Thursday, February 21, 2008

Buffalo News (New York), February 20, 2008, Wednesday

Copyright 2008 The Buffalo News

All Rights Reserved

Buffalo News (New York)

February 20, 2008, Wednesday

CENTRAL EDITION

SECTION: EDITORIAL PAGE; Pg. A6

HEADLINE: Hats off to settlement; New Era's new contract in Alabama looks like a good deal for all

BODY:

Welcome news: New Era Cap Co. has ended a curious and volatile period of contract negotiations with a settlement that puts the Buffalo-based company, the Teamsters union and the National Association for the Advancement of Colored People on the same page.

Currently in place is a tentative three-year labor agreement between the cap maker and newly organized workers at the company's Mobile, Ala., distribution center, which has 95 employees. The dispute brought together strange bedfellows, as the Communications Workers of America stood alongside the company being accused by the advocacy organization and another union of racism and unfair practices.

What came out of the wash is a toehold for the Teamsters, a collective-bargaining agreement that includes increased hourly wages and better health coverage for workers, while New Era gets to implement at its warehouse efficiency strategies that are currently in place at its other locations. There's also an improved diversity policy to address allegations of racism and unfair labor practices outlined in a report released last month by the NAACP.

Adding to the good news for some workers in Mobile is agreement that 17 of 20 employees allegedly terminated for union organizing will be offered new employment and the cases of the remaining three will be decided by the National Labor Relations Board.

The arrival of the Teamsters union in Southern manufacturing states and the image of the NAACP's Julian Bond leading protests contrasted sharply with the positive image the company has developed in this community. That its local image is backed by substance was demonstrated by the support New Era received from the CWA, which represents workers at the company's Derby facility and had faced off against management a few years ago during an earlier labor disagreement.

The Teamsters and NAACP action threatened not just this company but the community, because of the leading role New Era has taken in helping promote business growth here, especially with its new downtown headquarters.

Protesters threatened to disrupt the company's lucrative relationship with Major League Baseball, and the University of Wisconsin-Madison pulled New Era's license following pressure from the Worker Rights Consortium and United Students Against Sweatshops, both organizations that advocate for better working conditions in factories.

Trying to organize unions in a right-to-work state, most of which are in the South, is extremely difficult, according to Arthur C. Wheaton, an industry education specialist at Cornell University's School of Industrial and Labor Relations in Buffalo. Translating the labor situation in the North to the South is difficult as work moves from the traditional "Rust Belt" to the right-to-work states with lower pay, benefits and working conditions.

Much of the problem for New Era Cap in Alabama involved workers who wanted the benefits negotiated in Derby. Whether that conflict escalated because of discrepancies by managers in Mobile or because of an orchestrated attempt at building union strength in the South by picking a small but high-profile target, it's good to see the dispute settled in a way that protects jobs and the reputation of an important local company.

LOAD-DATE: February 20, 2008

The Journal News (Westchester County, New York), February 18, 2008, Monday

Copyright 2008 The Journal News (Westerchester County, NY)

All Rights Reserved

The Journal News (Westchester County, New York)

February 18, 2008, Monday

GWPR Edition

HEADLINE: Wisconsin primary might test Clinton's union support

BYLINE: Brian Tumulty

BODY:

WASHINGTON - Tomorrow's Wisconsin primary is shaping up to be a critical test of whether Sen. Hillary Rodham Clinton can hold on to her base of support among low-wage and blue-collar workers, despite the growing number of labor unions endorsing Sen. Barack Obama.

The Service Employees International Union - representing 150,000 health-care workers, janitors, security guards and municipal employees in the upcoming primary states of Wisconsin, Texas, Ohio, Pennsylvania and Rhode Island - announced Friday that it would campaign for Obama.

It's a major setback for Clinton, who has stressed that Obama's health-care plan did not require universal coverage, as hers does, because the service employees union has been one of the most vocal advocacy groups for universal coverage.

"It speaks to the constituency that Obama needs, which is low-income immigrant, Latino workers," said Jefferson Cowie, an associate professor of labor history at Cornell University.

Both candidates are honing their messages to appeal to blue-collar workers.

Obama - who has done well among higher-income voters, blacks and young adults - delivered what his campaign described as a major economic address Wednesday at a General Motors factory in Janesville, Wis.

Clinton, whose voter base has been people over age 50, rural whites and voters with incomes under $50,000, spent most of the week campaigning in Texas and Ohio. Her first stop in Ohio was a factory in Youngstown. On Friday, she visited a Lockheed Martin plant in Akron. Earlier in the week, she visited a factory in Maryland that makes transmissions for hybrid vehicles.

Andy Stern, president of the service employees union, told reporters in a conference call that there was very little difference between Clinton and Obama on issues important to organized labor.

"This is really not about specific positions alone," Stern said. "It's about the right person at the right time. And we think this is a moment where there is an opportunity for fundamental change in this country."

On Thursday, the United Food and Commercial Workers union, representing supermarket and food-processing employees, also endorsed Obama.

"I think her firewall is beginning to break down," said James Thurber, director of American University's Center for Congressional and Presidential Studies.

Thurber pointed to the recent endorsements of Obama by the activist group MoveOn.org and by Sen. Edward Kennedy, D-Mass.

"It really solidified the left of the party and said this is the guy we want," he said.

Clinton continues to have the longstanding backing of nearly a dozen national labor unions representing building trades and construction workers, machinists and public employees, but her recent string of presidential primary losses has made it imperative that she register blowout victories in the upcoming primaries to whittle down the lead Obama has in pledged delegates to the Democratic National Convention.

While John Edwards remained in the race, many labor unions were deeply split among the three candidates, with Clinton and Edwards capturing most of the endorsements that were made and with many unions choosing to stay on the sidelines.

The two recent endorsements give Obama the support of three of the seven unions in the Change to Win labor federation. The third - Unite Here - represents workers in textile factories, laundries, restaurants and hotels.

However, a fourth member of Change to Win - the United Farm Workers - endorsed Clinton last month and helped her win the California primary on Super Tuesday.

