Film stimulus would position Minnesota to capitalize on pent-up demand for new TV, movie production

Casey Lewis is a Minnesota actor and member of the SAG-AFTRA Twin Cities Local Board.

By Casey Lewis, SAG-AFTRA Twin Cities

Two things our country learned over the past devastating 12 months are that the American worker is the backbone of our economy, and we love to be told stories through movies and TV shows.

The pandemic forced this country to realize that day-to-day, week-to-week labor is what keeps our economy running strong. The success of our economy is not determined by what companies are being invested in or traded. It is determined by the labor that goes into the products and services those companies produce, but more importantly the health and safety of those doing the work. Take them out of the equation, and it all falls to pieces. Keep them healthy, safe and paid fairly, and they go out and keep the economy churning along by putting their hard-earned pay back into the system.

Americans have learned how to do some of our work remotely, but the strength of our success comes from people being able to come together safely to get the jobs done, be it in teaching, construction, transportation, food service or health care.

The other thing we all experienced together during our time apart was the joy and sense of normalcy we experienced watching movies and TV. Everyone’s got their preferences while they pass the time, escape reality, laugh or cry or feel everything in between, or learn about themselves or something new. The past year we’ve used these stories to help keep us sane, either watching them ourselves or plopping the little ones down in front of the box so we could get work or something else done. Entertainment has helped keep us going.

You wouldn’t be surprised to know making these products – movies and TV shows – also requires laborers to come together safely to get the job done. The entertainment industry, like so many others, took a massive hit during the pandemic. Writers are still churning out work. Producers are still able to line up deals. But with safety concerns it is logistically and financially difficult to bring workers together to produce content. It’s being done, but at a trickle. As you would expect there is a huge back up in the production line.

So, what does all this have to do with the lives and work of working people in Minnesota?

Two state lawmakers, Rep. Dave Lislegard and Sen. David J. Tomassoni, recently introduced tax credit production incentive bills in the Legislature, HF 1975 and SF 1986. Several union groups are supporting the measure, including the Minnesota AFL-CIO, the Teamsters, the Stagehands (IATSE) and SAG-AFTRA, which presents performers and broadcasters.

The film stimulus bill is designed to encourage out-of-state production companies to come here to make their content, employing Minnesotans, buying Minnesota goods and services, and paying Minnesota taxes, while building a foundation for that industry to thrive here. In return, after these production companies have paid 100% of the Minnesota payroll and sales taxes incurred during production, they can receive up to 25% tax credit on qualified expenses. These out of state production companies can then sell their full-value tax credits to Minnesota-based companies at a discount.

It is literally a win for the production company, a win for the Minnesota company getting the tax break, and a win for Minnesota, with the jobs and economic development created from the outside industry coming here to make their products – work that wouldn’t have come to Minnesota but for the incentive.

It’s important to note here that the Motion Picture Association of America (MPAA) released a study in 2019 showing that movie and TV production created 2.6 million jobs in the U.S., paying $177 billion in wages. Of those 2.6 million jobs, two-thirds of the work was in “indirect industries,” like construction, transportation, retail, hospitality and others.

Bringing jobs and economic development to Minnesota under the proposed film stimulus bill would be an enormous boost to our economic recovery after the pandemic. Production companies have a backlog of content they are waiting to produce, and as demonstrated these past 12 months, there is a demand for it. But we need to act now.

To learn how you can support bringing these good, middle-class and blue-collar jobs to Minnesota, click here and act now. The legislative session is moving quickly, and we have a short window of opportunity.

– Casey Lewis is a Minnesota actor, member of the SAG-AFTRA Twin Cities Local Board and delegate to the Minneapolis Regional Labor Federation.

Sandy Pappas: Honoring the legacy of American workers

Senate President Sandy Pappas

Senate President Sandy Pappas

Labor Day marks more than just the end of summer. It’s a celebration of American workers and the contributions they make to the strength, prosperity and economic well-being of our country. This Labor Day, the continued need for sustainable, living wage jobs is first and foremost on my mind.

