodie, and they’ll immediately mention her guide to Paris and her French cookbooks. Say Patricia Wells to a Midwestern foodie, and you’ll get the response, “she’s from Milwaukee.”

Patricia Wells, by Micki Maynard

This week, Wells is on her home turf, visiting Chicago and Milwaukee in conjunction with her latest book, Salad As A Meal: Healthy Main Dish Salads For Every Season, just published by William Morrow. Continue reading

Commentary: Accelerating Toxic Site Cleanups

White Lake, MI. Photo by rockman13 via Flickr.

White Lake, on the shore of Lake Michigan, has been an official toxic “Area of Concern” for decades, thanks to chemical industry pollutants. But, thanks in large part to the Great Lakes Restoration Initiative started by the Obama administration, it’s finally close to being clean again. That means a return of much needed tourism to the area.

Photo from The Great Lakes Echo.

However, in his latest commentary for the Great Lakes Echo, Gary Wilson says a new study underway found that the White Lake area is a potential disease cluster. That might raise concerns about White Lake all over again. Wilson wonders what it takes to speed up the clean up process of contaminated sites. A good question for the future, since Congress just approved another $300 million dollars for the job.

You can read Wilson’s entire commentary here.

Benton Harbor EM Strips Power From City

Emergency managers in Michigan’s most troubled communities have new powers — and the emergency manager of Benton Harbor has become the first to carry them out. Joseph Harris, who was appointed by former Gov. Jennifer Granholm to run the city, issued an order late last week stripping city officials of their authority.

via Google Maps

All decisions by boards, commissions and other authorities now require his approval. Changing Gears partner Michigan Radio has the story.

The new law, signed by current Gov. Rick Snyder earlier this month, has received national attention and generated the ire of unions. The law allows the state’s emergency managers — appointed when a city is in dire shape — to void provisions of public employee contracts, and to ask the state for permission to cancel them. It also gives emergency managers far more authority than in the past.

Snyder, a Republican elected last fall, signed the bill amid a budget crisis in the state. He has asked communities to make cuts that will help the state eliminate a $1.8 billion deficit. (Read Changing Gears’ reports about Michigan and other troubled Midwest states here.)

Harris, in Benton Harbor, cited the new law in his order taking control away from public officials. “Absent prior express written authorization and approval by the Emergency
Manager, no City Board, Commission or Authority shall take any action for or on behalf of the City whatsoever” other than calling meetings to order, approving meetings and adjourning meetings, Harris’ order said. The action takes effect immediately.

Benton Harbor, in the state’s southwest corner, has long been known as the center of Michigan’s fruit belt. But it has been in poor financial shape for years. Granholm appointed an emergency manager in 2010 after a series of attempts to revive the city. There are three other emergency managers in Michigan, including those supervising the cities of Ecorse and Pontiac, and the emergency manager for the Detroit Public Schools.

What do you think of Harris’ move? Do you expect to see other emergency managers take similar steps? What should the courts rule?

Will Cuba Finally Open Up To Auto Sales?

Like other visitors to Cuba, I was charmed by the vision of vintage Buicks, Chevrolets and Cadillacs gliding down the streets of Havana when I visited in the 1990s. Now, it looks like those cars may soon be joined by more-recent models, potentially rejuvenating a market where Detroit has not participated for decades.

Car sales in Cuba?

The reinvention of the Cuban car market will be closely watched by companies all over the world, especially those in our region.

Under reforms proposed by president Raul Castro, the market for vehicle sales may be liberated from the strict controls placed on it by the Cuban government. Very few private citizens own cars, and the only cars that can be openly sold and traded are those produced before the 1959 revolution, according to this report from NPR.

These autos sell for anywhere from $3,000 to $40,000, depending on the condition of the car. Many are held together by the skill of Cuba’s mechanics, who have managed to keep these classics running long after they disappeared from American roads.

Otherwise, the government allows those with a demonstrated need for a car — such as taxi drivers, merchants, farmers, and of course Cuban officials — as well as artists and athletes to purchase one. As I learned when I was there, Cuba’s government basically selects the car company allowed to sell there, and that’s the choice that people have.

For years, the available cars included Russian Ladas, and occasionally a company like Nissan might be the featured model. For a while in 2010, Mercedes-Benz participated in a luxury import program. And, diplomats and foreign companies that operate in Cuba can opt to bring in their own vehicles, undoubtedly after obtaining government permission. For instance, the officials of one Canadian company drove an Isuzu Trooper.

