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Yesterday, Gov. Matt Bevin ceremonially signed House Bill 1, which provides right-to-work guarantees to all Kentucky workers, in a midday gathering with legislators, economic developers and business advocates from across the state.
This historic new law protects employees in the Commonwealth from being forced to pay union dues in order to keep their jobs. Kentucky becomes the 27th state to enact such protections, and experts say the measure will spur economic growth while boosting individual incomes.
“This is an extraordinary opportunity to ceremonially sign something that has been a long time coming,” said Gov. Bevin. “We have gotten, almost on a daily basis, unsolicited comments from economic development, workforce development and site selection folks who have said: ‘Wow, now we believe it—Kentucky is open for business.’”
“This will mean incredible new opportunities for the Commonwealth. We are already talking to people who were not going to come and consider us until this was done.”
Supported by a host of business and economic development advocates, House Bill 1 represents a crucial step in Kentucky’s efforts to recruit and retain well-paying jobs. The majority of Kentucky’s border states—Indiana, Missouri, Tennessee, Virginia and West Virginia—have also enacted right-to-work legislation.
“Passage of right-to-work legislation in Kentucky was a critical step toward job growth and business investment across the state,” said House Speaker Jeff Hoover. “Not only does the bill position Kentucky on level ground with our neighbors in the fight for jobs, but it creates additional freedom for Kentucky workers by allowing them the choice to join a union or not—and as a result take home more money. Kentuckians deserve every opportunity to have access to, and benefit from, good paying jobs. I’m proud to have played my role to ensure passage of this game-changing bill.”
“Right-to-work legislation has been something we have passed in the Senate for many years, only to fall on deaf ears at the hands of the former Democratic majority,” said Senate President Robert Stivers. “We have seen how right-to-work can grow businesses and create jobs in other states, so we knew we had to pass this bill once the House flipped. I applaud the work of Speaker Hoover, the rest of my colleagues in the legislature, and Governor Bevin, for helping make Kentucky right-to-work and open for business.”
“Right-to-work legislation is vital to attracting higher levels of advanced manufacturing jobs to the Commonwealth,” said Rep. Jim DeCesare, chair of the House Committee on Economic Development and Workforce Investment. “It was a privilege for me to shepherd this legislation through the Economic Development and Workforce Investment Committee, as well as on the floor.”
Studies examining Bureau of Labor Statistics (BLS) data show that right-to-work states report faster per capita income growth, greater capital expenditures, lower unemployment, fewer work stoppages and faster growth in manufacturing and non-agricultural jobs than non-right-to-work states.
Contrary to critics who claim that right-to-work protections eliminate opportunities to affiliate with a union, 2015 BLS data also shows that union membership in right-to-work states actually grew more quickly than in non-right-to-work states.
Yesterday, on behalf of Gov. Matt Bevin, Lt. Gov. Jenean Hampton joined Department for Local Government (DLG) Commissioner Sandy Dunahoo in a Capitol rotunda ceremony to announce over $5.7 million in Community Development Block Grants (CDBG) for 13 new projects in Kentucky. These grants impact multiple regions and counties across the Commonwealth.
“We are excited to announce 13 new Community Development Block Grant projects. Each project is designed to aid critical infrastructure needs across the Commonwealth, such as water safety, public facilities and local health resources,” said Gov. Bevin. “These block grants will not only have a significant impact on improving quality of life for Kentuckians, but will create economic opportunity and jobs as well. Great things happen when we work together.”
“It has been a true joy over the last year visiting different communities in Kentucky and hearing their stories,” said Lt. Gov. Hampton. “These grants have created wonderful opportunities for communities across the Commonwealth in terms of economic development, tourism, education, the environment, and more.”
“I’m pleased by the governor’s announcement of these projects to help address many of the community challenges and infrastructure needs facing Kentucky,” said DLG Commissioner Dunahoo. “We are always looking at ways to coordinate our efforts with local regions for community projects and economic development. This grant assistance does that in a big way.”
The 13 projects include:
- Hawesville WWTP in Hancock Co., $800,000.
- Cumberland Hope Community in Harlan Co., $220,000.
- Hickory Hill Recovery Center for Men (Recovery Kentucky) in Knott Co., $220,000.
- Madison Co. God’s Outreach Food Bank Expansion Project in Madison Co., $300,000.
- Gamiliel City Hall and Community Ctr Architectural Barrier Removal Project in Monroe Co., $85,000.