As a state legislator, the decisions I make in the Legislature help to create jobs in my community and for my constituents. The same is true for Congress, but on an even bigger scale. Now that summer is over, it’s time for Congress to get back to work and make sure our constituents have the opportunity to be a part of the great legacy of American workers.

The federal budget is a critical blueprint for meeting our nation’s goals. In Minnesota and in Congress, the budgets we craft allow us to have schools, policemen, roads and bridges, health care and other essential services. Our state relies on federal investments to be safe, healthy, thriving and economically sound.

Yet Congress continues to allocate inordinate sums – more than half of the federal discretionary budget – to the Pentagon and its programs, to the detriment of our national and economic security. Since 2001, Pentagon spending has almost doubled. The growth of the Pentagon budget comes at the expense of necessary, vital programs that help our most vulnerable citizens – children, the elderly, veterans, the unemployed, women and their families.

In addition, the Defense Department continues to rely inappropriately on a special war spending account, using this for programs that should be part of the regular budget. In effect, this provides an $60 billion slush fund that is not subject to budget caps that Congress put in place to control spending. Any other federal agency, including those that serve veterans and military families, would love to have access to that kind of extra money, but none except the Pentagon do. We must prioritize the needs of the men and women in the military. Programs in Minnesota and across the nation are being eaten alive by the country’s militarized budget.

When it comes to creating jobs, Pentagon spending ranks last compared to investing the same dollars in health care, clean energy or education, according to recent studies by economists at the University of Massachusetts. Both sides of the aisle agree that job creation is a top priority. One of the best ways to create jobs is to examine the Pentagon budget, eliminate unnecessary and unwanted pork projects and move those dollars toward domestic needs and training workers.

Reshaping the Pentagon’s budget is necessary to address 21st century security needs in a strategic, fiscally responsible and accountable way. For example, spending the planned $350 billion over the next decade on U.S. nuclear weapons is unwise and imperils our security. These weapons are ill-suited to address today’s threats like cyber-attacks or nuclear terrorism. In fact, a greater number of nuclear weapons means a higher likelihood for accidents, terrorism and diplomatic crises.

The federal budget is a reflection of our nation’s priorities. Congress must choose between investing in a healthy and economically secure America, creating sustainable jobs and protecting our most vulnerable citizens – or siding with special interests and continuing to spend billions on wasteful programs that military leaders do not even want. This fall, Congress should do its job and create more jobs, strengthen the economy, and raise the minimum wage, invest in early childhood education and repair our aging infrastructure.

As a legislator, I know how challenging it can be to come to agreement about how best to address our state’s needs and prepare for the future, but job creation is a goal that we all share. Reducing the Pentagon’s share of the federal budget is a significant step towards achieving that goal. This Labor Day, let’s honor the legacy of American workers and safeguard our nation’s future with strategic investing, not more wasteful Pentagon spending.

– Sandy Pappas (DFL-St. Paul) is President of the Minnesota Senate and Vice President of the Women Legislators’ Lobby (WiLL), a program of Women’s Action for New Directions.

An engine for economic growth, Green Line opens to big crowds

City, county, state and federal funding made the Green Line a reality, and elected officials from all four levels of government helped cut the ribbon at the Green Line's Opening Day celebration outside Union Depot. (UA photo by Mike Weerts)

City, county, state and federal funding made the Green Line a reality, and elected officials from all four levels of government helped cut the ribbon at the Green Line’s Opening Day celebration outside Union Depot. (UA photo by Mike Weerts)

Minnesotans celebrated the opening of Metro Transit’s Green Line with ribbon-cuttings, neighborhood-centric events and more than 107,000 free rides June 14-15. But there was more to celebrate than the long-anticipated arrival of a sleek, new transit option between the Twin Cities’ downtown areas.

Jobs – and plenty of them – were also reason to celebrate.

Construction of the $957 million light-rail line, with 9.8 miles of new track and 18 new stations, created more than 5,500 construction jobs, and payroll expenses for the project exceeded $252 million. Additionally, Metro Transit hired 200 operators and maintenance workers for the Green Line, according to the Metropolitan Council.

The project created work for members of Building Trades unions during an otherwise lean period for the construction industry, as investment capital dried up and development ground to a halt following the financial collapse of 2008.

