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Blacklisting, Paid Leave Debated in Washington
Corporate "blacklisting," paid family leave, and China trade relations are among the key business issues now being considered by Congress. In fact, with the New Jersey Legislature in recess until mid-September, virtually all of the legislative activity affecting workplace issues can be found in Washington. Following is a report on the top issues of concern to New Jersey's business community and NJBIA's position on them.

Contractor Blacklisting
The business community is strongly opposed to President Clinton's new "blacklisting" regulation, which was proposed in the Federal Register on June 30, 2000. The rule would prevent companies from qualifying for federal contracts if they are accused of violating labor and safety laws. Rather than punish genuine "bad actors," this vague regulation can be used to disqualify legitimate nonunion bidders on the basis of minor violations or even alleged violations. The blacklisting standard cannot be enforced fairly. It covers so many complex regulations that any employer, including federal and state agencies, could be found to have committed some kind of violation. For example, there are more than 4,000 pages addressing employment laws in the Code of Federal Regulations and another 14,000 pages covering environmental regulations. The proposal would be a special burden to small businesses, which account for 20 percent of federal contracts each year.
Steps to block this measure have already been taken by the US Senate with the introduction of S-2986 This bill calls for an extension of the comment period on the Clinton proposal and a review by the comptroller general.
Trucking Rules Revised
Many industries are concerned that a new federal rule will force them to hire additional truck drivers and disrupt distribution operations nationwide. The US Department of Transportation has proposed rules to limit the number of hours truck drivers can be on the road per week. To eliminate the need for handwritten logs, the proposal also calls for the installation of "electronic on board recording devices" (EOBR). These devices would track when a driver is on the road, but do not account for time spent loading/unloading or preparing the rig. Comments on the proposal can be submitted until December 15, 2000. More information can be found under "Proposed Hours of Service" at www.fmcsa.dot.gov.

Paid Family Leave
The US Chamber of Commerce, the Society for Human Resource Management and other business organizations have filed a lawsuit challenging a new US Department of Labor regulation allowing states to use unemployment insurance (UI) funds to pay for family leave. NJBIA agrees with the plaintiffs' view that UI payments should be used exclusively for workers who have lost their jobs and are actively seeking new employment.
E Signatures Signed into Law
E-commerce will get a boost from the Electronic Signatures in Global and National Commerce Act, which was signed into law in July. Effective October 1, 2000, contracts signed electronically via the Internet will be binding. This convenient method encourages the expansion of e-commerce without the need for paper contracts.
ADA's 10th Anniversary
To mark the tenth anniversary of the Americans with Disabilities Act (ADA), President Clinton recently announced the launch of www.disability.gov. This Web site is designed to help disabled citizens utilize government resources and programs. It features many related sites including job opportunities. Companies can become a part of the job- opening section by signing up with New Jersey's One-Stop Career Centers (http://www.wnjpin. state.nj.us/). Companies can also call the Job Accommodation Network at 1-800-526-7234 to learn how to better accommodate disabled workers.

Boyd Sworn in as NJ Labor Commissioner
Mark B. Boyd was sworn in as New Jersey's new labor commissioner in July. He succeeds former commissioner Mel Gelade, who was named a Superior Court judge by Governor Whitman this summer. Commissioner Boyd has worked closely with NJBIA and New Jersey's employer community for many years. He also worked for his family business prior to joining the Department of Labor (DOL) in 1994. He has spearheaded DOL's efforts to modernize its services for the private sector and pushed the department to keep up with the rapid pace of new technology. NJBIA President Joe Gonzalez applauded Boyd's appointment. "No one has worked harder to bring the Department of Labor into the 21st Century than Mark Boyd," Gonzalez said. "He understands that New Jersey's workforce and economy are changing dramatically, and that yesterday's rules for the workplace don't always make sense today." As an assistant commissioner for Workforce New Jersey and deputy commissioner, Boyd gained experience overseeing a broad range of DOL programs. These include the One Stop Career Centers, Unemployment Insurance, Temporary Disability Insurance, Vocational Rehabilitation, Workplace Standards and Safety, and Labor Research & Analysis. He represented Governor Whitman on a national panel implementing the new Workforce Investment Act and is New Jersey's State Workforce Liaison to the National Governors Association. He also serves on the joint Workforce Readiness Committee of Prosperity New Jersey and the Edison Partnership.