Wisconsin and the March 4 primary states of Ohio and Rhode Island all have a greater concentration of unionized workers than the national average.

Change to Win plans to decide next week whether to have its unions back Obama as a group.

Reach Brian Tumulty at btumulty@gns.gannett.com

LOAD-DATE: February 19, 2008

The Daily Star, February 16, 2008, Saturday

The Daily Star

February 16, 2008, Saturday

The Daily Star

Kunizaki - Corrigan

Mr. and Mrs. Eugene J. Corrigan of Richfield Springs and Mr. and Mrs. Ryuzi Kunizaki of Queens announce the marriage of their children, Hilary Corrigan and Michael Kunizaki. Michael and Hilary were married Dec. 30 at the Lake House in Richfield Springs.

Margaret Young was the maid of honor. John Bartos was the best man. Honor attendants included Elizabeth Corrigan, sister of the bride, and Moira Yardley, aunt of the bride. John Bartos and Rotem Cohen were groomsmen. The Rev. John Young performed the double-ring ceremony at the Lake House, where a reception for family and friends followed.

The bride is a graduate of Cornell University, where she received a degree in industrial and labor relations. She is employed by the Committee of Interns and Residents with the Service Employees International Union in Manhattan as a labor relations specialist.

The groom is a graduate of the University of Michigan at Ann Arbor, where he received a degree in sociology. He is a labor relations specialist with the American Federation of Teachers in New Jersey.

The couple live in Queens.

University Wire, February 14, 2008, Thursday

Copyright 2008 Cornell Daily Sun via U-Wire

University Wire

February 14, 2008 Thursday


HEADLINE: Cornell undergraduate tuition up despite capital campaign

BYLINE: By Venus Wu, Cornell Daily Sun; SOURCE: Cornell U.

DATELINE: ITHACA, N.Y.

BODY:

Amidst the hype surrounding Cornell's recently announced financial aid initiative and the progress of the Capital Campaign, few undergraduates realize that they will be paying more for tuition next year.

According to a press release, the tuition for undergraduate students at the endowed colleges will rise by 4.9 percent, from $34,600 to $36,300. This, along with the 4 percent increase in housing and dining fees, will result in an overall 4.7 percent hike in all fees from $46,021 to $48,194.

Both New York State residents and non-residents at land grant colleges will also have to pay more next year. While residents' tuition will increase by 5.5 percent to $20,160, non-residents' will increase by 5.1 percent to $35,200.

On the other hand, the University also announced a drop in graduate school tuition for the first time. The tuition will decrease by 10.1 percent to $29,500. This drop only applies to students in research-degree programs affiliated with the endowed colleges. The tuition of contract colleges will remain frozen at $20,800 for graduate students. The three professional schools -- Law School, Johnson School, and the College of Veterinary Medicine will all increase tuition by various degrees.

The above changes have all been approved by the Board of Trustees.

The administration stressed that there is no correlation between the changes in tuition and the latest financial aid initiatives.

"The new financial aid initiative is not being funded directly from the 2008-09 tuition increase, but from reallocation of existing resources, endowment income and new gifts," said Carolyn Ainslie, vice president for planning and budget.

Although the Capital Campaign will also help to fund future financial aid, it will not eliminate the need to increase tuition, according to Provost Biddy Martin.

"Tuition increases are an attempt to keep up with the costs of education.... We believe that those who can afford to pay the price of tuition should," she said.

The Capital Campaign, however, will help support many graduate students' education, according to Dean of the Graduate School Alison Power.

Power also explained that the decrease in tuition will not be strongly felt by most graduate students because most of them receive funding packages from Cornell or other funding agencies. However, due to reductions in federal government funding and tuition capping on some granting agencies, support for graduate students has been increasingly difficult.

"The lower tuition rate should help faculty to increase the number of grants received and the number of students supported on those grants," Power said.

Although the University's income from graduate tuition will drop by more than $4.5 million due to the cut in tuition, this trend is expected to continue in the upcoming years. According to Power, the Graduate School is aiming to reduce the tuition of endowed colleges to the level of contract colleges at about $20,000 by 2012.

Power also stressed that the decrease in graduate tuition has "no direct link" to the increase in undergraduate tuition.

"We anticipate that part of the foregone tuition revenue will be replaced by an increase in the number of graduate students supported on grants. In addition, we anticipate that gift income from the Capital Campaign will also help to replace this lost income," Power said.

At the undergraduate colleges, even with the annual increase in tuition, a student's tuition alone cannot cover the full cost of his education, which amounts to the $50,000 range, according to Ainslie.

"In a way all students are subsidized by endowments and gifts," she said.

Salaries for faculty and staff make up the largest proportion of the University's budget at 60 percent, estimated Ainslie. She also implied that due to inflationary pressure and changes in the labor market, the pay for faculty and staff is going to increase in order to maintain Cornell's competitiveness among peer institutes.

"Higher education is labor intensive... and we need to stay competitive in recruiting and retaining faculty and staff," Ainslie said.

It is possible that the recent downturn in the economy has affected the tuition decisions in some other Ivy League universities. Yale, Princeton and Brown all announced smaller increases in tuition for the next academic year, with Brown planning to slow the increase in both tuition and salaries.

Although Cornell has not made a similar announcement, Prof. Ronald Ehrenberg, industrial labor relations and economics, claimed that Cornell is making a "substantial effort" to slow down tuition increase.

"This year's Cornell undergraduate tuition increase in the private part of the University is the smallest relative to the rate of inflation that has occurred in many years," said Ehrenberg, who is also a member of the Board of Trustees.

In previous years, Cornell annually raised tuition by about 2 to 3 percent more than the rate of inflation, according to Ehrenberg. This year, however, the raise in tuition is lower than 2007's inflation rate of 4.1 percent.

Ehrenberg explained that the difference was due to Cornell's "substantial effort" to hold down tuition increase. He added that the there was "a lot of pressure from the Congress to hold down tuition increase," referring to the Senate Finance Committee's request for detailed information on endowment growth and student financial aid on Jan. 24.

