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With A Third of Workers at Risk of Job Losses, Progressives Launch New Drive For More Aid (VIDEO)

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Image: Art LevineWith heavy defections from Blue Dog Democrats, the House of Representatives still narrowly passed Wednesday evening 217 to 212 a $154 billion jobs package. It included funds for states to retain front-line workers, aid to the unemployed and transportation projects.

But a jobs bill has yet to be voted on in the Senate, where it’s likely to be viewed more skeptically and reduced in scope in the absence of a major grass-roots campaign. Political activism becomes even more urgent, because a combination of continuing high unemployment and the transitioning of people in and out of jobs could mean that as many as a third of the workforce could be unemployed or undermployed in 2010, according to Lawrence Mishel, director of the Economic Policy Institute.

That’s why a potentially powerful 60-group liberal coalition, Jobs For America Now!, announced earlier Wednesday, becomes especially important. Its leaders are proposing a far more ambitious $400 billion proposal, based in part on plans put forward in the last several weeks by the AFL-CIO and other progressive and civil-rights organizations.

(The full story of the progressive drive for jobs creation can be read here at Truthout.org.)

There’s no doubt that they face an uphill battle to get ambitious jobs legislation through Congress. There was, after all, that close vote yesterday in the House, right-wing propaganda about the failings of the first $787 billion stimulus (it actually saved or created up to 1.6 million jobs), and the spread of an aggressive “deficit hawk” mentality to conservative Democrats.

Even so, Thea Lee, the deputy chief of staff of the AFL-CIO, outlined the themes unifying the organizations: “Across the country, working Americans are calling for urgent action on the jobs crisis, and this action must be on a scale to match the crisis. We must also focus on fundamentally transforming our economy so we never face this type of crisis again — reforming our labor laws, our trade policy, and our financial system to restore needed balance.”

During the debate over the jobs bill, House Speaker Nancy Pelosi (D-CA) declared on the House floor, “This legislation brings jobs to Main Street by increasing credit for small businesses, rebuilding the infrastructure of America, and keeping police and fireman and teachers on the job. As we create jobs for Americans, we are doing so in a fiscally responsible way. These investments are fully paid for by redirecting TARP funds from Wall Street to Main Street.”

With every single Republican voting no, she defiantly pointed out how far the American economy had come under the Obama administration even as joblessness is still rampant. “There were 740,000 jobs lost in the first month of this year compared to 11,000 last month. We’re on the road to recovery…We’re creating jobs for Main Street, not just wealth for Wall Street,” she said. “This legislation creates jobs, helps meet the needs of those who are unemployed, and puts us America back on a path to prosperity.”

Action can’t come too soon, and our obstructionist legislators would do well to listen to the plight of the unemployed as powerfully described in James McMurtry’s song, “We Can’t Make It Here.” Even though it was written during the Bush era, it’s all too applicable now:

The groups and leaders featured in the press conference call Wednesday before the vote were almost a Who’s Who of American Liberalism. They included the Campaign for America ‘s Future; Anna Burger, the chair of Change to Win;, the veteran organizer Alan Charney of the grass-roots advocacy group,US Action, and the coalition’s interim director; Benjamin Todd Jealous, the NAACP President;and Wider Opportunities for Women. The importance of the coalition goes beyond the specifics of their proposals to their commitment to provide grass-roots muscle in all 50 states to push for jobs legislation in the tough struggle ahead, especially in the Senate. And that’s what’s been missing before on this issue: united activism around jobs which could, potentially, have more diverse grass-roots support in 2010 than health care reform did this year.

The importance of the new coalition was underscored by an aide to Rep. Bobby Rush (D-Ill), who co-chairs the bipartisan Jobs Now! Congerssional caucus. The aide told Truthout: “These are the A-List groups. If that coalition steps up to the plate, they’ll bring plenty of resource capacity: polling, lobbying, putting pressure on the usual suspects.” Right now, though, the staffer observed, “Clearly everyone’s focused on pushing health care across the finish line, and that’s not even done. After that, everyone will be talking about jobs, jobs, jobs — at least until November.”

So, despite the narrow vote on Wednesday, there’s some realistic hope that a combination of continuing unemployment, grass-roots organizing and political necessity could push through meaningful jobs legislation — and the Pelosi-backed bill is considered a very good start.

