Thursday, February 19, 2009

Business & Finance Week, February 21, 2009, Saturday

Copyright 2009 Business & Finance Week via VerticalNews.com

Business & Finance Week

February 21, 2009, Saturday

HEADLINE: Cornell University details research in management journal

BODY:

According to recent research from the United States, "Prior research is limited in explaining absenteeism at the unit level and over time. We developed and tested a model of unit-level absenteeism using five waves of data collected over six years from 115 work units in a large state agency."

"Unit-level job satisfaction, organizational commitment, and local unemployment were modeled as time-varying predictors of absenteeism. Shared satisfaction and commitment interacted in predicting absenteeism but were not related to the rate of change in absenteeism over time," wrote J.P. Hausknecht and colleagues, Cornell University.

The researchers concluded: "Unit-level satisfaction and commitment were more strongly related to absenteeism when units were located in areas with plentiful job alternatives."

Hausknecht and colleagues published their study in Academy of Management Journal (WORK-UNIT ABSENTEEISM: EFFECTS OF SATISFACTION, COMMITMENT, LABOR MARKET CONDITIONS, AND TIME. Academy of Management Journal, 2008;51(6):1223-1245).

For additional information, contact J.P. Hausknecht, Cornell University, ILR School, Ithaca, NY 14853, USA.

Publisher contact information for the Academy of Management Journal is: Acad Management, Pace University, PO Box 3020, 235 Elm Rd., Briarcliff Manor, NY 10510-8020, USA.

Keywords: United States, Ithaca, Life Sciences, Management Journal, Cornell University.

This article was prepared by Business & Finance Week editors from staff and other reports. Copyright 2009, Business & Finance Week via VerticalNews.com.

LOAD-DATE: February 11, 2009

The Buffalo News, February 18, 2009, Wednesday

The Buffalo News

February 18, 2009, Wednesday

The Buffalo News


GM, Chrysler ask $14 billion in additional federal aid

By Tom Krisher and Ken Thomas
ASSOCIATED PRESS

DETROIT — General Motors and Chrysler asked the government for an additional $14 billion in aid Tuesday, a dramatic acknowledgment that conditions in the U. S. auto industry have grown significantly worse in just two months.

GM presented the government a survival plan that also calls for cutting 47,000 jobs globally by the end of this year and closing five more U. S. factories by 2012 — the largest work force reduction announced by a U. S. company during the economic downturn.

Chrysler said it will cut 3,000 more jobs and stop producing three vehicle models this year.

Meanwhile, the United Auto Workers union said it has reached a tentative agreement with Chrysler, GM and Ford Motor Co. on modifications to labor contracts. Such concessions were also a condition of the government bailout.

GM did not identify which manufacturing plants it intends to close over the next several years. “We’re not naming plants at this point in time,” said Rick Wagoner, GM’s chairman and chief executive officer.

But it now says its total number of U. S. assembly, powertrain and stamping plants will decline to 33 by 2012, instead of 38 as it had projected last December. It had 47 plants in 2008.

GM operates an engine plant in the Town of Tonawanda with 1,340 hourly and salaried workers.

Art Wheaton, director of labor studies at Cornell University’s School of Industrial and Labor Relations in Buffalo, said it is too early to know whether GM’s projected plant closings could affect the Tonawanda site on River Road.

He said the company probably wouldn’t make those types of decisions until it completes its negotiations with the UAW.

Still to be determined is how the Tonawanda plant will be affected by GM’s previously disclosed plans to reduce its U. S. salaried work force by 3,400 jobs. The site has 201 salaried jobs.

GM verified that it is considering taking back some of Delphi Corp.’s operations. While it did not specify which sites would be included, it has been speculated that Delphi’s plant in the Town of Lockport could be one of them. Delphi was spun off from GM a decade ago.

GM said it could need up to $30 billion from the Treasury Department, up from a previous estimate of $18 billion. That includes $13.4 billion previously allocated and $9.1 billion in new loans. The world’s largest automaker said it could run out of money by March without new funds.

GM’s request includes a credit line of $7.5 billion to be used if the downturn in the auto industry is more pronounced than expected. But the automaker claimed it could be profitable in two years and fully repay its loans by 2017.

Chrysler LLC requested $5 billion in new loans on top of the $4 billion it received in December. The company had said it might need an extra $3 billion.