“It was a blessing that it happened during a time when the construction industry saw unemployment at levels it hasn’t seen since the Great Depression,” Harry Melander, president of the Minnesota Building and Construction Trades Council, said.

But job creation isn’t confined to the Green Line’s rear-view mirror.

Riders looking out the train’s windows are likely to see scaffolding, cranes and other heavy equipment, signs of the private development that has been popping up along the Central Corridor since the Green Line since got the green light five years ago.

The Met Council predicts employment along the line will grow by more than 90,000 jobs over the next 16 years. Already, more than 100 projects have been built, are under construction or are in the planning phase along the Green Line. Together, the developments account for more than $2.5 billion in job-creating private investments.

“The development we’ve seen so far only marks the beginning of new opportunities in the Central Corridor,” Met Council Chair Sue Haigh said. “For decades to come, the Green Line will be a catalyst for employment and economic growth along its 11-mile route.”

In that regard the Green Line is an example of the “ripple effect” that makes transit a particularly effective public investment. Every dollar a community invests in public transportation brings approximately $4 in economic returns, according to the American Public Transit Association.

The nonpartisan organization also found that, in a study conducted between 2006 and 2011, residential property values performed 42 percent better, on average, if they were located near public transportation.

The Green Line also provided training opportunities that helped introduce young workers to careers in the Building Trades.

The Laborers District Council of Minnesota and North Dakota, for example, integrated a new, eight-hour course, “Introduction to Light Rail Construction,” into the curriculum at its Lino Lakes-based training center. Todd Pufahl, council president, said the $250,000 investment ensures the union and its contractors are ready to tackle transit investments coming down the pike.

“The Green Line will do great things for commuters and the communities it runs through,” said Pufahl. “We are also anxious and ready to get going on the Southwest Corridor project. Our skilled Construction Craft Laborers are skilled and ready to help improve quality of life and transportation choices for all of us.”

Abby Tomasek wore a cardboard light-rail costume to the ribbon cutting. She and other activists used the event as an opportunity to sign transit-users up for MoveMN, an advocacy group pushing broad investments in the state's transportation infrastructure.

Abby Tomasek wore a cardboard light-rail costume to the ribbon cutting. She and other activists used the event as an opportunity to sign transit-users up for MoveMN, an advocacy group pushing broad investments in the state’s transportation infrastructure.

Report warns Minnesota lawmakers against following Michigan’s lead on ‘right to work’

Click to download Minnesota 2020's full report on RTW's potential impact on Minnesota's economy.

Click to download Minnesota 2020’s full report on RTW’s potential impact on Minnesota’s economy.

A report released today by the St. Paul-based think tank Minnesota 2020 backs up what unions have been saying about “right to work” laws like the one Michigan Republicans scurried to pass this week: They are bad for workers’ wages and benefits, as well as the economy as a whole.

Titled “A Losing Bet,” the report debunks the economic benefits touted by RTW proponents in Minnesota, but speakers at today’s Capitol news conference also weighed in on protests raging in Lansing, Mich., where Republicans used a lame-duck session to force two RTW bills – one for public-sector workers, another for private-sector workers – through the Legislature without committee hearings.

Matt Entenza, Minnesota 2020’s senior policy director, called the Michigan bills a “sneak attack” on workers.

University of Minnesota history professor Hy Berman called it a “tragedy that the great state of Michigan, the bedrock of industrial unionization, should join forces with Mississippi, Louisiana and other Confederate states to become a right-to-scab, right-to-keep-wages-down state.”

In an about-face from promises made on the campaign trail two years ago, Republican Gov. Rick Snyder has said he will sign the RTW bills into law, making Michigan the nation’s 24th RTW state. (UPDATE: Snyder has signed the bills, making Michigan a RTW state.)

A question of fairness

Also known as “Freedom of Employment,” RTW would allow workers covered by union contracts to avoid paying their share of the costs of representation, but still enjoy the wages and benefits provided by the union contract.

Current law in Minnesota says a worker whose job is covered by a collective-bargaining agreement is obligated to pay “fair-share” fees to the union – at a lower rate than membership dues – to cover the costs of representation and bargaining. Under federal law, unions are required to represent and bargain for all workers subject to the contract, whether they are full members or not.