- Centertown Water Tank Project in Ohio Co., $403,000.
- Hartford Water System Capital Improvements Project in Ohio Co., $896,250.
- Apple Patch Education Adult Day Program Relocation Project in Oldham Co., $405,000.
- Mt. Olivet Wastewater Treatment Plant Renovation and Expansion in Robertson Co., $634,500.
- Morehead Inspiration Ctr (Recovery Kentucky) in Rowan Co., $220,000.
- Fritz Winter Rail Spur Development in Simpson Co., $997,000.
- Todd County Health Department Expansion Project in Todd Co., $500,000.
- Guthrie Koppers Natural Gas Line Project in Todd Co., $100,000.
The CDBG program provides assistance to communities for use in revitalizing neighborhoods, expanding affordable housing and economic opportunities, providing infrastructure and/or improving community facilities and services.
Applications for CDBG funds are also submitted to DLG. To learn more, visit https://kydlgweb.ky.gov/FederalGrants/CDBG_cities.cfm.
Seeking to lead by example and give convicted felons a chance at meaningful employment, Governor Matt Bevin issued an executive order last Wednesday that removes questions about criminal history from the initial application for state jobs in the executive branch.
The order – known as the Fair Chance Employment Initiative – means that applicants will not be required to check the box for criminal convictions on the initial state application.
“Ours is a nation of second chances, founded upon core principles that include mercy and redemption,” said Gov. Bevin. “The simple act of removing this box will help to level the playing field for all applicants, and it is my sincere hope that many of the private employers in our state will consider doing the same thing.”
Gov. Bevin stressed the importance of Kentucky leading the way in removing barriers for felons to become gainfully employed, which helps reduce recidivism and improve public safety.
Executive branch agencies may still inquire about criminal records before interviewing an applicant, and may consider criminal history when making hiring decisions. However, postponing that inquiry until after the initial application provides applicants with a better opportunity to explain their backgrounds.
“We want to make sure everyone gets fair consideration for the jobs that make our Commonwealth run,” said Personnel Secretary Tom Stephens.
Conservative estimates from the National Employment Law Project indicate that nearly 70 million people in the United States have a criminal record of some type. Employment is a key factor in keeping people from reoffending, according to several national studies.
“When ex-offenders are able to find stable jobs, they are able to support their families and find new purpose for their lives,” said Justice Secretary John Tilley. “Studies show that removing that box and giving a person a chance at an interview increases the likelihood they will get a job.”
Twenty-four states and more than 150 cities and counties – including Metro Louisville – have adopted fair chance hiring practices.
Gov. Bevin’s order builds on Kentucky’s effort to enact smart criminal justice reforms that enhance public safety while also rehabilitating offenders. Last year, the governor signed legislation to allow for expungement of certain low-level felonies after a person has completed the terms of their criminal sentence. The legislature also is expected to consider a criminal justice reform bill when they return to session next week.
Gov. Bevin issued the executive order on the new approach to state hiring during a press conference in the Rotunda Wednesday morning, prior to the final meeting of the Criminal Justice Policy Assessment Council, which he formed last June.
The 23-member council worked for six months, at the Governor’s direction, to prepare suggestions for smart-on-crime initiatives. A bill incorporating many of those suggestions is expected to be filed next week by Sen. Whitney Westerfield.
The Work Ready Skills Advisory Committee, formed to review and select proposals to elevate the Commonwealth’s workforce training capacity, awarded more than $65.5 million to 25 Kentucky projects on Jan. 31 in its first round of funding.
Launched in July 2016, the $100 million Kentucky Work Ready Skills Initiative is aimed at developing a highly trained, modernized workforce to meet the needs of employers, grow the state’s economy and promote sustainable incomes for Kentuckians.
“The response to the Work Ready Skills Initiative has been truly astounding,” said Gov. Bevin. “This important initiative is a key component in our pursuit to make Kentucky the nation’s premier engineering and manufacturing hub of excellence. This historic investment in training our workforce will truly be transformative for the Commonwealth.”
The 25 projects are spread across all 10 local workforce areas, with awards ranging from $30,780 – $15.2 million. The projects include construction and renovation of facilities and the purchase of new equipment aimed at providing workforce training and education in Kentucky’s top five growth sectors of advanced manufacturing, transportation and logistics, business services and information technology, healthcare, and construction trades.
