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MonthlyNewsletter September 2003 Issue
Legislative News
Governor Signs NJBIA-Backed Bill to Fund Business Employment Incentive Program Read.
FCC Postpones Broadcast Fax Ban as Employers Seek Reconsideration Read.
DEP Proposes Self-Reporting Regulations Read.
NJBIA in Action
Nearly 300 Participate in NJBIA's 33rd Annual Golf and Tennis Day Read.
ENOUGH IS ENOUGH!Support NEW JOBS and Start Fighting Back Read.
NJBIA Site Visit: Menu Foods Is Poised for More Growth Read.
ELCs Begin Fall Season Read.
WORKPLACE REPORT
Labor-Management News for New Jersey Employers
Employers Should Brace For 2004 Payroll Tax Hike Under Expanded Benefits Read.
WANTED: Employers To Serve On Local Workforce Boards Read.
Reorganized Labor Department Tackles Employee Training, Workplace Skills Read.
New Maximum UI, TDI Rates for 2004 Read.
EMPLOYMENT WATCH-State Economy Turns a Corner with Solid Job Growth Read.
NEW JOBS
ENOUGH IS ENOUGH! Start Fighting Back Today Read.
Calendar of Events
Wednesday, September 24-NEW JOBS Night at the Meadowlands Read.
Friday, September 26-Healthcare Luncheon with the Chairman of Merck Read.
Tuesday, October 7-NEW JOBS Mercer County Legislative Reception Read.
Tuesday, October 21-Awards for Excellence Dinner Read.
Tuesday, December 9-2003 Public Policy Forum Read.
Governor Signs NJBIA-Backed Bill to Fund Business Employment Incentive Program
Governor James E. McGreevey on September 2 signed NJBIA-backed legislation reinstating funding for the Business Employment Incentive Program (BEIP) and strengthening the program.

McGreevey signed S-2669 (Littell, Kenny)/A-3705 (Sires, Guear, Fisher) at the Hoboken world headquarters of John Wiley & Sons Inc., a publisher of medical books and periodicals and an NJBIA member. The company recently moved its world headquarters from New York City to Hoboken, using BEIP grants to help make the plan work.

"BEIP provides something that our state and our economy needs-jobs. For every BEIP grant we fund, there is a real person with a real family who gets a real job," NJBIA President Philip Kirschner said. "This is one of the state's best tools for attracting new businesses and helping existing businesses to expand and grow. Best of all, the program pays for itself."

BEIP is one of the state's most effective economic development programs. Participating businesses receive incentive grants for creating at least 25 new jobs. The payments can equal as much as 80 percent of the state income taxes generated by the new employees. Since no payments are made to the employer until the new employees work one full year, the program pays for itself. About $38 million in grants were funded this year.

Earlier this year, BEIP funding was in jeopardy as the Governor and lawmakers looked for spending cuts to help balance the budget. NJBIA pushed hard to maintain the program, arguing that BEIP grants more than paid for themselves by generating new tax revenues.

Under the new law, any year in which the Legislature does not appropriate BEIP funding, the NJ Economic Development Authority would provide the payments by issuing contract bonds. The law eliminates the possibility of the state reneging on its BEIP obligations in the face of some future budget crisis.

In addition, the law establishes expanded eligibility criteria for future participants. It reduces the minimum job creation threshold from 75 to 25 for all participants and to 10 jobs for biotech and other high-tech industries. The new program also includes bonus BEIP payments for employers meeting "smart growth" criteria, such as locating near mass transit or in an urban area.

Other provisions will benefit South Jersey employers by letting them include employees who live and pay taxes in Pennsylvania.


FCC Postpones Broadcast Fax Ban as Employers Seek Reconsideration
The Federal Communications Commission (FCC) has postponed new regulations that would have required companies or organizations faxing materials announcing the availability of services or products to obtain each recipient's prior written consent, including the fax number to be used. The regulations were scheduled to go into effect August 25 but have been postponed until January 1, 2005. Unlike the current law, the ban included customers and members with which businesses had a "prior or existing business relationship."

