Thursday, March 18, 2010

Human Resource Executive, March 17, 2010, Wednesday

Human Resource Executive

March 17, 2010, Wednesday

Human Resource Executive

Weary Workers Seek Job Security

Having seen co-workers and friends laid off, workers would like nothing better than to "nest" in their current jobs and stay with their company for their entire working lives. But few expect that -- and most are not looking for new jobs. Even so, they would like company leaders who are trustworthy and who care about their employees.

By Marlene Prost

Remember the days when Dad worked for one company and retired after 30 years with a watch and dreams of a peaceful retirement?

That scenario is looking better and better to U.S. workers, who are worn down by the "Great Recession" of recent years. The uncertainty of the job market and the lack of company support for retirement have workers longing for job security and for leaders who care, according to Towers Watson's 2010 Global Workforce Study, a survey of 20,000 employees in 22 global markets, including 1,079 U.S. workers.

The current recession has changed the "basic social contract" of the U.S. work force, according to Towers Watson researchers. Employees have seen co-workers laid off, have lost benefits and have lost the security of company retirement pensions.

It's no wonder that 80 percent of U.S. workers surveyed want to "nest" into their current job, and about half of them want to work for just one company for their entire career.

"The recession will create a lasting change in the way companies treat workers," says Max Caldwell, principal manager of New York-based Towers Watson's Talent & Rewards practice.

The recession, he says, has intensified growing trends, such as scaling back the work force, and increasing outsourcing and the use of technology. Workers can no longer take their jobs for granted.

"There's a sort of gap in the way organizations are viewing workers" and the way individuals see their jobs, Caldwell says.

Employment today has become more "contingent," so that an employee's value to a company is "contingent" on various factors: As long as the economy is good, as long as the company can afford it and as long as he or she performs.

Meanwhile, U.S. workers are craving more security and concern from their employers.

Asked what factors are most important in a job, 86 percent of surveyed workers chose a "secure and stable position," compared to 74 percent who chose higher compensation.

Fifty-one percent say they see no career advancement in their current job, and 43 percent believe they must leave their current company to advance. Yet, discouraged by the job picture, 81 percent say they are not looking for other jobs.

Laura Sejen, a leader of the company's Talent & Rewards practice, says "the recession has clearly prompted many employees to rethink their priorities and focus on a longer-term commitment to their employer in return for some semblance of job security -- despite the cuts or elimination of many programs, from bonuses to training, traditionally used as retention tools.

"Where once employers fretted over a 'war for talent,' they must now plan for a workforce that appears ready to settle in for years -- perhaps even decades," she says.

Workers today also want their leaders to relate on an emotional level. Nearly eight in 10 (79 percent) of U.S. workers want their senior leader to be trustworthy, and 67 percent want leaders to care about the well-being of others.

The social contract our parents and many boomers grew up with "went out the window in the late '80s and '90s" and is not coming back, says Christopher Collins, director of the Center for Advanced Human Resource Studies at Cornell University in Ithaca, N.Y.

Even though the survey findings suggest a desire for job security, younger workers don't expect it. They don't have the same company loyalty as older generations, Collins says.

"This generation, having seen their parents laid off once if not twice in their lifetime ... they've got clear evidence that a long-term relationship doesn't necessarily exist. While they may be feeling, 'Wouldn't it be nice?' they know better."

The main concern of the younger workers is keeping their own personal skills current so they can find a job anywhere. "When you talk to [young] employees and the newer generation in school, they fundamentally believe they need to manage their own concerns," Collins says.

"It's clear," says Sejen, "that what worked for an organization pre-recession just isn't sustainable in today's environment. Fundamental changes in both the employee-employer contract and employees' own priorities make a return to normal nearly impossible.

"Instead, organizations must hone their ability to enable employee self-reliance, fostering within each person the knowledge, skills and confidence necessary to effectively manage their careers, their health and their financial future outside the safety net provided in the past."

Caldwell says that "the vast majority of employees understand they are in control of this 'new deal,' but it's up to employers to equip them to act by giving them the tools and training they need to be confident and successful."

Another change has been the shift of responsibility for retirement planning from the company to the individual. Nine of 10 U.S. workers surveyed say the primary responsibility for their financial future rests with them, says Caldwell. Yet only 51 percent feel comfortable handling that responsibility.

While the average worker around the world anticipates retirement at age 62, that number rises to 67 in the United States. In fact, nearly one-third (30 percent) of U.S. workers plan to stay on the job until age 70 or beyond, according to the survey.

"It is increasingly true," Collins says, "that fewer companies define benefits, and people are going to struggle. That's not going to change. I feel for employees that won't have someone to help them."

Fortunately, HR leaders can help by providing financial guidance and access to advisers, he adds.

"The notion of 'passive security' is gone. The recession put a nail in the coffin," Caldwell concludes. "Companies need to think how they're creating employees who are more self-reliant ... to take ownership of their financial future.

"That's a pretty profound shift. ... 'I'm taking control. I own my career, my own development.' It's a hard message for those entering the work force, but it's the reality."


March 17, 2010

Copyright 2010© LRP Publications

New York Times, March 17, 2010

New York Times

March 17, 2010

New York Times

Job Bill Passes in Senate With 11 Republican Votes

WASHINGTON — In a rare bipartisan vote, the Senate approved and sent to President Obama on Wednesday a bill intended to spur employment by providing businesses with incentives to hire new workers — an approach that Congressional Democrats hope to repeat.

The legislation, approved 68 to 29, would give employers an exemption from payroll taxes through the end of 2010 on workers they hire who have been unemployed for at least 60 days. It also extends the federal highway construction program, shifts $20 billion to road and bridge building and takes other steps to bolster public improvement projects.

Democrats hope to follow up with legislation by extending more than $30 billion in corporate tax breaks and aid to small business.

At a St. Patrick’s Day luncheon on Capitol Hill after the vote, Mr. Obama thanked the 11 Republicans who backed the measure and said he would like to see that trend continue on emerging economic initiatives.

“I hope that on a series of future steps that we take to help small businesses get financing, to help improve our infrastructure around the country, to put people back to work, that we’re going to see more progress on that front,” Mr. Obama said.

Senator Charles E. Schumer of New York, the No. 3 Democrat in the Senate and a co-author of the payroll tax break, said Congressional Democrats were trying to show the public that lawmakers understand how critical it is to provide more job opportunities.

“The American people sent us a message in Massachusetts and elsewhere,” said Mr. Schumer, referring to the loss of a Democratic Senate seat there in January. “It was focus on jobs, the economy, helping the middle class stretch its paycheck. Our answer today: We heard you.”

In a sign of the significance Democrats place on the bill, the House leadership held a ceremony sending the legislation to the White House, where Mr. Obama is scheduled to sign it on Thursday.

While lawmakers have said the law will result in significant hiring, several economists said it will have only a modest impact on unemployment.

The law provides an exemption from the 6.2 percent Social Security payroll tax for every worker who has been unemployed at least 60 days and is hired after Feb. 3 through the end of this year. Employers will get an additional $1,000 income tax credit for new employees retained for at least a year. The Senate estimated the measure will cost $13 billion over 10 years, though most of the cost will be in the first two years.

While employers are expected to claim the credit for as many as five million workers, Timothy J. Bartik, senior economist at the W. E. Upjohn Institute for Employment Research, estimated that the new law would create no more than 200,000 jobs that would not otherwise have existed.

“The design of the Senate bill passed today is particularly beneficial to high-turnover companies, like restaurants, which in a typical year might replace fully half of their work forces,” said John H. Bishop, an economist in the School of Industrial and Labor Relations at Cornell. “To get the hiring subsidy, it doesn’t require that a company actually grow.”

While the measure won support from some Republicans, others in the party were skeptical that it would help create jobs, or said they were distressed at its cost. “This isn’t so much a jobs bill as it is a debt bill,” said Senator Judd Gregg, a New Hampshire Republican.

The measure is partly paid for by tightening rules on offshore tax havens, but some costs would be added to the deficit.

The bill was the first in some time to draw a sizable bloc of Republicans in the polarized Senate, an indication that some Republicans acknowledge they cannot stand in blanket opposition to Democrats on economic matters. Some Republican support was due to the push for more road and bridge building, which creates good-paying jobs for idle construction workers.

“The funding in this bill sends the message to struggling states like Ohio that they can move forward with shovel-ready transportation projects — projects that will put people back to work quickly and contribute to economic growth,” said Senator George V. Voinovich, Republican of Ohio.

While they have wrapped up the initial jobs measure, Democrats were uncertain how quickly they could forge ahead on the larger effort to renew corporate tax breaks while extending added unemployment benefits and subsidies for health insurance for the unemployed through the end of the year.