Both requests were part of restructuring plans the two automakers owed the government in exchange for earlier loans.

Ford, which borrowed billions from private sources before credit markets tightened, has said it can make it through 2009 without government help.

GM and Chrysler plan to reduce the number of models they offer to car buyers.

GM said it plans to sell or spin off its Saturn brand. If those attempts are unsuccessful, GM will phase out the brand.

GM is also evaluating options for a sale of its Hummer division and has sought buyers for its Saab unit. Selling or eliminating those brands would leave GM to focus on Chevrolet, Cadillac, GMC and Buick, with Pontiac reduced to one or two models.

Chrysler will eliminate the Dodge Aspen, Durango and Chrysler PT Cruiser, according to company president Jim Press.

The restructuring plans must be vetted by the Obama administration’s new autos task force. In a sign the administration views the U. S. steel industry as a case study for revamping the auto industry, one of the task force’s appointees played a key role in the reshaping of that industry earlier this decade.

President Obama’s top spokesman told reporters aboard Air Force One on Tuesday that he wouldn’t rule out bankruptcy for the Detroit automakers.

The company looked into three bankruptcy scenarios, all of which would cost the government more than $30 billion, GM Chief Operating Officer Fritz Henderson said. The worst scenario would cost $100 billion because GM’s revenue would severely drop, he said.

The GM job cuts include 10,000 salaried and 37,000 blue-collar positions, amounting to 19 percent of its current global work force of 244,500. About 26,000 of the cuts will come from outside the United States. The cuts would take place by the end of this year.

The new plan has GM’s U. S. work force declining from about 92,000 hourly and salaried employees at the end of 2008 to 72,000 by 2012.

GM’s Wagoner said the plan submitted Tuesday is more aggressive than the one presented to the government on Dec. 2 because the global economy and auto sales have deteriorated since then.

Chrysler had 54,007 employees at the end of 2008, so Tuesday’s 3,000 cuts would equal about 6 percent.

Chrysler said the economy and the market for new cars have deteriorated significantly since its initial request. Chrysler said it now projects that automakers will sell 10.1 million vehicles in the United States this year, the lowest level in four decades.

The UAW said discussions are continuing with the automakers regarding the union-run trust fund that will take on retiree health care expenses starting next year. Under terms of the government loans, both Chrysler and GM are required to reach concessions with the UAW and debt holders. “The changes will help these companies face the extraordinarily difficult economic climate in which they operate,” UAW President Ron Gettelfinger said.

News Business Reporter Matt Glynn contributed to this story.

The Buffalo News, February 10, 2009, Tuesday

Copyright 2009 The Buffalo News
All Rights Reserved
The Buffalo News

February 10, 2009, Tuesday

HEADLINE: GM reportedly mulls reclaiming parts of Delphi; Observers say that the move could benefit Lockport plant

BYLINE: By Matt Glynn - NEWS BUSINESS REPORTER

BODY:
General Motors Corp. is in talks to take back parts of Delphi Corp., which could affect who runs Delphi's plant in the Town of Lockport.

Delphi employs about 2,100 hourly and salaried people at the Upper Mountain Road factory, which makes thermal products for cars and trucks.

News that GM is talking about reclaiming parts of Michigan-based Delphi was disclosed by people familiar with the talks who declined to be identified. One report suggested GM could take back as many as five of Delphi's U.S. plants.

Local observers of the auto industry say Delphi's Lockport plant would benefit from switching back to GM affilia-tion.

"It would help their stability," said Art Wheaton, director of labor studies at Cornell University's School of Industrial and Labor Relations in Buffalo. With GM already operating an engine plant in the Town of Tonawanda, he said, it would create the opportunity for workers to flow between those two sites as needed.


While GM is in dire shape, the U.S. operations of Delphi have been in Chapter 11 bankruptcy since October 2005 and have struggled to emerge. "Financing has dried up completely," Wheaton said.

GM is trying to meet a Feb. 17 deadline to submit a viability plan to the government to secure additional loans. At the same time, the automaker wants to ensure a supplier like Delphi will be able to survive and keep churning out parts for its cars and trucks, Wheaton said.

"I don't think anybody's going to try to go the mat to save Delphi in Washington, D.C.," he said.