How big is the potential Cuban car market? When I was there on assignment for USA TODAY, one estimate was that Cuba, which has a population of about 11 million, probably could see demand of about 200,000 or more cars per year, assuming that the nation’s economy was in decent shape and its citizens were able to earn disposable income. Currently, the State Department estimates that the average Cuban earns only $18 a month.

The sales potential might seem tiny, considering that the American car market was about 10.4 million in 2010. But the opportunity to sell cars in a country where they’ve been locked out for a half-century has to appeal to some at the Detroit car makers. After all, they’ve had free advertisements cruising the Cuban streets all this while.

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Would you like to see Detroit automakers sell their wares in Cuba? Have you been? What do you think of the classic cars there?

Midwest Memo: Friday, April 15, 2011

Consumer prices made their biggest jump since the summer of 2009, especially in food, gas, and rent. Those tend to be the more volatile indicators of consumer prices, and they’re a big concern across the Great Lakes. Consumer confidence is vital for the continued health of the auto industry. Overseas, Europeans and Chinese also are worried about rising inflation, much of it there also fed by higher oil and food prices.

The Indiana House is set to vote today on a bill that would tax businesses that hire illegal immigrants. This bill is a much milder version of a tougher bill pushed by Republicans that would have allowed the police to stop anyone suspected of being an illegal immigrant.

Every teacher working in a Detroit Public School is getting a pink slip.

Detroit's original Cass Tech High School, waiting for demolition

The city is laying off its entire teaching force, though of course not everyone will actually lost their job. District officials say it’s unclear how many teachers will be called back, given declining student enrollment and the chance that some schools will be turned over to charter school operators. The Monroe Public School Distrcit recently made the same move and both Flint and Brighton schools have also given out sweeping layoff notices.

 

There was another rally in Lansing yesterday, but this time it was to support Republican Governor Rick Snyder. A couple hundred Tea Party members rallied at the state Capitol to show their support.

Ohio’s pot holed roads are costing taxpayers more than $6 billion dollars annually. That’s according to a new report by the non-profit Road Information Program, or “Trip.” They say potholes and roads in disrepair mean excessive fuel and other extraneious costs to Ohio’s drivers.

A proposal to privatize Ohio’s prisons is heating up. The Ohio branch of the American Civil Liberties Union has unveiled a study that shows states with private prisons have higher percentages of former inmates reoffending, versus states with state owned prisons. But certain lawmakers aren’t buying that argument.

Made your weekend dinner plans yet? New York Magazine has come up with a list of the top 101 pastas in the country, and we are drooling over the selections from the Midwest. No wonder, since Michael Ruhlman,  the Cleveland based food writer, and Steve Dolinsky, who contributes to WBEZ Chicago, were among the pasta scouts. The selections include the entire Mac and Cheese lineup at Zingerman’s Roadhouse in Ann Arbor, the beef cheek ravioli at Lola in Cleveland, and dishes from all over Chicago.

Carhartt Inc. makes work-wear, like coveralls and jackets used mostly by carpenters, plumbers and construction workers. But since the economic downturn, their usual clientele hasn’t been shopping as much. So, now the company is courting a new customer base: hipsters. The company has opened a new store in Chicago’s trendy Wicker Park to broaden their appeal.

Haven’t gotten your 15 seconds of fame yet? You may want to make a trip to Cleveland. The lakefront city will be playing host to the film and acting crews of 10 Hollywood films, four of which are set to be shot already this year. First up is The Avengers, which will need 2,000 people to play minor parts and be extras. Clevelanders will get preference, and extras get paid for their hard work too! You can check out our previous coverage of how the Midwest hopes to become a film industry mecca here and here.

And finally, in a Happy Friday segment, Dennis Kucinich, a Democratic U.S. Congressman from Ohio, was profiled on The Daily Show with Jon Stewart. Check out the video, courtesy of Comedy Central, below.

Midwest Memo: Thursday, April 14, 2011

Leading off: a follow up on a Midwest Memo item from yesterday. Remember that Gary, IN was asking for a bailout from the state? Well, it got it. Indiana’s Distressed Unit Appeals Board approved the city’s request for property tax relief, meaning the city now only needs to cut $1 million instead of $11 million from its budget.

The economy is poised to be a hot topic in the 2012 election, nationally and across our region. Rising gas prices — now above $4 a gallon in Chicago — and a widening gap between America’s wealthy and poor are expected to influence how people vote. WBEZ’s Eight Forty-Eight program covered this today.