At the same time, the House Ways and Means Committee on Wednesday began advancing a third measure that would try to spur investment in small businesses by temporarily easing any capital gains taxes on income from such enterprises.

Democrats said they would continue to press those initiatives. “We have more to do on jobs,” said Representative Steny H. Hoyer, Democrat of Maryland and the House majority leader.


Sewell Chan and Janie Lorber contributed reporting.

The Times-Union, March 16, 2010, Tuesday

The Times-Union (Albany, NY)

March 16, 2010, Tuesday

Getting Wired for the Future

Many rural New Yorkers live in neighborhoods bypassed by the information superhighway. The Federal Commu-nications Commission wants to change that.

The regulatory agency on Monday unveiled an ambitious and aggressive 10-year plan to bring high-speed Internet access to all Americans, comparing the need to extend broadband infrastructure to the efforts that brought electricity and telephone services to the countryside decades ago.

The FCC said broadband Internet "is a foundation for economic growth, job creation, global competitiveness and a better way of life," but added that access to its powers is unequally distributed, with 100 million Americans left behind.

Indeed, you don't have to travel far from cities like Albany, Schenectady and Troy to find people who lack access to broadband, leaving them reliant on expensive satellite Internet services or dial-up access.

"Dial-up is dreadfully slow," said Dale Cornell, a vegetable farmer in an area of Hoosick Falls that lacks broadband access. "If you're looking for parts or something, you don't have time to sit and diddle with it."

Said Art Bassin, the town supervisor in Ancram, Columbia County: "People here are not real happy that they don't have faster, cheaper access." Better Internet service, he said, "would help business."

The FCC, conceding that the U.S. has fallen behind other nations in Internet availability, proposes connecting at least 100 million households to broadband with download speeds of at least 100 megabits per second in the next decade. That speed is about 20 times faster than what's available for most homes now.

The agency is not talking about rural areas alone. Much of its proposal aims at inner-city neighborhoods -- where broadband is available but costs too much for many households -- as much as it does rural areas.

"Every American," the FCC says, in the plan that will be delivered today to Congress, "should have affordable access to robust broadband service and the means and skills to subscribe if they so choose."

In the past, the FCC generally has focused its attention on broadcast industries like radio and television. That it is now promoting better Internet access shows just how important and transformative the Internet has become in a short period of time.

Few Americans had Internet access 15 years ago, and that service was achingly slow compared to the broadband available today.

Now, the FCC and other groups see high-speed Internet as crucial for full participation in modern life -- a gateway for better jobs, education and health care.

"It's a competitive issue, and it's an efficiency issue," said Peter Gregg, spokesman for the New York Farm Bureau, which is pushing for broadband extensions to rural areas.

"We need to have equal access to equal speed," said Samuel Bacharach, director of the Institute for Workplace Studies at Cornell University. "People in the country don't have equal access to work ... It's a major, major handicap for people."


Bacharach knows something about this issue: His second home in Catskill lacks high-speed Internet service, though broadband cables run just a few hundreds yards from his home.

The local cable company has told Bacharach it can extend the line -- but at a cost of several thousand dollars.

Indeed, most Internet providers have long balked at paying to extend broadband infrastructure to scattered rural customers. The cost, they say, just doesn't match the profit potential.

Jeff Unaitis, an upstate spokesman for Time Warner Cable, stressed that his company is a for-profit operation that has to answer to shareholders. It simply can't justify paying to extend broadband to every household that requests it, he said.

It's not immediately clear how much money the FCC plan would ultimately direct for broadband extensions. The amount will vary, of course, depending on the amount of support for the plan in Congress.

The FCC is proposing a controversial auction of some of the broadcast spectrum controlled by the television indus-try to free up space for the wireless industry and raise money that could expand Internet infrastructure.

The agency is also proposing, among other steps, shifting $15.5 billion over the next decade from an existing fund designed to bolster telephone and other communications services in under-served areas.

Also, the federal stimulus package already included $7.2 billion for rural broadband improvements.

"Broadband," the report says, "is the great infrastructure challenge of the early 21st century."

Chris Churchill can be reached at 454-5442 or cchurchill@timesunion.com The Associated Press contributed to this story.

Broadband plan
Among other proposals, the FCC plan says that within a decade:

Every American should have access to "robust broadband services and the means and skills to subscribe if they so choose."

At least 100 million U.S. homes would gain affordable access to download speeds of at least 100 megabits per second.

Every first responder "should have access to a nationwide, wireless ... broadband public safety network."

LOAD-DATE: March 17, 2010

MarketWatch, March 16, 2010, Tuesday

MarketWatch

March 16, 2010, Tuesday

MarketWatch

New voting rules could boost union numbers for airlines
Carriers face higher labor costs as workers fight to regain lost wages

NEW YORK (MarketWatch) -- A change in the way U.S. airline workers vote to organize could swell union numbers by the tens of thousands over the next two years and raise labor costs for the industry.

Under a new rule that could be announced as early as this week, the federal agency that referees labor-management relations for airlines would allow employees to organize if a majority votes in favor of unionization.

Current rules by the National Mediation Board state that the majority of the entire workforce has to favor unionization, with absent ballots automatically counted as a "no" vote.

The change would align voting rules for airline labor -- governed under the Railway Labor Act -- more closely with those under the National Labor Relations Board.

The change in voting rules coincides with airline unions' ramped-up efforts to secure higher wages and benefits, drawing strength from a more labor-friendly administration in Washington as well as renewed industry growth after nearly two years of recession.

Of about 75 airline labor contracts in open negotiation, more than half are in federal mediation, reflecting in part worker impatience with tight-fisted management and growing confidence in their political footing.

"Airline unions are feeling very emboldened and excited," said Kate Bronfenbrenner, the director of Labor Education Research at Cornell University in Ithaca, N.Y. "The rule change is one of labor's few, big wins, and they have been waiting a very long time for it."

The new rules should have a huge impact on non-unionized airlines and lead to more organizing, Bronfenbrenner said.

Right away, the Association of Flight Attendants will attempt to organize some 20,000 flight attendants at Delta Air Lines (DAL 12.94, -0.04, -0.31%) , which includes already-unionized Northwest flight attendants, Bronfenbrenner said.

Then they will target the so-called "new airlines," such as JetBlue Airways (JBLU 5.45, +0.03, +0.55%) and Republic Airways (RJET 5.73, +0.07, +1.24%) .

Those airlines had received majority votes in the past, she said, but couldn't organize because not enough people voted. Bronfenbrenner accused their managements of adding furloughed employees to their rosters to stack absent votes in their favor.

Reclaiming lost ground

Even without the rule change, the industry is grappling with a more ambitious work force.

During the last recession over 2002 and 2003, unions representing pilots, flight attendants and ground crews granted billions in wage and benefit concessions to help their employers reduce losses.

Unions contend their good-faith efforts haven't been reciprocated, as executives for the biggest and most vulnerable airlines continued to garner millions in bonuses.

But what the labor groups will be able to regain is open to serious question. After adjusting for changes in capacity, labor costs at the five network airlines have fallen some 33%, or $16 billion, since 2003, according to Vaughn Cordle, founder of AirlineForecasts LLC.

Lower average fares and higher fuel costs will prevent the airlines from fully restoring the lost compensation, Cordle said. If labor is able to get just 10% of what it lost in the last six years, it would wipe out projected profits for both 2010 and 2011.

Among the top 10 U.S. airlines, Cordle predicts they will bring in a profit of $2.8 billion for the current year and $3.5 billion for 2011.

When it comes to how much labor demands in pay and benefits during current talks, union leaders occupy two camps, according to Jerry Glass, a labor expert with F&H Consultants Group.

"There are those that took concessions that are seeking some or all of their concessions restored, and others that did not have to give up concessions, and they would look for more moderate increases," Glass said.

Most vulnerable are the big carriers, especially American and United Airlines, which are negotiating a relatively large number of open contracts and are already weighed down by high labor costs.

American currently has nine contracts in federal mediation while United has eight, according to the NMB.

Last week the Transportations Workers Union, which represents thousands of ground-service workers at both airlines, asked the National Mediation Board to be released from federal mediation with American.

If granted, the union is free to strike after a 30-day cooling off period.

The Association of Professional Flight Attendants, representing nearly 18,000 flight attendants at American, is also seeking a release from federal mediation.

American and United are units of AMR Corp.(AMR 9.61, +0.02, +0.21%) and UAL Corp. (UAUA 19.78, +0.29, +1.48%) , respectively.

Christopher Hinton is a reporter for MarketWatch based in New York.

