Indiana Treasurer: ESOPs Save Hoosier Jobs

Back in January, Greg Travis - President of the Monroe County Economic Development Commission - wrote a letter to local officials outlining a plan to try and create new opportunities out of the GE closing. Greg penned a column about his plan in the Bloomington Alternative, and spoke to a full crowd at our DFMC Linkup in March.

In his column, Travis outlined his plan:

* That the City of Bloomington annex the existing GE factory site
* That the City of Bloomington exercise the power of eminent domain over the factory site and the factory itself, taking by condemnation the land and building.
* That the existing workers of GE form a non-profit corporation dedicated to the manufacture of refrigerators.
* That that non-profit corporation lease, from the city, the land and factory for $1 a year
* That that non-profit corporation apply to the Monroe County Economic Development Commission, as well as the Bloomington Economic Development Commission, for low-interest, tax-free, Industrial Revenue Bonds sufficient to re-capitalize the factory for the production of current market-demanded refrigerators.
* That those funds be awarded and the factory restarted as a worker-owned nonprofit, manufacturing refrigerators under the marketing rubric of "child-labor free chilling."

In short, he was proposing an Employee Stock Ownership Plan - commonly called an ESOP. According to the Herald Times (sub req'd), the MCEDC received no proposals in response to their request. Despite the lack of response locally, Travis has an unlikely ally: Indiana's Treasurer, Republican Richard Mourdock.

Recently, Mourdock unveiled the Indiana ESOP Initiative to encourage the creation of new ESOPs. In a press release, Mourdock said:

“ESOP companies have a track record of creating wealth, encouraging the entrepreneurial spirit, and increasing productivity,” explained Treasurer Mourdock. “Furthermore, no group of employee-owners has ever, ever, ever, ever moved their company to Mexico or China!”

The Indiana ESOP Initiative maintains a list of ESOP companies in Indiana, including Bloomington-based companies Bender Lumber and Oliver Winery.