Raise Minimum Wage Now

The federal minimum wage of $7.25 needs to be raised. No more talk, just do it, especially if this nation is serious about getting millions of people back to work – and with some type of living wage.

Why?

If you think about the price of a gallon of gasoline flirting with $4, or higher, then you’ve answered the question.

Even so, there’s a no-holds barred debate raging nationally between business and labor about the impact of raising the minimum.

Business Versus Labor

Business groups say that raising the minimum wage discourages job creation.

For example, the National Restaurant Association says that a federal wage hike would “cause restaurant operators to make very difficult decisions to eliminate jobs, cut staff hours or increase prices.”

But labor advocates say that if workers don’t get raises, consumer spending stagnates.

“This is a critical part of recovery — to help people have more money to spend,” says Jen Kern, minimum wage campaign coordinator for the National Employment Law Project.

Let’s look at the job creation argument. Who are the jobs for?

Inside The Numbers

Many low-paid hourly jobs advertised in the classifieds, online and print, and at job posting websites offer little. They’re typically less than $10 per hour and often lack health benefits.

Sadly, it may be possible for some folks to collect more in unemployment benefits than working for such low wages. That’s hardly an incentive to get folks back to work.

Even academic studies are inconclusive, National Public Radio reports.

Some studies show that the National Restaurant Association and others like it are correct, while others show that a higher wage will stimulate spending without costing any jobs.

The good news: Seventeen states and the District of Columbia already have minimum wages set higher than the federal law. Oregon’s minimum is now $8.50 per hour.

Striking A Balance

WMB believes a balance can be struck between the needs of employers and those seeking gainful employment.

Perhaps raising the minimum wage will provide a better overall wage structure that attracts a better type of employee – one who is highly qualified and deserving of more than the minimum.

The minimum should be considered entry-level pay, for those lacking necessary experience and needed training.

Minimum wage supporters hope to prompt at least a few states to act, but no state has voted to increase the minimum wage this year.

The federal minimum wage, first enacted in 1938, was last raised in 2009, to $7.25 an hour. In 1971, the minimum wage was $1.60.

Adjusted for inflation, a worker today would have to make $8.83 an hour to have the same buying power, according to the U.S. Department of Labor.

Progressive Approach

In Illinois, for example, some lawmakers have been pushing to raise the state minimum wage up to $10.65 in steps over four years. The current minimum is $8.25 an hour, $1 more than the federal wage.

Given the realities of what it costs to live today – not only the price of a gallon of gas, but everything from the food we eat to the everyday (not designer) clothes we wear – a single-digit minimum wage in leaves us stuck in the past.

If we're serious about fixing our economic mess, let's forget for a moment about the golden-parachute CEOs and start with the folks on the bottom who just want a chance to do better.

Editor's Note: This is the last post for We Mean Business. We hope you have enjoyed our travels together across the web and our take on many things, from trends to issues.

As some wise person once said: It's the journey, not the destination, that matters most. We thank all of you for making this blog part of your personal journey!!!

Ken Cocuzzo

NJ Sends The Right Message

New Jersey is a much-maligned state, sometimes with good reason, especially in the area of political corruption.

But sometimes The Garden State gets it right and does something ahead of everyone else in America, something so correct you can’t believe it needs to be spelled out in writing.

Case in point is New Jersey’s new law that bans job ads, in print or online, that only consider the employed for openings.

The job ad legislation, signed into law by Gov. Chris Christie, is necessary because some employers are discriminating against the unemployed. You must be “currently employed” to apply for positions.

Some employers and recruiters are operating under the misguided assumption there is something wrong with you if you’re out of work.

So, following this bonehead logic, you are not worth the time and effort.

Wake-Up Call

Under New Jersey’s law, which takes effect June 1, no business can post a listing for a job opening in the state that contains:

*Any provision stating that the qualifications for a job include current employment;

* Any provision stating that the employer or employer’s agent, representative, or designee will not consider or review an application for employment submitted by any job applicant currently unemployed; or

*Any provision stating that the employer or employer’s agent, representative, or designee will only consider or review applications for employment submitted by job applicants who are currently employed.

Violators will be fined $1,000 for the first offense and $5,000 for a second offense. Christie rejected as too severe original provisions calling for fines of $5,000 and $10,000, respectively.

Zero-Tolerance Needed

Frankly, WMB believes the penalties should be higher, with strict enforcement. Repeat offenders, after the second offense, should have their names published as a public service and a warning to others who would flout the law.

There is no excuse for practicing discrimination against any group of individuals. People should be judged on legitimate qualifications, knowledge and skills, period.