After Wednesday’s vote, union leader Anna Burger declared:

Our jobs crisis cannot be solved by one bill alone. But today the House demonstrated the bold and swift leadership the American people demand. It’s time to provide relief to the millions of workers who get up each morning and scour the help wanted ads in the hopes of finding a good job that can support a family. Congress today made an essential first step to invest in programs to immediately put people back to work…

But our work is far from over. Our leaders must continue to work non-stop to pass a comprehensive jobs agenda that puts millions of Americans back to work today and makes strategic investments to create the jobs that Americans will need in the future.

The biggest differences between the House-passed measure and the progressive-backed proposals are the sheer amount of spending and the absence in the current House bill of public sector job creation targeting hard-hit communities. As described by the coalition, this jobs-creation provision — which could create one million new jobs with $40 billion in federal funding, according to Rep. Keith Ellison (D–Minn.) — is a vital one. The group’s call to action describes its importance:

We can directly create jobs that put people to work helping communities meet pressing needs, including in distressed communities facing severe unemployment. These initiatives must be designed so they maintain existing wage and benefit standards and do not displace existing jobs or simply exchange one group of unemployed workers for another.

The urgent call to action is often at odds, though, with the pragmatic, even cynical, calculations of conservaDems who are worried that big deficit spending could be a potent Republican issue in their home states that trumps joblessness.

Compare the different perspectives. First, here’s what’s at stake for American workers, as described by the Jobs Now! coalition:

An Urgent Call for Action to Stem the U.S. Jobs Crisis

The U.S. unemployment rate exceeded 10% in October for the first time in a quarter century. Over 15 million Americans are able and willing to work but cannot find a job. More than one out of every three unemployed workers has been out of a job for more than six months. The situation facing African American and Latino workers is even bleaker, with unemployment at 15.6% and 12.7%, respectively.

These grim statistics don’t capture the full extent of the hardship. There are another 9 million people working part time because they cannot find full-time work. Millions of others have given up looking for a job, and so aren’t counted in the official unemployment figures. Altogether, over 17% of the labor force is underemployed–more than 26 million Americans–including one in four minority workers. Last, given individuals moving in and out of jobs, we can expect a third of the workforce, and 40% of workers of color, to be unemployed or underemployed at some point over the next year. (emphasis added.)

Despite an effective and bold recovery package we are still facing a prolonged period of high unemployment. Two years from now, absent further action, we are likely to have unemployment at 8% or more, a higher rate than that attained even at the worst point of the last two downturns.

Joblessness on this scale creates enormous social and economic problems–and denies millions of families the ability to meet even their most basic needs. .

Then take a look at the political machinations among Democrats who feel themselves to be vulnerable politically, along with some retiring members who feel they can vote their conscience on behalf of a jobs package. Here’s how The Hill reported their current thinking:

The close votes reflect the growing unease among centrist Democrats that the deficit spending that Congress has undertaken to right the economy is becoming a potent campaign issue.

“We’ve got to indicate we’re serious about the deficit,” said Rep. Gerry Connolly (D-Va.), who voted “no” and represents a Republican-leaning district with low unemployment. “We didn’t cause the deficit, but we have to address it.”

Rep. Brian Baird (D-Wash.), who is retiring from Congress, changed his vote to put Democrats over the top. That signals a potent variable in vote counting next year — retirees who no longer need to respond to traditional political pressures…

Political analysts are closely watching for more centrist retirements. Those members will have no fear of losing committee assignments and can’t be won over with promises of campaign help or other inducements…

But Democrats facing tough re-election fights found themselves trying to determine if voters are angrier about 10 percent unemployment or trillions in deficits.

“My staff is looking at it,” said a newly elected Democratic member from a conservative district as the clock ticked down. “If I can’t make a good case that a lot of money is coming back to my district, I can’t support it. I wish we had more time.”

He voted “no.”

Compare that political calculation with the fear and anxiety gripping America’s unemployed, with half of them reporting depression, panic and heavy borrowing from friends. The New York Times reported this week:

Poll Reveals Trauma of Joblessness in U.S.

More than half of the nation’s unemployed workers have borrowed money from friends or relatives since losing their jobs. An equal number have cut back on doctor visits or medical treatments because they are out of work.

