Work Force Development

NEWS - Work Force Development

Workers who lose their jobs during January and February may qualify for a 65-percent subsidy on their COBRA health insurance premiums, according to the Internal Revenue Service. Newly eligible individuals, along with those already receiving the subsidy, can now receive it for up to 15 months.

Created by the American Recovery and Reinvestment Act of 2009, the COBRA subsidy eligibility period was originally scheduled to expire at the end of 2009, and eligible individuals only qualified for the subsidy for nine months. But the Department of Defense Appropriations Act, 2010, enacted on Dec. 19, extended the eligibility period and the maximum duration of COBRA premium assistance.

As a result, workers who are involuntarily terminated from employment between Sept. 1, 2008, and Feb. 28, 2010, may be eligible for a 65-percent subsidy of their COBRA premiums for a period of up to 15 months. Involuntarily terminated employees who meet certain other requirements, and certain family members of those individuals, are referred to as "assistance-eligible individuals."

Larger employers must provide COBRA coverage to assistance-eligible individuals who pay 35 percent of the COBRA premium. Employers are reimbursed for the other 65 percent by claiming a credit for the subsidy on their payroll tax returns: Form 941, Employers QUARTERLY Federal Tax Return, Form 944, Employer's ANNUAL Federal Tax Return, or Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. Employers must maintain supporting documentation for the claimed credit.  Smaller companies are not required to provide COBRA assistance.

NEWS - Work Force Development

12/21/2009 - The jobless rates of Georgia and South Carolina rose in November from the previous month.
Georgia’s rate climbed more than 3 percentage points over October’s level and South Carolina’s rose a troublesome 12.3 percent.

The Savannah region showed a loss of 5,000 jobs compared to employment levels of November 2008, according to the Georgia Department of Labor, which said the numbers of employed residents went from 158,900 to 153,900.

Georgia’s statewide unemployment rate ended November at 10.2 percent, just slightly above the national average of 10 percent. Georgia had a jobless rate of 7.1 percent in November 2008.

The number of payroll jobs in November decreased 192,400, or 4.7 percent, from November of 2008. The metropolitan areas with the highest percentage of job losses during the same period are Dalton, down 7.4 percent; Macon, down 5.8 percent; Atlanta, Gainesville, and Valdosta, all down 4.9 percent. The metropolitan areas with the smallest perc entage of job losses are Columbus and Rome, down 2.2 percent. Only Hinesville showed an increase in jobs, up 400, or 2.1 percent.
To address rising unemployment,  the Georgia Department of Labor will host a Jobs Summit on Jan. 18 at the Georgia Tech Hotel and Convention Center.

In South Carolina, U.S. Rep. Joe Wilson said he is losing patience with the reluctance of Congress to focus on jobs. He said he wants tax cuts for businesses and families but made no mention of further federal stimulus spending to spur job growth.

NEWS - Work Force Development

The current economic climate has largely halted the luxury of shopping around for a job. In fact, during the recession, most employees are ranking their monetary needs according to basic necessities, including the value of a good benefits package. While compensation is of obvious importance, benefits are increasingly becoming an extra consideration in the pursuit of financial viability.

“The trend has shifted the responsibility of planning, preparing and funding a typical employer-defined benefits type plan to 401(k) type plans, or contribution plans,” said Jim LaHaise, executive vice president and chief banking officer at The Coastal Bank. “A change in the business model and the transition to today’s highly portable employee has contributed to this current trend in 401(k), IRAs and rollover plans.”

While the contents of a benefits package is not necessarily the number one determining factor when considering a potential job, it can be a significant enhancer and increasingly adds to long-term employee retention for the employer.

“Most new employees do not typically negotiate the contents of a benefits package offered by the employer when accepting a job,” said Sarah Lamar, a partner at HunterMaclean who practices employment law. “However, it is a good idea to ask your employer what the standard benefits package includes, if there are any additional benefits offered, and clarify the exact responsibilities and monetary contributions of the individual employee.”  Of course, the specific benefits offered can be altered as the economic climate – and the employer's ability to absorb the cost of such benefits – fluctuates.

Currently there are several benefits offered to employees (and others) that are mandated by law including COBRA, family and medical leave, Social Security disability insurance, unemployment and workers compensation benefits. COBRA presently applies to companies with 20 or more employees, while the Family and Medical Leave Act applies to companies with 50 or more employees. Employers must have workers comp insurance if they have three or more employees.

“In spite of the fact that our economy and health benefits are uncertain at the moment,” said Lamar, “the new legislation reducing the employee's cost of COBRA group health insurance premiums after termination is an added benefit to employees in this current economic climate.”

