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MonthlyNewsletter March 2002 Issue
Legislative News
Project-Labor-Agreement Vote Canceled as NJBIA-Led Coalition Blasts Union Monopolies Read.
The New Jersey Coalition for Competitive Public Bidding Laws Read.
Legislature Scales Back Unemployment Insurance Diversion Read.
Governor Signs Tax Amnesty Bill Read.
Committee Adopts NJBIA-Backed Amendments to Prevailing Wage Bill Read.
Long-term Water Supply Planning is Essential Read.
Quote of the Month
NJBIA Executive Vice President Philip Kirschner Read
NJBIA In Action
HR101 Seminar: Consistency Is Key To Human Resources Management Read
Employers Learn How to Plan For Emergencies Read
At Morris County Cardiology Patient Care Is The Bottom Line Read
Philips Shines a Light on Conservation for Assembly Environment Chairman Read
Nominate Your Company for an Award for Excellence Read
Rep. Frelinghuysen Takes Whirlwind Tour of Four Companies Read
Calendar of Events
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
Tuesday, July 16-Golf & Tennis Day Read
Wednesday, September 25-NEW JOBS Night at the Meadowlands Read
Project-Labor-Agreement Vote Canceled as NJBIA-Led Coalition Blasts Union Monopolies
The Senate Labor Committee on March 14 postponed a scheduled vote on legislation that would grant union-only firms a virtual monopoly on state construction contracts. The decision to postpone S-1044 (Sweeney, Cafiero) came on the heels of scathing testimony by two dozen witnesses against the companion bill, A-1926 (Egan, Malone), which was released March 11 by the Assembly Labor Committee and is awaiting action in the Assembly Appropriations Committee.

NJBIA is leading a broad coalition of businesses, contractors, schools and local governments that seek to protect the state's competitive bidding laws by opposing project labor agreements. S-1044/A-1926 would authorize all levels of state and local government to enter into project labor agreements with unions for the construction of schools, highways, libraries and other public projects. Under project labor agreements, unions are basically given the exclusive right to work on a public project, barring nonunion contractors from participating. By eliminating competition, project labor agreements raise the cost of public projects at the expense of taxpayers.

Even though the March 14 vote on the Senate bill was postponed, NJBIA Executive Vice President Philip Kirschner urged NJBIA members to continue opposing the legislation. The bill could be brought back up for a vote at almost any time. Kirschner encouraged all employers to contact their state senators as well as Senate Co-President John Bennett (phone, 732-863-1644; fax, 732-863-1016) and Assembly Speaker Albio Sires (phone, 201-854-0900; fax, 201-854-4818) in opposition to the bill. For help in sending a quick fax to your senators, go to the alert at the top of the page here.

At a recent hearing, members of the NJBIA-led Coalition for Competitive Public Bidding Laws testified about the devastating impact that project labor agreements would have on their businesses. NJBIA believes that every employer should be given a fair chance to win a public contract. People should be judged on their track record and qualifications, not on whether or not they use union labor.

Kirschner called the legislation "shameful." "It's one thing to be pro-union. It's another thing to be pro-union at the expense of everyone else, and that's what this does," he said.

Tracey Syphax of the Metropolitan Trenton African American Chamber of Commerce (MTAACC) and John Harmon of MTAACC and the National Association of Minority Contractors, said the overwhelming majority of their members are nonunion. As such, they would be hit extremely hard by project labor agreements.

Helen Yeldell, executive Director of the League of Municipalities, testified that the bill would give powerful unions the opportunity to put undue political pressure on local governments to negotiate costly project labor agreements.

And on the morning of the Senate meeting, the Trenton Times weighed in with an editorial that stated: "Lawmakers should put a halt to this politically driven attempt by organized labor to take control of public contracting in New Jersey. If they don't, taxpayers could be saddled with millions of dollars in additional costs for public projects such as schools, libraries and roads."

These bills are unfair to everyone in the state.

They say it doesn't matter whether a bidder is competitive in price and quality of workmanship. The only thing that matters is hiring union labor!

The measures eliminate competition. Limiting public contracts to unions will only force public entities to accept higher bids for projects rather than selecting the lowest responsible bidder. This will result in increased costs for the taxpayers. This is a sweetheart deal for unions at the expense of taxpayers and employers.

