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Appalachian Welfare State in 2004

By Lewis Loflin

Why invest in Bristol, VA/TN or anywhere in Tri-Cities or Southwest, Virginia? To quote one local official, "high unemployment actually can be an advantage because it increases the number of available workers...Our labor force is a huge advantage since the county unemployment rate is twice the state average, and regionally, the unemployment rates range from 3.5 percent to 15 percent..."

The vast majority of people here do work, but many can't earn enough to live on. The 214 counties of core Appalachia have 104 institutions of higher learning, but we only attract Wal-Mart as a major industry. In 1980, 59 of the 214 Appalachia counties in these five states were classified as "distressed" by the Appalachian Regional Commission. In 1990, this figure increased to 78 of 214 counties. In 2000, this figure increased to 83 counties.

The more millions government pours into the region the worse things get. In much of Southwest Virginia almost one-fourth of the population works for the government. The above data is from Economic and Demographic Trends in the Mid-Appalachia Region by MDC Inc. June 2002.

From a former resident:

At last, there are others who agree with my opinions of Southwestern Virginia and East Tennessee!! I am a Bristol native whom was forced to leave my hometown after I finished school. The reason, I couldn't get a job that paid above minimum wage. After living four years in Ohio, I decided to try and move back home. To my surprise I discovered that things have only gotten worse. I have over four years of professional business experience, and am very educated. After 3 months of trying, the best job that I was offered was $7 per hour as a telephone operator. Is that even above the poverty level? When I declined I was informed by the hiring manager that I was an ingrate and that he knew of "hundreds" of other people who would work for that amount. $7 per hour is over 85% less than any job that I have ever held in Cincinnati. I dearly wanted to move back to the Tri-Cities, but found the economic situation so bad and the level of radical fundamentalist Christian dogma that so controls all aspects of the region has spewed out of control.

It is a beautiful region, the mountains are awe inspiring. But it has simply gotten much more backwards since my departure. The region continues to decay into poverty and ignorance, while most educated young people continue to vacate the region. My parents lost their jobs of over 30 plus years at Raytheon and Electrolux in Bristol and were forced to move, at near retirement age, 2000 miles westward to start a new life. Despite all the hardship they experienced, the loss of thier retirement plans and home, they said that leaving Bristol was the best thing they had ever done. Obviously, I won't be moving back home any time soon. Has anyone else experienced a similar situation?
Ken S., Cincinnati , OH USA - Saturday, October 06, 2001

Typical are these letters in the Kingsport Times-News March 24, 2006,

Couldn't get a job in Tri-Cities

As a student in the Hawkins County school system, I listened to the engineers from Eastman talk about the opportunities available to those with the right education. I graduated as the valedictorian of my high school class with honors and went on to graduate from Tennessee Tech University with bachelor's degrees in both chemical engineering and chemistry. Upon graduation, I had a 3.4 GPA and almost two years of co-op experience in the chemical industry.

So, in 2004/2005 when I was seeking employment back home, I felt good about my chances. Eastman, BAE, and NFS all had entry-level openings. To my surprise, I was not offered a single interview. How can a company know about your work ethic, skills, and drive if they won't even give you a chance?

Several of my friends from college had been trying to come back home to start their careers, but most faced the same fate. For several years before my graduation, none of the local companies came to Tech's campus to recruit any of the homegrown talent that was there. I understand that Eastman is finally going back there to recruit, but that is too little, too late for so many of us. What kind of example does that set for the next generation?

If someone wanted to pursue an engineering or science degree and work in the area, why would they follow that path when they know of so many who did and were denied their dreams?

In spite of it all, I am very blessed. In my current job, I get to work on the rocket motors for the current and future space exploration vehicles. It's just a shame I had to go 2,000 miles from home to find a company that appreciates my knowledge and skills.

Heather Rhoton, Ogden, Utah

Area's brain trust outsourced

March 28, 2006

After reading all of the articles stating there is such a need for educated individuals to fill the job market in Eastern Tennessee, I too, had to laugh. After graduating from East Tennessee State University with a high grade point average, spending one year co-oping at Eastman Chemical Company and specializing in the field that I am now enjoying great success in, I had to move 650 miles away to North Carolina to find employment.

Most of the people I graduated with that went on to college have also moved out of state to find decent paying jobs in their field of study. The problem was and still is that those in power to employ look to out-of-state universities instead of in-state, thinking that those institutions are teaching better skill sets. The other problem is for decades, the companies promoted from within individuals without the education, skill level, or competencies necessary for certain jobs just because the individual had seniority. I saw this firsthand when I applied time and time again for positions at a major manufacturing company.

Now they are reaping the benefits of what was sown for so many years. Like the other person in Utah, I am now a happy North Carolinian working for a community college teaching young people. It is a shame that the brain trust of the area has been outsourced to other states that now enjoy educated and skilled workers.

Deborah S. Clark Greenville, N.C.

The editorials below are based on the discredited Tarnoff Report that I address below. The terrible labor conditions in this region (low pay and class warfare) force most of our college graduates to flee the region in droves. Heather and Deborah are just a small sample of what goes on here.

