 Layoffs in Cook and DuPage counties accounted for all of the mass layoffs
reported across Illinois in January, according to state data.
The state’s first WARN report of the year revealed 429 mass layoffs. (The
Illinois Worker Adjustment and Retraining Notification, or WARN, Act requires
companies that employ 75 people or more to report mass layoffs 60 days in
advance. While not a comprehensive analysis of all layoffs, it is a useful tool
for studying Illinois’ jobs climate for larger employers.) Though most of the
jobs lost were service industry positions in retail and catering, which
disproportionately affect young and unskilled workers, the state also shed
manufacturing jobs.
The Fitzpatrick Company, a design and manufacturing business that specializes in
process systems, announced 63 mass layoffs due to poor economic conditions. The
affected workers are represented by the Sheet Metal Workers’ International
Association, Local 265.
The employers that announced the highest number of layoffs include:
Wal-Mart Stores Inc. in Chicago – 96 layoffs
Macy’s Inc. in Bloomingdale – 95 layoffs
Aramark at Ingredion Inc. in Bedford Park ̶ 65 layoffs
The Fitzpatrick Company in Elmhurst – 63 layoffs
Bad policies at the state and local levels lead to mass layoffs. And workers
across many industries bear the consequences, no matter their locality or union
status.
Chicago, which accounted for 147 layoffs, has the highest combined sales tax of
any major city in the nation, and Illinois has the seventh-highest combined
average sales tax in the country. High sales taxes means less money for
consumers to spend. This, in addition to the fact that Illinois has among the
highest property taxes in the nation and the highest workers’ compensation costs
in the Midwest, is costing the Prairie State. In 2016, Illinois finished last in
the Midwest for jobs growth and lost 11,000 manufacturing jobs. Unions have
especially suffered in Illinois, where union membership fell by 35,000 from 2015
to 2016.
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 And yet, politicians in Springfield want to double down on the
same failed policies that hurt those who are already struggling. In
addition to income tax hikes, some Illinois state senators have
recently proposed raising taxes on food, drugs and medical supplies.
One proposal would reduce the overall state sales tax to 5.75
percent from 6.25 percent, but then apply that new 5.75 percent rate
to food, medicine and medical supplies, which currently are only
taxed 1 percent at the state level. The proposed tax hike on these
items would amount to a 475 percent increase.
Not only would this tax hike harm Illinois families who already
struggle to make ends meet, but it would also take a toll on
companies who rely on consumer sales. This would hurt Illinoisans
who work in both the service and manufacturing industries. The
proposed food, medicine and income tax hikes would also be
counterproductive in the long term because they would exacerbate
Illinois’ out-migration crisis – already the worst in the region –
and thereby reduce the size of Illinois’ tax base.
Illinois needs real change that will help workers and consumers. By
instituting pro-growth reforms and passing a truly balanced budget,
the Land of Lincoln can foster a friendly jobs climate all across
the state and provide better peace of mind to workers in all
industries.
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