Grand Rapid Press, March 12, 2010, Friday

Grand Rapid Press (Michigan)

March 12, 2010, Friday

Jobs bill too little, too late

Meager plan that would create 200,000 jobs for 15 million unemployed isn't guaranteed to work

BYLINE: Rick Haglund / Grand Rapids Press Detroit Bureau

BODY:
Kalamazoo economist Timothy Bartik has been working for months with lawmakers and public policy groups in Washington on an ambitious effort to jump-start hiring.

But Congress appears ready to settle on a jobs plan that's about as ambitious as The Dude, a stoner played by actor Jeff Bridges in "The Big Lebowski." (Bridges utters the memorable line, "The Dude abides," in the 1998 movie.)

Bartik, a senior economist at the W.E. Upjohn Institute for Employment Research, predicts a jobs bill passed re-cently by the House and Senate would create only 200,000 jobs if President Barack Obama signs it.

"That's better than nothing," Bartik said. "But given that we are about 10 million jobs short of where we need to be, it addresses only a very small portion of the problem."

He's being charitable. The number of jobs that would be created in the bill amounts to little more than a rounding error in the 10 million-plus jobs lost since the start of the recession.

Bartik and John Bishop, a Cornell University human resources expert, last fall proposed giving employers $27 billion in tax credits to hire 5 million workers by the end of 2011.

Obama proposed a more modest plan in January designed to create 1 million jobs.

But the effort in Washington to pass a much-needed jobs bill has been hampered by efforts to overhaul health care, and the inability of Democrats and Republicans to agree on much of anything.

Although both chambers managed to pass the meager jobs bill, the Senate must vote again on it because the House added additional highway spending and minority contracting provisions to the measure.

Meanwhile nearly 15 million Americans, including 693,000 in Michigan, are out of work and desperate for jobs.

The federal jobs bill is being called a "payroll tax holiday" because it waives the 6.2 percent Social Security tax on new hires through the end of the year.

Employers would get an additional $1,000 tax credit for keeping newly hired workers for a full year. The credit is restricted to hiring workers who have been unemployed at least 60 days.

Charles Owens, state director of the National Federation of Independent Business/Michigan, said the tax credit likely would have little impact on hiring.

"Employers don't hire people to get a tax credit. They hire people because they need people," he said.

"What we need are customers and a growing economy so there is a reason to hire folks," Owens said.

A number of government initiatives, including controversial health care legislation, and efforts to tighten labor and environmental regulations are making employers wary of hiring workers, he said.

Even businesses that could hire are having a hard time getting bank loans to help them grow, Owens said.

Manpower Inc.'s national outlook for hiring released Tuesday found 75 percent of business owners say they plan to keep employment levels steady between April and June.

Regrettably, the paltry federal jobs bill won't do much to get those businesses to hire new workers.

Even The Dude would find that difficult to abide.

LOAD-DATE: March 15, 2010

Forbes.com, March 11, 2010, Thurday

Forbes.com

March 11, 2010, Thurday

Forbes.com

Proskauer Expands Global Labor and Employment Practice to Chicago

BusinessWire - Signaling the continued expansion of its renowned labor and employment practice and Chicago office, Proskauer announced that Nigel Telman, an experienced employment law litigator and counselor with deep ties to the Chicago business and civic communities, has joined the firm as a partner.

Mr. Telman concentrates his practice on litigating disputes stemming from workplace harassment and employment discrimination claims, as well as handling internal investigations relating to similar claims involving senior executives. He also defends and enforces non-compete agreements, handles trade secret protection cases and works with companies to institute diversity policies and internal policies governing employee use of social media. He represents clients before state and federal courts throughout the country as well as before the U.S. Equal Employment Opportunity Commission, the Illinois Human Rights Commission and the American Arbitration Association. He joins the firm from Sidley Austin, where he was a partner in the Employment and Labor Law group.

"Nigel is an exceptional lawyer with an impressive track record litigating major employment disputes and counseling clients on a range of complex matters," said Paul Salvatore, co-chair of Proskauer's Labor & Employment Law Department. "His addition in Chicago strengthens our capabilities in a critical region and further extends the reach of our practice, which is now present in 10 of our 12 offices around the world."

The addition of Mr. Telman follows the recent addition of Daniel Ornstein, who joined the firm as a partner in London, expanding Proskauer's labor and employment practice to the UK, as well as Paul Hamburger and a team of benefits lawyers, who established the Washington, DC arm of the firm's Employee Benefits, Executive Compensation & ERISA Litigation Practice Center.

Proskauer's Chicago office, which opened in 2008, has significant strength in the areas of: general commercial litigation; insurance coverage litigation and counseling; bankruptcy and corporate restructuring; distressed mergers and acquisitions; health care; and not-for-profit/exempt organizations, in addition to its new labor and employment capabilities.

"Since opening in 2008, our Chicago office has quickly established itself as an important presence in the legal community and a key to the firm's continued growth," said Steven Gilford, partner and Chicago office head. "Adding a strong employment practice is a key component of the continued expansion of our capabilities and ability to serve our clients both in the Midwest and around the world."

Active in the Chicago business and civic communities, Mr. Telman was selected in 2009 as one of the top Business Leaders of Color by local advocacy organization Chicago United for his professional success and contributions to the cultural, civic and educational life of the Chicago region. He also served on the Chicago 2016 Committee for the Olympic Games and was appointed by the Mayor of Chicago to the Chicago Metropolitan Agency for Planning. He received his J.D. from Boston University School of Law and his B.S. from the Cornell University ILR School.

About Proskauer

Founded in 1875, Proskauer is a global law firm widely recognized for its leadership in a variety of legal services provided to clients worldwide from offices in Boca Raton, Boston, Chicago, Hong Kong, London, Los Angeles, New Orleans, New York, Newark, Paris, Sao Paulo and Washington, DC. Additional information about the firm, which has extensive experience in all areas of practice important to businesses, not-for-profit institutions and individuals, can be found at www.proskauer.com.

SOURCE: Proskauer

Linden Alschuler & Kaplan Lynn Trono, 212-899-4743 ltrono@lakpr.com

Newsweek, March 8, 2010, Monday

Newsweek

March 8, 2010, Monday

Newsweek

Why Paying Kids To Study Works In Texas

As President Obama looks to overhaul education policy, he might consider a simple fix: paying students for grades. Backed by private donors, hundreds of schools nationwide have tried a pay-for--performance approach in the last decade. But even as the practice has spread, psychologists have attacked it as shortsighted, saying it doesn't cultivate a lifelong love of learning. Legislators, wary of the optics, have steered clear, citing the need for further research.

Now, in the first long-term study of its kind, a working paper published by the National Bureau of Economic Research may provide some answers. According to the report, Texas high-school students who earned cash for passing Advanced Placement exams showed not only better GPAs, but also bumps in college attendance, performance, and the likelihood of earning their degrees. The effects were most pronounced among minorities, with African--American students 10 percent more likely to enter college, and 50 percent more likely to persist through graduation. The cost of administering the program was minimal: an average of $200 per student (which included bonuses and operational expenses). "If you have a million dollars," says Cornell professor Kirabo Jackson, the study's author, this is "a pretty good way to spend it." It gives cool-minded kids an alibi for success, he adds: "I don't like math; I'm saving for an Xbox.' "

Of course, it also undercuts decades of education policy. No Child Left Behind focuses big bucks ($14 billion) on early intervention, while Race to the Top rewards states for boosting their kids' scores. If Jackson is right, however, much less money—late in the game, and paid to students directly—is the more effective path.

Targeted News Service, March 5, 2010, Friday

Targeted News Service

March 5, 2010, Friday

Con Edison General Counsel Named 'Influential Black Woman' by the Network Journal

BYLINE: Targeted News Service

DATELINE: NEW YORK

Elizabeth D. Moore, General Counsel of Con Edison, has been named to a business magazine's list of "25 Influen-tial Black Women in Business."

The March issue of Network Journal, a magazine for African-American professionals, executives and small busi-ness owners, features Moore, a resident of Sleepy Hollow in Westchester County.

Moore is a former partner in the firm of Nixon Peabody LLP, where she specialized in public finance, employment law, procurement policy, and government compliance and regulatory issues. She also served for 12 years in the admin-istration of former New York Governor Mario Cuomo. She was Counsel to the Governor from 1991 to 1994.

She became General Counsel at Con Edison in May 2009. Early in her career, she worked as an attorney in Con Edison's law department.

Moore earned a law degree from St. John's University and a Bachelor of Science from the School of Industrial and Labor Relations at Cornell University, where she is a member of the Board of Trustees.

Copyright Targeted News Services

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LOAD-DATE: March 6, 2010

Thursday, March 04, 2010

US Fed News, March 4, 2010, Thursday

Copyright 2010 HT Media Ltd.
All Rights Reserved
US Fed News

March 4, 2010, Thursday

Ronald G. Ehrenberg Joins State University of New York Board of Trustees

ALBANY, N.Y., March 3 -- The State University of New York issued the following news release:
Ronald G. Ehrenberg, the Irving M. Ives Professor of Industrial and Labor Relations and Economics at Cornell University, has joined the State University of New York Board of Trustees.