According to the U.S. Bureau of Labor Statistics in October 2009, the unemployment rate rose from 9.8 percent to 10.2 percent, with the largest job losses over the month in construction, manufacturing and retail trade. With the job market in flux, the importance of retirement plans, benefits and savings should be carefully considered.

“Retirement plans are extremely important when planning for long-term financial security,” said LaHaise. “There is an enormous supply of providers today, creating ease of access to anyone interested to choose from. They each have a very common structure, which helps to eliminate the guesswork when choosing.”

A retirement plan or pension plan is typically established or maintained by the employer or by an employee organization, such as a union, or both. These plans are constructed to provide retirement income for the employee or defer income until termination of covered employment or beyond. A number of retirement plans exist today, including the defined benefit plan and defined contribution plan.

A defined benefit plan promises a specified monthly benefit at retirement. The plan may state this promised benefit as an exact dollar amount, such as one hundred dollars per month at retirement, or it may calculate a benefit through a plan formula that considers such factors as salary and service.

A defined contribution plan, on the other hand, does not promise a specific amount of benefits at retirement. In these plans, the employee, the employer or both contribute to the employee's individual account under the plan, sometimes at a set rate, such as 5 percent of earnings annually.

These contributions are generally invested on the employee's behalf. The employee will ultimately receive the balance in his or her account, which is based on contributions plus or minus investment gains or losses. “As in most cases, the value of personal assets, including retirement accounts, will fluctuate due to the changes in the value of the investments,” said LaHaise. “They are dependent on the economy and its current condition. Regardless, setting up a reserve fund is better than having no plan at all.”

Examples of defined contribution plans include 401(k) plans, 403(b) plans, employee stock ownership plans and profit-sharing plans. “The great part about participating in a 401(k)-type plan,” said LaHaise, “is that individuals can assume personal responsibility and plan for their retirement income and future by directing their own investments and contributing a part of their own salary.”

However, small-business owners may have some reservations when considering the benefits package they offer. “Balancing a great benefits package with adequate compensation can be a tricky dance,” said Lamar. “When it’s a question of divvying up the pie, there is only so much money to go around. If employers are mandated to offer additional health or sick leave benefits or pay more compensation, they may offer less in other benefits, such as vacation or 401(k) contributions.”

NEWS - Work Force Development

The Springboard Project Announces Immediate Actions to Strengthen America’s Workforce as Economy Recovers

The Business Roundtable issued final recommendations last week from its The Springboard Project – an independent commission it convened – to ensure that American workers thrive after the economy rebounds.

With a widening gap between employers’ demands for more skilled workers and workers’ skills, there is an urgent need to grow a better educated and trained workforce. The Springboard Project’s recommendations highlight specific public policy changes and business-led initiatives to overcome obstacles that thwart workers’ prosperity and threaten U.S. competitiveness.

With national unemployment rates at 10 percent, stagnant earnings and job instability plagued American workers well before the recession began because of low high school graduation rates, poor college completion rates and overall inadequate levels of education, according to the group which represents the nation’s top CEOs.

Globally, the United States ranks second-to-last among developed nations in postsecondary completion rates.  In Chatham County, the problems begin even earlier, with the continuing problem of excessive high school dropout rates.
“Though American workers remain the most productive in the world, the country risks losing that edge if we don’t foster opportunities and the expectation that workers must continually upgrade their skills throughout their careers,” according to The Business Roundtable.

“Seventy-three percent of the U.S Bureau of Labor statistics’ projected fastest growing occupations over the next six years will require some level of postsecondary or vocational credentials. Furthermore, the occupations requiring the lowest qualifications are the least secure.

Improving education is essential to building a better trained and skilled workforce,” said William D. Green, chairman & CEO of Accenture and chairman of The Springboard Project. “This must be a top national priority if America is to retain a leadership position in an increasingly competitive global economy.”

“We are recommending six initiatives – from creating incentives for boosting post-secondary achievement rates to making use of more innovation in and out of the classroom to help close our growing skills gap. One aim is to drive a double-digit increase in postsecondary graduation rates over the next 20 years. Achieving this goal will require all of us to not only advocate lifelong learning, but take an active role in creating better educated citizens.” 

In the Savannah area, several of the continuing education programs, such as at Savannah State University, have been eliminated or reduced due to revenue shortfalls at the state level.