Various student representatives expressed understanding and support for the University's decision.

"I do think the increase is acceptable," Student Assembly President C.J. Slicklen '09 said. "Initially, no one likes to pay more tuition. But when you see the logistics, the cost to remain competitive, and the rising costs in higher education, students can understand this."

He suggested that the University could put more effort in explaining the tuition changes.

"I think the University could do a better job of publicizing their justification, maybe [through] an e-mail to all students and a letter to new students," he said.

While applauding Cornell's new financial aid initiative, student trustee Kate Duch '09 expressed concern over the increased tuition's impact on admissions.

"No university can unilaterally decide to reduce its costs without sacrificing the quality of students who apply and enroll. I do not think that the increase places Cornell at a competitive disadvantage [among] private institutions... [but] annual tuition increases across private colleges and universities prompt more and more students to apply and enroll in less expensive public universities," Duch said.

Student trustee Mao Ye grad also emphasized the importance of the new financial aid initiative.

"Facing the increase of education cost, the no-loan financial aid initiative announced recently is essential. It gives opportunities to all deserving students, and ensures that their careers will not be affected by financial constraint," said Ye.

He also suggested that increased cost of providing education is understandable as it is necessary to increase faculty salary under inflationary pressure.

"It is essential [that] the faculty salary [does] not decline relative to the salary of people in other industries. Otherwise, few professors will be devoted to this industry," said Ye.

(C) 2008 Cornell Daily Sun via U-WIRE

LOAD-DATE: February 14, 2008

Utica Observer Dispatch, February 13, 2008, Wednesday

Utica Observer Dispatch

February 13, 2008, Wednesday

Utica Observer Dispatch


On the Move: Charles J. Whalen


Observer-Dispatch

Utica College names Whalen professor, director
Utica College has named Charles J. Whalen professor and director of business and economics.

Whalen has served as a professor at Cornell University in the School of Industrial and Labor Relations, Hobart and William Smith Colleges and Wells College.

A former Fulbright Senior Scholar and visiting professor at Zhongshan University in Guangzhou, China, Whalen went on to sit on the Fulbright Scholar Review Committee for China, Taiwan and Hong Kong.

He has written extensively for both academic and nonacademic audiences. His recent books include “Political Economy for the 21st Century,” “New Directions in the Study of Work and Employment,” and he is working on “Human Resource Economics and Public Policy.”

He also serves as editor of “Perspectives on Work,” a journal published by the Labor and Employment Relations Association. He also is a visiting fellow at Cornell University School of Industrial and Labor Relations.

Whalen earned his Ph.D. in economics from the University of Texas at Austin and has an undergraduate degree from Cornell University.

Decision Times, February 2008

Copyright 2008 Army Times Publishing Co.

All Rights Reserved

Decision Times

February 2008


SECTION: DECISION TIMES; Pg. 2

HEADLINE:
Unions are recruiting; Maturity and teamwork fuel |labor groups' desire to sign you up

BYLINE: Tranette Ledford

BODY:

Labor unions have transitioning service members squarely in their sights, organizers say, and for you that could mean better pay, benefits and job security as a civilian.

For skilled and nonskilled veterans, getting a union card and the benefits that go along with it is easier than you might think. You can even draw some GI Bill benefits while you train on the job.

But life in a union isn't without some risk. Strikes are a reality - think Hollywood writers - and individual merit can be overshadowed in a military-like, hierarchical work culture.

That said, now is a great time to look for a union job. Here's what you need to know.

Going union

Today's young service members are at least a generation removed from the rise of the U.S. labor movement, which peaked in the 1950s thanks to local organizers who fought to improve workers' rights.

Labor unions are still recognized as a political force and continue to advocate for their members.

For fifth-generation pipe fitter Craig Miller, a native of Washington state, the decision to join a union was easy. The former Navy engine mechanic served three years on ships before getting out as an E-4 in November 2006. Now he's a member of the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada Local 597 in Chicago. It's among the major construction trade unions, with 326,000 members and more than 400 locals.

"When I got out of the military, I came to Chicago specifically to get into the union here," said Miller, who works installing pipe in heating and cooling systems. He pays union dues quarterly and says what he gets back is worth more than what he puts in.

"The union has your back all the way," Miller said. "They make sure we have excellent benefits, really good pay, free education and training. And if you're hurt on the job, the union is going to take care of you."

Unions today

Labor unions get their power through collective bargaining, in which workers negotiate as a group on issues such as pay, pensions and safety. The negotiations result in a contract, but if the two sides can't come to an agreement, it could mean union members go on strike.

The largest federation of unions today is the American Federation of Labor and Congress of Industrial Organizations, referred to most commonly as the AFL-CIO. It's an umbrella of 55 unions with more than 10 million members, including the United Auto Workers, International Union of Police Associations and American Federation of Teachers.

The benefits, according to the AFL-CIO, are higher wages, especially for women and minority groups, as well as better health benefits and pensions. Unions are good for business, worker productivity and the economy, the AFL-CIO says, and they help bring low-wage workers out of poverty and into the middle class.

But membership is dropping fast.

A little more than 15 million American workers are union members. That's about 12 percent - down from 20 percent to 24 percent from 1973 to 1983, according to Labor Department data.

AFL-CIO government affairs director Bill Samuels cites a number of reasons for the decline.

"The economy has changed, and you have a more mobile work force," Samuels said.

"Companies are outsourcing. There's a $4 billion anti-union consulting business. And employers threaten and intimidate employees against unions. They tell them the company will close or relocate if it's unionized and they'll lose their jobs. Or they threaten to fire employees who interact with union organizers or indicate interest in unions."

Of course, there's another side to the argument.

Groups such as the Center for Union Facts and the National Right to Work Committee spend their time publicizing what they consider abuses on the unions' parts - or at least their leaderships' - including coercion to join.

Analysis and trends

Ronald Ehrenberg is a professor of industrial and labor relations and economics at Cornell University, an economist and co-author of "Modern Labor Economics: Theory and Public Policy." Ehrenberg attributes the decline in union membership to other factors, too, including foreign competition, industry deregulation, fewer blue-collar jobs and a population shift to the Sun Belt states, where unions haven't traditionally been strong.