“The Work Ready Skills Initiative has created a tremendous buzz and energy around the whole state among employers, educators and elected officials. Everywhere I go, people are excited about the opportunity to improve their communities through education and careers in technology in high-demand sectors. These great jobs are waiting to be filled by qualified Kentuckians and that’s what this initiative is all about,” said Education and Workforce Development Cabinet Secretary Hal Heiner, who chairs the committee.
“The committee was very impressed with the high quality of applications from across the state. All of the projects are driven by teams of local leaders from high schools, government, postsecondary schools and companies that are working together, some for the first time, to prepare their citizens for careers in high-demand careers. I really can’t imagine a better investment in the future of Kentucky than the Work Ready Skills Initiative,” said Heiner.
In August, the 10-member Work Ready Skills Advisory Committee received 117 pre-applications totaling nearly $565 million in requests. They spent the last six months reviewing proposals and interviewing applicants from across Kentucky to select the recipients. A second round will award about $34 million later this year.
“The committee members have volunteered hundreds of hours of their time and done a remarkable job to select these promising projects. I want to thank them for their commitment to Kentucky’s workforce and economic development and to our citizens,” Heiner said.
The committee selected the following applications and amounts for funding:
- Allen County Career & Technical Center – $328,700
- Barren County Board of Education – $6,840,000
- Bluegrass Community & Technical College – Danville – $2,736,000
- Bluegrass Community & Technical College – Leestown – $3,040,000
- Boone County Schools – $6,840,000
- Bowling Green High School – $77,520
- Brighton Center, Inc. – $227,213
- Caldwell County Schools – $1,520,000
- Corbin Independent Schools – $382,149
- Green County Board of Education – $1,520,000
- Hazard Community & Technical College – $2,888,000
- Jefferson Community & Technical College – $15,200,000
- Jessamine County Schools – $760,000
- KCEOC Community Action Partnership – $1,824,000
- KY Tech – Warren County Area Technology Center – $557,726
- Lee County Area Technology Center – $30,780
- Martin County Area Technology Center – $2,736,000
- MMRC Regional Industrial Development Authority / Maysville CTC – $1,140,000
- Nelson County Area Technology Center – $64,526
- Owensboro Community & Technical College – $2,858,244
- Paducah Public Schools – $3,800,000
- Shelby County Schools – $3,233,049
- Somerset Community College – $3,800,000
- Southcentral Community & Technical College – $179,000
- West Kentucky Community & Technical College – $3,040,000
For more information about the Kentucky Work Ready Skills Initiative, please visit www.KentuckyWorkReady.com.
Mayor Greg Fischer launched his SummerWorks jobs program for 2017 last week by setting a goal for a new record of employers involved, and proclaiming it necessary to ensure “a pipeline of future talent.”
“Summer jobs are critical building blocks for young people, and SummerWorks is crucial for the health of the local economy, because it creates a pipeline of future talent,” Mayor Fischer said. “We want Louisville’s business culture to be one where every company, large and small, hires or sponsors summer jobs for youth.”
A 2016 study confirmed the value of the effort. Young people participating in SummerWorks are more likely to stay in the workforce and pursue postsecondary education, according to an analysis of the program by the Kentucky Center for Education and Workforce Statistics.
Last year, more than 140 companies and organizations hired SummerWorks youth. Mayor Fischer said momentum is already building for this summer, including many employers that will hire youth through the program for the first time, including Coastal Cloud, Hyatt Hotel, McDonald’s local franchises, MSD and the Speed Art Museum. Other companies, including GE and Humana, are doubling the number of young people they hire.
Today’s SummerWorks kickoff was at Kindred Healthcare, which plans to hire 10 youth this summer, after becoming a new SummerWorks employer last year.
The push for a stronger public/private partnership is being enhanced by Greater Louisville Inc., which is encouraging its member businesses to step up and support the program by hiring more young people for summer jobs.
“SummerWorks is an investment in the regional talent pipeline,” said Kent Oyler, president & CEO of Greater Louisville Inc. “Companies that hire young workers this summer are training people who may become their full-time employees. We want to rally our business community, get them involved In SummerWorks and connect our talented young people with the future career opportunities that exist in Greater Louisville.”
Companies and organizations that aren’t able to directly hire youth this summer can instead sponsor jobs. A donation of $2,500 funds a summer job at a non-profit organization or city agency.
Also today, Mayor Fischer announced a “challenge” donation of $250,000 to the SummerWorks program by businessman Paul Diaz and his family. Diaz is a former CEO of Kindred Healthcare and has been a volunteer advisor, donating a “huge amount of time, talent and advocacy” to help grow the summer jobs initiative.