Project labor agreements undermine New Jersey's competitive bidding statutes. In fact, the New Jersey State Supreme Court has struck down project labor agreements in the past, saying "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, 1994)

Project labor agreements give labor unions a sweetheart deal at the expense of taxpayers! For more information, contact Sara Bluhm at sbluhm@njbia.org. or 609-393-7707, ext. 204.

The New Jersey Coalition for Competitive Public Bidding Laws
A broad coalition of businesses, schools, contractors and local governments stands united to protect New Jersey's competitive public bidding laws. Healthy competition for government construction contracts is the only way to ensure taxpayers get the best work at the lowest cost. Proposals like project labor agreements that effectively bar nonunion contractors from participating in public works contracts have no business in a democratic government. Giving unions a virtual monopoly on taxpayer-funded public works contracts is unfair to everyone involved.The Coalition believes all businesses should have an opportunity to obtain a public contract based on their track record of performance, not on whether they use union labor.Stand up for competition! Join the Coalition for Competitive Public Bidding Laws. Contact Sara Bluhm at 609-393-7707 ext. 204 or sbluhm@njbia.org. See the list of Coalition Members.


Legislature Scales Back UI Diversion
The Legislature has greatly scaled back two bills that would help plug the state budget deficit by diverting employers' Unemployment Insurance (UI) contributions from the Unemployment Compensation Fund.

Originally, legislation was introduced to divert $1.2 billion over five years. After NJBIA and other groups criticized the raid on UI funds, legislative leaders in both houses scaled back the proposals. On March 14, the full Assembly approved A-2009 (Roberts, Doria), which would divert $650 million in UI contributions over the next two years. On the same day, the Senate Labor Committee released S-20 (Kenny), but only after trimming the diversion to $325 million over one year.

NJBIA believes that the UI fund should not be tapped for purposes unrelated to paying benefits to workers who have lost their jobs. However, any diversion to handle a fiscal emergency should be limited so it doesn't trigger an automatic increase in employer payroll taxes. For more information, contact Jeff Stoller at ext. 209 or jeffstoller@njbia.org.

Governor Signs Tax Amnesty Bill
Taxpayers will be allowed to pay certain back taxes without penalty under tax amnesty legislation recently signed by Governor James E. McGreevey. Signed was S-16 (Buono)/S-404 (Kavanaugh, Lance), which gives taxpayers 60 days to repay back taxes without penalties, interest or collection costs.

Only delinquent taxes that were due between January 1996 and January 2002 can be paid under the program, and any taxpayer under criminal investigation or charged for any state tax matter at the time of payment is ineligible. Taxpayers who fail to take advantage of the amnesty will be subject to an additional 5 percent penalty on top of all other penalties, interest or collection costs for not paying their taxes.

Governor McGreevey proposed the tax amnesty to generate an estimated $150 million in tax revenue to help offset a $2.9 billion budget shortfall. For more information, contact Art Maurice at ext. 247 or amaurice@njbia.org.

Committee Adopts NJBIA-Backed Amendments to Prevailing
Wage Bill

The Senate Labor Committee on March 14 approved NJBIA-backed amendments that would limit a proposed extension of New Jersey's prevailing wage law into the private sector. As amended, the legislation would require businesses to pay prevailing (union-scale) wages only when they receive financial assistance enabling construction of a particular project.

As originally written, S-575 (Codey, Coniglio) would have required businesses to pay prevailing wages on work done to their facilities if they received any kind of financial assistance from the Commerce Commission or Economic Development Authority, even if unrelated to their construction projects. For example, companies would have had to pay inflated prevailing wage rates on their construction projects if they accepted unrelated grants for job-training, loans for cleaning up hazardous waste sites, incentives for hiring at-risk youth, tax credits for research, or aid for minority-owned businesses. For more information, contact Jeff Stoller at ext. 209 or jeffstoller@njbia.org.


Long-term Water Supply Planning is Essential
New Jersey needs to undertake a serious analysis of New Jersey's long-term water supply needs, including drought planning, NJBIA First Vice President Jim Sinclair told the Assembly Environment Committee on March 11.

At the committee hearing, state Environmental Commissioner Bradley M. Campbell testified about the immediate impact of New Jersey's drought. Sinclair focused on the bigger picture-providing enough water to meet the demands of the additional one million people and businesses expected to make New Jersey their home over the next decade.