Thousands of businesses and trade associations submitted comments opposing the regulations and requesting interpretations or reconsideration. The regulations would have significantly hindered the ability of businesses and organizations to communicate via fax with their customers and their members. Employers, for instance, would have been prohibited from notifying customers about special deals or new services. Restaurants would have been prohibited from faxing menus to local offices. NJBIA would have been prevented from sending its own members information about upcoming events or even membership renewal notices. NJBIA strongly believes that businesses and associations should be able to send faxes to existing customers and members.

For now, all businesses should continue to abide by the 1992 requirement that faxed advertisements be sent only to recipients with whom they have "a prior or existing relationship." But the new regulations are still under consideration. Unless the proposal is substantially changed or dropped altogether, businesses could face similar fax restrictions in 2005.

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


DEP Proposes Self-Reporting Regulations
The NJ Department of Environmental Protection (DEP) on August 18 proposed a substantial reduction in penalties for companies who report violations of environmental laws and regulations at their own place of business. The proposal is designed to encourage companies to conduct environmental audits and correct environmental violations before they are discovered by the DEP or other enforcement agencies. Penalties could be reduced by 75 percent or eliminated altogether, depending on the severity of the violation. Major violations are not included in the proposal.

NJBIA believes the proposal is an important step in the right direction. The Association has repeatedly called on the DEP to take a more cooperative approach by helping businesses comply with regulations instead of undertaking environmental inspection raids aimed at punishing companies. By reducing penalties, DEP would encourage businesses to evaluate their own workplaces and correct environmental problems prior to formal DEP inspections.

Anyone wishing to view or download the proposal should go to the Compliance and Enforcement Web site at www.state.nj.us/dep/enforcement. A public hearing concerning this proposal will be held on Monday, September 29, 2003, at 10:00 a.m. at DEP's headquarters in Trenton. The public may submit written comments by October 16, 2003 to: Alice Previte, Attn: DEP Docket Number 16-03-07/363, Office of Legal Affairs, Department of Environmental Protection, PO Box 402, Trenton, NJ 08625-0402. For more information, contact Jim Sinclair at ext. 236 or jsinclair@njbia.org.

Nearly 300 Participate in NJBIA's 33rd Annual Golf and Tennis Day
Two hundred and seventy golfers teed it up and 18 tennis players took to the courts at NJBIA's 33rd Annual Golf and Tennis Day on July 15 at Forsgate Country Club in Monroe Township and the East Brunswick Racquet Club.

Golfers competed for prizes for low net and low gross scores, as well as closest to the pin, longest drive and straightest drive. NJBIA also presented a Women's Golf Award for the lowest net score from among the 16 women who played. The tennis players competed in a round robin tennis tournament at the East Brunswick Racquet Club.

On Forsgate's links, Ken Clancy of Facility Solutions had low gross on the Banks Course with a 71, while Charlie Donches shot a 71 on the Palmer Course to win that low gross prize. Carlos Diaz of Verizon New Jersey shot a net 69 using the Calloway scoring system to grab the low net prize on the Palmer Course; while on the Banks Course, Dave Himelman of Greenbaum, Rowe and Smith took home the low net prize with a 71. The Women's low net went to Debbie Kermisch, who had a 76 on the Palmer Course.

In the tennis tournament, the team of Walter Braswell, formerly of Elizabethtown Water Company, and Jack Hall of McManimon and Scotland took first place. Jim Shissias of The College of New Jersey and Jack Zalarick of Youngworth Communications were runners-up.

"This is the one event of the year where we can put business and politics aside and just have a good time," NJBIA President Philip Kirschner said in welcoming the participants at the dinner. "We had beautiful weather and great fun. That's all we need to make the event successful."

More than 80 sponsors supported the event.

ENOUGH IS ENOUGH!
Support NEW JOBS and Start Fighting Back Today

Billion dollar tax increases, higher fees and more regulations. Some of the people who are running state government these days have no idea what it takes to run a business. What's worse, they don't care. Every day, more businesspeople are saying, "Enough is enough. It's time to fight back." You can too.

Support NEW JOBS, the New Jersey Organization for a Better State, the political action committee for the business community. Your financial contribution will help elect probusiness legislators, defeat antibusiness politicians, and send a message that we are not going to take it anymore!