True, there are laws prohibiting racial, sexual, age, ethnic and religious discrimination, and various forms of bias in between.

But some employers used the Great Recession as cover for creating two classes of workers – those currently employed but seeking new jobs and those unemployed but deemed not worthy of consideration.

Talk about flawed and skewed thinking!

Debunking The Myth

Some of those who lost their jobs since 2008, through no fault of their own, were well-qualified and veteran workers across a variety of industries – construction workers, teachers, police officers, financial advisers, journalists, just to name a few.

Many of these workers had skills, knowledge, strong work ethic and, yes, higher salaries than what entry-level positions provide.

With few exceptions, nobody willingly would want to become long-term unemployed. Unemployment benefits, even generous ones, do run out. Food needs to be on the table; bills have to be paid.

And, doubters aside, many Americans still have a solid work ethic that has been handed down through generations of immigrants. That ethic is part of the thread that makes us diverse and strong as a nation.

Employers since the recession years have held all the hiring cards, especially when the numbers reflected five to seven workers for each job opening, regardless of industry.

Businesses, large and small, should carefully screen all job candidates to find the best qualified, not toss out the unemployed based on arbitrary rules and bias.

New Jersey is on the right path; others should follow its lead.

Ken Cocuzzo

If you enjoyed this post, please consider subscribing for FREE (link in right sidebar) and sharing it on Facebook, Twitter, or your favorite social network. Thank you!

Many Of Us Are Burned Out

Feeling stressed about work even when you’re at home with family and friends? You’ve got lots of company these days in recession-scarred America, where working more but having less seems to be the new way of life.

More than a third of U.S. employees (36%) say they're experiencing chronic work stress, according to this year's American Psychological Association survey.

And 32% of the survey's 1,546 respondents say they plan to seek employment elsewhere within the next year.

That’s right, a third of American workers are burned out, reports mediabistro.com.

Those who responded to the survey cited salary concerns, lack of opportunities for advancement, heavy workloads and long hours as sources of their job stress, according to David W. Ballard, who is head of the APA's Psychologically Healthy Workplace Program.

The program seeks ways to create healthy organizational cultures that support employee well-being and organizational performance.

Weighing Stress Types

Some stress is positive, according to the APA, releasing adrenaline that can enhance a person's performance and problem-solving ability.

But chronic stress, defined as constant and persisting over an extended period of time, can cause anxiety, insomnia, muscle pain, high blood pressure and a weakened immune system.

Such stress puts people at risk for developing illnesses like heart disease, diabetes and depression.
“It's easy to get isolated, trudging to work every day,” says Ballard, who recommends building new skills and maintaining connections with friends and colleagues who can be sources of brighter career opportunities.

Try Coping Strategies

If too much work is the problem, cut down on your workload, for one thing, career expert Roberta Chinsky Matuson tells CNNMoney. Conversely, if you want a promotion, ask for extra work.

Actually, the key here is asking; don’t suffer in silence. Ask for a patient ear from a friend, for help from a co-worker, or for advice from your boss.

“It’s one thing to do the work of two people while a position is being re-staffed. It’s another to continue to take on two jobs for the rest of your working life,” Chinsky Matuson says.

“Let your boss know that you are drowning and ask for a life preserver to keep you afloat.”

Most Stressful Jobs

According to CNBC, they are real estate agent, advertising executive, public relations officer, highway patrol officer, commercial pilot, police officer, surgeon, taxi driver, corporate executive and firefighter.

Journalist was not among the top ones but, as anyone who worked in a newsroom would tell you, daily newspaper deadlines often were heart-stoppers, putting aside for a moment ugly office politics and occasional crazy readers.

So what to do about your situation? An advancement or exit strategy can counter chronic stress.

“Employees can boost their own morale because they realize that they are not helpless victims tied to a bad economy,” says Cheryl E. Palmer, president of Call to Career in Silver Spring, Md. “They are preparing themselves to embrace future opportunities when they become available.”

If a heavy workload seems to preclude efforts for accumulating skills and connections, perhaps it's time to be a little less of a perfectionist.

“Most times, if something is 80% done, it's ready to go. The extra 20% really won't make much of a difference,” says Chinsky Matuson, author of Suddenly In Charge: Managing Up, Managing Down, Succeeding All Around.

“This philosophy will help you leave the office before 8 p.m. each evening,” she says, and it will free up time to prepare a move up – or out.

Still, you don't need an expert to tell you, the worst kind of stress is self-imposed, when you set the bar unreasonably high. As the old McDonald's commercial urged hungry viewers: You deserve a break today!