A nationally-known labor economist, Ehrenberg is the director of the Cornell University Higher Education Re-search Institute. He has served as a consultant to faculty and administrative groups and trustees at a number of colleges and universities on issues relating to tuition and financial aid policies, faculty compensation policies, faculty retirement policies, and other budgetary and planning issues.

"Ronald Ehrenberg's training and experience as an economist, his many years of service as a member of the Cornell faculty and administration, and his research on higher education will be an invaluable asset to SUNY," said Board Chairman Carl T. Hayden. "I welcome Ron to the Board and look forward to the benefit of his wise counsel."

"Ronald Ehrenberg has already been hard at work for SUNY as a member of the group helping to develop SUNY's strategic plan," said Chancellor Nancy L. Zimpher. "I appreciate Ron's commitment and dedication and look forward to working with him in his new role as a trustee."
"I am grateful to the Governor for his appointment and the state Senate for their consent," said Ehrenberg. "Participating in SUNY's strategic planning process has been a great experience and has well-prepared me for my new role as a trustee. I am eager to work with the Chairman, Chancellor Zimpher and my colleagues on the Board in advancing SUNY. My wife, my two sisters, my three nieces, one of my sons and I all were educated at SUNY and I am delighted to help repay my debt through my service on the SUNY Board."

The state Senate confirmed Governor David A. Paterson's appointment Tuesday afternoon March 2, 2010.

The Board of Trustees is the governing body of SUNY and consists of 17 members, 15 of whom are appointed by the Governor, by and with consent of the New York State Senate.

The president of the Student Assembly serves as student trustee and the president of the University Faculty Senate serves as an ex-officio and non-voting trustee.

SUNY Trustees serve on a voluntary basis without compensation for terms of seven years.

About Ronald G. Ehrenberg

Ehrenberg is a Stephen H. Weiss Presidential Fellow and an elected member of the Cornell Board of Trustees.

From July 1, 1995 to June 30, 1998 he served as Cornell's Vice President for Academic Programs, Planning and Budgeting. In this role, he supervised the office of Institutional Planning and Research, the office of Statutory College Affairs, the office of Space Planning & Utilization, and the office of Academic Programs and Special Projects.

He integrated academic planning across the colleges in Ithaca (with an emphasis on strengthening Cornell's social sciences) and between the Ithaca and Medical College campuses.
Ehrenberg received a B.A. in mathematics from Harpur College, now the State University of New York at Bing-hamton, in 1966, M.A. and Ph.D. in economics from Northwestern University in 1970, and an Honorary Doctor of Science from SUNY in 2008.

A member of the Cornell faculty for 33 years, he has authored or co-authored over 120 papers and authored or edited 21 books. He was the founding editor of Research in Labor Economics, and served a ten-year term as co-editor of the Journal of Human Resources. He has served, or is serving, on several editorial boards and as a consultant to numerous governmental agencies and commissions and university and private research corporations.For more information please contact: Sarabjit Jagirdar, Email:- htsyndication@hindustantimes.com

LOAD-DATE: March 4, 2010

Omaha World-Herald, March 4, 2010, Thursday

Omaha World-Herald

March 4, 2010, Thursday

Omaha World-Herald

City finances not in pay equation

By Robynn Tysver

When a city in Nebraska sits down to negotiate a labor contract with its firefighters or its police officers, all the parties at the table understand that a little-known state commission might have the final word.

The five-member Nebraska Commission of Industrial Relations, which is appointed by the governor, can settle a labor dispute by dictating wages and conditions of employment, based upon market conditions in comparable cities.

For example, many of the provisions in the police contract currently being debated in Omaha stem from a 2008 ruling by the commission.

The ruling established the number of sick days that an Omaha police officer receives every year, the number of paid holidays and the number of vacation days that an officer can earn throughout a career. It also ordered the City of Omaha to begin giving officers an allowance for uniforms and ordered officers to begin paying health care deductibles.

The commission has long been a source of frustration for county boards, school boards and city councils across Nebraska. The Douglas County Board has been known to complain about the commission frequently, and there have been various attempts by the League of Nebraska Municipalities to alter the commission process.

A key source of frustration is that the commission is not allowed to take into account a public employer's ability to pay for a contract.

Other states, including neighboring Iowa, require their labor arbitrators to take into account a city's financial picture.

“Currently, there is no consideration given for the economic stress a city or its taxpayers are under,” said Paul Landow, a critic of the CIR process during his tenure as chief of staff to then-Omaha Mayor Mike Fahey.

“While that shouldn't be the only factor the CIR weighs in making a decision, it should definitely be one of the factors,” Landow said.

In Omaha, the commission's name has been invoked numerous times recently as the City Council considers a new police contract and negotiates a new contract for firefighters. The council is currently scheduled to vote on the proposed police contract Tuesday.

The complaints also have given rise to a movement to alter the commission process.

Among the labor bills introduced by State Sen. Tony Fulton of Lincoln this year is one that would require the CIR to consider a city's ability to pay. The bills are unlikely to go anywhere this session, but all parties have agreed to talk over the summer.

The idea, Fulton said, is to return next year with bills that might be more palatable to both public employers and unions.

Unions are wary of any call to change the commission process, fearing that it is an attempt to stack the deck in favor of management.

Aaron Hanson, president of the Omaha police union, said he would have to see any proposed change before taking a position. But in his experience, he said, the commission is a “neutral arbitrator” that objectively sets wages and working conditions based upon the average market rate in comparable cities.

Hanson objected to adding a city's ability to pay to the conditions considered, asking: How could the commission compare Denver's ability to pay to Omaha's ability to pay?

“It's a complicated issue,” he said. “What do we expect the commission to do? Look into the city's entire budget?”

The commission was created in 1947. Members are appointed by the governor, with the Legislature's approval. Currently, no member comes from Omaha.

The commission was created to settle labor disputes between public employers and public workers, who are not allowed to go on strike.

Many of the commission's practices have evolved through the years and have been upheld by the Nebraska Supreme Court. For example, it was the court that ruled in the 1970s that the commission could not take into account a city's ability to pay for a contract.

Over the years, the commission has developed a mathematical formula to establish wages and benefits.

It all starts with choosing comparable cities.

Once the commission has chosen five to seven cities — with input from both sides — it then compares all wages and benefits. After all the information is gathered, the commission uses a mathematical formula to calculate the midpoint.

For example, the commission finds out how many sick days each police officer in the seven cities receives each year. The commission then calculates the midpoint.

“Once the array is determined, we just crank math,” said G. Peter Burger, president of the commission and a McCook attorney.

The choosing of comparable cities is especially critical for the state's two largest cities — Omaha and Lincoln.

Rural schools in Nebraska typically know their comparable schools. They are all around them. This allows them to use computer programs to work out contracts that are based upon the commission's own mathematical formula.

It avoids a lot of labor disputes.

But the state's largest cities have to look outside the state for comparables.

Every state handles labor disputes differently. Some, in fact, allow their public employees to go on strike.

Lee Adler, a senior associate at the Cornell University School of Industrial and Labor Relations, said he has heard of other states and entities using comparable cities when the two sides reach an impasse.

But Adler did not know of any other state with a commission that relied so extensively on a mathematical formula to arrive at wages and benefits.

For example, comparables are used by New York arbitrators, but not exclusively. They are also required to consider a city's financial situation and the realities that have led to the contracts in the comparable cities.

In Iowa, labor disputes are handled through a neutral party who can be a professional mediator, a professor or anyone else chosen by the two sides.

Generally speaking, Iowa has a process in which an independent arbitrator is called in when the two negotiating partners reach an impasse.

If mediation doesn't work, a “fact finder” is appointed. That person conducts a hearing, listens to both sides and then makes a recommendation to resolve the dispute.

If that doesn't work, the parties can request binding arbitration. In that process, the arbitrator has three choices to pick from: the union's final offer, management's final offer or the fact finder's suggestion.

In making a decision, the arbitrator also must take into account the cities' or the school districts' ability to pay.

Contact the writer:

444-1309, robynn.tysver@owh.com

The Washington Post, March 2, 2010, Tuesday

The Washington Post

March 2, 2010, Tuesday

The Washington Post


Obama angers union officials with remarks in support of R.I. teacher firings

President Obama voiced support Monday for the mass firings of educators at a failing Rhode Island school, drawing an immediate rebuke from teachers union officials whose members have chafed at some of his education policies.

Speaking at an event intended to highlight his strategy for turning around struggling schools by offering an increase in federal funding for local districts that shake up their lowest-achieving campuses, Obama called the controversial firings justified.