But we can't do it alone. We need your help. Your contribution of $2,500, $1,000, $500, $250 or even $100 is vital if we are to elect pro-business candidates and defeat anti-business politicians. So act today. Fill out the form at the bottom of the page and send it in with your check.

The stakes couldn't be higher. Just last year, in the middle of the recession, the anti-business politicians stuck it to us-they raised taxes by $1.5 billion. They taxed your business even if you lost money. They said you were not paying your fair share.

And, it's only getting worse. Anti-business politicians are pushing for new laws that will drive up your payroll taxes, raise your health insurance costs, and impose paid family leave.

The labor unions and radical environmentalists are betting that you won't do anything. Help us prove them wrong. Join us in saying "ENOUGH IS ENOUGH!"

Contribute to NEW JOBS. It will take only a minute. But it will help stop the anti-business politicians who are making it harder and harder to operate a business in New Jersey.

For more information, contact Jim Sinclair at 609-393-7707, ext. 236.

To learn more about NEW JOBS or to make an online contribution, visit www.NEWJOBSPAC.com.

Contribute to NEW JOBS! Help make New Jersey a Business-Friendly State!


Menu Foods: Pennsauken Pet Food Maker Is Poised for More Growth
Even if they have never heard of the company, every pet owner has probably purchased a Menu Foods product. Menu Foods in Pennsauken is the leading maker of wet pet foods (pet foods in a can or pouch) in the United States and Canada. The company annually makes over one billion cans of private label and store brand pet food, primarily for dogs and cats, sold at Wal-Mart, Safeway, Pet Valu, Wegmans, Kroger and Petsmart.

On July 23, Menu's Senior Vice President Don Green and some of his staff led a tour of the 400,000-square-foot plant for 7th District Assemblyman Jack Conners as part of NJBIA's Site Visit Program.

Menu Foods began in 1971 in Canada with an annual volume of two million cans. Today, it is a publicly held company with three plants producing about one billion cans per year combined. Menu Foods' New Jersey plant opened in 1991 and employs about 300 people. According to Green, Menu Foods has invested approximately $10 million in the plant.

Green pointed out that Menu Foods treats its employees well and supports the local community. In addition to having an excellent employee benefit program, Menu Foods has been rated "superior" or "excellent" by the federal Occupational Safety and Hazards Administration.

But Menu Foods struggles with high property taxes and the rising cost of health insurance, which jumped 18 percent in the last year.

Green also expressed frustration with the bureaucracy at the NJ Department of Environmental Protection (DEP). Menu Foods was forced to go through a long and slow permit approval process on a project that was designed to help protect the environment.

Despite these snags, Menu Foods continues to grow and thrive. Green says the company struggles to keep up with customer demand for their product, creating a huge potential for growth. The future points to continued expansion.

It looks like Menu Foods will continue to be an example of a successful manufacturing company in the state of New Jersey.

If you would like to set up a site visit at your company, contact Libby Vinson at ext. 201 or lvinson@njbia.org.

ELCs Begin Fall Season
Do you feel like the people who are making the decisions in Trenton have no idea what it takes to run a business? Wouldn't you like to sit down and tell your government leaders what's what with your operation?

At the Employer Legislative Committees (ELCs) you can do just that.

With summer over, the 18 ELCs located all across New Jersey are back in business. Employers can meet a wide array of influential policymakers, including Senate Co-President John Bennett, Senator Byron Baer and Assemblywoman Connie Myers, to name just a few.

ELC meetings are held across the state, so chances are there is a meeting near you. The meetings last about 90 minutes and take place over breakfast or lunch, so it doesn't take up a lot of time. There are no membership fees, membership drives, initiations or obligations. You'll even make good business contacts that will help you down the road.

But most important of all, you'll be able to talk directly to the people who make the laws that all of us have to live by.

So do your part and come out to an ELC meeting today.

For a complete schedule of times, locations and speakers, call Peggy McGough, at 609-393-7707, ext. 221, or Go Here.

Employers Should Brace For Possible 2004Payroll Tax Hike as New Law Expands Benefits
Employers should brace for a possible increase in Unemployment Insurance (UI) taxes as early as July 2004. The UI trust fund balance, thanks to legislative diversions and an expansion in benefits, has dropped to the point where an automatic increase in employer contributions appears likely.