Ken Cocuzzo

If you enjoyed this post, please consider subscribing for FREE (link in right sidebar) and sharing it on Facebook and Twitter. Thank you!

We Need To Get Aboard

China, the second largest economy after ours, has invested $360 billion in high-speed trains which carry passengers between large cities at 200 mph.

Spain, despite its economic challenges, has invested $170 billion in high-speed rail systems. A similar rail expansion is taking place in Europe; this runs from the boot of Italy to the Baltic Sea.

Worldwide, however, most nations are not associated with such rail infrastructure, but India, Brazil, Argentina, Morocco and others are planning high-speed rail networks.

WMB believes these countries understand that modern rail systems are critical pieces in developing competitive 21st-century economies. They see the problems caused by dwindling oil supplies, congested highways and airports, and soaring carbon emissions.

Unfortunately, the United States has been sidetracked by controversy involving high-speed rail.

Deficit Versus Jobs

Officials in some states think a rail system will only add to the already high and unprecedented government budget deficits. But advocates argue it will make our infrastructure more efficient and create badly needed employment.


The Obama administration and various states will ensure the foundation of a national high-speed rail network will be laid in the next several years, according to the U.S. High Speed Rail Association.

This financial foundation includes $8 billion in federal stimulus funds slated to extend the network 17,000 miles by 2030, between all major cities in America, and at a cool 220 mph.

California will get $2.34 billion, the largest award,to help set up a high-speed line between San Diego and Sacramento by 2026.

States receiving more than $150 million in federal funds include Florida, North Carolina, Illinois, Washington, Oregon, Wisconsin, Ohio, Michigan, Virginia, and New York. But the governors of Florida, Wisconsin and Ohio, calling the rail project a boondoggle, have rejected funding.

Eventually, private funding would be included in the projected $600 billion project.

The Rail Alternative

The reasons so many interest groups support creation of a national high-speed rail system are straight-forward.


The United States has become far too dependent on foreign oil. Americans use six times more oil per capita than Europeans.

Currently, we spend up to $700 billion a year to import foreign oil, with 70 percent of this consumed by cars, trucks, and airplanes.

With oil prices hovering at $100 per barrel, the American economy is in jeopardy.

And most experts believe that we have hit the point of peak oil. This means that as demand soars and supplies decrease, the price per barrel could reach $300 within this decade.

Andy Kunz, president and CEO of the U.S. High Speed Rail Association, says enhancing America’s energy security is one of the best reasons we need a state-of-the-art high-speed rail system.

WMB agrees, and we think a national high-speed rail system will create millions of jobs, help revive the manufacturing sector by incorporating our steel and related components, and alleviate pressure on a crumbling infrastructure.

A side benefit would be removal of many vehicles daily from our clogged highways. Traffic delays cost the U.S. economy an estimated $156 billion annually.

Green And Viable

Then there’s the environment.

A national rail system also would dramatically reduce our collective carbon footprint. Advocates note the cost of building will decline each year and, eventually, exceed the estimated $600 billion budget.

Although much of the funding will be public, many believe the private sector can best run such an infrastructure.

WMB believes the United States must build a high-speed rail network to stay competitive in a world economy.

Why not put the money we spend on imported oil into a new rail infrastructure? The stakes are high, and we can’t afford to do otherwise.

America needs to embrace change, or we won’t control our destiny in the near-term.

Improvements on high-speed rail could one day reach over 300 mph and help maintain our global position and competitiveness.

We shouldn't be left behind at the station!

TechMan

If you enjoyed this post, please consider subscribing for FREE (link in right sidebar) and sharing it on Facebook and Twitter. Thank you!

China Hurts U.S. Jobs

Americans have been lulled into a false sense of security and friendship with China. We keep buying all its products, most of which are inferior to ours, while we compete for commodities throughout the world.

China owns a large portion of our national debt, thanks to consumers. And, on top of that, our capitalist representatives keep sending jobs to China at the expense of the American worker.

There is no mistake about it: China is a Communist country and it plays hardball. We have been at war with that nation twice; Korea and Vietnam.

Further, it’s clear that the recent skirmish involving North Korea against South Korea was instigated by China to obscure our main focus – China. Every dollar we spend on Chinese goods helps fund its oppressive Communist regime and military.

China has the second most powerful military on Earth and the second largest economy on the planet (after us). And, based on GDP forecasts, it will likely be No. 1 within a decade!