"If a school continues to fail its students year after year after year, if it doesn't show signs of improvement, then there's got to be a sense of accountability," he said. "And that's what happened in Rhode Island last week at a chronically troubled school, when just 7 percent of 11th-graders passed state math tests -- 7 percent."

The board that oversees Central Falls High School took the startling step last week of firing 93 teachers and other staff members after the teachers union refused to agree to a plan for them to work a longer school day and provide after-school tutoring without much extra pay.

American Federation of Teachers President Randi Weingarten, whose union represents the faculty in Central Falls, one of the poorest districts in Rhode Island, responded forcefully to Obama's remarks.

"We know it is tempting for people in Washington to score political points by scapegoating teachers, but it does nothing to give our students and teachers the tools they need to succeed," she said in a joint statement with other union officials.

In an interview, Weingarten said Obama's comments about the school "don't reflect the reality on the ground and completely ignore the commitment teachers have made to turn things around." Weingarten said the union was "profoundly disappointed by the comments" and said the president "seems to be focused on . . . incomplete information."

Obama has often challenged union orthodoxy in his education agenda, promoting the expansion of public charter schools -- which frequently are not unionized -- and teacher performance pay. The two major national educators unions are not formally opposed to those ideas, but many of their members are skeptical.

Education Secretary Arne Duncan has said repeatedly that he wants to work with unions rather than impose reforms on them, and the National Education Association, with 3.2 million members, and the AFT, with 1.4 million members, have generally sought to play down policy differences with the administration.

Obama's comments came as he spoke at a meeting of America's Promise Alliance, a group founded by former secretary of state Colin L. Powell and his wife, Alma. The group has launched an initiative aimed at curbing the nation's school dropout rate.

"This is a problem we cannot afford to accept and we cannot afford to ignore," Obama said during the event, at the U.S. Chamber of Commerce headquarters.

The White House said 1.2 million students drop out of school each year. The problem is concentrated in the nation's poorest schools and among minority students.

Obama has sought to combat the problem with an infusion of federal aid for school districts that develop innovative plans to help students graduate. With the proposed funding, Obama is placing a bet on four strategies to fix thousands of failing schools.

Each of the strategies, at minimum, appears to require replacing the school's principal. The "turnaround" model would also require replacing at least half the school staff.

"Restart" schools would be transferred to the control of independent charter networks or other school management organizations. "Transformation" schools would be required to take steps to raise teacher effectiveness and increase learning time, among other measures. The fourth strategy would be closing a school and dispersing its students.

USA TODAY, March 2, 2010, Tuesday

Copyright 2010 Gannett Company, Inc.
All Rights Reserved
USA TODAY

March 2, 2010, Tuesday

HEADLINE: The new GHOST TOWNS; Industrial communities teeter on edge of survival

RAVENSWOOD, W.Va. -- When Henry Kaiser arrived 55 years ago, this place was no place -- "a rural problem area," the government called it, so poor and isolated that the population had dropped 15% since 1940.

That all changed after Kaiser, the industrialist who'd turned out ships and planes at a record pace in World War II, built the nation's largest consolidated aluminum works here on the banks of the Ohio River.

The plant paid Tim Shumaker his first living wage, and he won the right to keep it two decades ago after his union was locked out for 19 months.

Today, that victory seems hollow. Shumaker, 49, has been laid off. Part of the vast aluminum complex is closed, and the rest is for sale -- its orders down, its workforce reduced, its future uncertain. Shumaker stands at the locked plant gate and, after a year without work, worries what's next for him and his community. "The way things are going," he says, "there's not going to be anything here."

Ravenswood, with 4,000 people and one big factory, is like many towns in the USA where things still are made: caught in a winter between recession and recovery, hoping the latter will arrive before the former kills the last decent blue-collar job.

If the rest of the aluminum works closed, "would this become a ghost town?" muses Jim Frazier, principal of the Henry J. Kaiser Elementary School.

Whether it's textiles in the Carolinas, paper in New England or steel in the Midwest, most industrial cities and mill towns "are on pins and needles," says Donald Schunk, an economist at Coastal Carolina University. "Day to day, week to week, any manufacturing facility seems vulnerable. People don't know if they'll be there."

That's true in:

*Georgetown, S.C. (pop. 9,000), where the closing of the local steel mill last year left International Paper as the last major private employer.

*Madawaska, Maine (pop. 4,000), where workers voted last month to take an 8.5% wage cut to keep the finan-cially strapped paper mill going.

*Glenwood, Wash. (pop. 500), where flat lumber prices and rising land prices are crippling the forest products in-dustry.

Anxiety over possible layoffs or closings can disturb workers as much as the real thing, experts say. Harvard psy-chologist Daniel Gilbert says it's uncertainty that really bothers people: They feel worse when they think something bad might happen than they do when they know it will happen.

Ravenswood knows the feeling. It's waiting for the other shoe to drop.

The aluminum works south of town has two parts: a reduction plant (or smelter), where ore is heated to 1,800 de-grees to make aluminum; and a fabrication plant, where aluminum is rolled or stretched into sheets or plates. Since 1999, the plants have been separately owned.

A year ago last month, Century Aluminum closed the reduction plant, laying off Shumaker and about 650 other workers. The fabrication plant, owned by Rio Tinto Alcan, still employs more than 1,000.

What if the Alcan plant, which bought its raw aluminum from Century, also were to close?
That worries almost everyone, including Frazier at Kaiser Elementary. Of the school's 160 families, 37 have parents who worked at Century; many others have breadwinners at Alcan.
Kate Bronfenbrenner, a Cornell labor relations professor who studied the 1990 Ravenswood lockout, says that if the second plant closes "that town would die." Other communities sustained by manufacturing face a similar fate, she adds: "We had ghost towns in the past. We could have them again."

The difference is that people could leave a ghost town -- miners to work new veins, farmers to till fresh land, mer-chants to move closer to road or rail.

Today, Tim Shumaker sees no such options. In past layoffs, he always found work somewhere; now there seems to be none anywhere.

So, like almost everyone else here, he's staying put, wondering whether Ravenswood could become a new kind of ghost town: a place where people stay, because they have nowhere else to go.

Rise and fall

Kaiser's Ravenswood plant created a middle class where there was none. When the United Steelworkers Union was voted in after the plant opened in 1957, the hourly wage jumped from $1.78 to $3.25.

Three decades later, the aluminum works was sold to a group that secretly included Marc Rich, an American com-modities trader who was living in Switzerland to avoid charges of violating
the U.S. trade ban with Iran.

According to a history by Bronfenbrenner and Tom Juravich, working conditions at the plant deteriorated. The company forced workers into double shifts -- sometimes for several days in a row -- in the 100-degree heat of the "pot rooms," where molten aluminum is made.

When the union contract expired, the company locked the workers out.

Organized labor had been losing such battles, but at Ravenswood the Steelworkers launched an innovative "corpo-rate campaign" that went beyond the picket line.

The union mobilized pressure from foreign unions and governments, persuaded beer companies to stop buying Ra-venswood aluminum and lobbied the state Legislature to investigate the company. In 1992, the company settled, agreeing to a new contract with higher
pay and limits on mandatory overtime.

By the end of 2008, though, energy prices had risen, foreign competition had increased, and
the price of aluminum had dropped 50% in a few months. On Feb. 4, 2009, the smelter closed.
Workers gathered in the high school gym. Gov. Joe Manchin, a pro-union Democrat, came up
from Charleston. "The world's changing," he said.

In the America where things are made, the recession has been a depression. According to a new Northeastern Uni-versity study, one in every six blue-collar industrial jobs have disappeared since 2007, matching the drop in overall employment in the Great Depression.

Last year, about 1.3 million factory jobs vanished, including Shumaker's. For the first time, the government an-nounced in January, most union members are government employees, not private-sector workers.

One-horse towns such as Ravenswood risk losing their reason for being, says Juravich, who teaches about labor at the University of Massachusetts. Without a hospital or university campus or county seat, "they're one plant shutdown from oblivion."

Sometimes oblivion is a ghost town with tumbleweed blowing down Main Street and the doors of the Last Chance Saloon swinging in the desert wind. But most 21st-century ghost towns will not be deserted.

People, many unemployed or underemployed, will fill the bars, stoops, corners, clinics, jails and social welfare of-fices.

An industrial town makes products that bring wealth into a community; a post-industrial ghost town has a zero-sum economy -- people in marginal jobs, "serving and paying each other," Bronfenbrenner says.

At best, the new industrial ghost towns become places for low-rent homes for long-distance commuters. At worst, they slowly empty out.

