Should tax millions be paid as incentives to companies that lay off workers?

State Commerce and Department of Employment and Workforce records show that at least 10 companies laying off workers or closing since last year had been awarded state incentives.

Fortunately none were in Lexington County but Shaw Industries notified the state this year of plant closures in Central and Clinton.

Shaw received final approval for incentives in 2008 for its Lexington County plant on St. Andrews Road in Irmo, records show.

Overall, 2,013 workers at those companies were projected to lose their jobs through next July 31.

Gov. Henry McMaster announced that DHL Supply Chain, a global logistics company, would locate a $100 million distribution and warehouse park in Dorchester County.”

In exchange for creating 450 jobs, a $1 million state grant was awarded to Dorchester County and DHL was approved for state job development credits.

What neither McMaster nor other state officials mentioned was that DHL notified the state last year that it was laying off 576 workers in Spartanburg.

And it’s not the only time the state has awarded taxpayer-backed incentives to companies that have laid off workers or closed plants in South Carolina.

Records show that the state Coordinating Council for Economic Development chaired by Commerce Secretary Bobby Hitt approved grants ranging from $200,000 to $1 million.

The taxpayer-backed incentives are discussed behind closed doors. Projects typically are given code numbers to keep their identities secret until agreements are final.

DHL said it was a partner with Walmart in Spartan-burg where it provided associates and managed the distribution facility.

Walmart chose to take the work “in house” and workers simply shifted over.

We asked Commerce if any of the state incentives agreements with the 10 companies contained “claw-back” provisions. These typically require companies to repay all or part of certain awarded benefits.

Since 2015, 14 companies that committed to locating or expanding in the state collectively repaid nearly $7 million in state grants after failing to meet job creation or investment requirements.

Brundrett is news editor of The Nerve. Contact him at 803-254-4411 or rick@the-nerve.org.