Almost half have suffered from depression or anxiety. About 4 in 10 parents have noticed behavioral changes in their children that they attribute to their difficulties in finding work.

It doesn’t seem that many members of Congress fully understand yet the havoc that’s been let loose in the land because of widespread unemployment. Meanwhile, posturing over ideology continues. They all might benefit if they could listen with open hearts to the plight of those without work in their districts and states, as aptly depicted in the song, “We Can’t Make It Here,” written by James McMurty during the Bush era, even before the meltdown, and unfortunately, it still applies today.

Who is listening to them now?

*This article originally appeared in The Huffington Post on December 17, 2009. Reprinted with permission from the author.

About the Author Art Levine is a contributing editor of The Washington Monthly, and a former Fellow with the Progressive Policy Insititute. He has also written for Mother Jones, The American Prospect, The New Republic, The Atlantic, Slate, Salon and numerous other publications. He is the author of 2005’s PPI report, Parity-Plus: A Third Way Approach to Fix America’s Mental Health System, and is currently researching a book on mental health issues. Levine also posts commentary at Art Levine Confidential


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Why Today’s Workplace Readers Should Think About Attending The ROI of Great Workplaces Conference

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You found this blog, or return to it, because you’re interested in workplace rights and employers that follow the law to a tee, right?  Well, you’ll find the latest, best information on both and meet some dynamic business contacts to boot at Winning Workplaces’ 2009 annual event that will be held in Chicago on October 1-2.  We’re calling it the ROI of Great Workplaces Conference.

Click here to:

  • View event summary
  • Add event to your calendar
  • Watch a short highlights reel from our 2008 conference
  • View fees and agenda (note that the agenda is still coming together)
  • Learn about the location
  • Book your room at the event hotel at the special Winning Workplaces rate

Besides the short video of last year’s conference at the above link, you can get a sense of what attendees experienced by checking out my photo recaps on our blog here and here.

Here’s more incentive to attend: Be one of the first 100 people to register and get $100 off your registration.  Just click here and enter coupon code FRSTHUND when prompted.

Some of my favorite moments at this event happen when I meet new business people in between sessions.  This was the case last year when I was finally able to meet and sit down with your host on this blog, Paula Brantner.  I hope I’ll be able to do the same with you this year.

Register now for this event.

About the Author: Mark Harbeke ensures that content on Winning Workplaces’ website is up-to-date, accurate and engaging. He also writes and edits their monthly e-newsletter, Ideas, and provides graphic design and marketing support. His experience includes serving as editorial assistant for Meredith Corporation’s Midwest Living magazine title, publications editor for Visionation, Ltd., and proofreader for the National Association of Boards of Pharmacy. Mark holds a bachelor’s degree in journalism from Drake University. Winning Workplaces is a not-for-profit providing consulting, training and information to help small and midsize organizations create great workplaces. Too often, the information and resources needed to create a high-performance workplace are out of reach for all but the largest organizations. Winning Workplaces is changing that by offering employers affordable consulting, training and information.


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What’s Wrong with This Picture?

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The following is cross-posted on the Winning Workplaces blog. I thought it was appropriate for Today’s Workplace’s focus on taking back Labor Day. After all, this holiday should offer pause not just for workers, but for company leaders to reflect on how they can do more with less in this difficult economic environment. Enjoy, and feel free to drop a comment below.
– MH

According to two new, independent employer studies – this one and this one – while more than half of employers are planning to hire full-time employees over the next year, over half also don’t offer paid maternity leave (and those that do provide only around 50% pay, on average).

This recruiting/retention picture doesn’t add up for me.  Companies that believe they’re seeing light at the end of the economic tunnel should focus on pleasing their current workforce and getting employees engaged – especially if they’ve had to make some wage or other concessions since the beginning of the recession.  This is all part of sharing the recovery as well as the pain with workers.

This is not to say that companies that see more demand shouldn’t hire more talent to meet it.  But while they make plans to do so, they should use this time as an opportunity to ramp up their benefit packages and other methods for improving productivity and commitment so their existing knowledge base is fully on board for the increased workload – and so they can serve as better ambassadors to acclimate new hires to the organizational culture.

Do you agree or disagree with my assessment that the above-mentioned studies represent conflicting human capital strategies?