The Wall Street Journal last December noted China cut its first half (of 2011) export quotas of rare earth metals by 35 percent, after having cut 2010 exports by 72 percent.

To put this into perspective, China controls 95 percent of the world’s rare earth metals. Uses for rare earth elements include a variety of imaging electronic components.

For example, cerium oxide and related products are frequently used as polishing additives in toner formulations. These materials also are used in semiconductors and displays.

Trade Balance Needed

WMB believes we need to halt the current trade surplus to help create employment in the United States. China does not compete fairly on many levels.

Examples include the foreign exchange rate, government-subsidized state industries, and the illegal use of intellectual property from U.S. patents.

At the rate we are going, America will lose all our manufacturing jobs to China which will likely lead to a depression for which there will be no recourse except war.

Communist China is unhappy with our recent monetary policy to purchase long-term U.S. Treasury bonds to reduce long-term interest rates to stimulate our economy and create jobs. (Obviously, interest rates can’t go any lower).

The consequence is a weaker dollar, but our exports will be more attractive offshore.

China is upset because it has a huge trade surplus with America, and a weaker dollar will help to reduce that surplus. Also, China will likely complain about the Fed policy because China has been accused of keeping its own currency artificially weak to maintain a surplus.

But it is possible that buying T-bills may help allay ongoing complaints about Chinese currency manipulation, since the trade imbalance will improve as a result of these actions.

What We Can Do

WMB believes U.S. companies must create new industries and products which can compete on a global basis. Products must be unique to this country; Made in America needs to be more than just a slogan.

After all, we have the best schools in the world and many of our institutions are spawning ideas that create ventures in the States.

Sure, many of the students are from foreign countries, but the U.S. government needs to make it attractive for exceptional students to stay here and help create leading technology and jobs.

The biggest consumer market is here. We are the ones buying goods and services, thereby creating millions of jobs not only in China but around the world.

It’s time we take control of our domestic dilemma.

The government needs to impose tariffs or some other mechanism, like the current monetary policy, in hopes of restoring our integrity and position in the world economy.

Wars aren't fought just on military fronts.

TechMan

Temp Jobs Trend Higher

Temporary workers now account for more than a quarter of the jobs added since the Great Recession technically ended, and some experts predict those types of jobs will continue indefinitely as employers seek ways to trim labor-related costs.

The trend is for companies to count more on the services of temporary workers and less on full-time employees, who already may be overworked because of layoffs and buyouts.

This is great news for companies pressing for increased productivity and reduced costs, but it does not bode well for the underemployed and unemployed seeking full-time work.

More than 15 million people remain jobless, with the unemployment rate at 9.8 percent in November. For many, even a temp job is better than no job at all.

Temp workers typically receive few or no benefits – health care, holiday pay, sick time. Essentially, temps work for cash on a per-diem basis, with no job security. Every day could be their last at work.

The New York Times notes that “it is harder for them (temps) to save. And it is much more difficult for them to develop a career arc while hopping from boss to boss.”

There are several factors driving the trend toward temps, including the way work is handled in America’s post-recession era.

“Businesses now tend to organize around short- to medium-term projects that can be doled out to temporary or contract workers,” the Times reports.

And flexibility is another factor: it’s much easier to end a bunch of temp contracts than to actually go through layoffs, according to mediabistro.com.

“We’re in a period where uncertainty seems to be going on forever,” David Autor, an economist at the Massachusetts Institute of Technology, tells the Times.

“So this period of temporary employment seems to be going on forever.”

View From Inside

Having been a temporary worker more than once in my professional career, I can say it offers more advantages than disadvantages to employers and the temp. It can be an “audition” for both parties.

From the employer side, there is little red tape in terms of temp hiring and termination. The application, background check and interview process typically are the same as for a regular, full-time employee.

In a temp arrangement, an employer tries the worker on for size, to see if he or she fits the position and company culture while performing the same job as regular staff.

It’s not easy, even after an exhaustive resume review and rigorous interview process, to be certain someone is right beforehand for any job.

On the flip side, the temp can do the same thing in terms of sizing up the company and whether a full-time, regular staff position – assuming it’s available and offered later – would provide financial stability and flexibility for professional and personal growth.

A survey by Staffing Industry Analysts, a Mountain View, Calif., research firm, shows 68 percent of all temporary workers are seeking permanent employment, the Times reports.

Temp Worker Advances

My previous career as professional journalist in daily newspapers began this way:

A college internship led to a temporary reporter’s job that led to full-time employment in the career of my choice. Certainly, not all temp work ends in such a positive outcome, but the potential does exist.