SummerWorks this year will expand its focus on creating job experiences that build entrepreneurial skills in young people. Program organizers will set up six groups of youth to work as a start-up company in collaboration with local tech firms and creative agencies.
SummerWorks also will continue working closely with Jefferson County Public Schools to place students in jobs that match up with what they are learning in school, and jobs in the key business sectors the city is focused on growing, such as technology, healthcare and business services.
“Our students have a chance, through the SummerWorks program, to get out of the classroom and apply the skills they’ve learned at some of our city’s top employers,” said Dr. Donna Hargens, superintendent of Jefferson County Public Schools. “In addition to expanding their learning experiences, our students also gain critical job experience and networking skills that will help them graduate prepared, empowered and inspired to reach their full potential.”
A new partnership with Louisville YouthBuild will bring expertise in helping at-risk youth who register for summer jobs. YouthBuild will provide additional mentoring and job-coaching for youth placed directly by staff, and will provide access to a network of supportive services and resources. SummerWorks and YouthBuild are striving to provide a more positive experience and stronger long-term outcomes for young people involved in the program.
SummerWorks, which is operated by KentuckianaWorks, the workforce development agency for the Louisville area, was recognized by the U.S. Conference of Mayors in 2014 as one of the nation’s best summer jobs programs for young people.
The Mayor launched SummerWorks after taking office in 2011, in response to the elimination of federal funding for summer jobs. In that first year, the effort placed 200 young people in jobs. Last summer, more than 5,100 youth found summer work through the program and its champion employers.
Other businesses that have committed to hiring SummerWorks youth this year include 4th Street Live, Dare to Care, GlowTouch Technologies, Interapt, Kentucky Kingdom, Kroger, Louisville Zoo, Norton Healthcare, Oxmoor Auto Group, YMCA of Greater Louisville and UPS.
Both employers and youth participants can quickly sign up for or donate to the program at www.summerworks.org.
Mayor Greg Fischer and Gov. Matt Bevin today announced Diversified Consultants Inc. (DCI), a collection services company servicing major-name telecom clients, will locate a new operation in Louisville with a $6.65 million investment expected to create 433 jobs.
“Louisville’s economy continues to thrive with the addition of a new business services company in south central Louisville. As we usher in a new year, we are proud to welcome DCI to our community,” Fischer said. “We are especially excited to welcome home DCI’s chief operating officer, Gordon Beck, a Louisville native and a graduate of Fern Creek High School.”
DCI will lease the bulk of a 60,000 square-foot building in the Commerce Crossings business park. The new DCI office will not only employ customer service agents but office-support staff, including HR, quality administration, compliance and other functions.
“DCI’s commitment to exceptional service makes it a great fit for Kentucky,” said Gov. Bevin. “Their high standard of customer care will make them a terrific partner for the commonwealth’s dedicated workforce. We welcome DCI to Kentucky and look forward to seeing both their client base and workforce grow in the years ahead.”
Beck said he plans to quickly fill all available positions. Buildout of the space could begin in late February, and Beck said he and aims to open the new office by April 1. His Kentucky roots and confidence in the local workforce played into the decision to open the new office.
“Ours is an industry that too often gets a negative reputation. DCI is changing that in how we treat our customers and through our own company culture. We got to the top of our industry by being nice. We focus on the customer experience and are legal, moral and ethical,” Beck said. “The reason we’re opening this office in Louisville is our company is looking to expand its customer base, and we know we can recruit the kind of employees who want to be a part of our company.”
Founded in 1992 in Jacksonville, Fla., DCI is a family owned telecom collection services company. Charlotte Zehnder has acted as the company’s CEO since 2010, and the company is a certified member of the Women’s Business Enterprise National Council as a woman-owned business. DCI has quadrupled in size since 2009, currently employing 930 people across three locations in Jacksonville, as well as operations in Portland, Ore., and in the Philippines. Of those, 835 employees are located in the U.S.
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in January preliminarily approved the company for tax incentives up to $1 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
For more information on DCI, visit www.DCIcollect.com
To read more about Louisville’s business services sector, visit https://louisvilleky.gov/government/louisville-forward/business-services
Kentucky’s seasonally adjusted preliminary unemployment rate was unchanged from November 2016 to December 2016 at 4.8 percent, according to the Office of Employment and Training (OET), an agency of the Kentucky Education and Workforce Development Cabinet.