American Airlines is suing the Chicago-based travel website Orbitz, as well as a company called Travelport. The suit alleges that both companies misrepresent American Airlines fares. American, which has a major hub at Chicago’s O’Hare airport, would prefer to work directly with travel bookers.

Several of Northeast Ohio’s biggest non-profit agencies are merging to streamline operations. The group hopes they will be able to reach more people in need this way, with less overlap between services.

Ohio Governor John Kasich says he wants to make Ohio cool, like the west coast and sunnier states. He’s heralding Diebold’s recently announced decision to stay as one way Ohio is getting cooler, and helping attract and retain young talent in the workforce. Can that work for other states?

Michigan home foreclosures were up slightly last month with a four percent increase from February. Until this report, Michigan’s overall home foreclosures for 2011 had been trending downward.

Buy a Ford F-150 truck between 2004 and 2006? 1.2 million of those are being recalled by the American automaker for an air bag defect. Apparently, the air bags can go off unexpectedly and hurt drivers. This is an expansion on an existing recall in February. Here’s what our friends at Jalopnik.com have to say about it.

And finally, pinball enthusiasts rejoice! It’s time for the Michigan Pinball Expo, running now through Sunday. There, you can play Rolling Stones and Austin Powers themed pinball machines as well as the world’s largest pinball machine, Hercules. It’s all happening at Oakland University in Rochester, MI.

 

Changing Gears Podcast: Tax Tribunals, Zoning & SB5

In this episode, we cover some of our latest stories. Kate Davidson tells us about a backlog at tax tribunals around the region. Dan Bobkoff explains how zoning works, and why some cities are trying to change their zoning codes. Finally, Dan I take a look past the rhetoric around Ohio’s Senate Bill 5, the recently passed law that limits the collective bargaining rights of state employees.

 

On the Changing Gears calendar this week: students from the University of Michigan will be holding a fundraiser tomorrow night to support the recovery effort in Japan. This Friday will be TEDxCLE at the Capitol Theater. Plus, Changing Gears partner station WBEZ Chicago will be holding its Global Activism Expo 2011 on Saturday, April 30th from noon until 6:00 pm.

If you have anything to add to our calendar, let us know through an e-mail to changinggears[at]umich.edu.

 

Midwest Memo: Wednesday, April 13, 2011

Thanks to a rise in new car sales, the Detroit 3 (Ford, GM and Chrysler) are finally in a position to start hiring again. One economist says the number of automotive jobs will never reach its former height of nearly a million jobs. Still, the three automakers are expected to hire about 35,000 people over the next five years.

Michigan lawmakers may be getting close to a budget deal. Meanwhile, thousands of unionized teachers and public employees are expected to gather at the state Capitol today for a protest of the proposed spending plan. The rally’s organizers say this may be the biggest protest of the season yet.

Gary, Indiana is asking for a bailout from the state, hoping to avoid drastic budget cuts.The state’s Distressed Unit Appeals Board (DUAB) is supposed to decide today. The problem they’re trying to avoid is that Gary has to conform to Indiana’s required property tax caps; one percent for homeowners and two percent for businesses. An exemption would mean a savings of $11 million.

Back in 2005 Wal-Mart hired the first black female contractor to build one of its stores in Chicago. That move was touted as the beginning of a blooming job industry for minorities in Chicago. But Crain’s Chicago Business says that contractor went bankrupt and now it looks like all those benefits to minorities may not be coming after all. WBEZ’s 848 program looked at the issue Tuesday.

In Ohio, one progressive group says there’s a hidden clause in Governor John Kasich’s budget that would give the state budget director, Tim Keen, the power to privatize virtually anything. That position is appointed by the governor instead of elected. According to the group, Innovation Ohio, he could contract out any state service for up to 75 years. The governor’s office called the allegation “silly.”

Northeast Ohio is one of three metropolitan regions in the country that are part of a pilot project to help area companies to grow. The plan, called Partnership for Regional Innovation Services to Manufacturers (PRISM) will help connect local companies with new markets and products.

And finally, a contributor to the Web site Coolcleveland.com has come up with a mathematical equation proving once and for all that his hometown (Cleveland) is superior to his new city (Chicago.) Okay, it’s more a random list of things he misses about Cleveland. What do you love about your city? Tell us in the comments section below.