Eaton Corp. To Outsource 93 Jobs, Despite Receiving WEDC Tax Credits

A power systems company that has received nearly $370,000 in state tax credits is moving 93 Wisconsin jobs to Mexico, prompting some criticism of the state’s public-private economic development arm.

Madison’s ABC affiliate WKOW first reported that Eaton Corp. is moving 93 jobs at its Watertown plant to Mexico. The company has three other Wisconsin plants.

Robert Kraig with Wisconsin Citizen Action says any company that outsources Wisconsin jobs — even with its own funds — should not get job creation tax credits from the Wisconsin Economic Development Corporation.

“If you simply do what WEDC says it does — which is you can’t use WEDC’s money but you can use other money — then money is fungible. And in essence you can be a company that’s engaged in outsourcing its workforce while also claiming to create jobs and claim state money,” said Kraig.

A statement from WEDC said companies are required to meet certain job creation and retention objectives or they will not get the credits. It added that the company had been required to create and retain jobs at its Menominee Falls facility.