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MonthlyNewsletter February 2002 Issue
Legislative News
Project Labor Agreements: Sweetheart Deal For Unions, Bad Deal for Everyone Else Read
Governor Proposes UI Diversion to Help Cover $2.9 Billion Budget Deficit Read
NJBIA Tells State Board: Add Tech Education to School Curriculums Read
Develop Economy To Help Solve Budget Crisis Read
NJBIA In Action
250 Members Crowd Forsgate For Billion $$ School Construction Update Read
Congressional Roundtable Brings Issues to DC Reps Read
NJBIA Executives In "Who's Who" Read
Calendar of Events
Tuesday, March 5-Emergency Planning Seminar Read
Wednesday, April 17-Sexual Harassment Lawsuits Seminar Read
Spring 2002, Legislative Briefing Breakfasts Read
Tuesday, May 14-NEW JOBS South Jersey Legislative Reception Read
Tuesday, June 11-New Good Neighbor Awards Luncheon Read
Workplace Report
Labor-Management News for New Jersey Employers
NJBIA Testifies On Paid Family Leave, Project Labor Agreements Read
New OSHA Recordkeeping Rules Take Effect Read
VIOLENCE IN THE WORKPLACE-Legal Obligations and Employer Responses Read
Who to Contact in State Government on Labor & HR Issues Read
NEW JERSEY EMPLOYMENT WATCH-End of Recession Nears Read
A Practical Guide To New Jersey Employment Law Read
Project Labor Agreements: Sweetheart Deal
For Unions, Bad Deal for Everyone Else

In a move that will give union-only contractors a virtual monopoly on public works projects, Governor James E. McGreevey has signed an order and legislation has been proposed calling on all public agencies to enter into project labor agreements for their public construction contracts. NJBIA immediately criticized these moves as a sweetheart deal for the labor unions at the expense of taxpayers, since they will effectively eliminate competition from nonunion firms. Nonunion contractors should not be denied the opportunity to compete while unions are given a practical monopoly on taxpayer-funded projects.

"Project labor agreements gift-wrap billions of taxpayer dollars and give them to the labor unions," NJBIA Vice President Jeff Stoller said. "They effectively shut out hundreds of qualified nonunion contractors and thousands of their workers from participating in state public contracts. Every public works project impacted by this order will cost taxpayers more."

Project labor agreements (PLAs) would become effective immediately under McGreevey's first executive order as Governor, which was signed on January 17. The proposed legislation, S-1044 (Sweeney, Cafiero)/A-1926 (Egan, Malone), would be even more restrictive than the executive order.

"Project labor agreements undermine the Governor's credibility," Stoller said. "While he is asking everyone else to cut spending, he is giving his union supporters a sweetheart deal at the expense of New Jersey taxpayers."

The negative impact of project labor agreements is well-documented. In fact, the New Jersey Supreme Court has struck down past project labor agreements for violating competitive bidding laws. In 1994, the Court said "bidding statutes are for the benefit of the taxpayers... Their objects are to guard against favoritism, improvidence, extravagance and corruption; their aim is to secure for the public the benefits of unfettered competition." (George Harms Const. V. Turnpike Authority)

Project labor agreements as a practical matter bar qualified nonunion contractors from participating in public works contracts and deny jobs to thousands of nonunion workers. These companies and workers pay taxes to finance school and highway construction projects but will not be able to work on them.

Editorial writers are also criticizing McGreevey's executive order. The Trenton Times said, "It looks very much like a payback to the unions..." The Bergen Record stated, "The new executive order may do wonders for organized labor's coffers, with millions of dollars in new union dues, but it will also add millions of dollars to the cost of state projects." The Record added, "One might conclude that Mr. McGreevey is more intent on keeping his promises to the unions than on reducing this monstrous deficit that he keeps warning everyone about."

Major construction projects undertaken with project labor agreements-from Boston's notorious Central Artery project to the San Francisco Airport expansion-have been severely over budget and behind schedule. And while McGreevey is asking each state agency to cut spending by 5 percent and warning of even deeper cuts to come, union-only deals will increase the costs of public contracts across the state.

