When a local company sells out in a global merger, expect a local catastrophe...
V.1, N.4
Last week, the Viatris Corporation decided to shut down a pharmaceutical plant in Morgantown, West Virginia. The plant had originally been operated by a local firm, Mylan, since 1965, but Upjohn merged with the company, changed its name, and now is leading a global cost-cutting campaign. The new company, Viatris, just fired 1,431 workers in Morgantown. That’s equal to 4.75% of the city’s entire population. Working with the Democracy Collaborative, I prepared an economic-impact analysis that documents the coming economic tsunami now coming to the region. Because the firm paid good wages and was so connected with other local firms, this layoff will mean the loss of 4,642 jobs in Monongalia County (where Morgantown is located), along with $403 million in lost wages per year and $63 million in lost taxes. The lesson is clear: When a local company sells out in a global merger, expect a local catastrophe.
Had the workers been able to buy out the plant instead, this catastrophe could have been averted. This logic explains why a growing number of organizations – some The Main Street Journal partners– are promoting worker ownership, worker buyouts, and coop conversions. Since workers live proximate to a plant, these actions are forms of local investment. In this issue, we share an article describing several pieces of national legislation supporting employee ownership. You can also learn more about the growing universe of grassroots investment in local real estate. And you can get involved by participating in the expanding list of events being held by our partners.
– Michael Shuman, Publisher of The Main Street Journal
NEWS
Senators Introduce Employee Ownership Legislation, Fifty by Fifty (July 23, 2021)
‘Tsunami of Economic Effects’ to Hit Morgantown Economy After Plant Closure, The Herald-Dispatch (July 25, 2021)
Reflections on Barriers to Growing Employee Ownership, Fifty by Fifty (July 29, 2021)
What Would Equitable Real Estate Finance Look Like?, Nonprofit Quarterly (July 28, 2021)
PARTNER VOICES
CrowdFunding Lessons For Social Entrepreneurs, Jenny Kassan (July 26, 2021)
Speakers Announced For SOCAP Global’s Flagship Event On Impact Investing, Social Entrepreneurship, and Stakeholder Capitalism, SOCAP Global (July 28, 2021)
NC3 Acquires the “Local Investing Resource Center” and Plans to Update Its Tools for Local Investing, National Coalition for Community Capital (NC3) (July 30, 2021)
EVENTS
New York State CDFI Investor Club – Webinar. Friday, August 6, 9 am-12 pm PDT. Hosted by Impact Finance Center and New York State CDFI Coalition.
Impact Investing With Dr. Stephanie Gripne – Virtual Coffee Chat. Thursday, August 12, 3:30-4:30 pm PDT. Hosted by Impact Finance Center.
SOCAP21– Virtual Conference. Monday, October 18 to Friday, October 22. Hosted by SOCAP Global. Register here and enter the code np_msj for 20% off your pass.
41st Annual Schumacher Lecture Series on New Economics – Webinar. Sunday, October 24, 12 pm PDT. Featuring Naomi Klein, Julian Aguon, Lisa Linda Natividad and Jodie Evans.
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About The Main Street Journal
The Main Street Journal catalyzes the movement of $50 trillion from Wall Street to Main Street to facilitate economic development and economic justice. It’s sponsored by the National Coalition for Community Capital with a grant from the Heron Foundation. We welcome feedback about everything, from our design to content. And we welcome suggestions of other groups to involve as partners, and other information to include. Please send ideas to Sophia Leswing at sophia@main-street-journal.com.
Partners
We welcome any nonprofit or for-profit committed to local investment as a partner. If your organization is interested, please contact Sophia Leswing at sophia@main-street-journal.com.