RTW would eliminate “fair share” fees. Some workers would pay dues if they chose to, but all workers would receive the benefits of union representation – from negotiated wage and benefit increases to grievance representation and seniority.

Unions argue RTW creates a “free-rider” incentive that undermines their ability to represent workers effectively. By eroding union membership, RTW also erodes wages, benefits and workplace protections for both union and non-union workers.

Those arguments are backed up by “A Losing Bet,” a review of independent academic literature on RTW. Minnesota 2020’s research shows union membership declines by 6.6 percent in states that pass RTW, while the “free-rider effect” in increases anywhere from 6 to 10 percent in bargaining units.

Minnesota 2020's Matt Entenza (right) and U of M professor Hy Berman discuss the findings of a new report on right-to-work laws.

Minnesota 2020’s Matt Entenza (right) and U of M professor Hy Berman discuss the findings of a new report on right-to-work laws.

The wrong approach to economic development

But do RTW laws draw large employers? Not so much, according to the report, which finds other factors – like highway accessibility and availability of skilled labor – are more important to large employers looking to develop or relocate their facilities.

In fact, Entenza said, RTW laws “hurt wages and hurt the ability of states to compete for high-wage jobs.”

With DFL majorities in both chambers of the Legislature, Minnesota is unlikely to follow Michigan’s lead during the upcoming legislative session. But if anyone had forgotten Minnesota Republicans’ attempt last spring to push a RTW constitutional amendment, the events in Lansing should serve as a wake-up call, Entenza said.

“We must use this opportunity to move the discussion forward on enhancing policies that ensure dignity, respect and wage protections in the workplace.”

Minnesota 2020 is a progressive, non-partisan think tank that focuses its research on education, health care, transportation and economic development.

Click here to download “A Losing Bet: Projecting Right to Work’s Impact on Minnesota’s Economy.”

UNITE HERE Local 17: Bottom line is Vikes stadium will create jobs

The Vikings Stadium deal is done, and the members of UNITE HERE Local 17 are happy about that. We are happy about the jobs that it will provide over the next few years while it’s being built and about the jobs it will provide over the next 30+ years for our members.

Local 17 represents workers in the hospitality industry, including sports arenas. When Target Field opened, there was no doubt what that did for the hospitality industry in downtown Minneapolis, with people eating at restaurants, shopping, and staying in hotels. Our union, which was hit hard in a bad economy, regained members, saw wages rise and people called back from layoff. Target Field employs as many as 800 of our members at each game, many of them coming from inner city neighborhoods where unemployment is high.

As we listened over several months to the endless debates, opinions, and commentary about the jobs that would be created once the new stadium was built, we also heard a lot of misconceptions and untruths about the type of jobs these would be. Some politicians and some labor people described them as “dead end, low wage jobs.”

We need to respect all workers and not allow politicians to look down their nose and create “jobism.” We should not be taking a position that working in a stadium or a hotel is somehow less important. Not everyone will be a teacher or a lawyer or a skilled professional, and some who are will continue to vend the beer, sell the hotdogs and work in the bars, restaurants and clubs that will be part of the new stadium.

The fact is, for each of the jobs created at the site, many more are truly created; it’s a ripple effect that could hardly be quantified. Think of it this way: for every hotdog sold, not only is the cook and the server of the hotdog working, but the person who delivered the hotdogs to the stadium. There’s a person that keeps that person’s truck running and in good tires and brakes, which someone else makes, and then there’s the farmer who raised the pigs or cows to make the hotdogs and the people who make and print the bags they come in and the makers of mustard, ketchup, pickles and onions. And let’s not forget the bakers of the buns. We could go on and on.

This is how the economy is built. One job relies on the job of another and then expands to create more jobs. It is shallow and shortsighted to claim that we are giving billionaires millions. We are giving ourselves millions in pride in our community that cannot be estimated in dollars.

– Nancy Goldman is president of Twin Cities-based UNITE HERE Local 17. Martin Goff is senior vice president of Local 17. For more information on their union and the workers it represents, go to www.uniteherelocal17.org.