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City life in Michigan
 
From The Detroit News
 
Granholm Enlists Federal Help With Auto Industry
 
November 17, 2005, by Alison Bethel
 

WASHINGTON -- Gov. Jennifer Granholm and members of Michigan's congressional delegation Wednesday agreed to collaborate on fighting trade and pension issues that could hurt the state's auto manufacturers.

"We had a very productive meeting," said Granholm, who requested the closed-door session with the 17 members of Congress. "I asked how the state could dovetail its efforts with my federal colleagues here to provide relief to our great industries and manufacturers and we have, thanks to the leadership here and the great desire to do something for, what is for Michigan, an economic hurricane."

Granholm hoped to convince Michigan's congressmen to unite on several key issues -- ways to lower health care costs, protection employee pensions and curb unfair trade practices -- to help the state's troubled manufacturing sector. Granholm said she is hoping the delegation will unite in requesting a meeting with President Bush .

The delegation supports extending tariffs on pickup trucks imported into the United States. Granholm said a letter would be sent to U.S. Trade Representative Rob Portman concerning the Thailand Free Trade Agreement and issues on other trade barriers that exist for Michigan companies .

For the past 41 years, the United States has imposed a 25 percent tariff on imported pickup trucks, a situation that foreign automakers hope will soon change with the Thailand Free Trade Agreement. Thailand makes more pickup trucks than any other country, except for the United States, and lifting the tariff would be a major windfall for manufacturers in that country.

"As Portman embarks on these trade negotiations, Michigan has got to be in play. Because our votes are not going to be there if we don't see a good result," said U.S. Rep. Fred Upton, R-St. Joseph.

The delegation is also exploring ways to rein in catastrophic health care costs, said members. Granholm has proposed a catastrophic insurance pool/reinsurance model to reduce the cost of health insurance premiums and stabilize the insurance market.

Members said they agreed not to support pension legislation that could hurt Michigan's ailing manufacturing industry. On Wednesday, the U.S. Senate passed 97-2 a bill that would ensure that companies fund the defined-benefit plans they've promised employees. The House could take up its version of a pension bill as early as December.

U.S. Rep. John Dingell, D-Dearborn, said Wednesday's meeting was positive.

"It was the best meeting I have attended with the governor. It was the most bipartisan and harmonious meeting we've had," said U.S. Rep. Dale Kildee, D-Flint.

Upton suggested federal legislators sit down with state Republican and Democratic leaders in Lansing "so that we can get our state moving forward."

"What we focused on were areas of agreement," said U.S. Sen. Carl Levin. "We obviously have areas where we don't agree. But there are so many significant areas where we do agree that the decision was made here today."

Darren McKinney, senior director of media relations for the National Manufacturers Association, said that although there are far fewer workers in the manufacturing sector in the United States, it is not as dire as some profess.

"We're never going to have the lowest-priced labor on the globe. So how else will we compete? We have to lower costs and do a better job at preparing and training a 21st-century work force," said McKinney.

"We have manufacturers right now who can't fill high-skilled jobs because of a lack of qualified candidates. ... The days when you could drop out of high school on Tuesday and get an auto job on Wednesday with little to no skills, those days are basically gone."

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