Union membership is greatest among men and government employees. In fact, those in the public sector join unions at a rate five times greater than private-sector workers.

Local government employees such as police officers, firefighters and teachers have the highest membership rate, according to the most recent Labor Department figures - 41.9 percent in 2006.

Those in financial fields, farming and forestry had the lowest at 3.5 percent.

Geography is also a factor. The greatest numbers of union members live in California, New York, Illinois, Michigan, New Jersey and Pennsylvania. States with the lowest rates of union membership are North Carolina, South Carolina, Virginia, Georgia and Texas.

Veteran membership

The International Union of Operating Engineers prefers - when all other qualities are equal - to bring in veterans as new members.

The group's "unwritten" preference for signing veterans up to its competitive apprenticeship program is only natural, said the union's communications director, Joe Brady.

"They just have a maturity about them that your average 18- or 19-year-old guy out of high school doesn't have," Brady said. "They bring a can-do attitude. They have a good background in teamwork, which a lot of construction is."

One nonprofit group has matched about 1,550 transitioning service members with construction unions in the past 10 months.

"This is a great industry for separating service members because it doesn't matter whether they have experience or don't," said Darryl Roberts, executive director of the Helmets to Hardhats program.

"Once you join a building or construction union, your military experience is recognized, and you enter the journeyman's program at your level. What you lack, you get trained for - and get paid while you train. When you complete the program, you can take it with you anywhere, get the highest ... dollar for your work, take your pension with you and carry over your benefits."

Going to work

Jose Murga joined the Navy in 2003 and got out as an E-4 in March. The Navy trained him in hydraulics and elevator equipment onboard ships. The union will further his training.

Murga returned to his hometown of El Paso, Texas, after the Navy and took a job with high pay but which required him to be on the road a great deal of the time.

"It didn't work well for my family," Murga said.

He looked around for jobs locally and found Helmets to Hardhats.

"The next thing you know, the union contacted me. Now I'm in an apprenticeship program and a member of the elevator union," he said.

As a member of the International Union of Elevator Constructors, the union will send Murga out on construction jobs.

"They'll keep me employed, going from company to company as an elevator technician," he said. "I just began in December, so I'll be on probation for the first six months, then my union wages go up and the benefits kick in."

Elevator installers and maintainers earn a median wage of $20.50 per hour, up to $34 per hour, according to the Labor Department. That could mean an annual salary of about $70,000 per year, not counting overtime.

Get paid during training

Most veterans placed through Helmets to Hardhats spend three to five years in an apprenticeship program on their way to becoming a journeyman in a trade, Roberts said. During the training, they're paid about half the going rate for a journeyman.

Veterans are allowed use their GI Bill benefit to supplement their income while also earning the union's wage for on-the-job training.

"The MGIB payments go directly to them while they're training," Roberts said. "They can also choose to earn an associate degree in places where colleges partner with us."

The down sides

The cons to union membership are debated.

You have to pay to be a member, for example - Roberts said the average is about $32 per month - but you get services in return for the expense. Members may receive a portion of their usual pay if they're ever called out on strike - a reality of life in the brotherhood.

There's also the perception that seniority rules can hold up career advancement.

Brady said the plumbing and pipe fittingunion counts seniority only when all other skills re equal.

"The unions are like anyplace else," Brady said. "Talent is recognized."

Roberts said service members may notice some similarities between unions and the military.

"Being part of a union not only guarantees the pay and benefits you deserve. You also find that when you're part of a brotherhood, you have the camaraderie you're used to," Roberts said.

CORRECTION:

1 COLOR PHOTO. 2 COLOR GRAPHS. GRAPH HED: UNION FACTS. SEE TNS-Union Facts 02-04-08. GRAPH HED: EMPLOYMENT OUTLOOK -- NORTHEAST. SEE DT-Employment Outlook 02-04.

1 FACT BOX. FACT BOX HED: GET A UNION JOB.

COVER HED: HOW TO GET A UNION JOB/ AND WHY LABOR GROUPS WANT YOU/ PLUS COLLECT GI BILL PAYMENTS WHILE YOU WORK. SEE DT-Cover 02-04-08.

LOAD-DATE: February 20, 2008

Thursday, February 14, 2008

Buffalo News (New York), February 13, 2008, Wednesday

Copyright 2008 Buffalo News

Buffalo News (New York)

Distributed by McClatchy-Tribune Business News

February 13, 2008, Wednesday

SECTION: STATE AND REGIONAL NEWS

HEADLINE: GM asks workers to take buyout

BYLINE: Matt Glynn, The Buffalo News, N.Y.

BODY:

Feb. 13--For hourly workers at General Motors' engine plant in the Town of Tonawanda, it's decision time again: accept GM's incentive to leave, or stay.

GM on Tuesday announced a buyout offer for all 74,000 of its workers who are represented by the United Auto Workers, including more than 1,500 at the River Road engine plant. The offer came on the same day GM reported the largest-ever full-year loss for an auto company, $38.7 billion.

Although the automaker attributed much of the loss to an accounting change, the earnings numbers show that North American sales are lagging and the slowing economy leaves little optimism for a quick turnaround.

GM is striving to cut costs by encouraging older workers to leave and create openings for entry-level workers who would earn about half the $28-an-hour rate.

GM made similar buyout offers to its workers in 2006, and 656 workers at the Tonawanda plant took them. Other auto-industry plants in the region have gone through similar processes in recent years, reducing their populations and payrolls.

The GM plan includes incentives for those eligible to retire of $45,000 for production employees and $62,500 for skilled trades workers. Among the other options are a $140,000 cash buyout for employees with 10 or more years of credited service or seniority, in exchange for quitting and cutting ties to GM. For workers with less than 10 years, the offer is $70,000, with the same requirements attached.