About the Author: Mark Harbeke ensures that content on Winning Workplaces’ website is up-to-date, accurate and engaging. He also writes and edits their monthly e-newsletter, Ideas, and provides graphic design and marketing support. His experience includes serving as editorial assistant for Meredith Corporation’s Midwest Living magazine title, publications editor for Visionation, Ltd., and proofreader for the National Association of Boards of Pharmacy. Mark holds a bachelor’s degree in journalism from Drake University. Winning Workplaces is a not-for-profit providing consulting, training and information to help small and midsize organizations create great workplaces. Too often, the information and resources needed to create a high-performance workplace are out of reach for all but the largest organizations. Winning Workplaces is changing that by offering employers affordable consulting, training and information.


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Small Business Owners and Support for the Public Option

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Republican opponents of serious health reform like Senator Mitch McConnell love to claim that a public option would hurt small business owners. On the ground, though, the picture is more complex and, if anything, the opposite. Small business owners are suffering under the current system, and many of them strongly support health reform that includes a public option. That’s because enacting real health reform would be a boost – not a blow – to America’s economy.

Looking at the status quo, we find “health care costs choking small businesses.” Listen to the story of this businessman:

Maryland auto shop owner Brian England offers health care coverage to his 18 employees, including part-time staff. He calls it “the right thing to do,” and besides, he knows taking care of his employees makes good business sense.

But every year his insurance premium costs rise another 10 or 20 percent, and England worries about the day when the fees will overwhelm him. After payroll and rent, health care is his largest business expense.

“A business down the road could have their labor rate $5 cheaper than us because that’s how much it costs for us to provide health care,” England said, referring to the hourly rates his business and competitors might offer customers.

[snip]

For England, shopping for policies and finding a way to afford to offer the benefits has become a yearly headache.

I’m in the business to do auto repair,” England said. “I’m not in the business of trying to find out how to provide health coverage and how to get the right sort of plan…. And it’s not easy.”

Brian England goes on to say that he supports a public option.

But anecdotes don’t tell us everything we need to know. In the same story, one of Brian’s peers (albeit someone who employs over nine times as many people) expresses some skepticism about the public option. Turning to quantitative data, then, we get another perspective on small business owners and health care.

Last week, New York Small Business United for Health Care released the results of its statewide survey of 202 small businesses in New York (.pdf). 73% of respondents favored the public option.

Turning to the economic impact of health reform, we see that even the conservative small business groups that oppose a public option recognize the potential economic benefits of an overhaul in the health system.

The prospect of health care reform raising costs for small businesses is “a legitimate fear,” said John Arensmeyer, CEO of Small Business Majority, an organization that believes employers should provide insurance to their workers.

BUT:

A study commissioned by the organization found that businesses with fewer than 100 employees could save as much as $855 billion over the next 10 years if health care reform is enacted.

And going back to the story of Brian England’s auto shop, we learn that

Of the 46 million Americans living without health care, an outsized majority — about 60 percent — work for small businesses, according to the nonprofit Employee Benefit Research Institute. Owners of those businesses say Congress needs to find a solution to an increasingly costly problem — but they disagree about how to get it right.

Taking all these pieces together, it’s clear that small business owners recognize our current health care system is broken. Moreover, it’s clear that when Republicans say small business owners oppose a public option, they are speaking for a minority. Both survey data and anecdotal evidence suggests that small businessmen are far from united in their viewpoints on health care, and that within the business community many support the public option.

Is that a surprise? Not with over 70% of Americans in favor of the public option. Surely that number includes thousands of hard-working small businessmen and women.

Whether it’s the uninsured, the underinsured, the struggling middle class, or the business owner worried about how to do the right thing for her employees and make her business more competitive, Americans want health reform with a public option. Let’s hope Congress doesn’t get mislead into believing that the men and women who are the engine of our nation’s economy do not want this change.

About the Author: Alex Thurston is a research intern for Healthcare for America Now.

This article originally appeared in Health Care for America Now! Re-printed with permission by the author.


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Small Biz Group Says Health Care Reform Could Save Them $855 Billion

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Health care reform that requires employers to provide health care coverage for workers or pay into a fund—known as pay or play—could save small businesses as much as $855 billion during the next few years.

A new study by the Small Business Majority disproves claims by health care reform opponents that requiring businesses to provide coverage to their workers would destroy their bottom line.