Finding Good Workers in A Tight Labor Market
Nearly 150 employers attended NJBIA's April 26 seminar on "Finding & Keeping Good Workers." With New Jersey's unemployment rate at a 30-year low, companies of all sizes are struggling to find qualified employees. Even those employers who succeed in filling key positions in this tight labor market cannot be sure that their best talent will not be hired away by competitors.
Speakers at the seminar urged employers to examine their workplace policies to make sure they offer competitive benefits. They stressed that pay, while important, is not the only thing that attracts good workers and makes them want to stay. Many employees appreciate a company that grants flexible work hours or offers special services that help people balance their personal and professional lives. The more a company develops a reputation as an "employer of choice," the less time and money is needed to attract qualified jobseekers. A second important strategy for employers is to reach out to nontraditional sources of labor. State Labor Commissioner Mark Boyd told the audience that many companies have overlooked individuals in their communities who could be trained to fill vacant positions. He was supported by other panelists who argued that qualified candidates often can be found locally among the disabled, recent retirees and apprentices. Community-based organizations, especially those with a religious affiliation, are potential partners for business in helping young workers develop basic workplace skills such as reliable attendance and appropriate dress. Employers address the ongoing labor shortage in a variety of ways:
- Have a recruitment/retention strategy. Nearly 50 percent of employers have no strategy for finding and keeping good workers. Your current employees can play a more active role in recruiting new applicants if everyone understands the jobs that are open, the skills they require, and any special opportunities your company offers. Reward employees who refer qualified candidates. A finder's fee, gift certificate or sports tickets often cost far less than an outside search. Help employees balance their personal and professional lives. Employees appreciate companies that offer flexible work arrangements such as compressed work weeks, job-sharing and flex-time. Establish on-site employee support services. Even smaller companies can designate a receptionist or other staff person who can devote some time each day helping employees with various projects. The person may be able to call to make medical appointments, arrange dinner reservations, schedule home deliveries and repairs, and the like. Some offices arrange for dry cleaners to pick up and deliver from the workplace, saving employees additional time and hassle. Help employees connect with government assistance programs. Employees appreciate employers who alert them to tax incentives for education and transportation, Fannie Mae home loans, or IRS earned income tax credits. Create a "study room" for students. Employees of all ages are now involved in various education and training programs outside of work. Companies that depend on student help are increasingly setting aside special "quiet rooms" on-site (with chairs, desks and sometimes computers) so that people who might otherwise miss work can complete assignments and prepare for exams.
- Recognize and reward employees frequently. Don't wait until the annual review to publicly recognize achievements or hand out special gifts and bonuses.
Go here for a comprehensive list of resources to help you find good workers.
State Economy is on ‘Cruise Control'
Mid-Year Outlook is Excellent
By Christopher Biddle
Vice President, Communications
In issuing his mid-year economic forecast, the Governor's chief economic advisor has declared that New Jersey "is on cruise control for completing another excellent year." Joseph J. Seneca, chairman of the Governor's Council of Economic Advisors, sees the pace of growth easing somewhat over the next 12 months, but finds no evidence that the State's second-longest economic expansion is headed for historical oblivion anytime soon. A tight labor market, coupled with rising inflation and labor costs, will serve to constrain future growth. However, these counter-vailing forces will be more than offset by a backlog of commercial construction, a strong home-construction market, a record influx of companies moving into New Jersey, billions of dollars in new school construction, and continued strength in job creation. Business and industry created 27,700 new jobs in the first six months of the year, bringing total employment in the private sector to a record 3.35 million, according to the latest data from the NJ Department of Labor. In his report to Governor Whitman, Seneca said he expects overall employment in New Jersey to rise by nearly 60,000 jobs this year, a rise of 1.5 percent. This is all the more remarkable given the unusual length of this expansion, both nationally and in New Jersey. The national expansion, now moving through its tenth year, has shattered all previous records. The New Jersey expansion, which hit its 98th month in July, is now just one year shy of the all-time state record of 110 months set in the 1960s. New Jersey's private-sector service industries, with an assist from the construction trades, are pacing the current rate of job creation. The service sector added 24,000 jobs in the first six months, while the construction trades added another 4,800. These gains were partially offset by a loss of 1,100 jobs in manufacturing. Two industries-engineering/consulting/research and computers/data processing-accounted for 35 percent of the new jobs created in the service sector. As noted in Seneca's report to the Governor, these industries are an important part of New Jersey's fast-growing, high-tech "cluster." Growth in the State's financial services industry also remains strong as Wall Street firms continue to march across the water from Manhattan to the Hudson County waterfront. As for residential construction, an important engine of growth for the State economy, 32,000 new housing permits are expected to be issued in 2000, making this the third consecutive year in which permits have exceeded 30,000. Despite higher home prices and mortgage rates, housing afford-ability remains at a 10-year high in New Jersey. Permits for nonresidential construction-which includes office, industrial and retail-rose by 15 percent last year, laying the groundwork for $5 billion in future construction. Starting next year, the State's massive school construction program is expected to add another $2.6 billion in annual construction spending. Christopher Biddle can be reached at cbiddle@njbia.org.

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