Hartford Business Journal

20 Hartford Business Journal • April 23, 2018 • www.HartfordBusiness.com Opinion & Commentary EDITOR'S TAKE Organized labor could hurt Dems this November H artford Mayor Luke Bronin's run for governor ended April 16 before it even really started. The Democrat abruptly withdrew his name from the crowded race, even though he never formally declared his candidacy. There are myriad reasons why Bronin's attempted run for the state's highest political office never gained steam. The fact that he has presided over a city that has flirted with bankruptcy for the last year-and-a-half was a factor, even though his administration didn't cause Hartford's financial problems. The controversial bailout that followed, in which the state agreed to pay off Hartford's $550 million debt over two decades or more, was also a turnoff. It might have had less of an impact in the Democratic primary, but certainly in a general election, moderate-to-fiscally conservative suburban voters would have likely made their objections heard. But the influence of organized labor was clearly a major factor in Bronin's lackluster run and it's something the Democratic party ought to worry about this upcoming November election. Bronin, who has had to make tough budget decisions, has been forced to play hardball with the city's various labor unions, which pitted organized labor against him in some cases. He's renegotiated several union contracts that reaped much-needed savings for the city, including an estimated $10 million for the coming fiscal year. The frayed relationship was on full display when Bronin didn't get invited to the Connecticut AFL-CIO political convention earlier this month. He pulled out of the race shortly thereafter. Conversely, Ned Lamont, who won that conven- tion's straw vote, is now considered a leading Democratic candidate. In most election years, having organized labor by your side in a dark-blue state would bolster your chances of winning statewide office, but I'm not sure that will be the case in 2018, particularly in the governor's race. The state's endless fiscal crisis has undoubtedly created fatigue among the electorate. Even in a liberal state like Connecticut, a message of fiscal conserva- tism may ring louder than protecting the status quo for public-sector unions, whose costs make up a significant portion of the state budget. Future billion-dollar budget deficits, higher property taxes, the threat of tolls, among other issues, are turn offs to many, particularly politically moderate vot- ers, of which many exist in Connecticut. And it's no secret that public-sector labor groups essentially serve as an arm of the Democratic party — some might even argue the Democrats, over the years, have served as an arm to the unions. If Democrats back a gubernatorial candidate with unwavering support for organized labor they may pay for it at the polls. A fiscally responsible — not con- servative — governor will need to put the needs of the entire population ahead of such a powerful interest group. There is early evidence the GOP could have a leg up in this year's race, even though neither party has a standout candidate. A recent online poll by the public affairs firm Tremont Public Advisors found Con- necticut residents are more likely to support a Republican than a Democrat to replace Gov. Dannel P. Malloy. The survey, which drew from more than 1,000 residents across the state over the age of 18, found almost 58 percent of Connecticut residents said they would elect a Republican vs. 39 percent who said they would vote for a Democrat. This is not to say public-sector unions are the only cause of our fiscal crisis. They are not. Countless administrations and legislatures failed to save money to pay for future retiree pensions and benefits. The bill is finally coming due. Ironically, even if a Republican wins, they may have little flexibility in finagling further savings from organized labor thanks to a bad concessions deal Malloy brokered last year, which yielded $1.6 billion in savings but also extended gener- ous worker benefit contracts an extra five years, through 2027. I know of at least one Democratic candidate for governor who said privately they wouldn't have made that deal. Public-sector unions may have had some influence on Bronin's failed run. But they may also cost the Democratic party this November. COMMUNITY CONNECTIONS Hartford's groove is coming back By Greg Andrews O ne year ago, I wrote in the Hartford Business Journal that "Hartford stands at a tipping point: Bankruptcy? Revival? Or both?" And I focused on how common negative perceptions must be rebut- ted. David Griggs, the new CEO of the MetroHartford Alliance, observed recently in his debut presentation before 400 business and community leaders that "a community's posi- tive self-image is key to advancing economic revitalization." In tours of Hartford that I lead regularly for Leadership Greater Hart- ford, we see so much positive change in the last year that the city's future looks brighter than in decades. The dramatic transformation underway makes Aetna's departure announcement last year seem like a bad dream. CVS, Aetna's expected new parent, understands Hartford's strength as an insurance "center of excellence" where Aetna will thrive. The threat of the city's bankruptcy is now history, and the state and major insurers are ready to bolster Hart- ford's fiscal position. In a fascinating twist, today's rapidly expanding entrepreneurial spirit strongly recalls 19th-century Hartford. Historians today call Hartford the innovation epicenter, the "Silicon Valley" of 19th-century American industrialization. Between the birth of the U.S. patent system in 1790 and 1930, Connecticut resi- dents were awarded more patents per capita than anywhere else in the United States. Today, numerous new "incubator/ accelerator" launching pads build upon Hartford's traditional strengths in insurance, financial services, and advanced manufacturing and pro- duction. UConn and the University of Hartford have collaborated with business leaders on the downtown InsurTech program that launched the StartupBootcamp accelerator. Working with Techstars, Stanley Black & Decker's Advanced Manufac- turing Center of Excellence in down- town will accelerate its global Industry 4.0 "smart factory" initiative, and UTC has opened a state-of-the-art manufac- turing innovation center at its Pratt & Whitney campus in East Hartford. Upward Hartford and reSET Social Enterprise Trust exemplify the think-tanks that help entrepreneurs launch new cutting-edge products. National publicity about Con- necticut's highly skilled and educated workforce, Hartford in particular, is reinforcing the city's momentum. Con- necticut boasts New England's highest percent (72 percent) of advanced manufacturing jobs. Fortune magazine reported that the Hartford metro area has America's fourth highest number of digital tech-related jobs. And with more than 50 percent college-educated Millennials, the Hartford area ranks sixth in the na- tion. It is understandable why Infosys announced plans for a major innova- tion hub in Hartford that will create 1,000 high-tech jobs by 2022. Job training, strategically focused on present and future workforce needs, is fast complementing Hartford's many corporate and pubic internship pro- grams. Goodwin College exemplifies institutions with specialized degree programs in manufacturing technol- ogy and other jobs in highest demand. The vitality of Hartford as a place to live, work and play continues to unfold in highly visible ways. CIL's renovation of the historic Capewell Lofts, their housing/re- tail plans at the Main/Park street entrance to Park Street's vibrant His- panic commercial area, and Spectra Boutique Apartment's unique ameni- ties (including a theater) that will be replicated in the apartments being created at Pearl and Trumbull streets are transforming housing in the city. Complete new multi-purpose neighborhoods are on the drawing boards adjacent to the Dunkin' Donuts Park and along Capitol Avenue. New residents and the 3,000-plus members of the new downtown UConn Hartford campus community are generating more "feet on the street." This dynamic transformation is strong fodder for revamping our historic self-image. And that strong and proud belief in who we are will be the foundation for more ambi- tious and comprehensive goals than ever before. Greg Andrews is the program director for Leadership Greater Hartford's Executive Orientation Program. Greg Bordonaro Editor Greg Andrews

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