The preliminary December 2016 jobless rate was 0.9 percentage points lower than the 5.7 percent rate recorded for the state in December 2015.
The U.S. seasonally adjusted jobless rate for December 2016 was 4.7 percent, according to the U.S. Department of Labor.
Labor force statistics, including the unemployment rate, are based on estimates from the Current Population Survey of households. It is designed to measure trends rather than to count the actual number of people working. It includes jobs in agriculture and those classified as self-employed.
In December 2016, Kentucky’s civilian labor force was 2,016,835, an increase of 11,903 individuals compared to the previous month. Employment was up by 11,715, while the number of unemployed increased by 188.
“In December, our labor force increased by .6 percent,” said Kentucky Labor Market Information Director Kate Shirley Akers, Ph.D. “Over the last year, Kentucky has seen growth in both the labor force and the number of employed, with the labor force growing by 3.3 percent and employment increasing by 4.3 percent.”
In a separate federal survey of business establishments that excludes jobs in agriculture and people who are self-employed, Kentucky’s seasonally adjusted nonfarm employment increased by 800 jobs in December 2016 compared to November 2016.
“Overall, nonfarm employment has increased by 11,000 positions or .6 percent from one year ago,” said Akers. “The largest month-to-month gain in jobs was in the trade, transportation and utilities sector.”
Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to this survey, six of Kentucky’s 11 major nonfarm North American Industry Classification System (NAICS) job sectors registered gains in employment, while five declined from the previous month.
Kentucky’s trade, transportation and utilities sector expanded by 2,100 jobs in December 2016 from November 2016. This is the largest sector in Kentucky with nearly 400,000 jobs accounting for one-fifth of all nonfarm employment. Since December 2015, this sector has expanded by 8,100 jobs.
“The month-to-month increase in the trade, transportation and utilities sector was driven by gains in retail trade. This area added 2,400 jobs from November 2016 to December 2016,” said Akers.
The financial activities sector rose by 1,700 jobs in December 2016 from November 2016. The sector has added 5,700 jobs or 6 percent since December 2015.
“The financial activities sector had the largest month-to-month percent growth among the sectors at 1.7 percent,” said Akers. “The increase was in the finance and insurance subsector.”
Employment in the information sector grew by 400 in December 2016, but had a drop of 400 jobs from December 2015. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications.
The educational and health services sector rose by 200 positions in December 2016, and had a gain of 6,300 jobs or 2.3 percent from December 2015. Health care jobs, which account for about 13 percent of all nonfarm employment in Kentucky, increased by 7,900 jobs from December 2015 to December 2016.
Employment in Kentucky’s manufacturing sector jumped by 900 jobs in December 2016 compared to November 2016. Over the year, manufacturing employment rose by 500. Durable goods account for two-thirds of the manufacturing sector and grew by 1.6 percent from a year ago with the addition of 2,500 jobs. Nondurable goods lost 2,000 jobs from December 2015.
Mining and logging sector jobs increased by 100 in December 2016 from November 2016. The industry has declined by 1,900 positions from a year ago.
The government sector, which includes public education, public administration agencies and state-owned hospitals, decreased by 100 jobs in December 2016 and declined by 2,600 positions compared to December 2015.
The construction sector fell by 1,500 jobs in December 2016 from November 2016. Since December 2015, construction jobs have decreased by 5,000 positions.
Kentucky’s professional and business services sector lost 1,800 jobs in December 2016 from the month before but remained steady from a year ago. This category includes establishments engaged in services that support the day-to-day activities of other organizations, including temporary employment services and payroll processing.
The leisure and hospitality sector declined by 1,100 jobs in December 2016 from November 2016. Since December 2015, the sector has added by 100 jobs. This sector includes arts, entertainment, recreation, accommodation, and food services.
Employment in the other services sector, which includes repairs and maintenance, personal care services, and religious organizations, decreased by 100 positions in December 2016 compared to the month before, but gained 200 positions since December 2015.
Civilian labor force statistics include nonmilitary workers and unemployed Kentuckians who are actively seeking work. They do not include unemployed Kentuckians who have not looked for employment within the past four weeks.
Kentucky’s statewide unemployment rate and employment levels are seasonally adjusted. Employment statistics undergo sharp fluctuations due to seasonal events, such as weather changes, harvests, holidays and school openings and closings. Seasonal adjustments eliminate these influences and make it easier to observe statistical trends. However, because of the small sample size, county unemployment rates are not seasonally adjusted.