Nallan Suresh, chairman and professor of operations management and strategy at the University at Buffalo's School of Management, said such a "reverse spinoff" idea reflects the struggles the auto industry's supply chain are facing. GM a decade ago spun off Delphi into an independent company.

"In terms of local impact, the good news is that this may not lead to major loss of jobs, but merely a transfer of ownership of parts of the chain from Delphi to GM, and I think the employment picture in Western New York in this sector will not change much," Suresh said in an email interview. "But then up to five Delphi plants may come under GM again, and that does represent a significant structural change."

GM and Delphi representatives declined to comment on the reports, and a United Auto Workers leader at the Del-phi plant could not be reached.

GM has had the option to take back factories in its 1999 agreement to spin off Delphi as an independent parts supplier. Delphi plants make thousands of key parts for GM's vehicles including its top selling pickup trucks, the Chevrolet Silverado and GMC Sierra.
The interests of the two companies remain intertwined because Delphi is GM's biggest supplier, providing more than 1,000 parts for GM pickup trucks.

Delphi's Lockport plant is a vital source of jobs in the region, but the size of its work force has declined; it had about 6,200 workers at the time of the spinoff.
The Associated Press contributed to this report.
e-mail: mglynn@buffnews.com

GRAPHIC: Sharon Cantillon/Buffalo News file photo If General Motors Corp. were to take ownership of some of Delphi Corp.'s plants, it could help stabilize the auto parts maker.

LOAD-DATE: February 10, 2009

The Atlanta Journal-Constitution, February 6, 2009, Friday

Copyright 2009 The Atlanta Journal-Constitution


The Atlanta Journal-Constitution

February 6, 2009, Friday

Main Edition


HEADLINE: Unemployment report worse than expected

BYLINE: MICHAEL E. KANELL; Staff

BODY:

About 626,000 Americans filed for jobless benefits last week, the highest weekly level since the fall of 1982, the government reported Thursday.

With the weekly filing coming in worse than expected, roughly 4.8 million Americans are receiving unemployment benefits, according to the U.S. Labor Department's Employment and Training Administration.

"In my view, things are going to get a lot worse before they get better," said Vernon M. Briggs Jr., professor of industrial and labor relations at Cornell University. "Every indicator in the labor market is deteriorating and the big concern is how fast they are deteriorating."

Forces are driving the market in ways not seen before, he said. "This is the first time we've had a recession in the era of globalized economics. Things are far different now."

Georgia's job market has weakened even faster than the national average.

In the past 12 months, the state's unemployment rate has jumped from 4.5 percent to 8.1 percent. Jobless claims, too, have paralleled the national trend --- only faster.

Nearly 129,000 Georgians filed first-time claims in December, a 174 percent leap from the number filed during the month a year earlier.

Atlanta's first-time claims were up 139 percent during the year.

Nationally, new claims have not come close to the 1982 record of 695,000 in one week, but they have been steadily rising. Claims nationally have averaged 582,000 for the past four weeks, up about 60 percent from a year ago.

The number of claims is generally seen as a guide to the overall labor market in two ways.

First, the spike in the number of new filings shows companies laying off workers as they scramble to cut costs. Second, the rise in the number of people with continuing claims is a sign that those who are laid off are having trouble landing another job.

On average, job seekers outnumber openings four to one, the Labor Department said.

The current recession is 13 months old, three shy of the longest downturn since World War II, and optimists say the economy could bottom out by mid-year.

However, if the jobless claims do not crest soon, it will be hard to hold that rosier view, wrote economist Andrew Gledhill in an online post for Economy.com. "Should continuing claims persistently rise at their current rate over the next several weeks, it would be a warning signal that the recession may be deeper than already forecast."

Thursday's jobless claims came on the cusp of today's much-anticipated report on January jobs.

The December report showed the economy shedding an estimated 524,000 jobs while the official unemployment rate rose to 7.2 percent. Earlier this week, two surveys hinted that today's report will reveal another month of large job losses and a higher jobless rate.

In its monthly survey, Automatic Data Processing estimated that more than 500,000 jobs were lost in January. And the outplacement firm of Challenger, Gray and Christmas recorded a 45 percent jump in the number of announced job cuts.

Still, as bad as the numbers have been, they are not as painful as during some recessions of the past when the work force was smaller.

In the past four weeks, more than 2.3 million people have filed new claims for jobless benefits. That represents about 1.5 percent of all workers with jobs.

