The Post-Standard (Syracuse, New York), October 14, 2005, Friday

Copyright 2005 Post-Standard
All Rights Reserved.
The Post-Standard (Syracuse, New York)

October 14, 2005 Friday
FINAL EDITION

SECTION: NEWS; Pg. A1

HEADLINE: HOW GAS PRICES ARE CHANGING CNY'S HOMES, FACTORIES ... AND A DINER;
MORE WORKERS SEEK JOBS THAT ARE CLOSER

BYLINE: By Charley Hannagan Staff writer

BODY:
The hike in gasoline prices is changing the way Central New Yorkers work.
More are seeking jobs closer to home, working four days instead of five to save gas or taking the bus to work.
Several companies say workers recently have cited high gas prices as the reason for quitting their jobs.
That was why 10 temporary workers and five permanent ones said they left Tessy Plastics, on Route 5 in Elbridge, said Chief Executive Officer Roland Beck. The company has 500 permanent workers and 100 temps.
Prior to this summer's gasoline price hikes, the plastic injection molder attracted workers from as far away as Oswego County, almost 40 miles and an hour away by car, because of the higher unemployment rate there, Beck said.
Now the company is attracting more workers from Auburn, 20 minutes to the west by car, and Syracuse, 20 minutes to the east, he said.
Although Tessy is out in the country, Syracuse employers are having trouble attracting workers, too.
Philip Mazza, vice president of human resources at Hanford Pharmaceuticals, noticed that as gasoline prices rose to $2.80 or $2.90 a gallon, it became harder to recruit and retain workers. Two employees recently quit after finding similar work for similar pay closer to their homes.
The company has 216 workers and has 10 openings to fill, he said.
Employers say the people quitting their jobs over gas prices are more likely working in blue-collar jobs than office work, said Anne Kassel, vice president of human resource services for the Manufacturers Association of Central New York.
"There's a certain threshold where it's not cost-effective for people to travel," she said.
Employers also report that workers have asked for raises to cover higher costs associated with gas prices, Kassel said.
High gasoline prices are just one factor making it difficult for companies to find workers at Hanford, Mazza said. August's unemployment rate of 4.5 percent means the labor pool is shrinking, making it difficult for the company to find workers with specific skills for drug manufacturing, he said.
"It's a tough labor market now," Mazza said.
As the cost of travel rises, it will affect the way companies go about their business, said John Hausknecht, assistant professor of human resource studies at Cornell University's industrial and labor relations school.
Manufacturers will consider compressed workweeks, where people work the same amount of hours but in fewer days, he said. Offices will allow more workers to work from home and video conference rather than travel to company meetings, Hausknecht said.
They'll offer incentives to workers to take the bus or car pool, to cut down on absenteeism caused by high commuting costs, he said.
Employees at Empire State Container and its sibling company, T&T Packaging, some of whom travel great distances to work, recently asked the companies' owners to consider implementing a four-day workweek to cut travel costs.
The Geddes box maker agreed, not only to help employees, but to also save money on its energy costs, which also are expected to jump this year, said President Syd Tenenbaum.
Beginning Oct. 31, 45 of the companies' 60 employees will work four 10-hour days, he said. Delivery truck drivers and office staff will continue to work the traditional five-day week to meet customer needs, Tenenbaum said.
"This is new for us. We're not 100 percent certain if it will work, in terms of servicing our customers," he said. "If it works I don't anticipate changing back."
"Employees are excited about it because it gives them a three-day weekend," Tenenbaum said.
While some workers are seeking to have their employers cut their gas costs, others apparently are parking their cars altogether.
Centro reported a 19 percent increase in the number of customers paying cash to ride the bus in August compared with the same month in other years. Since most people who regularly take the bus to work use passes, the increase in cash ridership shows that more people are "sampling" the product, said Steve Koegel, communications manager.
Medical device maker Welch Allyn is considering asking Centro to establish a route through Elbridge, Jordan, Port Byron and Weedsport to bring workers from those areas to its Skaneateles facilities.
"We understand that for workers who commute from the outlying areas Skaneateles can be a commute," said Jamie Arnold, speaking for the company.
Last year, at the company's request, Centro established a route from Syracuse to its facilities. However, that route never really caught on and Centro canceled the service, Koegel and Arnold said.
"We constantly tweak here and there to serve companies," Koegel said. "There's always a constant conversation going on between employers and our company."
At Tessy Plastics, high petroleum prices have created another problem, said Beck, the CEO. The plastic pellets used in its molds are made from crude oil, which also is more expensive, Beck said. The cost of some raw materials has gone up 40 percent to 50 percent and some customers won't let Tessy pass on those costs, he said.
Beck predicted that petroleum prices will remain high. "I think it's going to be around for a while," he said.