Patrick Heraty, professor of business administration at Hilbert College, said GM's main objective with its 2006 buyout plan was to reduce head count. "The goal here is not so much to reduce head count but to replace experienced workers with people who make half [as much money]," he said.

GM and the UAW last year agreed to a "two-tier" wage system under which a new class of workers starts out making half as much. The wages of existing workers were not affected.

The lower tier pay applies only to those jobs defined as "noncore," meaning not directly related to assembly. GM and UAW representatives are starting to visit plants to define which jobs are "noncore," said Dan Flores, a GM spokesman.

The question that can't be answered yet is how many of the Tonawanda plant's hourly workers will take one of GM's offers. The plant has 1,522 hourly workers, including 170 on layoff. The average employee there has 25 years of service and is nearly 52 years old, according to the company.

Flores said GM does not have a target number of workers for its buyout plan.

Flores said workers will have 45 days from the time they are formally briefed on the offer to decide whether to take it. If they sign up, they will have a seven-day grace period to reverse the decision, he said.

GM's goal is to have everyone who signs up leave the company by no later than July 1.

Bob Tresp, 53, who started at GM in 1976, said he would take the buyout. Like other workers, he was awaiting more specifics but said the timing suited him. "I could do a dance across my yard right now," he said of his reaction to the offer.

Tresp said in his post-GM life, he has thought about taking some classes, coaching football and perhaps putting his home-improvement skills to work by going into business for himself.

Roman Minkewicz, who has worked at the plant for 23 years, said he was not going to take the offer, but he expects it will be a nudge for people who were thinking about leaving anyway.

"Many of the people who were contemplating retiring feel that will be a good deal for them, because they were ready to walk out the door," Minkewicz said. Others, he said, will wonder whether their benefits will be protected down the road and are nervous about walking away.

"Most are thinking about sticking it out a couple of years to be financially secure," he said.

Art Wheaton, director of labor studies at Cornell University's School of Industrial and Labor Relations in Buffalo, said GM won't be able to realize bigger savings on its labor costs until it can coax more higher-paid workers into leaving.

"The two-tier wage system does not help them if they don't hire new people," he said.

Even though newly hired workers won't make as much as their predecessors, Wheaton said a $14-per-hour job with benefits in this region is still good compared with pay in some other industries. And the plant should benefit from an influx of new people and new ideas when that time comes, he said.

Heraty said the region is struggling to save its manufacturing jobs.

"It's difficult on the families, and it's difficult on the local economy," he said. But the choice nowadays, he said, isn't whether the region prefers higher-paying to lower-paying jobs, but how many auto industry jobs can be preserved.

Howard Foster, professor emeritus of industrial relations at the University at Buffalo's School of Management, said GM's long-term vision is to operate its plants with a less-costly work force.

"It will take a while, and this will accelerate it," he said.

GM on Tuesday said its all-time high loss of $38.7 billion in 2007 was due largely to a third-quarter charge related to unused tax credits. Excluding that tax charge and other special items, GM lost $23 million, or 40 cents per share, in 2007 compared with a net income of $2.2 billion in 2006.

GM reported $181 billion in revenues for the year, down from $206 billion in 2006. The company sold 9,369,524 vehicles worldwide, up 3 percent from the year before.

For the fourth quarter, GM posted a loss of $722 million, or $1.28 per share, compared with a net income of $950 million in the year-ago quarter. Fourth-quarter charges included $622 million to Delphi for its restructuring efforts and a gain of $1.6 billion because of tax credits related to GM's pension liabilities and the sale of its Allison Transmission unit.

GM's North American division continued to struggle, but the automaker was profitable in every region outside North America.

While 2008 is expected to be another difficult year for GM and the U.S. auto industry, GM officials say the automaker's restructuring plans are long-term, aimed at earnings increases by 2010 and 2011 as changes involving its labor costs and retiree health care costs bear fruit.

The Associated Press and Bloomberg News contributed to this report.

To see more of The Buffalo News, N.Y., or to subscribe to the newspaper, go to http://www.buffalonews.com. Copyright (c) 2008, The Buffalo News, N.Y. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

LOAD-DATE: February 13, 2008

Tonawanda News, February 12, 2008, Tuesday

Tonawanda News

Tonawanda News

Published: February 12, 2008, Tuesday

GM offering big buyouts
By Daniel Pye/pyed@gnnewspaper.com

After posting a $38.7 billion loss in 2007, General Motors has reached an agreement with the United Auto Workers union to offer buyout incentives to all of its 74,000 UAW-represented employees.

The four-part attrition plan gives exit options to every employee regardless of his or her time with the company, but not every employee is eligible for all of the options, said Dan Flores, GM corporate manufacturing and labor spokesman.

Employees are eligible for retirement after 30 years, but some choose to stay. GM is offering skilled trades employees with more than 30 years $62,500 and production employees $45,000 to take their retirement.

The retirement incentive can be taken in a lump sum, rolled over into a 401K or IRA, paid in a monthly annuity in addition to regular pension checks, or in a combination of partial lump sum and partial 401K or IRA payment. That flexibility is something the company is proud of, Flores said.

“This is something not offered to Ford or Chrysler employees,” Flores said. “Ours have tax deferred options, so that the $62,500 can be put into a 401K. That way they won’t pay taxes until the money is withdrawn.”

For the Tonawanda Powertrain plant in particular, this category constitutes the majority of UAW members, said Arthur Wheaton, workplace and industry education specialist at Cornell University.

“Close to 50 or 60 percent are in that group and will probably take the buyout to walk away,” Wheaton said.

Employees with between 26 and 29 years of service will be eligible for a pre-retirement program that allows them to go on leave while still reaching full retirement benefits.

“These employees can volunteer to go on pre-retirement leave,” Flores said. “They’ll receive fixed monthly payments in an amount that’s less than a typical pension, but they’re technically not retired. They will continue to accrue seniority until they hit 30 years, when they’ll automatically be retired.”

This route carries no cash incentive, but effectively allows employees to retire early. For employees over 50 with 10 or more years of service, the company is offering a reduced pension payment and full benefits to those willing to take early retirement.

