Wages topic of radio forum

During the height of production in extractive industries, Montana ranked near the top of the
nation’s wage scale.

By KAYLEY MENDENHALL Chronicle Staff Writer

Now, having dropped to 49th on the scale, experts agree action is needed to fix the problem.

But opinions differ on the correct solution.

A panel of economic development experts gathered at the Bozeman Public Library
Wednesday evening to discuss Montana’s low wages on a live Yellowstone Public Radio
broadcast.

The show, "Home Ground," was hosted by Brian Kahn and is the second of six forums on the
subject he is holding throughout the state in the coming months.

"This region’s economy pays among the lowest in the nation," Kahn said, posing the original
question to the five panel members. "Low wages and continual decline persist despite robust
regional growth."

He then gave each guest a few minutes to explain the best plan for boosting wages. Dave
Gibson, chief financial officer for the Gov. Judy Martz, started the show.

"If you want to improve worker wages, you have to do it by making the fruits of that labor worth
more," Gibson said. "If you want people to make $40,000 a year in Montana, they better be
producing things worth $80,000."

Adding value to products requires an increase in productivity and Gibson said increasing worker
skill levels while introducing new technologies are the only ways to achieve that goal. The
state is focusing on improving trade schools and two-year colleges to develop a more skilled
labor pool.

Other ideas thrown out included John Kramer’s approach to recruiting "primary sector"
businesses. As president of the Great Falls Development Authority, he said those businesses
bring wealth into the local economy, unlike a Wal-Mart that sends its profits out of area.

"Sound economies have about 22 to 30 percent of employment tied to the primary sector. Ours
is less than 3 percent," Kramer said. "Our goal, and what I’ve been able to do in other
locations, is to diversify the economy."

While Alicia Bradshaw, executive director of the Gallatin Development Corporation, agreed a
diverse economy is necessary, she said in this county economic development is focused more
on retaining and growing existing companies than recruiting new businesses.

After listening to the various ideas, audience members were given a chance to ask questions.
One man wanted to know why politicians are so strongly backing coalbed methane drilling
when its obvious extractive industries are the economy of the past.

"Natural resources and agriculture, they continue to be a significant source of our economy,"
Gibson said. "They remind people of the good old days and what the economy was then, not
what it is today."

Kayley Mendenhall is at [email protected]

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