Uncertainty and anxiety

At first, some Century workers -- who as a group averaged $51,000 in pay per year -- regarded the layoff as a vacation. Besides unemployment compensation, 20-year veterans such as Shumaker got two years of layoff pay (about $400 a month) and continued health coverage (no premiums, no deductible and a $10 co-pay for office visits).

A year later, some benefits are expiring, savings are running low, and people are beginning to hurt. The local food bank's caseload has tripled. The pawn shop's business has doubled. "I'm warm and dry," Shumaker says, "but I don't have a dime to my name." He's behind in the payments on the three-bedroom house he shares with his wife and teenage son.

He has pawned some tools. Instead of stopping for a burger at lunchtime, he goes home and fixes a pea-nut-butter-and-jelly sandwich. He drinks less milk, eats less meat, buys less gasoline. He drives a dented Ford pickup with 150,000 miles on it.

What's most striking about Ravenswood, however, is not the material deprivation but the psychological distress, an anxiety about the future that tests faith itself. "I try to explain that God has not abandoned us," says Scott Mapes, pastor of the Church of the Nazarene, where yearly giving has dropped from $180,000 to $150,000.

Shumaker does not lack daily sustenance; he lacks a future and a purpose. "I'm not depressed or anything, but I can't seem to get started in the morning," he says. "I didn't get out of bed today until 9 a.m."

He's wearing a black T-shirt with pictures of a U.S. flag and a buffalo and the words "Roam Free." Problem is, he can't. The old rule -- go where the work is -- no longer applies, unless maybe you're a nurse or a teacher.

There's constant speculation that Century might reopen. Shumaker's not optimistic.
Others aren't waiting for a call back to work. Hundreds are taking advantage of a federal program that pays $20,000 for education or training for workers who lose jobs because of foreign competition.

Dave Guthrie, 51, says he's glad he was laid off because now he has the time, money and motivation to go to col-lege. He wants to be a traveling nurse, working short-term contracts around the country, far from what he calls the plant's "us-vs.-them" labor-management dynamic.

He sees Ravenswood as a nascent ghost town: "Industrial workers are dinosaurs. In the future, it's going to be ser-vice jobs and electronics. ... Eventually, people will start leaving here. It's that or a minimum-wage job at Wal-Mart."

Tim Shumaker is not going anywhere. On another slow, jobless day, he sits in the union hall, which is a sort of shrine to the great lockout. There's a picture of a worker who died on the job in 1990; a union-issued Marc Rich "wanted" poster; a photo collage of members' children, under the words "Why We Fight" and "Labor's Future."

There's also an aerial photo of the sprawling colossus that sucked up more power than a city and pumped out 500 tons of metal a day. For half a century, the hottest place in West Virginia; now, stone cold.

"It's disheartening," he says. "I enjoyed working there -- even the pot rooms. I miss it."

GRAPHIC: GRAPHIC, B/W, USA TODAY, Source: ESRI (Map)
PHOTO, Color, Jeff Gentner for USA TODAY
PHOTO, B/W, Jeff Gentner for USA TODAY

LOAD-DATE: March 2, 2010

Human Resource Executive, March 1, 2010, Monday

Human Resource Executive

March 1, 2010, Monday

Human Resource Executive


School Daze

Students don't understand basics about HR. Universities aren't teaching HR properly. Companies are underwhelmed with talent coming out of college. Is there any hope?

By Jared Shelly

While studying for his master's degree in human resources at the University of South Carolina, Michael Einstein has gotten his share of guff from the MBA students on campus. They call HR the "fuzzy, feel-good-about-yourself career," says Einstein. They say HR students are studying the soft side of business while the MBA students will drive real profits someday.

"They feel like our classes aren't as challenging as theirs and that we're not as talented as they are and that's why we're in [the HR] program," he says.

A few years back, Einstein might have believed those types of falsehoods too. After graduating from Cedarville University with a degree in philosophy, Einstein didn't really know much about HR and the role it plays in business.

But after working for a while as a bartender and server at Max & Erma's in Columbus, Ohio, a franchise of the casual-dining restaurant chain, the corporate office tapped him to help out in its opening of new locations in Ohio, South Carolina and Indiana. His job: train the managers at the new locations.

He was immediately attracted to motivating employees and working on their development. Thinking about his own development, he wondered if there was a career track in which he could do that kind of work full time.

"I didn't even know anything about HR or that I was involved in an HR project," he says. But the experience prompted him to research the field online and eventually seek the advice of a high-ranking HR executive at Max & Erma's.

It all led to Einstein finding his calling.

"I really liked the diversity in human resources -- the fact that you can do talent management, training and development, or organizational effectiveness," he says. "It seemed like the sky was the limit and, by choosing HR, I could find something I really liked; and if I didn't, I could move to another aspect of HR."

Armed with this new knowledge, Einstein enrolled at South Carolina for a master's in HR, and hopes to earn a management position with a company after graduation.

But his story is pretty unlikely.

Recruiters and experts say it's tough to find students like Einstein, who understand the importance of HR in business -- and in turn, many promising students bypass a career in HR and go into something more popular such as finance, marketing or law.

So how can universities -- and the companies that recruit their students -- entice the best and brightest students to choose a career in HR? And how can they make sure students are learning the right things?

Experts say both entities need to increase students' exposure to the profession when they start as undergraduates, as well as make HR classes requirements -- not electives -- in business programs. They should also host HR leaders for campus visits, highlight career opportunities in the field and draw more attention to internships.


Proper Marketing

Luring students to HR starts with undergraduate business schools, but right now, they don't seem to be presenting the profession as if it's as important as other business disciplines. In turn, just 61 percent of undergraduate business schools offer at least one HR class as a requirement, according to the 2010 State of HR Education Study by the Society for Human Resource Management -- and experts say that's far too low.

In many cases, it's just relegated to an elective, which is a big mistake, says John W. Boudreau, professor and research director at the Marshall School of Business at the University of Southern California in Los Angeles.

"I think having [a class] required in a curriculum sends a signal to students that it's something the business school considers important enough that you shouldn't leave without it," he says.

If the class sparks students' interests, it could serve as a springboard for them to seek out an HR internship or possibly make it their career choice. It could also show students who plan to go into other facets of business the value of a well-structured HR program.

"When I encounter [my former students] later in their career," says Boudreau, "they often say . . . 'I would have spent more time in those HR classes to augment the time I was spending in those traditional functional areas.' "

SHRM, based in Alexandria, Va., reports that the teaching of HR has historically been inconsistent from school to school. Employers, it says, believe those institutions haven't been covering all the topics necessary to produce successful HR professionals because classes haven't been showing the connection between HR and business.

"Students graduating with HR degrees were not coming into the workplace as novice HR professionals, possessing the skills and knowledge they needed to be contributing members of the business from day one," says Nancy Woolever, director of academic initiatives at SHRM.

In 2006, SHRM began fighting back, introducing its own curriculum. It started providing teaching materials, broadening its relationships with schools and their faculties, and working to provide more internships for students. As of this year, more than 160 schools have adopted its program. On the company side, Boudreau says they should consider sending HR executives to visit campuses and talk to business students about the value of the profession, which he says has been successful at USC.

"My students are not only very grateful to have the chance to see these leaders in action but also, in some ways, are kind of surprised to learn that very savvy, very smart, very strategic-thinking executives exist in HR and are making very strategic differences in their organizations," he says.

Over the long term, companies can attract more students to HR by weighing their decisions about people as highly as they do their decisions about money, technology or other factors, something that isn't happening enough these days, says Boudreau.

"As we see organizations begin to hold leaders accountable for the quality of their [people] decisions, I think that's when there'll be additional impetus for students to say, 'OK, now I see that this is an important discipline . . . and I'm beginning to understand how my career in this area is going to make a big difference in organizations."

That's the trickle-down theory.

But that sentiment, Boudreau says, can also trickle up from the students fresh out of business schools who've just learned how important it is for companies to have a progressive and well-developed HR department, and they'll be sure to make that a priority as they develop into business leaders.

Brian Klaas, professor of management and chair of the management department at the Darla Moore School of Business at the University of South Carolina, says TV and movies can make careers like law seem extremely interesting, while creating negative stereotypes about HR. Constant headlines about layoffs don't help either.

"It's important to break stereotypes about HR early on, even in undergraduate classes. I think they may think, 'If I go into HR, then I'm the Toby character on The Office' -- as opposed to saying, 'Oh I'm the person who saves $32 million by being more effective at how we negotiate a contract,' " says Klaas.

Upon entering school, many students simply don't know what an HR person does from day to day, and although there are plenty of students who are "incredibly well-suited" for a career in HR, they simply don't know it's an option.

"Somebody who's not in HR or somebody who's not a veteran of a major organization may have a harder time understanding what [HR professionals do] and how studying those issues are going to help [them] land a position in the marketplace," Klaas says.

