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The "Heartland Fund Network": forging a Regional Labor Investment Strategy Leo Gerard, President of the United Steelworkers of America, AFL-CIO/CLC, and international unions, with the support of the Heartland Labor Capital Network, has proposed national capital pools for the U.S., financed by multi-employer pension funds, selected union affiliates and other financial entities. These national "Heartland Funds" would make direct investments in smaller manufacturing and related enterprises that are worker-friendly. This fund coalition would also provide an "umbrella" for shared marketing, due diligence, deal flow, and pre- and post-investment and monitoring activities in cooperation with a regional labor capital network in the U.S. focused on reinvesting in America's high road workplaces, to build sustainable regional economies. The finds would ideally be governed by advisory boards representing union fund representatives and the network, and managed by experienced investment professionals. These funds will target high performance work practices, like the Canadian LSIF's: - positive labor-management relations - good health and safety, environment, and employment practice records - commitment to employment, training, education and workforce involvement. What is the genesis of the Heartland Fund? The Heartland Labor Capital Network has brought organizations these nine U.S. communities together with five Canadian provinces that have created successful Labor-Sponsored Investment Funds. With help from Heartland and an assortment of supportive experts, the U.S. communities have been assessing the potential of targeted investment strategies in their regions. The recent economic downturn has led to tightened credit markets, but even though the expansion of the 1990s has left some sectors of the U.S. economy awash in cash, others were struggling for capital and credit. The U.S. Small Business Administration noted in the 1990's a widespread lack of venture capital for service sector firms, non-high tech start-up companies and "basic" businesses with modest but sustainable growth prospects. At the same time, banking industry consolidation and branch closures have narrowed credit access or raised the cost of credit for many businesses in inner cities, older industrial communities and rural areas. Additionally, companies that lack an adequate business plan, require considerable technical assistance or fall outside existing support networks also have difficulties locating capital. Research conducted
by the Heartland Network in 1996 identified these capital gaps and
analyzed their causes in detail, and proposed broad regional labor
investment strategies. Additional research by academics and pension
and investment experts, and by the Regional Network itself in 1997-99,
provided further guidance on private capital investment alternatives
for union pension funds and assets, and regional marketing and model
investment strategies for U.S. communities. Heartland Regional Network Toolkit Click on an item below to download it:
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