The Economic Impact of Health Care reform on Small Business, written by Massachusetts Institute of Technology economics professor Jonathan Gruber, says that small businesses, more than any other sector of the economy, “suffer from our broken health care system.”

From spiraling premiums to inadequate access to health care for themselves and their employees, small business owners have seen their prospects for growth diminished and their profits slashed by today’s patchwork of inefficient health care options.

The report looks at three health care reform proposals—including President Obama’s—that call for pay or play by businesses, along with tax credits and other incentives to help offset the cost of providing health insurance to their workers.

This analysis demonstrates that the type of health care reform that is emerging from today’s debate will save small businesses hundreds of billions of dollars, protect small business wages and jobs—and allow small businesses to reinvest and grow.

Without reform, small business owners will pay nearly $2.4 trillion in health care costs for their workers over the next 10 years. But as the report points out, reform as outlined under the three plans,

could save as much as $855 billion with reform—a 36 percent reduction, money that can be reinvested to grow the economy.

Soaring health care costs are projected to cost some 178,000 small business jobs over the next decade, but health care reform, could reduce projected job loss by 72 percent job loss.

To benefit small businesses, their workers and the economy, the Small Business Majority report says that health care reform must:

  • Substantially contain costs.
  • Guarantee access to coverage regardless of health status.
  • Be based on shared responsibility among individuals, businesses, the government and the health care industry.
  • Provide appropriate assistance to small businesses to meet their health care obligations.

The Small Business Majority, founded in 2005 by executives of small companies who wanted to broaden the small-business discussion about health reform, isn’t the only small business group to back comprehensive health reform.

In January, the Main Street Alliance network of state-based small business health care coalitions, surveyed 1,200 small business owners and found they

  • Are concerned deeply about the adequacy of insurance, including the breadth and affordability of services covered by their plans.
  • Believe government should provide a public alternative to private coverage.
  • Want increased oversight of private insurers.
  • Are willing to contribute their fair share toward a system that makes health care work for small businesses, their employees and the communities they serve.

About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and managing editor of the Seafarers Log. He came to the AFL-CIO in 1989 and has written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety. He carried union cards from the Oil, Chemical and Atomic Workers, American Flint Glass Workers and Teamsters for jobs in a chemical plant, a mining equipment manufacturing plant and a warehouse. He’s also worked as roadie for a small-time country-rock band, sold blood plasma, and played an occasional game of poker to help pay the rent. You may have seen him at one of several hundred Grateful Dead shows. He was the one with longhair and the tie-dye. Still has the shirts, lost the hair.


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A More Level Playing Field

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The Super Bowl is a key date for any would be entrepreneurs. The milestone was a $12.95 student-shot commercial for Doritos. Not only was the commercial judged to be one of the best of the day, but this commercial officially levels the playing field between massive corporations and small entrepreneurs.

Let’s face it, for the last ten years columnists, career coaches and baristas have talked up the era of the “free agent.” Where we would all say goodbye to the shackles of corporate tyranny and strike out on our own.

But a funny thing happened on this overground railroad to freedom. It never really materialized. Sure Kinkos, Starbucks, Costco and Fed Ex have all made a lot of money catering to small businesses people. But as much as people have thrived outside of the corporate sphere, it’s still a David versus Goliath environment, where you had to avoid getting up the dander of any big corporation or risk being crushed. I’ve had a number of people write to me through the years to describe what it’s like when more attorneys show up at your door than you have employees, so it should be no surprise that big corporations have a unique ability to get their way. Or to get you out of their way.

That’s where the Doritos commercial comes in. For $2.6 million dollars Doritos ran an ad that cost $12.95 to make—to fully comprehend what you just read, you might want to consider rereading that last sentence. Normally such a miniscule expenditure would be referred to as a “shoe-string” budget, but having recently shopped for shoe strings, it’s even a notch below laces.

This commercial is important because it shows that the little guy or gal can come out on top. Part of the reason is obvious, technology. As a friend recently pointed out, the $500,000 editing suite that he used to work on at a network TV affiliate is now available on a midrange computer with relatively inexpensive software.