In addition, all employees are being offered the option of a cash buyout to sever all ties with the company. Under that deal, employees with more than 10 years will get $140,000 those with less will receive $70,000. That leaves the person without health care or benefits, but might be a desirable option for those looking to get a degree or start a business, Wheaton said.

UAW representatives hadn’t returned phone calls as of press time, but Flores said the union hadn’t made its presentations to members yet. After the options are presented, employees will have 45 days and a seven day grace period to make a decision. The company is looking to have the workers who take the deal exited by July 1, Flores said.

After that, the company will open up the jobs to UAW workers at other plants in accordance with the rules set forth in the union’s agreement before opening up positions to outside candidates. Under the most recent GM-UAW agreement, new workers will be hired for half of what their predecessors were being paid, allowing the company to significantly scale back costs.

“This means a downward pressure on wages,” Wheaton said. “But, especially in this area, $14 isn’t a bad place to start. The UAW will lose a lot of their more senior people, but it does give some hope that the two-tier wage scale may bring in some new blood for the future.”

But how many people take the attrition program is still up in the air. No one will be forced to leave and for those that stay things will be business as usual, Flores said.

The turnaround will take some time with the sheer amount of money involved in the buyout, so the first half of 2008 might be a bit slow. But GM may see results sooner rather than later since the company is already spending approximately $130,000 per employee per year, Wheaton said.

“Even with a $140,000 buyout, it would only be a matter of months, not years, before they get that money back,” Wheaton said. “Then, every year after that they make a lot more money, especially after the cost savings from the VEBA (Voluntary Employee Beneficiary Association) kicks in after 2010.”

Contact reporter Daniel Pyeat 693-1000, ext. 158.

Science Letter, February 12, 2008, Tuesday

Copyright 2008 Science Letter via NewsRx.com & NewsRx.net

Science Letter

February 12, 2008, Tuesday

SECTION: EXPANDED REPORTING; Pg. 2149

HEADLINE: AGING; Reports on aging findings from Cornell University provide new insights

BODY:

A report, 'Aging and drinking problems among mature adults: the moderating effects of positive alcohol expectancies and workforce disengagement,' is newly published data in Journal of Studies On Alcohol (see also Aging). According to recent research from the United States, "This article examines the relationship between aging and drinking problems among mature workers and the moderating effects of positive alcohol expectancies (PAEs) and workforce disengagement. This longitudinal study collected data on mature adults (i.e., retirement eligible) in three employment sectors (i.e., construction, manufacturing, and transportation) over five periods: T1 was 6 months before their retirement eligibility date and T5 was 4 years afterward."

"AtT1, 1,122 subjects participated in the survey; at T5, 917 participated in the survey. Problem drinking was assessed in all five waves by the Drinking Problems Index. PAEs were measured at T4 and T5 by the Alcohol Outcomes Expectancies Scale. Workforce disengagement was assessed by subjects' employment status at T5 (i.e., still working despite eligibility versus fully retired/not working). Control variables were employment sector, age at T1, and gender. PAEs moderated the relationship between aging and drinking problems: High PAEs were associated with an increase in drinking problems, whereas low PAEs were associated with a decrease in drinking problems. With regard to disengagement, continuing to work amplified the moderating effects of PAEs on the relationship between aging and drinking problems, whereas the moderating effects of PAEs were attenuated for the fully retired. This study provides further evidence of the significance of PAEs and drinking problems among mature adults, particularly as they are conditioned by disengagement from work," wrote S. Bacharach and colleagues, Cornell University.

The researchers concluded: "Implications for employee/member assistance program are discussed."

Bacharach and colleagues published their study in the Journal of Studies On Alcohol (Aging and drinking problems among mature adults: the moderating effects of positive alcohol expectancies and workforce disengagement. Journal of Studies On Alcohol, 2008;69(1):151-9).

For additional information, contact S. Bacharach, Smithers Institute, Dept. of Organizational Behavior, ILR School, 16 East 34th Street, 4th Floor, Cornell University, New York, New York 10016 USA..

Publisher contact information for the Journal of Studies On Alcohol is: Alcohol Research Documentation Inc. Cent. Alcohol Stud Rutgers University, C, O Deirdre English, 607 Allison Rd., Piscataway, NJ 08854-8001, USA.

Keywords: United States, New York, Aging.

This article was prepared by Science Letter editors from staff and other reports. Copyright 2008, Science Letter via NewsRx.com.

LOAD-DATE: February 8, 2008

WNED-AM 970 NEWS, February 12, 2008, Tuesday

WNED-AM 970 NEWS

WNED-AM 970 NEWS

February 12, 2008, Tuesday

Arthur Wheaton was interviewed by WNED Radio discussing:

Local GM Workers to Consider Buyout Offers

WNED News

GM's Powertrain plant in Tonawanda employs more than 1,500 workers.
BUFFALO (2008-02-12) Workers at GM's Powertrain plant in the Town of Tonawanda will be offered buyouts.

After reporting a $38-billion loss for 2007, GM has announced that it is making a new round of buyout offers to all U.S. hourly workers in the hope of finding lower-cost help.

More than 1,500 UAW members work at the River Road plant.

Workers will learn the details of the buyout offers over the next several weeks. Those who accept the offer are expected to leave by July first.

Retirement-eligible workers are expected to get between $45,000 and $62,500 as an incentive to retire, depending on their skill level. Younger workers could get up to $140,000 if they leave and cut all ties with the company.

GM won't say how many workers it hopes to shed, but under its new contract with the UAW, it will be able to replace up to 16,000 workers with new employees who will be paid half the old wage of $28 per hour.

WBEN 930 AM, February 12, 2008, Tuesday

WBEN 930 AM

WBEN.com

February 12, 2008, Tuesday

Arthur Wheaton was interviewed discussing GM and UAW buyouts.

The Globe and Mail (Canada), February 12, 2008, Tuesday

Copyright 2008 The Globe and Mail, a division of CTVglobemedia Publishing Inc.