Poor work ethic not the real issue

Printed Kingsport Times-News April 9, 2006

I commend Heather Rhoton (3/24) and Deborah Clark (3/28) as examples of the many qualified workers we have in Tri-Cities, yet their fate is all too common. I also laughed at the editorial about the need for high-tech workers. I was furious with the misguided editorial "Strong Work Ethic Sadly Lacking in Region" (Nov. 6). What is wrong with this picture? Is that why Heather and Deborah had to flee Tri-Cities? Why is our lazy, shiftless workforce highly sought elsewhere? Eastman CEO Ferguson has whined about high-tech workers since he got here, yet he isn't hiring. I checked Eastman.com, and there are no jobs listed for Kingsport, but it did announce a new plant in China.

As the Tarnoff report clearly stated, local business refuses to pay better wages to get the people they need. CEO Ferguson has a big problem paying less money and benefits in a social culture that holds education and achievement in contempt. As I was informed by one local business, college graduates don't mix into the local workforce, so "we don't hire people with college." The problem isn't work ethic or education, it's a cultural problem of social apartheid combined with an abusive, low-wage employment system that's driven thousands of qualified people to leave the area.

This leaves too many unqualified people not only illiterate, but often into drug and alcohol abuse. Their children are often unmotivated as well. Unless local culture changes, let's just ship Eastman Chemical to China and get it over with.

Lewis Loflin
Bristol, Va.

It's not the workers, but the wages.

Printed Kingsport Times-News May 3, 2004

I wish to express my concern about the report "The Skills Gap in Our Region," a copy of which I obtained from Dr. Tarnoff. The sponsor of the research is Eastman Chemical and some biased government agencies protecting their jobs. Of 2,000 surveys, they got only 118 responses or three percent. Of 40,795 employees mentioned, almost 20 percent are from Eastman, and well over half are in 24 firms. Page 31 points out why these companies have the employee problems they whine about. While the survey did inquire about using abusive temp agencies, they failed to factor in subcontractors, many operating as temp agencies mixing in lower pay, no benefit employees off the company books. This often creates low worker morale and management problems.

When asked about pay issues, they answered "going rate," which here is among the lowest in the nation and why ING Investments ranks the Tri-Cities as one of the worst places to earn a living. The report indicates the available qualified labor pool is limited by the refusal of firms to pay better wages. They refuse to even train anyone as the Times-News correctly pointed out.

The report reveals there's no real skills gap or labor shortage, but a severe wage gap. They want better-trained, minimum wage workers that won't relocate. Most skills and vocational training being taught in local colleges are a waste of time. I commend County Commissioner Jack Sitgreaves for pointing out what happens to our college graduates.

Before we trash our workforce, let's get the facts. It's time to consider the abusive labor tactics and mismanagement at local businesses that no amount of cheap labor and more useless education will ever fix.

Lewis Loflin
Bristol, Va.

Bristol, higher taxes, and Red Lobster

LETTER To the Editor:

There is something inherently wrong with a city or other governing body that conducts the majority of its decisions regarding "Economic Development" in secrete executive sessions.  Likewise,   it is disturbing  when the Citizen's only means by which to publicly object to said decisions is by writing  "Letters to the Editor," which are printed only at the discretion of the Editor.  

Dear Bristol, VA City Council and Manager:

Please do not make the error of believing that so few Citizens show up at the meetings because they approve of the way you are spending their money, or the money of future generations.   To believe this is tantamount to believing that because you open the meetings with a prayer to God or Jesus to guide your decisions, That your decisions are thus endorsed by the Almighty.   

Many of the people of this fine City believe that they have no power over the major decisions that are made.   Unfortunately, to a large extent they are correct.   If the law did not require  notification of the public and a public hearing before raising rates on city services, e.g., water, sewer, cable,   trash pickup and electric,   I seriously doubt the public would have been forewarned about these increases.   As is, most of the Public sees it as a done deal, which is at least how it is presented in the media and what past experience has shown.   More than 30 million dollars was borrowed for Fiber Optics for Bristol, VA.   

The bait used to lure the public on board was the offering of Cable services at cheaper rates (The project  was set in motion prior to having legal means to do so) and the promise of new industries.    In order to achieve this ambition  BVU had to build a massive new facility on Lee Highway in which to relocate.    The City has purchased land and lured developers to Exit 7 They continue to justify the massive incentives paid to developers and business and the extensive infrastructure built and the extension of services to the development,    with  words like "Jobs" and "Tax revenue The jobs are/were minimum-wage and the tax revenues were largely offset by the loss of locally owned stores and other businesses that went under; the increase demand for City services; and the movement of some  businesses, from the former city center and mall to the newly created one at Exit 7.  

Need I mention the huge legal bills accrued by the city under the guise of Economic Development?    The City might want to consider that these big named stores and restaurants, don't even bank their profits locally, The money is moved out of here, several times a day.   Don't expect much in the way of charitable contributions  from these superstores and franchises.   When they do give, it will be an in-store gift certificate, generally for a very small amount.  No, you won't see a Sam Walton Train Station or a Lowe's Library. 