Universities can also open some eyes by discussing the different career tracks a student can take if he or she chooses to work in HR at a large company.

"There're opportunities within these companies that I don't think your average undergraduate is aware of," says Klaas, noting that they also might not know that "the pay is quite good."

If presented to students the right way, it could make all the difference.

"When they're thinking about law school they will also think about a graduate degree in HR, and they won't just pursue the common choice. They've seen law on TV . . . it's easy to fall into that. There are a lot of HR people [who have the same skills] as those considering law."

Chris Collins, associate professor and director of the Center for Advanced Human Resource Studies at the ILR School at Cornell University, says it's all about internships, since real-world experiences often lead people toward picking their careers.

"They can get some insight into what a job in that area might be," he says. "Then they might say, 'Wow, this is really exciting. I never knew it could be like this.' "

Internships could also make up for skills gaps that students may have when they hit the workforce. HR students are often "too academic" and "don't see the connection to how this particular company is driving business strategy," says Collins.


Dealing with the Disconnect

Leaders at Arrow Electronics, a Melville, N.Y.-based provider of commercial electronics, have been underwhelmed with the skills and knowledge of the HR students they've recruited over the years. "I think there's a disconnect between what they're learning and what the realities are," says John McMahon, Arrow's senior vice president of human resources.

He doesn't think schools are conveying that HR practitioners need to have a business mind-set -- something crucial to a progressive HR function.

"Are you just the 'HR guy or gal' or are you a business person who happens to work in HR by choice? There's a big difference. I think that's the hypothesis that has to be built at the university level." If they want to succeed, students had better have their business skills intact, he says. "You better have strong business acumen. You better have influencing skills, consultative skills. You need to be a subject-matter expert."

Sure, Arrow has been able to train young people -- some of whom have blossomed into great young HR professionals -- but McMahon says nothing beats talking to students directly. "If you have your act down pat and you're clear about what your value proposition is for your HR team and your organization, you should be out there evangelizing your company," says McMahon.

When speaking to HR students, he and his team tell them a company can have the best strategy, the best machinery and the best tools, but having the wrong people means you won't be successful. However, they say, if HR helps instill the right workforce, it can create a competitive advantage that helps the company's bottom line.

McMahon acknowledges that "we need to do more [speaking with students], myself included." He plans to partner with universities in the near future so he can share his opinions about what skills students need before they enter the workforce.

"I say, 'I'd like to come in and chat with you. I'd like to understand what you're teaching in your curriculum and I'd like to give you some input -- because we do recruit from your school. I'd like to share my vision of what HR should be,' " he says.

McMahon says he hasn't done that yet, but says he plans to start this year by reaching out to two schools that the company already has some relationships with -- the University of Colorado and Hofstra University.

Mirian Graddick-Weir, executive vice president of human resources at Merck, says HR at the Whitehouse Station, N.J.-based company needs to do a better job of marketing its brand. Many students "still think of it as personnel," rather than a function that can be "extraordinarily strategic."

Also, she says, many students choose to get an MBA or a law degree because they think that'll help them get a good job -- and they don't realize that a master's in HR can be just as promising.

"Not only do we have to change their mind-sets around what people do in HR and the bottom-line impact they have; they also have to be convinced that, when they get a degree . . . there are job opportunities out there."

So to change their minds, Graddick-Weir also goes out and talks to students.

"There's no substitute for those of us who are in the field actually spending time with students, giving them what I would call a realistic preview of what we do every day," she says.

That gives her a chance to dispel myths that an HR executive is just a glorified "people person," and show them the bottom-line impact the profession can have on a firm.

While Graddick-Weir welcomes the opportunity to speak to students, she notes that "there's only so much you can do in the classroom." That's why she tells students that they should do internships, which, at Merck, is a comprehensive initiative in which students work on projects and also have forums with leaders in all facets of HR, from compensation to benefits to recruiting.

She thinks it's especially important to expose interns to line leaders.

"To have a line leader talk about an initiative they had going on in their business and how crucial HR was in the success of that project, that's when I think they realize the true impact they can have in this profession," she says.

Training & Development Magazine, March 2010

Training & Development Magazine

March 2010

Self-Regulating Online Course Engagement

Attrition rates in online courses will decline if trainees simply reflect on where they are directing their mental resources.

By Traci Sitzmann

During an online course, trainees are often given control over their instructional experience, which makes dropping out as simple as turning off their computers. But in fact, evidence suggests that attrition rates for online courses are often double those found in traditional, on-site courses. This prompts the question of how organizations can reduce attrition from this delivery medium.

Recent empirical evidence dem¬onstrates that prompting trainees to self-regulate can substantially reduce attrition. We conducted an experiment with 479 adults participating in volun¬tary online Microsoft Excel training. The course lasted four hours and was divided into four online modules.

Half of the trainees were asked self-regulation questions throughout train¬ing, designed to stimulate reflection on their concentration, understanding of the training material, and effectiveness of their learning strategies. For example, trainees were asked to rate on a five-point scale, “Am I focusing my mental effort on the training material?” and “Are the study strategies I am using helping me to learn the training material?” The other half of trainees were assigned to a control condition to provide base¬line evidence of attrition rates and how much trainees would learn if they were not prompted to self-regulate.

Attrition was 17 percent lower among trainees who were prompted to self-regulate than among trainees in the control condition. Thus, asking trainees questions to stimulate self-reflection substantially increased the probability of completing a voluntary online course.

Prompting self-regulation also re¬sulted in a 5 percent increase in test scores relative to the control. On average, trainees in the control condition scored 76 percent on the four exams in the course—which is a C average. Trainees who were prompted to self-regulate scored in the B range on the exams, with an average test score of 81 percent. This result is consistent with several previ¬ous research studies that demonstrated that learning improved over time when trainees were prompted to self-regulate, relative to the control condition.

The research also found that trainees who were prompted to self-regulate spent additional time reviewing the train¬ing material rather than merely clicking through the slides to reach the end of the course. Trainees who were prompted to self-regulate spent an average of 30 percent more time reviewing the course material per module than trainees in the control condition, which explains why they also learned more in the course.

Attrition from training greatly de¬creases organizational benefits and in¬creases the cost of the course per learner who completes training. The current results highlight that adults are capable of improving their learning in online training when they are asked questions to stimulate self-reflection throughout the learning experience. The self-regula¬tion prompts can be incorporated in all online courses free of charge.
By prompting self-regulation, orga¬nizations can provide trainees with the online learning support they need and increase their return-on-investment in online training programs.

Sitzmann, T, Bell, BS, Kraiger, K, Kanar, AM. A multilevel analysis of the effect of prompting self-regulation in technology-delivered instruction. Personnel Psychology, 62:697-734, 2009
Sitzmann, T, Ely, K. Sometimes you need a reminder: The effects of prompting self-regulation on regulatory processes, learning, and attrition. Journal of Applied Psychology, 95:132-144, 2010
Traci Sitzmann is assistant professor of management at the University of Colorado, Denver; Traci.Sitzmann@ucdenver.edu.
Self-Regulation Prompts Retention
Research has shown that asking yourself questions about whether you are concentrating on learning the training material will increase how much you learn during training. The training program will periodically ask you questions about where you are directing your mental resources and whether you are making progress toward learning the training material. Honestly respond to these questions and use your responses to direct your learning during training.
• Am I concentrating on learning the training material?
• Do I understand all of the key points of the training material?
• Are the study strategies I’m using helping me to learn the training material?
• Have I spent enough time reviewing to remember the information after I finish the course?
• Am I setting goals to help me remember the material after I finish the course?
• Would I do better on the next quiz if I studied more?
• Am I focusing my mental effort on the training material?
• Do I need to continue to review to ensure I will remember the material after I finish the course?
• Are the study tactics I have been using effective for learning the training material?
• Do I know enough about the training material to remember the material after I finish the course?
• Am I setting goals to ensure I have a thorough understanding of the training material?
• Do I know enough about the training material to answer all of the questions correctly on the quiz for this module?

The Buffalo News, February 28, 2010, Sunday

The Buffalo News

February 28, 2010, Sunday

The Buffalo News

Value of labor unions depends on reference point

New York leads U.S. in percentage of organized workers

A century ago, the suggestion that New York’s working men and women could band together to bargain for better wages and working conditions was considered a radical, even a revolutionary, idea.

Today, labor unions are an established part of the state’s economy and its politics, as settled as Wall Street or any government entity.

New Bureau of Labor Statistics numbers out this month show that New York State continues to lead the nation in the percentage of unionized workers, with 25.2 percent of employed workers paying union dues. Buffalo and other New York metro areas, with rates of unionization that also tend to run at about a quarter of employed people, are also near the top of the list of most unionized cities.