But there is an even bigger untold story here. Another part of the rise of the entrepreneur is the inability of many corporations to get the value out of all of the brains within their organizations. Like an elementary school class, I believe many corporations are more focused on discipline, litigation and compliance and not drawing out the genius of their people.

Think I’m exaggerating? Ask anyone in corporate America about their day. Most will tell you that they spend most of their time trying to stay afloat amongst hundreds of emails. In fact, today’s average corporate Joe or Jane is less connected to their coworkers than the average free lancer was ten years ago.

Take a bit of technology, throw in the under-use of employees in most corporations and you get an environment where small, feisty organizations can compete—and win—on even the biggest stage.

Tired of working for “the man” (or “the woman”)? Maybe it’s time for you to become one.

QUOTE.

“Never follow the crowd.” Bernard Baruch

About the Author: Bob Rosner is a best-selling author and award-winning journalist. For free job and work advice, check out the award-winning workplace911.com. If you have a question for Bob, contact him via [email protected]


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What Will First Lady Michelle Obama’s Work-Life Balance Efforts Look Like?

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We have heard for some time that Michelle Obama’s pet concerns on the campaign trail, which she hoped to be able to continue while in the White House – and will indeed be able to after last week’s dramatic election finish for her husband, President-Elect Barack – are helping families create a healthy work/life balance and easing the struggles for military families.

It’s no wonder the former is an issue that’s close to Mrs. Obama’s heart.  This article from the UK-based Telegraph newspaper talks about her own work/life balance struggles, in three distinct phases of her life: while growing up on the South Side of Chicago and seeing an ailing father continue to work hard, and leave business matters at the office; while herself transitioning from the legal field to civic and community work after marrying Barack and having their two daughters, Malia and Sasha; and most recently while Barack was on the campaign trail.

Mrs. Obama even wrote a heartfelt essay on the topic of work/life balance last month on the popular BlogHer community of women bloggers.  Here’s how she spells out the plight for working women:

As we all know, our country is in the midst of a major economic crisis.  And we’re all feeling the effects.  …

And folks are feeling it at the workplace.  Because right now, thousands of women across the country don’t have family leave at their jobs.  And those who do can’t afford to take it because it’s not paid.  And 22 million working women don’t have a single paid sick day.

That’s just unacceptable.  Families shouldn’t be punished because someone gets sick or has an emergency.

This is from the employee perspective, but Obama’s cause has direct implications for small and midsize business leaders.  Morra Aarons-Mele, a graduate student specializing in women and leadership, framed this exceptionally well recently on The Huffington Post,

Why should we care about “work life” issues when our savings and retirement funds are literally halving by the day?  Because “work life,” as nondescript as it may sound, is the stuff that keeps American families afloat.  Work life refers to issues ranging from sick leave to health care to early education and child care.  It also encompasses flexibility and better work-life balance, which have strong effects on companies’ bottom lines and employee productivity.

So what would organizations’ employee engagement activities geared toward helping workers achieve a more harmonious balance look like – ideally – four or eight years from now?  Obama hinted at this during a plenary address she gave at our annual small business leadership conference two years ago, when she spoke about creating relationships between businesses and the community.

Community organizing didn’t just help Barack become President-Elect; it has also helped his wife use resources at her present employer, the University of Chicago (and later its Hospitals) to transcend both entities from simply a “name” in their neighborhood to a visible, tangible source of inspiration and assistance.

As we spelled out in our article summarizing her remarks at our event, Obama pointed to the creation of such initiatives as school “Principal-For-A-Day” and community fitness programs as ways to not only bring the University’s and Hospitals’ employees out in the open, but to better connect their passions to their work.

This model has been readily adopted, to great effect, by some of the firms we’ve since honored as Top Small Workplaces.  For instance, 2008 winner The Redwoods Group, an insurance provider for YMCAs and Jewish Community Organizations that’s based in North Carolina, requires its 100 employees to volunteer 40 hours of service annually to nonprofits.  A condition of their employment, the company argues this has contributed directly to their steady employee growth (27% over the last two years) – including the ability to recruit cost effectively – and industry-low turnover (less than 6% on average the last two years).

So one plausible – again, ideal – work/life balance scenario is the government serving an encouraging, perhaps advisory role in helping small business leaders adjust their employee engagement best practices so employees can focus their passions on helping their communities, while at the same time benefitting the organization through enhanced workplace team building and lower rates of absenteeism and presenteeism.