All Rights Reserved

The Globe and Mail (Canada)

February 12, 2008, Tuesday

SECTION: GLOBE LIFE; FINANCIAL INCENTIVES: CONTROVERSIAL INVESTMENT; Pg. L3

HEADLINE: Cash for grades may be 'small price to pay'; Educators are experimenting with programs that see students rewarded for studying. It may be working.

BYLINE: TRALEE PEARCE

BODY:

When the mayor of a Spanish town last week proposed paying students to study as a way to stem the drop-out tide, many observers were left scratching their heads. Bribing students? That can't be a good idea.

But maybe it can. In the United States, a number of publicly and privately funded programs are rewarding students for attendance, studying and scoring well on standardized tests.

Some schools in Atlanta are paying kids $8 (U.S.) an hour to study for up to four hours a week. At high-poverty schools in Texas, students who score well on exams for college credits can earn $100 to $500 a test. And in Baltimore, students at some schools can earn up to $80 a year for good attendance - then invest their cash in stocks that they can sell when they graduate. Most of these programs have been started in the past year.

"These ideas are very new," says C. Kirabo Jackson, an assistant professor of labour economics at New York's Cornell University who studies the effects of financial incentives on students. "As soon as they start getting traction, we're going to see a lot more coming out about it."

At first blush, some of these programs seem to work. Dr. Jackson recently examined the Texas program, which has been running since the late 1990s.He was concerned that paying students for good grades on the so-called Advanced Placement tests might encourage students to take the courses just for the money. Instead, he found that enrolment rose in all AP classes - rigorous, college-level courses that put students in good standing for applying to college - and not just in the classes that involved cash rewards. SAT scores also rose, and there was an 8-per-cent increase in the number of students going to college after graduation.

While the cash was key, the program also seemed to shine a spotlight on the path to college, Dr. Jackson says. "It makes it much more salient to the students what the private benefits of these courses are."

The programs and their long-term effects need more study, he says, before drawing definitive conclusions. In the meantime, he and colleagues in the burgeoning academic field are teaming up with education departments across the United States to help them design more effective programs. Dr. Jackson is working on a New York program that will give kids $500 to $1,000 for good grades on the AP tests.

In Canada, the idea of paying students is not a popular one.

"I've never heard it surface seriously in Canada," education expert Michael Fullan says.

There are programs outside the education system that offer some financial help, mostly in the form of removing financial barriers to educational success.

The non-profit, high-school tutoring and mentoring program Pathways to Education offers such help as free public transit fare to and from school for underprivileged kids. Started in Toronto's Regent Park seven years ago and now expanded to five cities across Canada, Pathways also offers up to $4,000 earmarked for postsecondary studies to students who stay in the program throughout high school.

But for strictly cash-for-grades programs to work, experts say, they have to involve more than mere money changing hands. A personal connection to an adult who could mentor a student is crucial, says Dr. Fullan, a professor of policy studies at the Ontario Institute for Studies in Education at the University of Toronto. It's also important to tie financial rewards into a more meaningful learning experience, he says. In other words, if school or homework is boring and uninspiring, educators should think about how to change it rather that just pay kids to endure it.

Otherwise, "it's like paying someone to take out the garbage," Dr. Fullan says.

Still, for very high-risk kids, paying them to stay in school may be a valid a way to re-engage them in "the market economy of their community," says Michael Ungar, a professor of social work at Halifax's Dalhousie University who studies at-risk youth. "If this gets you back into school, it's a small price to pay," when compared with the financial and social costs of prison, welfare and teenage pregnancies, he says.

Some experts say that financial incentives for poor kids merely mimic the kinds of incentives middle- and upper-class kids already routinely enjoy: an allowance increase for getting As or a Nintendo Wii for getting into university. While most parenting experts are opposed to the use of financial incentives in the home, those who study the effects in the education system say it's worth a try.

"It's lower-income students who may not have these incentives," Dr. Jackson says. "By putting them in there, you may be bringing them up to equality or parity in some sense."

*****

Homework incentives

Most experts discourage parents from using cash as a carrot at home. Vancouver author and parenting expert Kelly Nault-Matzen offers a few alternatives to encourage children to do their homework.

* Let your children experience poor grades. When report cards come out, sit down with them and ask how they feel about their grades. Discuss which areas they are proud of and which they want to improve. Sometimes going to summer school and missing out on summer fun is a big motivator to do better next time.

* Pay attention to the subjects they are interested in. Ask them about their interests, hobbies and projects. Support them in their activities any way you can. Far too many young adults are playing "pin the tale on the donkey" when it comes to their future - blindly going through the motions of getting a diploma or degree with no clue as to what brings them joy.

* Show up for your children and watch your children show up more. Go to the parent-teacher interviews, concerts and games to demonstrate your interest and support. At parent-teacher interviews, even if your children are barely eking out a passing grade, don't leave until you've asked the teachers what they see are your children's greatest strengths and add these to your own list.

* Stop reminding them about homework. In order for your children to do well in school over the long term, they need to care about their homework and responsibilities more than you do.

Tralee Pearce

GRAPHIC: Illustration

LOAD-DATE: February 12, 2008

Daily News (New York), February 11, 2008, Monday

Copyright 2008 Daily News, L.P.

Daily News (New York)

February 11, 2008, Monday

SPORTS FINAL EDITION

SECTION: EDITORIAL; Pg. 28

HEADLINE: GET THE JOB DONE

BODY:

Four months into a long-overdue crackdown on scofflaw employers who hire workers off the books, the Spitzer administration today reports, "We have not yet begun to scratch the surface."

They've got that right.

Thousands of New York businesses are dodging their fair share of taxes and insurance costs by paying employees under the table or falsely labeling them as independent contractors.

These chiselers are a plague on the state's economy. They cheat workers out of pay and benefits, shortchange government programs and put their law-abiding competitors at an unfair disadvantage.

And the majority of these bad actors have gone undetected and unpunished, thanks to lax enforcement that let a culture of cheating flourish. Gov. Spitzer inherited the mess, and it falls to him to clean it up.