Sinclair said the state should study the availability of ground water from the Pinelands, water recycling, and desalinization.

Quote of the Month
"It's one thing to be pro-union. It's another thing to be pro-union at the expense of everyone else."


HR101 Seminar: Consistency Is Key To Human Resources Management
The keys to good human resources management are "consistency" and "documentation."

Those two words were repeated often during a recent NJBIA seminar-HR 101: A Beginner's Seminar on Managing Your Workforce-to help beginning personnel managers establish quality programs at their businesses. More than 160 HR managers turned out for the seminar, which was presented by NJBIA on February 27 at the Sheraton at Woodbridge Place in Iselin.

The seminar featured business professionals and experts in HR management. NJBIA Vice President Jeff Stoller gave an overview. Clifford F. Lindholm III of the Falstrom Company and Mary Seto of Bel-Art Products, both experienced HR professionals, presented real life situations and practical advice. The legal aspects of personnel management were presented by Martha L. Lester, Esq., of Lowenstein Sandler PC and Patrick M. Stanton, of Stanton, Hughes, Diana, Cerra, Mariani & Margello, PC.

Consistency was the watchword of the day. In everything from job interviews to employee performance evaluations, panelists stressed the importance of using objective, uniform procedures and criteria. When conducting job interviews, for example, using the same questions, the same interviewer, and even the same room for every applicant will help avoid charges of discrimination in a business's hiring practices.

Similarly, policies do not mean much if they are not followed scrupulously and supported by documentation. It is not enough to produce an employee handbook. If managers do not follow the procedures, employees will feel that personnel decisions are arbitrary. It is not enough to just say, for instance, that an employee is consistently late. Managers should keep a record of dates and times before taking any action.While HR management may at times be very challenging, panelists agreed that it was an important part of running an effective business. Poor personnel management can dampen employee morale and lead to costly lawsuits.

"Human resources management is held to a different set of standards," Seto said during her presentation. "There is little room for play. Any mistake touches people's lives directly. You need to realize that your mistake can effect the entire group."

For more information on HR management resources for employers, contact Sara Bluhm at ext. 204 or sbluhm@njbia.org.


Employers Learn How to Plan For Emergencies
Ken Kraly, director of engineering with L'Oreal USA, outlines some of the steps businesses can take to prepare for unforeseen disasters at the NJBIA seminar "Planning for Emergencies: How to Deal with Business Disruptions in the 21st Century," held on March 5, at the Forsgate Country Club in Monroe Township.

About 150 NJBIA members attended the special workshop. Employers who would like more information on preparing for disasters should contact Jim Sinclair at jsinclair@njbia.org.


At Morris County Cardiology:Patient Care Is The Bottom Line
Providing patients with an exceptionally caring environment, timely services, and state-of-the-art technology has turned out to be good business for Morris County Cardiology Consultants.

Founded by Dr. Charles A. Shioleno in 1986, Mendham-based Morris County Cardiology has seen its business grow an average of 30 percent annually in recent years.

In the near future, Shioleno plans to increase his staff from seven doctors to 10. A new Bridgewater location is also slated to open by the end of the year, joining the existing Mendham headquarters and offices in Summit, Clinton, Morristown, and a second Mendham facility in the Jockey Hollow area.

All in all, Morris County Cardiology provides cardiology services to more than 20,000 patients in Hunterdon, Warren, Morris, Somerset, Sussex and Union counties.

As Shioleno explained to Assemblymen Michael Carroll and Richard Merkt during a recent tour as part of NJBIA's Site Visit Program, the key is to provide virtually all services in-house.

"We don't farm anything out," Shioleno said. "We don't have anyone else doing our dictation or our billing. No one is going to take care of your place like your people."

For example, Morris County Cardiology has its own blood laboratory, which allows doctors to get results quickly. Shioleno said the practice's policy is to communicate with the referring physician within 24 hours of seeing the patient.

Another important policy is consistency. Vice President of Operations Evelyn Grabinski said Morris County Cardiology makes sure that patients do not get passed from one doctor to the next.

"A well-trained clinical staff is key," Grabinski said. "It's important that the patient here is seen by the same doctors as he or she sees in the hospital."