"All nonunion contractors are asking for is the opportunity to compete for public contracts. They should have the same rights as union-only contractors." For details, contact Jeff Stoller at jeffstoller@njbia.org.

Governor Proposes UI Diversion to Help Cover $2.9 Billion
Budget Deficit

Governor James E. McGreevey is supporting legislation, A-2009 (Roberts, Doria)/S-20 (Kenny), that would divert nearly $1.2 billion over five years from the Unemployment Insurance (UI) fund to help balance a $2.9 billion state budget deficit in the current fiscal year and an even larger projected deficit in the next fiscal year.

NJBIA has an obligation to its members to safeguard the unemployment insurance funds they pay. The Association has been consistent in its opposition to UI fund diversions.

NJBIA believes the legislation should be limited to a one-time, one fiscal year, temporary diversion that does not raise payroll taxes or jeopardize the ability of the UI fund to pay unemployment benefits. The longer diversion proposed in A-2009/S-20 could result in a payroll tax increase and threaten the fundamental integrity of the fund. For more information, contact Jeff Stoller at ext. 209 or jeffstoller@njbia.org.


NJBIA Tells State Board: Add Tech Education to School Curriculums
Employers throughout New Jersey believe technology education must be part of students' K-12 education, NJBIA Assistant Vice President Libby Vinson told the New Jersey State Board of Education on January 16. Vinson called on the board to include technology education standards in the revised Core Curriculum Content Standards that outline what every public school in New Jersey must teach their students.

Vinson said NJBIA and the Alliance for Technological Literacy conducted focus groups with employers over the summer. The consensus, she said, was that technology education-the application of math and science in engineering, electronics and other fields-would "provide students with the foundational skills needed in all types of work and prepare them for postsecondary education."

For more information, contact Libby Vinson at ext. 201 or lvinson@njbia.org.

Develop Economy To Help Solve Budget Crisis
State government should look towards economic development to help solve New Jersey's budget deficit, NJBIA Vice President Art Maurice told the Assembly Commerce and Economic Development Committee on January 31. Maurice noted that most of the budget shortfall is attributable to the recession.

Solving the budget crisis means not only cutting and controlling expenditures, but also growing tax revenues, Maurice told the committee. "Sound economic development policy will prompt companies to expand their businesses and hire more workers. This economic activity in turn will generate more tax revenues for state and local governments."

Maurice urged legislators to avoid costly government mandates like paid family leave and anticompetitive measures like project labor agreements, but to maintain their commitment to spending on roads and schools.

For more information, contact Art Maurice at ext. 247 or amaurice@njbia.org.

250 Members Crowd Forsgate For Billion $$ School Construction Update
More than 250 contractors and other employers looking to participate in New Jersey's multi-billion dollar school construction program recently received an update from New Jersey Economic Development Authority Director Caren Franzini at NJBIA's latest school construction seminar.

The NJEDA will distribute $8.6 billion in state grant funding over the decade to finance construction and reconstruction of public schools (K-12). Attendees learned about the role of each state agency in the school construction process, including the Department of Education, the Attorney General's Office, the Department of Labor, the Department of Treasury and the Office of Inspector General.

Knowing who the players are and how to interact with them can assist members in being able to participate in this large program. Another NJBIA school construction seminar is scheduled for April 23 at Forsgate Country Club in Monroe Township.


Congressional Roundtable Brings Issues to DC Reps
A series of Congressional Roundtables to help educate New Jersey's US House and Senate members about business issues has been established by NJBIA.

NJBIA held its first Roundtable in August with Rep. Mike Ferguson. It was hosted by NJBIA Board Member Fred Barré at The Barré Company in Mountainside. The success of the event led to a second roundtable January 11 with Rep. William Pascrell hosted by NJBIA board member Lisa Hirsh, president and CEO of the Accurate Box Company in Paterson. A third roundtable, hosted by NJBIA Board Chairman Alexander "Sandy" McWilliams, was held February 15 with Rep. Rodney Frelinghuysen at McWilliams Forge Co. in Rockaway.

Businesses interested in participating should contact Libby Vinson at ext. 201 or lvinson@njbia.org.