According to today's report, labor regulators, tax collectors and law enforcement agents have staged 16 workplace sweeps. They've turned up 2,078 off-the-books workers, $19 million in unreported wages and $856,000 in unpaid premiums for unemployment insurance.

Spitzer must now shift the effort into higher gear in an all-out drive to restore respect for state labor laws.

The key is convincing rogue employers that cheating is no longer worth the risk. That means providing money and manpower for investigations and levying tougher penalties against those who get caught.

Cornell University's Industrial and Labor Relations School analyzed Labor Department audits last year and found, on average, that firms were improperly hiding one out of every 10 employees from the government.

That astounding figure potentially translates into hundreds of thousands of workers operating off the radar screen and vulnerable to exploitation - not to mention hundreds of millions of dollars in uncollected taxes and payments for unemployment insurance and workers' compensation.

The people hardest hit by these abuses are working men and women struggling to maintain a decent standard of living. Rigorously enforcing basic labor protections is the least the state can do for them.

LOAD-DATE: February 11, 2008

The Post-Standard (Syracuse, New York), February 7, 2008, Thursday

Copyright 2008 Post-Standard

All Rights Reserved

All Rights Reserved.

The Post-Standard (Syracuse, New York)

February 7, 2008, Thursday

FINAL EDITION

SECTION: NEWS; Pg. A1

HEADLINE: SU'S BILLION-DOLLAR QUESTION: HOW TO BALANCE FUND, AID?

BYLINE: By Rebecca James Staff writer

BODY:

Maybe this wasn't the best year for Syracuse University to make it into the billion-dollar club - the elite group of schools with 10-figure endowment funds.

SU and other colleges with endowments of more than $500 million are drafting responses to the Senate Committee on Finance answering a long list of questions related to the issue of why tuition keeps going up when colleges have so much money.

As U.S. Sen. Charles Grassley, R-Iowa, puts it: "It's fair to ask whether a college kid should have to wash dishes in the dining hall to pay his tuition when his college has a billion dollars in the bank."

Hitting the billion-dollar mark is an exciting milestone, but SU officials aren't bragging.

"A billion dollars sounds like a lot," said SU Treasurer Barbara Wells. "But if you look at endowment per student, compared to comparable institutions, we're very modestly endowed."

SU's endowment per student is $63,610, which puts it behind 195 other private institutions, she said.

Endowment numbers for fiscal year 2007, which ended in June for most schools, were released Jan. 24 by the National Association of College and University Business Officers.

That same day, the Senate Finance Committee sent out letters to 136 colleges with endowments above $500 million. In Central New York, those are SU, Cornell University, Colgate University and Hamilton College. The committee said strong endowment returns should encourage schools to take more out of their endowments to put into financial aid. They asked for replies in 30 days.

Last week, Cornell announced plans to spend millions more on financial aid, eliminating loans for families with incomes under $75,000 and capping them at $3,000 a year for families with incomes up to $120,000.

The plan had been in the works for a year, university officials said.

Politicians have been talking about getting tough with universities by considering measures like capping tuition increases or making schools spend a certain percentage of their endowments each year.

Congressional leaders should realize that rising tuition rates create a bigger pool of students eligible for financial aid, said Carolyn Ainslie, Cornell's vice president for planning and budget. And some families are wealthy enough to afford the sticker price.

"Capping tuition would subsidize those that don't need it," Ainslie said.

While Cornell is now paying out 4.7 percent of its endowment, the financial aid change will bump that up to 5 percent, she said.

Colgate's rate was 4.83 percent for 2007, while SU's regular payout was 4.4 percent. However, special distributions, aimed at funding an academic initiative, for instance, mean that SU is taking out just over 6 percent, Wells said.

Five percent would be a fair minimum spending rate, said Ronald Ehrenberg, director of the Cornell Higher Education Research Institute, who will be presenting his ideas to a conference for members of Congress in Charleston, S.C., starting Feb. 18.

Endowments have been earning about 10 percent over the long term, so they could retain their value by spending 5 percent, reserving 4 percent to cover inflation and using about 1 percent to run the endowments, he said.

Colgate University has no plans to change the amount it spends from its endowment, said David Hale, vice president for finance and administration.

Colgate's endowment jumped up nine spots in the rankings for 2007 after one of its best years ever, which included almost $44 million in gifts and an investment return of 22.2 percent.

"It was an absolutely fantastic year," Hale said.

However, the steep market declines in late 2007 and early 2008 are leaving most schools hoping to avoid losing money this year and making them leery of agreeing to increase endowment spending.

"We are basically looking for the endowment to provide generous support for our current students and faculty," Hale said. "We want to make sure that support is available for future generations as well."

GRAPHIC: GRAPHIC: The rich get richer The Post-Standard. College and university endowments grew by more than $71 billion in fiscal year 2007, with many endowments growing by more than 20 percent. The following figures rank colleges by the size of their endowments and reflect a net change after adding investment income and donations and subtracting spending for that year. 1. Harvard: $34.6 billion (up 19.8 percent) 2. Yale: $22.5 billion (up 25 percent) 3. Stanford: $17.2 billion (up 21.9 percent) 4. Princeton: $15.8 billion (up 21 percent) 5. University of Texas: $15.6 billion (up 18 percent) 18. Cornell: $5.4 billion (up 25.5 percent) 71. Syracuse University: $1.1 billion (up 19.6 percent) 102. Colgate: $709 million (up 27.3 percent) 103. Hamilton: $701.7 million (up 19.4 percent) 234. Ithaca College: $233.8 million (up 15.1 percent) 533. Le Moyne College: $49.1 million (up 23.4 percent) 621. Cazenovia College: $30.7 million (up 13.1 percent) 729. SUNY Cortland: $13.7 million (up 19.8 percent) 754. SUNY Oswego: $8.7 million (up 32.6 percent) *SUNY Upstate Medical University: $53 million (up 11.5 percent) Source: National Association of College and University Business Officers. *SUNY Upstate Medical University representatives provided a correction to its listing in the NACUBO report, so its ranking (based on the incorrect number) is not included.

LOAD-DATE: February 8, 2008