Tour Stop: Eaton Corporation

This September, Citizen Action of Wisconsin announced a tour of companies that have outsourced jobs and received public money. Last week, we unveiled a live map of tour stops as we highlight where these companies are in our state. Click here for that map.

Today, we add a new company - Eaton Corporation, Watertown and Pewaukee

Eaton Corporation has been well covered over the last few years for receiving ~$370,000 in funds from WEDC and outsourcing jobs, but the extent to which it is allowed to do so (and still is), and the fact that WEDC still has not "clawed back" the money, makes it worth continue to feature.

Eaton Corporation is, according to its website, an "industrial products manufacturer in the fluid power, industrial and commercial controls, automotive, and truck industries". But it also is a company with a long history of outsourcing jobs. In fact in the last 5 years the company has in 15 separate instances, outsourced jobs in 11 states (PA, WI, NC, AL, IN, TN, MI, IA, NY, OH and KS). Here in Wisconsin the company has been certified to have outsourced 356 jobs from its locations in Pewaukee and Watertown just within the last 3 years.

Which makes the decision by WEDC to award Eaton $1 million in tax giveaways all the more concerning (the company eventually collected only $370k of that), as the company clearly had a history of outsourcing. Because our state failed to plan for the possibility of a company taking our money and running, we have now one more company accepting public funds then outsourcing jobs not once, not twice, but three times since.

Furthermore, as a company eligible for the "Manufacturer's Tax Credit" even though it outsourced jobs, Eaton will have next to zero tax liability on its manufacturing production. A massive tax giveaway that can not be rescinded even to companies that outsource jobs.

It is clear that after s much public attention that the refusal to end these outsourcing loopholes after a company like Eaton have used them three times is not an accident but a refusal to fix. A clear sign that the Walker Administration and conservatives in the state legislature see no reason to correct this massive outrage.

The State Legislators representing the districts where these jobs were lost from (Pewaukee & Watertown), Rep. Rep Adam Neylon (R - Pewaukee)Rep John Jagler (R - Watertownand Sen Scott Fitzgerald (R - Juneau), all voted AGAINST ending public funds to outsourcers (2015 Assembly Vote 441, 2015 Senate Vote 84) [Sen Chris Kapenga did not vote on this bill]. 

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