NJBIA Executives In "Who's Who"
NJBIA President Joe Gonzalez, Executive Vice President Philip Kirschner, and First Vice President Jim Sinclair were recently named among New Jersey's top business leaders in the Business News New Jersey annual "Who's Who" directory for 2002.

Gonzalez has long been a respected advocate for New Jersey's business community. Kirschner runs NJBIA's top-rated Government Affairs department. And Sinclair is recognized as a top expert on environmental policy.


TUESDAY, MARCH 5
Emergency Planning Seminar

Is your company prepared if the worst happens? If you aren't sure, sign up now for NJBIA's upcoming seminar, Planning for Emergencies: How to Deal with Business Disruptions in the 21st Century. The seminar will be held from 8:00 a.m. to 12:30 p.m. on Tuesday, March 5, at Forsgate Country Club, Monroe Township (NJ Turnpike, Exit 8A). Recent events have underscored the vital importance of being prepared for potential emergencies, disasters and other disruptions to your business. Fires, floods, strikes, hurricanes, power failures, mail stoppage and terrorist threats can shut down your business in a moment. Find out from plant managers, emergency response planners and national experts what steps you must take to prepare realistic plans that could save your company's future. The seminar will include continental breakfast and valuable handouts. Cost is $99 per person for NJBIA members and $129 for nonmembers. To register, contact Sherry Esteves at sesteves@njbia.org or 609-393-7707, ext. 219.


WEDNESDAY, APRIL 17
Sexual Harassment Lawsuits: How to Prepare for Your Day in Court

Avoiding sexual harassment in the workplace is a major challenge for all employers, and enlightened policies are not always enough to protect your company. Try as you may, your company can still wind up in front of a judge and jury. Come to this unique interactive learning program to see first-hand what happens when you end up in court. The "mock trial" will be held at the Rutgers Law Center in Newark. Cost is $139 per person for NJBIA members and $159 for nonmembers. To register, contact Sherry Esteves at sesteves@njbia.org or 609-393-7707, ext. 219.


LEGISLATIVE BRIEFING BREAKFAST SERIES, SPRING 2002
NJBIA will travel across the state to host a series of six Legislative Briefing Breakfasts so you can meet legislators in your district. Chat with your local legislators and learn about pending legislation that could affect your business. Each breakfast begins at 7:30 a.m. with registration and ends promptly at 9:30 a.m. Take advantage of this opportunity to network with colleagues and legislators in an informal atmosphere. The cost is $39 per person per breakfast for NJBIA members and $49 for nonmembers. To register call Stacy Wichner at 609-393-7707, ext. 213. See below for dates and locations.

April 3-Regency Palace, Mt. Laurel
April 10-Forsgate Country Club, Monroe Twp.
April 12-Marriott at Glenpointe, Teaneck
April 19-Hanover Marriott, Whippany
April 30-Holiday Inn, Tinton Falls
May 3-Sheraton Newark Airport


TUESDAY, MAY 14NEW JOBS South Jersey
Legislative Reception

Sponsored by NEW JOBS, the NJ business community's largest political action committee, and the Chamber of Commerce Southern NJ, this event is South Jersey's regional fund-raiser for probusiness candidates for the state Legislature. Remember, it is important to support candidates who support a probusiness climate! This reception will be held at The Mansion on Main Street in Voorhees from 6:00 p.m. until 8:00 p.m. The cost is $175 per person. To register, call Sherry Esteves at 609-393-7707, ext. 219. For details about NEW JOBS, contact Executive Director Jim Sinclair at ext. 236 or jsinclair@njbia.org.


TUESDAY, JUNE 11
New Good Neighbor Awards Luncheon

NJBIA's 42nd Annual New Good Neighbor Awards Luncheon will be held at the Sheraton at Woodbridge Place in Iselin. Awards will be presented to New Jersey businesses that have made an outstanding contribution to their communities through job creation, the quality of their architecture, and community involvement. The luncheon will be held from 11:30 a.m.-2:00 p.m. Cost to attend is $65 per person. For details, contact Sherry Esteves at 609-393-7707, ext. 219. Sponsorships are available.


 
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Trenton,NJ 08608-1199
609-393-7707

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