Connecticut to Pay Sikorsky for Hitting Job Targets
September 21 2016 - 8:11PM
Dow Jones News
By Joseph De Avila
Connecticut Gov. Dannel Malloy announced details Wednesday of a
$220 million deal with Lockheed Martin Corp. that would guarantee
the company continues to produce helicopters in the state through
June 2032.
The agreement ensures that Sikorsky Aircraft, which Lockheed
bought for $9 billion in 2015, will keep its headquarters in
Connecticut. Sikorsky employs more than 7,500 people in the state,
and the deal provides a variety of incentives for the company to
boost its hiring with a target of 8,032 positions by 2032.
Sikorsky would get up $120 million in grants from the state if
it hits targets for the number of workers it employs, how much its
payroll totals for those employees, how much it spends with
Connecticut suppliers and how much it spends on capital
expenditures in the state.
The company could also get up to $80 million in sales-and-use
tax exemptions. It could also get up to $20 million in performance
incentives, if the spending and hiring targets are exceeded
Dan Schultz, president of Sikorsky, said at a news conference
Wednesday that the company had been giving serious thought about
moving out of state even before it was bought by Lockheed.
Mr. Malloy, a Democrat, began meeting with Sikorsky executives
to reach a deal in June. Without the agreement, "thousands of jobs
at this facility and thousands of jobs at the broader supply chain
would be lost, " Mr. Malloy said at the news conference.
Earlier this year, Mr. Malloy was forced to defend his
economic-development policies after General Electric Co. announced
it would leave the state for Boston.
The Democratic-controlled state Legislature still must approve
the deal, during a special session scheduled for Sept. 28. The plan
has solid backing with the Democratic leaders of the state House of
Representatives and state Senate, along with the state
representatives for Stratford, Conn., home to Sikorsky.
The company also needs to reach an agreement with Teamsters
Local 1150, which represents its employees. Mr. Schultz said
Sikorsky made a proposal to the union's leadership that would be
subject to approval by rank-and-file members. He declined to
disclose what was in that agreement. Officials with Teamsters Local
1150 didn't return a request for comment.
(END) Dow Jones Newswires
September 21, 2016 20:56 ET (00:56 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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