The Mendham headquarters, located in the historic Murphy house (former Governor Ogden Murphy's summer home in the early 20th century), provides a variety of stress testing, image scanning, blood work and preventive medicine services at its 10,000 square-foot facility.

About 80 percent of the practice is devoted to preventative medicine conducted at one of the practice's facilities, the other 20 percent to surgery and hospital visits.

At most Site Visits, business owners bring issues to the attention of legislators. At the Morris County Cardiology site visit, however, it was Assemblyman Merkt who wanted Shioleno's input on the cost of medical malpractice insurance. Merkt said his office is getting a lot of complaints about soaring malpractice insurance premiums.

Shioleno said his practice has not seen any sharp increases in malpractice premiums because it has a long-term insurance contract. But as an expert witness, Shioleno has observed a dramatic increase in malpractice litigation over the last several years.

"What's going on in the litigation side of it is out of control," he said.

NJBIA's Site Visit Program is designed to educate legislators about businesses in their district and the legislative issues that impact them. If you are interested in hosting a site visit at your business, contact Libby Vinson at ext. 201 or lvinson@njbia.org.


Philips Shines a Light on Pollution Reduction andConservation for Assembly Environment Chairman
Paul Hafner gets very excited about light bulbs.

During a recent NJBIA Site Visit, the manager of Lighting Education for Philips Lighting Company changed the color of Assemblyman Upendra Chivukula's business suit, made the skin of Assembly Environment Committee Chairman Reed Gusciora look gray, and changed their perception of the room temperature just by switching light bulbs."That's the power of quality lighting," Hafner said. "What I tell our Philips sales reps is 'show, tell and sell.' Let people experience the difference quality lighting can make."

During a 90-minute presentation to Gusciora and Chivukula, Hafner and Environmental Affairs Senior Associate Steve McGuire demonstrated how Philips has dramatically reduced the level of mercury in its lighting products, increased the energy efficiency of those products, and improved the quality of light they generate.

"It was great seeing a New Jersey corporation that is both environmentally friendly and a good corporate citizen," said Gusciora. "They showed how they could reduce costs for the consumers and also conserve our precious natural resources through real energy conservation."

At Philips' Somerset facility, different lamps are installed in various light fixtures throughout the presentation room. The fixtures are mounted on tumblers, allowing the lighting source to be changed with the flick of a switch.

In one demonstration Hafner repeatedly switched the lights in two identical business offices. One light provided a bright, "cool" feel to the office while another source gave the adjacent office a softer, "warmer" light. He then contrasted these lights with the pale harsh light of cheaper fluorescent bulbs.

One of the chief issues facing the lighting industry is the disposal of fluorescent light bulbs, which contain mercury, a heavy metal harmful to the environment. Legislative proposals in other states to limit mercury content in lighting have failed, in part because of a lack of understanding of how light bulbs work. A proposal in New Hampshire, for instance, would have eliminated lighting at theatres, sports arenas and highways because of the mercury levels.

"Why do we use mercury? We simply have to," McGuire said. "It is really the only element we have right now (that works)."

Philips has found a way to help keep the mercury molecules from binding to the glass casings, where it is ineffective. By keeping the mercury circulating inside the bulb longer, less mercury is needed. McGuire says the design has reduced the mercury content from 22.8 milligrams per bulb to as little as 3.5 milligrams.

Philips light bulbs also use much less energy than regular bulbs, thus producing less than half the carbon dioxide and nitrous oxide resulting from electrical energy generated to run them, according to McGuire.

But Philip's believes conservation can be just as important as source reduction in protecting the environment.

Hafner points out that even reducing the energy required to run a light bulb by one watt can make a difference. At a cost of 10 cents per kilowatt-hour, a mere one-watt reduction in a light bulb could save an office building with a 1,000 lights more than $26,000 a year in energy costs, in addition to reducing the pollution caused by generating the electricity.

In one demonstration, Hafner showed how a 15-watt compact fluorescent bulb gives off the same amount of light as a traditional 60-watt incandescent light bulb, even though it uses only one-fourth of the electricity.

NJBIA's Site Visit Program is designed to educate legislators about businesses in their district and the legislative issues that impact them. If you are interested in hosting a site visit at your business, contact Libby Vinson at ext. 201 or lvinson@njbia.org.


