Business leaders warn of HB2 impact on local tech industry
By Terry Lane
Staff Writer
The controversial North Carolina law House Bill 2 that changed legal protections for gay, lesbian and transgender people stands to hurt Wilmington’s nascent technology sector, warned CastleBranch and TekMountain CEO Brett Martin during a Thursday panel on the issue.
“We built this facility to put us on the technology map,” Martin said, referring to the multi-million dollar headquarters on Sir Tyler Drive. “But this act of the governor will wipe us off of that map.”
Martin also said the University of North Carolina Wilmington needed to make a stronger statement.
“The wait-and-see approach of our university is a little surprising,” Martin said. “We need our university to be the loudest.”
On Tueday, April 12, North Carolina Governor Pat McCrory issued an executive order that addressed some of the bill’s provisions, while opponents said it wasn’t enough.
UNCW Chancellor Jose Sartarelli released a statement earlier on Thursday which said the university wouldn’t have to change its current anti-discrimination policies due to the bill.
“UNCW will continue to be a campus devoted to inclusion, and the safety and well-being of our employees, students, and guests,” Sartarelli said in the statement. “These are difficult topics to discuss, but what I believe is the following: We can either put our heads in the sand and choose to ignore discomfort and unease, or we can engage in a dialogue that can only bring about increased awareness and acceptance of the diversity that helps make us who we are as a community. I choose the latter, and I hope you agree.”
Martin said that Wilmington needed to do a better job of speaking out on the issue and try to match the intensity of some other cities in the state.
“Charlotte is doing a tremendous job of speaking loudly,” Martin said. “Locally, businesses have been relatively quiet. If we’re remembered as the group that did nothing, then we’ll never be on the list of cities to move to for relocating technology companies.”
The panel also had representation from the local banking industry. Jonathan Rowe, vice president of marketing and research at nCino, said the bill could also affect perceptions of the state from other financial institutions.
William Oden III, a labor attorney with Ward and Smith, PA, said that HB 2 also changed how discrimination suits are filed in North Carolina. The bill ends the right to take discrimination cases to the state courts for all protected groups, not just for the lesbian, gay, bisexual or transgender, or LGBT, community. Under HB 2, no cases based on race, gender, age, disability or other protected classes could come through the state courts, he said, leaving the only option to be a federal suit.
“Taking a case to federal court is more expensive and there’s a shorter time frame,” Oden said, noting that federal suits can’t be filed until a complaint with the Equal Employment Opportunity Commission is resolved, adding another time element.
Overall, the panel’s focus was firmly opposed to HB 2, which passed a special session of the North Carolina General Assembly on March 23. The bill was in response to a Charlotte ordinance that addressed transgender bathroom rights, but the language was broader in scope, including a provision that prevents local governments from raising the minimum wage. But panelists said the impression the bill presents of North Carolina’s attitudes toward LGBT rights is false and detrimental to business development.
“The question today isn’t whether LGBT individuals have a place in our community,” said Sean Ahlum, director of business development at TekMountain. “They are a part of our business, entrepreneurial and community family.”
Martin said he believed that if more business leaders spoke out, local governments would be motivated as well. On Tuesday, April 5, Wilmington Mayor Bill Saffo said that city leaders would discuss the impact of the bill with its local state delegation during an upcoming meeting.
“Wilmington is and always will be a welcoming city that takes pride in its diversity,” Saffo said.
Wilmington city council member Kevin O’Grady said at Tuesday’s meeting that the council would not have supported HB 2, raising concerns about the state’s intrusion into local authority.
“If the legislature is going to pass some sweeping legislation, they need to talk to us. They’re not listening,” O’Grady said. “We never would have supported a law that callously excludes a part of the population. This legislation does not and will not change the character of our community.”
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