Do you concur?  Or do you see Obama’s work/life-related efforts playing out differently?

Cross posted at Winning Workplaces


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How Small Business Could be Reshaped After Today’s Election

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Disclaimer: This post is not meant to be an endorsement of any party or candidate but, rather, an exploration of issues affecting small business as shaped by what will *most likely* happen at the polls today.

Today’s election will be historic, no matter the outcome.  If you’re anything near the political junkie that I am, you’ve been watching for the last few days the result projections of some of the major pundits from the basic and cable news networks, as well as from some of the bookies.

If there is a commonality here, it is that Barack Obama looks poised to win fairly big or really big; and that the Democrats will make gains in both the House and Senate – although the Senate “magic 60” number is still a far cry as of this writing.

Yet, if we assume the above, as David Gergen has noted on CNN, even without the Dems getting a filibuster-proof majority in the Senate, they would still have a greatly enhanced ability to push through legislation that supports their agenda, with a president ready (on most issues) to sign it into law.

How would this scenario affect small businesses?  A look at four issues that are central to their survival and success – two of which have been covered at length by candidates of the two major parties and the media, and two of which have been largely ignored – offer a clue.

Taxes

  • Obama’s plan, as detailed on his website, stresses cuts in capital gains taxes and additional tax cuts for corporations that create jobs in the U.S.
  • The Democratic Party website also talks about efforts of the majority Democratic Congress (elected in 2006) to “slash regulations on small companies.”
  • Point of contention: The now-familiar “Joe the Plumber” caveat: Entrepreneurs who start businesses that generate more than $250,000 in annual revenues would see their taxes go up – albeit to 1990s levels.

Healthcare

  • Obama: Establishment of a new Small Business Health Tax Credit to help small firms provide affordable health insurance to their employees.  He has also talked about creating an insurance pool that individuals and small firms can pay into and receive the same benefits that members of Congress receive.
  • Democratic Party: Emphasis on cutting bureaucratic waste – chiefly by standardizing electronic medical records – that would, along with incentives to increase competition among health plans, reduce company-paid premiums over time.
  • Point of contention: Nationalizing healthcare, which would mandate the coverage of children, would keep costs high.

Changes in Labor Laws – Specifically Enactment of the Employee Free Choice Act (EFCA)

  • Obama: A Proponent of the EFCA; wants to make it easier for employees to form unions.
  • Democratic Party: Behind the EFCA. They also list a goal of raising the minimum wage.
  • Point of contention: The EFCA and federal increase in the minimum wage are both hotly contested issues, with adoption of both falling pretty squarely in the “workers, yay; business leaders, nay” columns.  Since the federal minimum wage was just raised in July, the EFCA bill, if it were highly modified, might stand a better chance of gaining the support of small business leaders in the shorter term.

Immigration Reform

  • Obama: Reduce the bureaucracy that slows the process for illegal immigrants to earn legal status, which he argues will “meet the demand for jobs that employers cannot fill.”  Crack down on employers that hire undocumented immigrants.
  • Democratic Party: Supports “economic development in migrant-sending nations, to reduce incentives to come to the United States illegally.” Long-term, this would ensure that tax dollars from businesses as well as individuals aren’t stretched as thin.  The party also echoes Obama’s above concerns.
  • Point of contention: This is a sticking point for leaders of some smaller firms that are actively hiring undocumented workers.  Most other business leaders seem concerned that their taxes are not raised for inadequate or unnecessary measures to secure our borders.

So, would a fly on the wall of a small organization in February 2009 see a noticably different landscape than in the same firm today?  Probably not.  Still, it doesn’t hurt to project how the probable shift in the balance of power in Washington after today will play out for these enterprises.  Who knows, it may even shape smaller-scale efforts – the things we love to talk about and help our clients refine – like employee engagement best practices and workplace team building.

What say you?

(Cross-posted from Winning Workplaces Blog)


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Find an Employment Attorney

The Workplace Fairness Attorney Directory features lawyers from across the United States who primarily represent workers in employment cases. Please note that Workplace Fairness does not operate a lawyer referral service and does not provide legal advice, and that Workplace Fairness is not responsible for any advice that you receive from anyone, attorney or non-attorney, you may contact from this site.