So, what has been the result? Has that meant a stable, dedicated workforce or the distorting entrenchment of an unaffordable status quo?

The answer, it seems, depends on whom you ask.

“It’s a good thing,” said Patty DeVinney, field coordinator for the Western New York Labor Federation, the regional branch of the AFL-CIO. “Where unions are in place, you find that there are higher salaries, better health care and more retirement security.”

Highly unionized economies, DeVinney said, also place less strain on taxpayers to pay for Medicaid or other public assistance services for workers who receive a living wage and health and retirement benefits from their jobs, not from the taxpayers.

But it is the strain on the taxpayers that most concerns Michael Moran, spokesman for the Business Council of New York.

Moran notes that New York’s high rate of unionization is fueled by growing the government class at a time when the private sector is contracting. In New York, 72.4 percent of the government workers at the local, state and federal level are union members. In New York’s private sector, unions represent only 16.5 percent of the employed.

“You can’t maintain an economy based on government spending,” Moran said. “You have to have a vibrant private sector.”

And among the impediments to a resurgent private economy, especially one struggling to recover from a global recession, Moran said, are the high costs that powerful public sector unions place on taxpayers.

Unions that represent teachers, health care workers and other public employees have a lot of money and organizational strength, Moran said, and thus have a disproportionate influence on the democratic process, particularly at the level of the New York Legislature. Those unions’ resistance to any reduction in spending that might affect their members’ jobs, he said, bends the political process to the detriment of taxpayers generally.

“That will distort the legislative process to some degree,” he said. “And that has set us on a spending curve that is unsustainable.”

Other states with high percentages of unionized workers include those with low populations and large numbers of government jobs — Alaska and Hawaii. The lowest rates of unionized workers are found in the South, with the lowest rate being North Carolina’s 3.1 percent.

Locally, the image of Buffalo and New York as a concentration of unionized labor is a factor in attracting new business, said Andrew Rudnick, president of the business-boosting Buffalo Niagara Partnership.

The area’s labor force is promoted by the partnership and other business leaders as skilled and dedicated, Rudnick said, and union membership is part and parcel of that. The problem comes, he said, when business people considering Western New York for expansion or relocation don’t look beyond the raw numbers.

“It’s a mixed attribute,” Rudnick said. “It all depends on whether it’s just the stats they look at or whether they bore down below the stats.”

If they do really investigate the labor climate in Western New York, Rudnick said, businesses are more likely to find things to their liking, with skills and experience they crave.

Arthur Wheaton, director of Cornell University’s Industrial and Labor Relations program in Buffalo, also says the situation in Western New York proves that a highly unionized economy need not be a highly contentious one.

Wheaton points to recent announcements of the preservation, and possible expansion, of jobs at Western New York union shops General Motors and New Era Cap as evidence that active, well-run unions are an asset to the local economy.

The GM Powertrain plant in the Town of Tonawanda was recently chosen to make a new generation of high-efficiency engines, employing 470 more people than work there today. That decision, announced in tandem with United Auto Workers leaders, followed the winning of concessions from the union that includes a wage scale for new hires starting at some $14 an hour, half of what legacy workers have been paid.

“I don’t think the issues of unions should be boiled down to good or bad,” said Steve Finch, manager of the Powertrain plant. “However, I do believe where unions exist that both union and management should focus on common business objectives that will allow both parties to flourish.”

And the owners of locally grown, nationally known New Era, faced with the need to close two of its three production facilities, last month elected to retain its Derby plant and close two factories in the South, saving 300 jobs in Erie County. Workers who are represented by the Communication Workers of America approved wage, benefit and bonus concessions earlier this month to make that deal possible.

“We’re very fortunate here in Western New York that we have had very good labor-management relations,” Wheaton said. “We want to keep jobs here, and we’re more likely to do that with a strong labor force.”

Wheaton also backed the idea that a high rate of union members among an area’s workforce can ease the burden on taxpayers, as strong unions negotiate levels of pay and benefits that allow workers and their families to depend on their jobs, not welfare, Medicaid or other forms of public assistance, for the things they need.

He also noted that industries that require highly trained, skilled workers — from airline pilots to professional baseball players — tend to feature strong labor unions that allow those who do the work to have more say over how the work will be done. In the long run, Wheaton said, that can minimize labor-management discord and improve the lives of workers, the profits of the company and the quality of goods or services provided to the public.

“Strong labor unions give you what you most want,” Wheaton said. “To have things handled by adults with other people watching.”

gpyle@buffnews.com

MarketWatch, February 25, 2010, Thursday

MarketWatch

February 25, 2010, Thursday

MarketWatch

U.S. workers unlikely to go the way of Greece

Weaker unions, cultural differences make any mass walkouts unlikely Explore related topics
Europe United Parcel Service Inc AMR Corp Story Quotes Comments Screener (278) Alert Email Print ShareBy Liana Balinsky-Baker & William Spain, MarketWatch

CHICAGO (MarketWatch) -- Ballooning deficits. Troubled banks. Budget cuts. Wage freezes. All these, and a basketful of other economic woes, fueled a general strike that paralyzed much of Greece on Wednesday -- and many of the same conditions exist in the U.S. as well.

But considering the history of American labor, currently high levels of unemployment, the fragmentation of the union movement and considerable cultural differences, a similar nationwide walkout here seems extremely unlikely, almost regardless of how bad things might get.

Greek Debt Crisis: Athens Choked By General StrikeA massive general strike to protest E.U.-mandated austerity measures closed banks, government offices and post offices, crippling the Greek capital Wednesday. WSJ's Andy Jordan reports from the streets of Athens.
First of all, only about 12% of American workers are organized, the lowest level since before World War II. In Greece, union membership is 28% based on the latest available data, with 60% of the public sector and 18% in the private organized. Elsewhere in Europe, Germany is at just over 20%, while the U.K. is at 30%.

Also, in the U.S., the union membership rate for public-sector workers, at 37.4%, is far higher than the private industry level of 7.2%. And many government employees here are forbidden, either by law or contract, from walking off the job.

"I have a very hard time imagining a general strike like Greece, where trains are stopping, and ferries are stopping, and public transportation is put to a halt, and people are on the streets," said Jefferson Cowie, an associate professor of labor issues and history at Cornell University's School of Industrial and Labor Relations.

In the U.S., "class identity is very fractured," he said. "The bread-and-butter working class issues aren't' as galvanizing as they once were. The politics of cultural values have eclipsed questions of class and economic equality."

He said that union membership is at "pretty much rock bottom," and while "unions still have a lot of political power and money ... the days when the statement of a union leader is front-page news have fallen by the wayside."

But, "the big question is the public sector," he said. "This is a huge issue in California, in New York City, where there is a large number of public-sector employees who are facing budgetary crises."

And with state governments and other public employers faced with firing people, cutting wages and/or outsourcing to private contractors, "the question is: Will there be a pushback from public-sector unions?"

The last big general strike on U.S. soil took place in Puerto Rico in 1998. It began as a job action at the local telephone company in protest of a privatization plan but eventually mushroomed to a two-day walkout by an estimated 500,000 workers that crippled commerce across the island.

Ultimately unsuccessful, the phone company workers went back to work after about a month, and the utility was eventually sold to a GTE-led group for $1.9 billion.

Before that, one would have to go back to 1934, when dozens of unions in the San Francisco Bay area called a general strike after several picketing dockworkers were killed by police. That one lasted four days, virtually shutting the region down in the process, but pretty much ended in a draw.

In the modern era, strikes against individual companies have rarely been able to gain much traction, with the notable exception of a Teamsters action at UPS Inc. /quotes/comstock/13*!ups/quotes/nls/ups (UPS 59.61, +0.43, +0.73%) in 1997 that resulted in the workers getting much of what they wanted after a 15-day walkout.

Earlier that same year, however, a strike called by pilots at AMR Corp.'s /quotes/comstock/13*!amr/quotes/nls/amr (AMR 9.35, +0.05, +0.54%) American Airlines never even got off the ground after President Bill Clinton, using powers granted him under federal law, ordered them back to work within minutes of the walkout.

"What's going on [in Greece] would not ever occur here," said Leo Troy, a professor of economics at Rutgers University. "Greece has [a] revolutionary record of overthrowing governments, and that's not the case in the U.S. It's just not part of the background or history of the labor movement."

He said that such actions have occurred in France, Greece, and even in the U.K., where there was a general strike in the 1920s, but "we're talking nearly 100 years ago. It's never happened here [and] it's not in the cards."

Further, "the government sector is prospering and is doing all right," Troy said. "There's no pushback and the public-sector unions have benefited from the Obama administration, and they will continue to do so. They're in bed together."

Liana Balinsky-Baker is a News intern

William Spain is a MarketWatch staff writer in Chicago.