Labor groups are wondering if a state economic development agency is handing out too much taxpayer help, without checking to see if companies are creating promised jobs.
Amid the ongoing unionization battle at Palermo's Pizza in Milwaukee, the AFL-CIO has issued a report. The labor coalition says the pizzamaker has received $26 million in subsidies from the city of Milwaukee and state agencies like the Wisconsin Economic Development Corporation over the last six years. But union researcher Julie Farb Blain says it isn't clear if the company has met its job creation commitments.
Democratic state Rep. Sandy Pasch says a lot of information on a disclosure report form Palermo's has submitted to the state has been blacked out.
But Palermo's marketing director Chris Dresselhuys says his company has fulfilled its job creation commitment to the state. He says union concerns about wages being lower than promised are wrong.
Unions are asking the legislature's Joint Audit Committee to take a closer look at the Palermo's situation during a Madison hearing Wednesday about the doings of the Wisconsin Economic Development Corporation.