In May, the Citizens paid  $175,000 earmarked for economic development to entice  "Red Lobster Restaurant to Exit 7.   BVU kicked in $50,000 in infrastructure and the Public carried $2.5 million in debt for Tim Carter.   This week, the BHC  announced "Bristol lands Home Depot" and that we will extend a road, provide water sewer and electric services to the land and promise $1.5 million in tax credits.   I seriously doubt much of the material or labor to build Home Depot will even come from Bristol, Virginia. 

Now, for sure some people probably drive to Home Depot in Johnson City to purchase building supplies, but given that Lowe's and some of the locally owned building stores match prices, it does not make much sense to go all the way to Johnson City and pay higher sales taxes.   I do expect the sales of the  Lowe's might suffer and some locally owned building supply places close, but as far as sales tax, well if we shop at the new Home Depot, only 0.25% of the 1.25% generated will go back to the City.   I am having difficulty understanding IF "The company has been trying for a number of years to find the right location to get into Bristol," as Mr. Spangler stated, is true, THEN WHY did  we needed to promise all of these incentives at the Public's expense?  

One would think business would be flocking to this area.   We have many selling points: An incredible corporate welfare programs; City leaders that are willing to work with industry in private; Very creative accounting and methods to justify using federal grants and other  funds to assist;  A labor force that would welcome jobs paying above  $7.00/hr w/or w/o benefits.   All this and you don't have to go to the 3rd World to get it.   That's it for now.   I have to restock the shelves at Walmart.

David G.
Bristol VA

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Update for November 19, 2004. As mentioned above, Bristol has managed to bribe Home Depot to locate in Bristol and not the Trammell property that cost almost 50 families their homes. One official representing Trammell called the development, "disappointing." Home Depot was the planned center of this project. Will it move forward? Who knows or even cares at this point.

"Not from Around Here"

From Bristol TN-VA: A Good Place to Leave put out by one fed-up resident:

Bristol TN-VA is NOT a good place to live. I moved here in 1997 after retiring from 28 years of military service. I would return to any of places I ever lived while on active duty. Not so for Bristol TN-VA. As of September 2002, our house is for sale and we are out of here -- we have no idea where we will move -- but it will not be NE TN.

Here is a list of what's wrong with this area.

  • Economy dominated by low-wage manufacturing and service jobs. The local barons who own these small businesses do not want good jobs brought into the area because they know they would lose their workers to higher-paying industries. These local business leaders conspire with and maintain pressure on our political leaders to keep out meaningful economic development.
  • Politics dominated by a coalition based in the Chambers of Commerce, churches, civic clubs, and country clubs, consisting of: The owners of the low-wage industries who do not want higher-wage jobs coming in -- with the result that there is essentially no economic development in the entire region (unless you consider more $6.00 an hour jobs "economic development"). The local economy, especially in Bristol, is dominated by small manufacturing and service businesses, locally-owned, paying $6.00 - $8.00 an hour, many with no benefits.
  • Local fundamentalist religious leaders who do oppose anything not "biblical."
  • Young people leaving. The only population growth is retirees -- who demand much from the present but add nothing to the future of a community. Economic and political myopia.
  • Hostility to those who "are not from around here." Of all the places I have ever lived, this is the only one where, when you meet someone, the first comment out of their mouth is: "Oh, you're not from around here." It's not said to mean "Welcome" -- it means "I don't know you, our daddies did not grow up together, your granddaddy didn't work with my granddaddy, you're not married to my cousin, so I have no use for you." If you want to be shut-out of normal community life, this is the place for you -- if you're "not from around here."

The population of Bristol is less prosperous than the population of Virginia. The poverty rate in Bristol is 70% higher than the Virginia rate. The unemployment rate is 50% higher than the corresponding rate in Virginia. The per capita income for Bristolians is only 75% of the per capita income for Virginians. The proportion of Bristol residents over the age of 25 without a high school diploma is four times as high as in Virginia. Given the relative poverty and poor health status of the population, it seems clear that people in Bristol would benefit from increased access to primary care.

Economic Indicators Bristol VA
Population with Medicaid (1999) 13.6% 7.1%
Poverty Rate (2000) 16.2% 9.6%
Per Capita Income (2000) $17,311 $23,975
Population Aged 16+ in Labor Force (2000) 53.8% 66.8%
Population Aged 25+ w/o High School Diploma (2000) 27.6% 18.5%
     
Employment By Industry    
Agriculture, Forestry, Mining, Fishing, Hunting 1.3% 1.3%
Construction 4.6% 7.3%
Manufacturing See VCEDA Labor Statistics 23.8% 11.3%
Retail and Wholesale Trade See VCEDA Labor Statistics 19.4% 14.1%
Transportation and Warehousing and Utilities 3.8% 4.6%
Information 2.6% 3.8%
Finance, Insurance, Real Estate, Rental and Leasing 4.8% 6.6%
Professional, Scientific, Management, Administrative, and Waste Management Services 6.1% 11.6%
Education, Health, and Social Services 17.6% 18.3%
Arts, Entertainment, Recreation, Accommodation and Food Services 6.9% 7.2%
Public Administration 6.2% 8.3%
Other Services 3.0% 5.4%

 


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