Those numbers are worse than in 2001. But during one four-week period during the 1991 recession, just under 2 million people filed new claims, representing 1.6 percent of all people with jobs.

And in one four-week period during the 1982 recession, nearly 2.7 million people filed first-time claims --- 2.4 percent of all people with jobs.

Proportionally, that amounts to 50 percent deeper pain than the layoffs do now.

Similarly, the official jobless rate now is higher than in 2001 but lower than in 1991. The highest jobless rate since World War II came as the economy was emerging from recession: 10.8 percent.

Joblessness has not hit double-digits since then.

GRAPHIC: Graphic: Associated Press JOBLESS CLAIMS Initial claims for unemployment benefits increased by 35,000 in the last week of January. Weekly jobless claims, seasonally adjusted Graph tracks number of claims from Feb. 2008 to Feb. 2009.Week ending Jan. 31, 2009: 626,000 Source: Department of Labor /ImageData*

LOAD-DATE: February 6, 2009

Thursday, February 05, 2009

The Chronicle of Higher Education, February 6, 2009, Friday

Copyright 2009 The Chronicle of Higher Education

All Rights Reserved

The Chronicle of Higher Education

February 6, 2009, Friday

HEADLINE: Islam's Afterworld; Reflecting on the Humanities

BYLINE: NINA C. AYOUB and EVAN R. GOLDSTEIN

BODY:

Seventy-two virgins for each man deemed a martyr. If there is a fixed idea in the West about paradise in Islam, it can be found in that numbered bevy, and little else. Yet while these women -- houris -- exist in Islamic ideas of heaven, their natures vary, their cultural history is complex, they are not just for martyrs, and they may appear as everything from numerous companions to one faithful wife. They are also not the only otherworldly beings sharing paradise with the devout -- thus deserving -- dead.

Islam's paradise seems a blissful if busy place, at least as revealed in Nerina Rustomji's intriguing new book, The Garden and the Fire: Heaven and Hell in Islamic Culture (Columbia University Press). While there are other Arabic terms, heaven and hell are mainly rendered as al-janna, the Garden, and al-nar, the Fire, she says. "Nearly every sura, or section, in the Qur'an invokes the Garden and the Fire," writes the scholar, a historian at St. John's University, in New York. "References to the afterlife are so pervasive that the concept loses visibility as an article of faith." Rustomji's approach is grounded in material culture and the afterworld's complex relation to early Muslims' lives and struggles on earth.

Beyond the holy book, Rustomji draws on the Hadith, or compilations of sayings and deeds of Muhammad, early biographies of the prophet, eschatological manuals, and images of afterworlds and gardens in art and life.

She shows how Muhammad's visions of heaven and hell were ridiculed by other Meccans who dismissed the prophet, his revelations, and his followers. She also shows how such visions figured in battles Muslims fought later from Medina to take Mecca. Houris suddenly appear as battlefield nurses. They bring the world of paradise nigh, Rustomji muses, even though heaven and hell await the dead only after Last Judgment.

Muhammad also acts to bring the afterworld's reality to believers. In one evocative account, he is praying in the wake of a solar eclipse and makes a gesture of reaching and holding something invisible in his hand. They are grapes, he tells his people, examples of the never-ending fruits in paradise. Muhammad raises the "prophetic stake," Rustomji says, in his claims to have traveled to the afterworld. The prophet is awakened by the angel Gabriel and then travels the skies on a hybrid steed, Buraq, to Jerusalem. He communes there with Moses, Jesus, and Abraham in a kind of prophetic brotherhood, but soon asserts the primacy of Islam as he leads the other three in prayer. During the journey he bears witness to both heaven and hell.

While the Fire is a place where unimaginable pain is suffered in solitude, the Garden is a place of beaming, laughing, and society. In exhortations, believers are admonished to shun in this world what will be embraced in the next. For example, they are told they will be allowed such behaviors as drinking wine -- pleasure-filled but not intoxicating -- wearing silk, and using silver vessels.

In another respite from human want, the topography of heaven both reflects and transforms the Hijaz, the region of Mecca and Medina. No rivers exist in Arabia, Rustomji points out, but rivers of water, as well as milk, wine, and honey, flow freely in the Garden. Among the trees of heaven are the desert's lotus and acacia, but in paradise they bloom without their thorns. Needing no desert defenses, they are recurrent examples, she says, of aspects of heaven "patterned on earthly realities, but relieved of earthly burdens."