Nominate Your Company for an Award for Excellence
Every year at this time, we invite you, our members, to join a friendly competition-NJBIA's Awards for Excellence. All NJBIA member companies are eligible to nominate themselves if they have done outstanding work in at least one of the following areas-environmental quality, human resources management or job creation. A fourth award is for public service and goes to an individual.

I encourage you to nominate your organization-or another NJBIA member company-for an Award for Excellence by submitting a nomination form. Nominations may also be made by any business organization (such as a Chamber of Commerce) or any federal, state, county or local government official (such as a mayor or council member).

Enclosed with this issue of the Business Voice you will find a flyer explaining more about our awards program and the nomination process. Read it carefully. It describes the award categories and qualification rules.

Nominations can be made in one or all of the four awards categories. However, you must fill out a separate nomination form for each award. To receive a nomination form or to learn more about our program, call NJBIA's Lisa Figatner at 609-393-7707, ext. 239.

The deadline for nominations is Friday, May 17. An independent panel of judges comprised of members of the Service Corps of Retired Executives will select the winners in June, and the Awards Dinner will be held on October 22 at the Princeton Marriott. We look forward to receiving your nomination!


Rep. Frelinghuysen Takes Whirlwind Tour of 4 Companies: Forge, Construction, Architecture and Computer Services
US Rep. Rodney Frelinghuysen recently took a whirlwind tour of four NJBIA member companies as part of the Association's Congressional Roundtable and Site Visit programs.

The tour kicked off at McWilliams Forge Company in Rockaway where Rep. Freling-huysen asked 10 area business leaders to share their perspectives on the local economy and their outlook for the future. Discussions focused on trade policy, the economic stimulus package, transportation issues, and how to keep more tax dollars in the state.

Host Alexander "Sandy" McWilliams, president of McWilliams Forge and NJBIA board chairman, demonstrated the company's technologically advanced forge at work, explaining to Frelinghuysen that the forge makes precision molded parts for the airline industry.

Rep. Frelinghuysen then met with Harry Metcon, principal of the Rockaway-based Metcon Construction. Metcon Construction provides inclusive planning, architectural design, and construction services.

Education took center stage as the discussion centered on Metcon's difficulty in finding skilled workers.

Frelinghuysen then visited Radius Inc., a small architectural firm in Rockaway that specializes in base building design, interior office fit-up, and retail and residential design. There he discussed planning and redevelopment issues with the company's managing partner Benjamin Horten.

Finally, the Congressman stopped at Compac Corporation's Netcong plant--a 101,000-square-foot manufacturing facility that makes industrial insulation for the HVAC industry. Compac Corporation President Carl Allieri gave an overview of the company's long history in New Jersey and discussed how the company's committed staff is its greatest attribute.

If you are interested in hosting a Congressional Roundtable contact Libby Vinson at 609-393-7707, ext. 201 or lvinson@njbia.org.


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 or obtain more information, contact Sherry Esteves at 609-393-7707, ext. 219, or sesteves@njbia.org.
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SPRING 2002: LEGISLATIVE BRIEFING BREAKFAST SERIES
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.
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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 14
NEW 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 advocate 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.
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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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TUESDAY, JULY 16
Golf & Tennis Day

NJBIA will hold its 32nd Annual Golf & Tennis Day at Forsgate Country Club in Monroe Township. The event is one of the state's major business outings and one of New Jersey's largest amateur golf tournaments. Cost per person: $250 for golf and dinner, $140 for tennis and dinner, and $95 for dinner only. Sponsorships are available by contacting Sherry Esteves at 609-393-7707, ext. 219. To register or for more information, call Stacy Wichner, 609-393-7707, ext. 213. To learn more about last year's Golf and Tennis Day Go Here.
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WEDNESDAY, SEPTEMBER 25
NEW JOBS Night at the Meadowlands

New Jersey Organization for a Better State (NEW JOBS), the largest probusiness political action committee in New Jersey, will hold its annual Night at the Meadow-lands event in the Pegasus Restaurant at the racetrack in East Rutherford. Come meet New Jersey's probusiness legislators! The event begins with cocktails at 6:00 p.m., followed by a buffet dinner at 7:00 p.m. The price is $200 per person, and tables of 10 are available. To register, call Sherry Esteves at 609-393-7707, ext. 219.
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