A Hiring Program Or A Firing Program?

Racine First is a new Racine, Wisconsin, city program that requires companies that get city contracts worth more than $200,000 to use residents of the city’s five poorerst census tracts to do at least 10% of the labor. (Milwaukee has a similar program than now has a 25% requirement.) In its first year of operation the program has led to the hiring of two workers.

The program has good intentions but is not workable, said Deb Teglia, president and co-owner of Black Diamond Group, one of the first companies to get a Racine contract that is covered by Racine First rules. She said her Oak Creek paving firm is deciding whether to continue bidding on City of Racine contracts.

“I think this is a good use of public funds in theory, but it is very difficult to implement,” Teglia said. “What we do best is build parking lots and roadways. We don’t do best at solving social problems.”

Companies that do most of their work in Racine or employ mostly Racine residents might be able to meet the Racine First requirements, Teglia said. But she said companies such as hers, which work and employ people from throughout southeastern Wisconsin, would be forced to fire workers in order to make hires to meet the requirements.

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Racine Affirmative Action Officer Jerry Scott said the city is not trying to force companies to terminate workers so they can hire central-city residents to meet Racine First requirements….

The program simply needs more time to develop and grow, he said.

Say What?