***

In 1997, Princeton University Press published What's Happened to the Humanities?, an influential collection of essays about the future of the humanistic enterprise. The tone was one of gloom and doom. "If we wanted to be truly apocalyptic we should even consider the possibility that nothing of much present concern either to 'humanists' or to their opponents will long survive," opined Frank Kermode in his upbeat contribution.

If the Winter 2009 issue of Daedalus is to be believed, a decade later, in the midst of a crisis in the job market, the humanities have picked themselves up, dusted themselves off, and are confidently striding into a sunlit future. The essays convey a "sense of assurance," according to the journal's guest editors, Patricia Meyer Spacks, a professor emerita of English at the University of Virginia, and Leslie Berlowitz, chief executive of the American Academy of Arts and Sciences.

Citing data from the academy's Humanities Indicators Prototype, an online resource tracking trends in the humanities, Edward L. Ayers, president of the University of Richmond and a well-known historian, argues that the disciplines most closely identified with the humanities show signs of growth. Anthony Grafton, a professor of history at Princeton, is enthusiastic about how the Google Library Project and Google Book Search have revolutionized humanistic research, adding that the "occasional sight of a scanner's finger or other body parts in a Google Books image detracts little from the greatness of what this remarkable company has already wrought."

But, as Grafton points out, the abundance of online resources and the increased number of books published each year have precipitated a financial and spatial crisis for research libraries: "It's not quite apocalypse in the stacks," Grafton writes, "but it's certainly a time of shaking, if not of breaking, what had seemed permanent institutions of unquestioned value." Indeed, Grafton's ambivalence speaks to a more pervasive anxiety that still clings to the humanistic enterprise.

Humanists, it would appear from the Daedalus issue, feel the need to justify their existence. Michael Wood, a professor of comparative literature at Princeton, writes that "we have, in the last 10 years or so, entered a phase of self-exploration and self-explanation based mainly on the assumption that others do not understand what we do or why it matters." Richard J. Franke answers the call, articulating a case for the humanities on the grounds that imaginative minds are best equipped to confront the practical and ethical challenge of shaping public policy. "The humanities can provide the context for fundamental questions bridging politics, science, ethics, art, and philosophy," writes Franke, a fellow of the American Academy of Arts and Sciences.

But can the humanities still afford to provide that context? Noting that the National Endowment for the Humanities and the National Endowment for the Arts together made grants of slightly more than $200-million in 2007, Don Michael Randel, former president of the University of Chicago, quips, "There are defense contractors who have grave difficulty keeping track of amounts so small." Randel's outrage is, apparently, justified. Ronald G. Ehrenberg, a professor of labor relations and economics at Cornell University, and Harriet Zuckerman, a professor emerita of sociology at Columbia University, demonstrate that, all in all, the fiscal health of the humanities -- measured in terms of the number of jobs available and university-library expenditures -- suggests a patient on life support. "The major financial problems the nation is confronting have already begun to affect institutions of higher education adversely," Ehrenberg and Zuckerman conclude. "The benefits the academic humanities confer on society are not understood well enough, by a sufficient number, to justify the belief that much better days are ahead."

LOAD-DATE: February 4, 2009

Targeted News Service, February 4, 2009, Wednesday

Copyright 2009 HT Media Ltd.
All Rights Reserved
Targeted News Service

February 4, 2009, Wednesday

HEADLINE: Internationally Acclaimed Kenyan Band To Kick Off Black History Month

BYLINE: Targeted News Service

DATELINE: PAINESVILLE, Ohio

BODY:
Lake Erie College issued the following news release:

Lake Erie College's Black History Month will kick off with the performance of internationally acclaimed musical group JABALI AFRIKA Feb. 12 from 8:00-9:30 p.m. in the Morley Music Building. The concert is co-sponsored by the Lake Erie College Student Activities Council (SAC) and the City of Painesville Recreation Department.

Other Black History Month events include presentations by J. Terrell Dillard, a motivational speaker, and Al Mor-gan, aka Hijinx, a hip-hop poet, Feb. 25 at 7:00 p.m. in the Arthur S. Holden Center stage area.