Unless the economy rebounds strongly in the next few months, the balance in New Jersey's Unemployment Insurance Trust Fund will fall to a level that will automatically trigger an across-the-board increase in employer UI payroll taxes of more than 10 percent. By law, employee tax rates will remain unchanged.

The UI trust fund reserve balance has fallen by more than $1 billion since 2002. The demand for extended unemployment benefits has remained high, due to a weak economy. But the trust fund was weakened further by repeated diversions of UI revenues. The Legislature has taken nearly $1 billion in the past year to help balance the state budget.

The final blow came in July when Senator Steve Sweeney made costly changes to the UI program by attaching them to a must-pass budget bill. The changes will drain an additional $100 million from the trust fund each year by loosening UI eligibility rules. The Department of Labor, local municipalities, and the state's business associations opposed the changes.

NJBIA is exploring ways to head off the expected payroll tax hikes for employers. The requirement that employers alone must pay to replenish the UI trust fund no longer seems valid, given the fact that the Legislature has diverted nearly $4 billion for purposes unrelated to unemployment benefits during the past 10 years.


WANTED: Employers To Serve On Local Workforce Boards
NJBIA, in partnership with the NJ Department of Labor, is encouraging its members to volunteer for service on one of New Jersey's 16 Workforce Investment Boards (WIBs). Th

ese advisory panels bring local employers, unions, educators and community leaders together to help guide government programs for worker training in their region.

Business members play an important role in identifying the specific kinds of skills workers need to find meaningful work in their home counties. The time an employer invests in WIB service is an excellent way to insure that local schools and training programs produce qualified applicants for the jobs the company must fill to operate profitably.

By law, a majority of the members on each individual WIB must be employers. This goal is often difficult to achieve, however, since the hectic schedules of most business-people leave little time for outside service. Yet, employer participation on the WIBs is critical to ensuring that local training dollars are well spent.

Nationwide, more than 10,000 businesspeople volunteer to serve on local WIBs.

To learn if the Workforce Investment Board in your region is seeking business representatives, call Ms. Mickey Toth in the state's Employment & Training office at 609-633-0492 and ask for information on the WIB contact for your county.


Reorganized Labor Department Tackles Employee Training; Commissioner Kroll Calls Workplace Skills a Top Priority
State Labor Commissioner Al Kroll is looking for input from employers to help close New Jersey's emerging "skills gap"-the difference between the skill level of available workers and the skills employers need in their new employees.

Despite the fact that the state's unemployment rate is hovering around 6 percent, many employers cannot find the people they need to fill critical jobs. Businesses with a job opening typically receive a large number of applications, but only a portion of those applying have the right skills.

Throughout the recent economic slowdown, many employers have had difficulty finding skilled workers, including professional and technical staff. If this trend continues, many observers believe it will undermine New Jersey's future economic strength.

The threat of a long-term skills gap is not limited to New Jersey. Not long ago, the National Association of Manufacturers predicted that the shortfall of skilled workers nationwide could exceed 10 million within a few years. The problem is also not limited to high-skill workers alone. New Jersey employers with entry-level jobs complain that their applicants often lack the basic math, language and interpersonal skills needed in any workplace.

Commissioner Kroll has responded to this problem by initiating a reorganization of the NJ Department of Labor to make its worker training programs more effective. A new Department of Labor & Workforce Development is in the works. It is intended to bring order to today's complicated array of funding sources for training.

Workforce-related programs now handled by the NJ Department of Health & Human Services and NJ Department of Education will be moved to the Labor Department. The reorganization plan also directs that the employment services at county One Stop Centers be given an expanded role. The new Department of Labor & Workforce Development will seek to ensure that adult job applicants have all the basic skills needed to succeed in a workplace setting, putting a renewed emphasis on adult literacy.

Another initiative of the Department of Labor will bring employers, educators, workers and organized labor together to develop a broad state strategy to match worker skills to jobs.

A diverse panel led by the State Employment & Training Commission (SETC) will focus on key industry groups that government and business agree have the greatest potential for job growth in the coming decade. These include finance, logistics (warehousing and transportation services), entertainment and the arts, information technology and science. Similar data has already been assembled on New Jersey's large pharmaceutical and biotech industries.