The key for me turning the temp journalism job into a regular one was performing at the highest level; that is showing mastery of basic skills, willingness to learn new ones, and developing interest regardless of the assignment.

If you’re not curious about the why and how of things, chances are you won’t make a very good journalist. You have to combine reporting (gathering facts) and writing (context packaging) to get the job done right, regardless of print or electronic format.

Change Direction Now

My point is the use of temporary workers – to fill gaps and cut costs – should not be considered a long-term substitute for hiring full-time employees who, admittedly, do bring higher costs, especially in the health and retirement benefits.

Whether you’re an employer or employee, temporary staffing is a practical solution for the here and now.

But it offers no lasting commitment to the future, whether that’s building a business, improving-maintaining services, or developing a career path.

Temporary workers should be just that, temporary. There's too much at stake for all sides of this equation to let this trend become permanent.

As for me, I practice what I preach at writenowworks.com. If you like this post, please share it.

No Motor Madness In Detroit

It’s been a long time since American automakers had something to rev their engines about, but that could be changing with some recent announcements by the Big Three.

General Motors and Chrysler plan to renovate plants and restore jobs in efforts aimed at building a new generation of automobiles. Even Ford will invest nearly a billion dollars in four plants in a bet that the nation’s slow recovery will eventually mean more demand by consumers.

These ambitious plans demonstrate the Big Three have shifted gears in an attempt to move forward and leave the dismal sales of the recession years in the rear view mirror.

After years of downsizing and reorganizations, Detroit’s moves have buoyed hopes that the upper Midwest can reverse years of high employment and economic decline. Here’s the latest from the automakers:

Chrysler

The smallest automaker of the Big Three is now controlled by Fiat. The firm said it will invest $600 million in its Belvidere, Ill., plant to prepare for building new vehicles there in 2012. This spending and new vehicle production will spare 2,349 local workers whose jobs are scheduled to end soon with the product lines.

The plant now makes Dodge Caliber compact sedans and Jeep Compass as well as Patriot small crossovers. Chrysler did not say what new vehicles it will make, but speculation has centered on Chrysler-branded products based on Fiat and Alfa Romeo vehicles from Italy.

General Motors Corp.

The Lansing Grand River plant will add 600 jobs and a second shift following GM’s investment of $150 million to produce a new small Cadillac. This car will be a compact and less expensive than the CTS line already made at that plant in Michigan’s capital city.

Ford Motor Co.

The only one of Detroit’s Big Three not to go through bankruptcy court and take government money says it will invest $850 million into Michigan plants through 2013. This will add an additional 1,200 jobs, according to a Ford spokesman.

The spending will be spread over several plants including Van Dyke Transmission, Dearborn Truck, Sterling Axle and Livonia Transmission.

In September, Michigan’s unemployment rate was 13 percent, second only to Nevada. Ohio’s employment also was particularly high because of the downturn in auto manufacturing. America’s Rust Belt has felt a larger sting from the Great Recession than many other areas.

As part of their expansion, the Big Three are investing more into making small cars in the United States rather than in South Korea or Mexico, a reversal of previous trends.

The reasons are based on wage and benefits concessions, bringing down labor costs significantly. However, it also means new jobs will pay less than jobs that have been lost.

“They are at the point where they can profitably produce a smaller vehicle,” says Dave Cole, chairman emeritus of the Center for Automotive Research in Ann Arbor, Mich. “A lot of assets scrubbed from the books aren’t a liability anymore.”

GM, in particular, dumped unprofitable product lines including Pontiac (after 80-plus years, including a great run in sports/muscle cars), Hummer, Saab and Saturn.

The updated plants will be able to produce a wider variety of vehicles, so if sales fall in one category, the plants can raise production in others.

WMB believes the jury is still out on these latest moves.

Although they are to be commended for their efforts, the Big Three’s modernization may be too late for market conditions when compared to Japanese, German, and yes, upcoming Chinese rivals.

It’s not only about production efficiency but technology as well. Moves to migrate from the internal combustion engine to hybrid fuel cells will increasingly be driven by consumers. Function, price and design must be part of the successful equation.

Politicians also need to get on-board to better position the Big Three to battle in a global market. American automakers lost their edge to foreign competition before, so it’s essential that mistake not be repeated.


We do have the chance to get it right this time if there is a coordinated, well-thought effort combined with creativity – a driving force behind some of the best and innovative auto designs from Detroit auto engineers in the 1950s and 1960s.

This post is from TechMan, WMB co-author who blogs about trends, issues and ideas affecting business, industry, technology and consumers. Please share this post!