JABALI AFRIKA originates from East Africa's Kenya. The band is a truly multi-faceted group with its own unique mixture of fusion and African rhythms. Original compositions and traditional African rhythms come alive on a wide variety of instruments, accompanied by vocal harmonies that form the foundation of modern rock, jazz, blues and more. Talented dancing and choreography, combined with traditional African tribal costumes, create a multi-cultural experience providing the audience with enrichment, education and entertainment.

The name was picked because the word Jabali is Kiswahili (Kenya's national language) for rock. This word was significant to the original members because they used to meet on a large rock in order to discuss how to advance their musical careers. Therefore, Jabali was an ideal name for the band.

The band launched its unique sound on Nairobi's National Talent Search (Star Search) before going on to win the best traditional adaptation award in Kenya in December 1994.

As a result of this achievement JABALI AFRIKA earned recognition throughout Africa, as well as Europe. In the spring of 1995, the band was invited to headline the African Heritage Festival tour of Germany and Austria. Addition-ally, CNN Lifestyle even aired a feature of the festival's portrayal of the creative and dynamic side of Africa in the world today.

To date, JABALI AFRIKA has toured Europe and Japan extensively, and has made its way to the United States. While in the U.S. the band has played major festivals and appearances on Mr. Rogers' neighborhood, Good Morning America, BET and MTV as well as several other domestic and international television programs including the British Broadcasting Service (BBC) and Radio France International.

Furthermore, JABALI AFRIKA has performed at the Reebok Human Right Awards at the Winter Olympics Games 2002 in Salt Lake City, Utah. The band was also featured in the Marley Magic tour in honor of the late Bob Marley. JABALI AFRIKA is Kenya's most international toured band and performs more than 250 shows per year. JABALI AFRIKA has released two CDs in Europe, and three in the United States entitled Journey, Remember the Past and Rootsganza.

Speaker Terrell Dillard is currently the president and master franchise owner of Jan-Pro Cleaning Systems of Greater Cleveland. Dillard oversees more than 100 unit owners in the Cleveland market and 500+ clients. Prior to Jan-Pro, Dillard was partner/general manager for Bonnie Speed Delivery in Cleveland. He began his professional career with Fifth Third Bank of Northeast Ohio and also had a successful career as an account manager for Cleveland's CBS television affiliate, WOIO-Channel 19.

Dillard earned a bachelor of science degree in industrial & labor relations/pre-law from Cornell University in 1992.
He is currently president of the board for, Laketran, a member of Jan-Pro International's Advisory Council and The Cleveland Foundation's Lake-Geauga Advisory Committee.

Hijinx is a spoken word artist that has performed at Sunday worship services as well as opening for such recording artists Heather Headley and Marcus Houston. He competed nationally as a member of Cleveland Ohio's 2004 Slam Team and has won several slam competitions in the area.

Additionally, Hijinx has performed at the Rock And Roll Hall of Fame as well as numerous clubs, schools, colleges, churches, social events and open mics. Hijinx tied for first place in the Budweiser True Music Live competition with Lyfe Jennings, now a national recording artist. Since then, Hijinx has completed his first cd, a new mix of words and beats that has received radio play on Cleveland's top hip-hop station.

The events are free and open to the public. For more information, contact Travis Rose, coordinator of student activities and cultural programs, at 440.375.7507 or trose@lec.edu
TNS MJ88-JF78-090205-2215581 18MASHMaryJane

LOAD-DATE: February 5, 2009

Inside Higher Ed, February, 4, 2009, Wednesday

Inside Higher Ed

February, 4, 2009, Wednesday

Inside Higher Ed

A Shift Back on Aid

It’s become part of the formula of how budget cuts are being announced by highly competitive and wealthy colleges. Salaries may be frozen, layoffs are possible, building projects are being delayed ... but financial aid is unchanged (or if there is a change, it involves only adding more money).

So the presidential letter on the budget at Williams College says the institution will be “retaining our full financial aid program.” Cornell University’s president describes an additional endowment draw “to maintain our historic commitment to student financial aid and to fund the two financial aid initiatives announced last year.” At Harvard University, the president vowed that the institution would be “carrying forward our recent years’ initiatives to make a Harvard education affordable for outstanding students from low- and middle-income families.”

