Easley signed legislation Tuesday that was written during a hectic two-day special session that became, in part, a debate over the right way to keep important employers happy.

Easley vetoed a bill Aug. 30 that would have given the Goodyear plant – with its 2,700 workers – $40 million over 10 years. Lawmakers met to override the veto, but instead chose to craft legislation that splits $60 million between Goodyear and a Bridgestone/Firestone plant in Wilson.

The vetoed version and the law signed Tuesday differ also in minimum employment requirements and penalties for not maintaining specific employment levels.

Rep. Rick Glazier, a Fayetteville Democrat who was the bill’s main sponsor, said the bill avoided a politically awkward override by the Democratic-controlled General Assembly of a veto by Easley, who is a fellow Democrat.

“Now you have the governor and the legislature investing in the outcome and going in the same direction,” he said.

Rep. Margaret Dickson, a Fayetteville Democrat who co-sponsored the bill, said Easley’s veto drew attention to an economic development issue that was hotly debated in the House.

“There is a consensus in the General Assembly that this is an area to look at,” Dickson said. “We have not looked at existing business as we have job creation.”

The legislation took two days of behind-the-scenes meeting of House and Senate leaders and the governor’s staff.

“It’s been an arduous process,” said Senate Majority Leader Tony Rand, a Fayetteville Democrat. “The resulting outcome is well worth it.”

The new law offers cash grants to Goodyear and Bridgestone/Firestone for keeping at least 2,000 full-time or contract jobs. The plants could even reduce their work forces up to 20% and qualify for funding.

Goodyear could get more than $24 million and Bridgestone/Firestone $22 million in incentives over the next 10 years as part of the compromise legislation, according to House Speaker Joe Hackney’s office. The program would allow three more companies to receive grants, but it’s unclear if other businesses in those two or any other economically distressed county could qualify.

Companies would have to have a minimum of 2,000 workers, invest $200 million over a six-year period and maintain average wages that are 40% higher than the local average to qualify. A company would lose a portion of its annual grant if the plant’s overall employment level fell. If employment fell by 20%, the company would lose its entire grant for that year.

In exchange for funding, each company will have to complete $200 million of facility upgrades. The amount of the annual grants would be determined by the N.C. Commerce Department and could take into account sales tax paid on new machinery and construction supplies and the cost to train workers.

“It requires huge investments, each more than $200 million, by companies that accept the challenge to build world-class facilities here that are the most technologically advanced on the globe,” Easley said in a statement. “The bill ensures workers’ job security, wages, benefits and advanced training as part of the incentives. It is performance-based with clear criteria for earning any incentive.”

Goodyear closed two North American plants last year amid a restructuring that includes moving manufacturing plants overseas to take advantage of cheaper labor. Company officials say they need to retool machinery in the 38-year-old Fayetteville plant to make larger and more technologically advanced tires, such as those used on sport utility vehicles.

The first bill, which emerged during the last week of the regular session in early August, passed in the House, 98-11, and 41-5 in the Senate

Support for Tuesday’s bill was more along partisan lines, passing 61-44 in the House and 25-16 in the Senate.

Opposition came mostly from Republicans, who generally oppose incentives and criticized the bill because it is essentially written for two companies. No other manufacturer meets the employment and investment requirements and is based in an economically distressed county.

Rep. Paul Stam, the GOP leader from Wake County, said the bill does not provide an incentive to Bridgestone/Firestone because the company began its facility upgrades a year ago.

Bridgestone/Firestone, though, has a different take. Mark Emkes, chairman and CEO of both Bridgestone Americas Holding and Bridgestone/Firestone North American Tire, said: “We appreciate the work of the House and Senate, particularly the Wilson delegation, and the administration to find a fair and equitable solution to help our Wilson facility become globally competitive. We also appreciate the continued support of the Wilson community. We believe this
Job Maintenance and Capital Development Fund plan is in the best interests of our more than 2,000 women and men at the Bridgestone Firestone Wilson tire production facility as they work hard everyday to make world-class products and position this plant to succeed in a fiercely competitive global marketplace.”

Stam said he doubted $3 million annually to Goodyear is a meaningful incentive because it is a fraction of a percent of the company’s annual earnings.

Sen. Phil Berger, a Rockingham County Republican, said the legislation was unfair to smaller companies.

“The question is, what do we do next time when another company says, ‘You know, our industry changed. We need to modernize our plant,’ and so they come and they don’t quite have 2,000 employees and they don’t quite need to invest $200million,” Berger asked. “What are we going to say to them? Where does it end?”