Friday, April 06, 2007

Retail versus manufacturing jobs

Cobourg Mayor Peter Delanty was busy praising Bayfield Realty Advisors, owners of Northumberland Mall, following the announcement of detailed expansion plans to take place later this year.
The company hopes to build additions to the A&P, open a Sports Chek, and upgrade several current retailers. Luc Corneli, president of High Peak Leashold, gave a detailed presentation Tuesday, promising 150 new full- and part-time jobs.
This is quite amazing. considering the mall has never enjoyed full occupancy since it opened in 1989, it will be interesting to watch if it fills up now. Maybe the secret is having fewer, but larger stores.
As expected, the mayor was on radio and in the newspaper crowing about how great this is for the town. He is suppose to say this, otherwise he would be strung up by the business community.
And, it IS good news on one level. Having vacant stores in a regional mall looks bad for the town. It is similar to empty stores in the downtown. It looks bad. And appearances are everything for small towns and villages.
There are other factors to consider. Retail jobs are good, but often involve less pay (minimum wage), few benefits and go nowhere. Of the 150 jobs, you can bet the majority will be part-time. It is cheaper and more cost efficient. Yet, it does not create prosperity. Most people cannot make a decent living working several part-time jobs.
Manufacturing jobs are the ticket. And, these are the hardest to come by. It has been years since Cobourg got a major new plant. Unlike Belleville, who just announced Kellogg is setting up a new facility, Cobourg continues to lose these kinds of high-paying employment.
And that is where the mayor need to be held accountable. Yes, thanks for the jobs. However, let's not be fooled. A solid economic development plan involves bringing the type of employment that gives people are salary to live on and the means to build a decent life.

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