The goal is to identify the specific skills that jobs in these sectors will require in the future. The focus will not be limited to high-skill positions alone, but will encompass the full range of jobs needed at all levels-including entry-level support staff.

NJBIA shares Commissioner Kroll's view that worker training must be a top priority for the state of New Jersey. It is critical to our future job growth. Yet, these new initiatives cannot succeed unless private-sector companies play an active role in identifying the specific skills employees must have. The Association urges interested member companies to become involved and looks forward to working with the new Department of Labor & Workforce Development in addressing New Jersey's growing need for qualified workers.

For more information, contact Jeff Stoller at jstoller@njbia.org or ext. 209..


New Maximum UI, TDI Rates for 2004
The New Jersey Department of Labor has announced new maximum benefit rates for Unemployment Insurance, Temporary Disability Insurance and Workers' Compensation. The new rates take effect in January 2004.

Maximum weekly unemployment benefits will be $490/week, up from $482 in 2003. Maximum disability benefits will be $459/week, up from $450. The maximum workers' compensation benefit for temporary disability, permanent total disability, permanent partial disability, and dependency will be $650/week, up from the current $638.

Unemployment payroll taxes will be levied on an employee's first $24,300 of income, up from a taxable wage base of $23,900 this year.


NEW JERSEY EMPLOYMENT WATCH
State Economy Turns a Corner with Solid Job Growth

Led by a surge in private-sector job creation, the New Jersey economy turned a corner in the second quarter, leading regional economists to declare an end to the state's lingering employment recession.

New Jersey's private-sector employers added nearly 32,000 workers to their payrolls between March and June, bringing the net gain for the year to 26,000 jobs. Broad gains in the services and construction industries were responsible for most of the job growth. But a marked slowing of job losses in the long depressed manufacturing sector also helped.

With total private-sector employment reaching close to 3.4 million in June, the state at mid-year was just 18,800 jobs shy of its last employment peak, which was reached in June 2001 just before the statewide recession got underway.

"We saw strong job growth from February to June, with just a small setback in May, signaling, we believe, the end of the recession in the state," Nancy Mantell, director of the Rutgers Economic Advisory Service (R/ECON), said in a mid-July news conference.

The erratic performance of the economy has kept economists off balance for some time. Regional economists declared victory over the recession last October, but the job gains that had preceded their announcement quickly evaporated. The employment low point in the recession actually arrived in February of this year.

In the second quarter of this year and into the summer, however, the economic data provided evidence of a more sustained expansion in New Jersey and the nation. This included a significant upturn in manufacturing activity and a slowing of factory job losses.

Manufacturers have lost more than 65,000 jobs in New Jersey and more than 2.5 million jobs nationally over the last three years. While many industries have experienced a mild recession, manufacturers by and large have suffered through their most severe contraction since World War II.

Signs of a nascent recovery in manufacturing in this region include three consecutive months (May-July) of positive activity in the New York area and two months in the Philadelphia region (May and June), according to recent Federal Reserve Bank surveys.

Evidence of a turnaround in manufacturing also comes from recent employment reports, which show the rate of decline to be moderating. In the first half of this year, New Jersey's factory payrolls fell by 5,400 jobs, considerably less than the 15,300 lost in the first half of 2002.

While the manufacturing sector has only just begun to show signs of a turnaround, employment in New Jersey's private-sector service and construction industries has actually been expanding at a healthy pace for some time.

As shown in the accompanying table, employment in both sectors has surpassed the statewide pre-recession peak reached in June 2001. As of June, employment in the service industries was 24,100 jobs above its pre-recession peak. The construction trades were up by 7,300 jobs.

New Jersey's unemployment rate reached 6.1% in July, up from 5.8% in June. It has remained below the national average.

This article was prepared by NJBIA Communications Vice President Christopher Biddle. He can be reached at 609-393-7707, ext. 227.

Gains and Losses in Private-Sector Employment Since Onset of Recession
ServicesManufacturing*ConstructionTotal Private
Pre-Recession Peak 2,846,500422,500158,8003,411,200
June 20032,867,700356,700166,5003,392,400
Net Change in Jobs21,200-65,8007,700-18,800
Percentage Change0.74%-15.57%4.85%-0.55%
*Manufacturing employment recession began in January 2001. Downturn in services and construction employment began in July 2001.