When Middlebury College announced its plans to deal with a budget shortfall last week, however, it announced that financial aid was on the table; that a little more would be asked of students on financial aid and their parents; and that aid for international students would be scaled back a bit. Middlebury remains need-blind and pledged to meeting the full need of admitted applicants, but it may be unique among the competitive private colleges and universities that have faced large losses of endowment income in that it is publicly including financial aid among the areas in which downward adjustments are being made.

The economic collapse of the past six months — while hitting all kinds of students, families and institutions — has had an odd impact at elite private colleges and universities. Those with more money in their endowments (even after the losses of recent months) lost more than anyone else. Because these institutions have mammoth endowments, they rely much more on endowment income to support operations, and so have been forced to revise financial plans quickly, while their less wealthy and more frugal counterparts have had less adjusting to do in the short run. The global financial mess also comes after a two-year period in which the elite privates announced program after program to make their institutions more affordable for students of limited means.

With many colleges believing that their new aid policies have been successful in attracting talented students from low-income families, most have moved quickly to tell the world that the new funds and approaches to aid aren’t being touched. And in that context, some experts are surprised and a bit concerned by Middlebury’s approach. Others, however, said that such adjustments are probably inevitable for those schools, like Middlebury, that are wealthy compared to most of higher education, but don’t have Harvard’s billions. And some others speculated that Middlebury may just be being more honest than other institutions that face similar pressures.

“Nobody knows what’s going to happen and the reason is because the drop in endowment values is unprecedented in recent history,” said Mitchell L. Stevens, associate professor of education at Stanford University and author of Creating a Class: College Admissions and the Education of Elites (Harvard University Press). “Nobody really knows what happens when you have dedicated scholarship funds in your endowment worth less than they were when they were contributed.”

Generally, he said he expects top colleges to do everything they can to protect undergraduate student aid. But he also said that colleges like Middlebury — that like to have aid policies in the same league with institutions that are far wealthier — “have fewer degrees of freedom” and may feel forced to include aid among categories of spending that must be reviewed. While Middlebury is not abandoning need-blind admissions, Stevens said that “the promise of need-blind admissions, which has always been extraordinarily difficult if not impossible to obtain, is going to be something that may be revisited at some institutions.”

Middlebury’s public announcement about its budget adjustments notes many things the university is doing to save money — most of them similar to the kinds of changes turning up on lists of reductions elsewhere. Salaries are being frozen — with modest increases for those on the low end of the salary scale and cuts for the president and vice presidents. Positions are being eliminated. Programs, too. But mixed in among the lists of cuts are changes in financial aid policies.

On financial aid for undergraduates from the United States, the college’s announcement says that Middlebury “will adjust the family contribution as well as the academic year work expectation for students receiving financial aid. These changes will be phased in one year at a time, beginning with the class of 2013. Current students will not be affected by this change.”

As for international students, the announcement says that Middlebury “will reduce the amount of financial aid set aside for incoming international students. The reduction in aid for the first-year class will likely result in a decrease in the number of international students in the entering class.” But the announcement goes on to say that the college will still exceed its goal of a 10 percent international student body, and expects to spend more on total financial aid for international students next year than this year ($8 million vs. $7.5 million) although the figure for next year would have been higher without a policy change.

Via e-mail, Patrick Norton, vice president for administration and chief financial officer, said that the changes for domestic students will include increasing the minimum student contribution by $100 and increasing the work component of self-help packages by $50 — small sums at a college where total costs this year top $48,000. (Middlebury is trying to close a $20 million deficit over the next few years.)

But Norton said that there were important reasons to make such modest shifts. “These changes will have a small impact on individual students and their families but over time they will provide the college with some savings,” he said. “The general philosophy at Middlebury regarding the budget has been to consider all expenditures. We feel these measures, along with the others that are being implemented, will strengthen the college financially and help it to maintain an excellent academic program.”

Ronald G. Ehrenberg, director of the Cornell Higher Education Research Institute, said he has been pleased to see top colleges announcing that they would make cuts elsewhere to avoid any changes in financial aid that don’t benefit students or their families.

“One of the things that these financial problems have done is to cause universities to try to think a little more about what is in the social interest as opposed to the private interest, so most of the selective private institutions are reaffirming their commitment to financial aid if not improving it,” he said. Middlebury’s move “leaves me surprised.”

