Aviation company’s job record raises concerns in Ohio: ‘Not what was promised’

Op-ed views and opinions expressed are solely those of the author.

Joby Aviation, an aviation company based in Santa Cruz, California, has received substantial support in exchange for commitments to create jobs–but sources and public records raise questions as to whether those promises have been fulfilled, and whether a state economic development agency over promised job benefits in exchange for tax credits

Joby has been featured in the press for purchasing another aviation company and announcing partnerships with major companies like L3 Harris.

In 2023, Ohio’s economic development agency JobsOhio announced that Joby would be “creating 2,000 new jobs” and investing nearly $500 million in a state-of-the-art facility in Dayton, Ohio. JobsOhio’s model is to attract jobs and economic development to the state of Ohio in exchange for incentives like tax deferments or credits, and JobsOhio announced benefits to Joby of potentially $200 million in exchange for these job commitments. Of note, JobsOhio is unique among state economic development agencies with a public-private model where the agency relies on revenue from liquor sales in Ohio.

However, a source alerted BizPacReview to documents raising questions about whether Joby has fulfilled these promises.  Joby has leased an old USPS facility andCEO JoeBen Bevirt avoided questions about his progress with their new facility on their Q2 earnings call. While the JobsOhio announcement promised 2,000 new jobs, Joby’s website shows 3 job openings listed in Dayton as of mid-August.

A former JobsOhio official told BizPac, “It’s not uncommon for companies to over promise while making splashy job announcements that come with taxpayer benefits. But when it comes to Joby’s project, it appears that the gap is substantial and more than normal. Companies risk losing their tax credits and public backlash for future deals if what they deliver is not what is promised. And JobsOhio’s reputation gets sullied when companies don’t perform.

Alleged Pattern:

BizPac was alerted to a prior deal with Joby in November 2023, when the company won a $9.8 million “California Competes Grant” by pledging to create 690 new full-time jobs and invest $41.2 million in expanding its electric aircraft manufacturing in Marina, California. The grant application drew broad local support at the time and was widely embraced as a workforce boon for the Monterey Bay region.

Joby worked with the United Auto Workers (UAW) union and at a 2023 grant hearing, a UAW representative endorsed Joby’s application with conditions. UAW lauded Joby’s willingness to negotiate a community benefits agreement (CBA) that would ensure “high quality jobs,” including provisions for union neutrality and workforce development programs.

However, now the UAW opposes Joby’s new application for additional benefits, arguing that Joby had failed to follow through on its California Competes Grant promises to work with labor and invest in local training despite repeated attempts at engagement by the UAW.

Sam Appel, Western Director for UAW, said, “UAW has been repeatedly making good faith efforts to work with Joby in regard to hiring, workforce partnerships, and training. Despite these efforts and promises at the CALcompetes approval meeting, there has been no cooperation or response from Joby. This matters deeply to Monterey County, and UAW urges CAEATFA board to consider the failure of these applicants to follow through with its commitments when providing government incentives.”

If Joby does fail to live up to its job promises, it certainly won’t be the first company that received substantial taxpayer benefits followed by delivering fewer jobs than expected. Ohio’s other project with Intel has received a lot more attention. But it will be a reminder of why conservatives are skeptical of the state picking winners and losers.