Wednesday, September 24
NEW JOBS 2003: A Tribute to Friends of Business

Billion-dollar business tax hikes. Sweetheart government contracts for unions. Rising healthcare costs. Business owners across New Jersey are fed up with state policies that are raising their costs and making it difficult to create new jobs. Join NEW JOBS, the state's largest and strongest political action committee for business, on September 24 from 6:00-8:00 p.m. at its premiere fund-raiser, which will be held at the Sheraton Meadowlands Hotel and Conference Center. Your purchase of a single ticket or a block of ten will help raise money needed to support probusiness legislators and defeat antibusiness politicians in the fall elections. The price is $200 per person, and sponsorships are available for $2,000. To register, call Sherry Esteves at 609-393-7707, ext. 219.

Tuesday, October 7, 2003
NEW JOBS Mercer County Legislative Reception

Employers from Mercer County will hold this special reception to help elect pro-business state legislators in this fall's elections. Proceeds will benefit the New Jersey Organization for a Better State (NEW JOBS) - the business community's leading political action committee. NEW JOBS is hosting this cocktail reception in partnership with the Greater Mercer County Chamber of Commerce. The event will be held from 5:30 p.m. until 7:30 p.m. at the Boathouse at Mercer County Park in West Windsor. Tickets are $150 per person, with $1,000 sponsorship opportunities for interested businesses. NJBIA encourages its Mercer County members to support this important event. This is your chance to help elect legislators who support employers and understand their concerns. To register, or for more information, please contact Sherry Esteves at 609-393-7707, ext. 219.


Tuesday, October 21
Awards for Excellence Dinner

A select number of NJBIA member companies that have achieved excellence in activities related to environmental quality, human resources management, and job creation will receive our Award for Excellence at a dinner banquet at the Westin Princeton on October 21. An Award for Excellence in public service will also be presented to an individual. Established in 1984, NJBIA's Awards for Excellence recognize companies of every size-from the modest, family-owned enterprise to Fortune 500 companies. The program will begin at 6:00 p.m. and will include a reception, dinner and the awards presentations. The cost is $149 per person. Tables of 10 are available. To register, call Stacy Wichner at 609-393-7707, ext. 213.

Become an Awards for Excellence Dinner Sponsor! Associate your business with excellence by formally recognizing the distinguished achievements of your corporate colleagues through one of the following sponsorship opportunities.

$2,000 Gold Sponsor includes:

  • Reserved table of 10,
  • Recognition in the event program and signage,
  • Listing in follow-up stories in the NJBIA Business Voice and New Jersey Business Magazine.
$500 Silver Sponsor includes:
  • Recognition in event program,
  • Listing in follow-up stories in the NJBIA Business Voice and New Jersey Business Magazine.
To be a sponsor, call Sherry Esteves at ext. 219.


Friday, September 26
Healthcare Luncheon with the Chairman of Merck

NJBIA is cosponsoring a luncheon featuring Raymond V. Gilmartin, Chairman, President and CEO of Merck & Co. Inc., at noon on Friday, September 26. The luncheon will be held at the Washington Square Conference Center, IDT Corporation, 520 Broad Street in Newark. Gilmartin's speech, Health Care in America: Shaping the Debate, will focus on the role New Jersey companies can play in bringing about changes to America's healthcare system. The cost is $35 per person and includes lunch. Pre-registration is required. If you wish to attend, contact Katie Wittkamp at 609-393-7707, ext. 239, or kwittkamp@njbia.org.


Tuesday, December 9
2003 Public Policy Forum

NJBIA's annual Public Policy Forum brings together New Jersey's top leaders in business and government The event will be held from 8:00 a.m. until 2:00 p.m. at the Sheraton at Woodbridge Place on Route 1 in Iselin. The cost is $160 per person for NJBIA members and $220 for nonmembers. To register, call Stacy Wichner at 609-393-7707, ext. 213. Sponsorship opportunities are still available. Contact Sherry Esteves at ext. 219 for details.


 
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