Ehrenberg also noted that with Congress having shown interest in how wealthy universities use their endowments (interest that may be lessened this year but that hasn’t disappeared), protecting financial aid suggests that colleges “have gotten the message.”

At the same time, Ehrenberg said that it is not surprising to see colleges having to rethink spending patterns they adopted prior to the downturn. “The ’90s and the first part of the 21st century led a number of colleges and universities to devote a much greater share of their spending to come from endowment income, and to that extent, there are lots of things that were overpromised,” he said.

Donald E. Heller, director of the Center for the Study of Higher Education, at Pennsylvania State University, said he would “not be surprised to see more colleges” follow Middlebury. “They’re going to be hit by the double whammy of more students looking for aid, as well as students with fewer financial resources facing higher costs. So the type of announcement Middlebury made is most likely a harbinger of similar ones.”

Heller predicted that the “very visible programs” that promised to replace loans with aid, such as those adopted by Harvard and Princeton Universities, “will probably be maintained.” But he said that many other institutions, while not explicitly changing policies, are likely to adjust families’ expected contributions to try to minimize the funds needed for some students’ packages.

Gordon Winston, director of the Williams Project on the Economics of Higher Education, also predicted that Middlebury “won’t be the last” college to announce some modifications in aid policy. “There is no doubt that more will feel pressure,” he said.

Several aid experts who asked not to be identified said that they suspected that Middlebury was already not alone, and that colleges that are making modest adjustments are simply not announcing them because the $100 addition in family expectation here or the $100 cut in a grant there may not be visible to most students or their families.

Some others saw the Middlebury announcement as potentially a good thing. Jerome A. Lucido, vice provost for enrollment policy and management and executive director of the Center for Enrollment Research, Policy, and Practice, at the University of Southern California, said that “aid is a partnership and it is time to assess the roles in that partnership.” Most colleges — including USC — are putting more money into aid, he said. But there is nothing wrong with a college talking about the roles of other players, Lucido said.

“The family role has got to be increased in ways that are not difficult, but maybe move it away from the recent past, which was an expectation of a discount and families not saving,” he said. Likewise, finding ways to make better use of work-study may be educationally and financially sound for students, he said.

Lucido also noted that some of the more dangerous trends that could be happening now will never be announced. “There is going to be a very, very strong and irresponsible push by some to find more students who are able to pay” over those who are best prepared, he said. At the same time, Lucido said he’s impressed by the way so many aid officials are stretching dollars creatively.

And regardless of what people think about Middlebury’s choices, Lucido said that the college “deserves some points for just saying what it is doing.”

— Scott Jaschik

Marketwire, February 3, 2009, Tuesday

Copyright 2009 Marketwire, Inc.

All Rights Reserved

Marketwire

February 3, 2009, Tuesday


HEADLINE: People Science Adds Business Development Executive; Growing Provider of Recruitment Process Outsourcing Solutions Expands Management Team

DATELINE: TINTON FALLS, NJ; Feb 03, 2009

BODY:

People Science, formerly known as OER Complete, today announced that Ron Williams has joined the organization as Vice President of Business Development. In this capacity, Williams is responsible for developing and executing recruitment outsourcing strategies as well as forging new client relationships.

A senior human resource professional with more than 18 years of experience, Williams most recently led the U.S. recruitment function for AstraZeneca. Other notable roles include director of Global Systems and Strategy at Seagate Technology; vice president of Staffing for Wachovia Bank; staffing manager at Newport News Shipbuilding; and the associate director of Human Resources at Time Inc.

Christine Nichlos, People Science's founder and CEO, said, "Ron has significant global recruiting experience, which is invaluable to our organization and our clients. We're looking forward to his contributions to People Science's continued growth."

Williams commented, "People Science's approach to RPO has been well received by a wide variety of organizations. I'm excited to be part of a rapidly growing organization that has a bright future because of its commitment to quality and exemplary service levels."

Williams received his bachelor's degree from Penn State University and also holds a certificate in Industrial Labor Relations from Cornell University. He is a former board member of the Employment Management Association (EMA-SHRM) and Staffing.org.

More About People Science

Formerly known as OER Complete, RPO leader People Science was founded in 1997. Customers include many market leaders, particularly in the telecommunications, real estate, insurance and financial services industries. More information about People Science can be accessed at www.people-science.com

SOURCE: People Science

LOAD-DATE: February 4, 2009