“The Springboard Project recommendations could have a profound effect on the nation’s economy. Even a one percent improvement in college graduation rates could potentially add nearly $300 billion to the economy by 2030,” added John J. Castellani, president of Business Roundtable.”

The jobs of tomorrow will require even higher levels of education and skills, and the pace required to keep up is quickening, they state.  Therefore, The Springboard Project’s recommendations focus on both immediate and longer-term actions for government, business and educators to keep America’s workforce well prepared and competitive throughout the 21st century including:

1. Create incentives to build a better-educated and trained workforce
Increase postsecondary education and training attainment rates to meet market demand and provide personal opportunity by rewarding institutions and individuals.

2. Develop nationally recognized workforce certifications and credentials
Empower students and workers by creating nationally portable workforce skill credentials that are credible to educators and valued by employers.

3. Communicate timely and consumer-friendly information to workers
Provide valuable labor market and related education information in ways that are easily accessible, understandable and timely.

4. Bring 21st century innovation to education and training
Reinvent the delivery systems of post-secondary education and training to get better and more cost effective outcomes for more people.

5. Unlock the value of community colleges and two-year institutions
Build on the untapped potential of community colleges and two-year institutions to encourage more people to embrace postsecondary education and to revitalize local economies.

6. Foster lifelong learning
Encourage a new mindset that values lifelong learning as an essential priority for personal and national success.

The Business Roundtable plans to ask member companies to partner with at least one state; community college; or other two- or four-year college, school district or nonprofit organization. Further, it will develop Workforce 101, a Web-based, free, interactive course for high school and college students on workplace needs and expectations. Finally, Business Roundtable will reach out to other business organizations and companies to build strong support for The Springboard Project recommendations, according to Kirk Monroe, spokesperson for the group.

The Springboard Project’s members include a diverse group of education and business leaders, labor experts, union chiefs, academics, foundation heads and former government officials.

Member CEOs and corporations which operate in the Greater Savannah market include Vikram S. Pandit of The Coca-Cola Company; Francisco D’Souza of Comcast; Michael J. Ward of CSX; Herbert L. Henkel of  International Paper Company; and Peter Y. Solmssen of Southern Company.

NEWS - Work Force Development

11/09/2009 - Tybee City Council is dipping into a contingency fund to cover up to $25,000 in merit pay increases for city workers.
Last Thursday’s approval of merit raises of up to 1.5 percent follows the council’s agreement in October to grant cost-of-living raises of 1.5 percent to all of the city’s approximate 80 workers starting on Jan. 1.

The merit raises will go to high-performing employees recommended by department heads. They are to become effective after Jan. 1.

Tybee council members had to forsake merit and cost-of-living raises for employees during preparation of the current fiscal year’s budget that went into effect July 1. They pledged to restore the raises at mid fiscal year if the money were available.

NEWS - Work Force Development

In February, on the anniversary of the Imperial Sugar explosion, U.S. Rep. John Barrow co-sponsored bill, H.R.849, to require the Secretary of Labor to issue interim and final occupational safety and health standards regarding worker exposure to combustible dust. The bill was co-sponsored by Rep. George Miller of California, chair of the House Education <http://savannahnow.com/node/666934##>  and Labor Committee, and was referred to the Subcommittee on Workforce Protections. But the Barrow bill focused on just one aspect of worker’s protection and OSHA problems – industrial dust – and the Congressman now says that the legislation will not be necessary “is OHSA takes care of what needs to be done.”
Reform of OSHA is now contained in a major piece of legislation to protect workers that is working its way through the House (HR 2067) and Senate (S. 1580);  approximately ten percent of U.S. House members have signed on as co-sponsors, though neither Rep. John Barrow (D) or Rep. Jack Kingston (R) have done so. 
The Senate version, S 1580, was sponsored by Sen. Edward Kennedy, and introduced on August 5, just weeks before he passed away. It is a re-introduction of similar bills he had sponsored in prior years. S 1580 has been referred to the Senate Health, Education, Labor, and Pensions committee, of which Kennedy was chairman.
Miller, who had helped Barrow with his bill, has signed on to co-sponsor HR 2067.  So, why is Barrow not a sponsor?
Barrow says, however, that while he is currently not a cosponsor of H.R. 2067, he supports many of the bill’s provisions.  "H.R. 2067 is different than H.R. 849, the “Worker Protection Against Combustible Dust Explosions and Fires Act of 2009,” the bill that Barrow and Congressman George Miller reintroduced this year, and that passed the House last year, according to Jane Brodsky, Barrow's spokesperson. "He remains committed to making sure those regulations are put in place, whether it’s by passing this legislation, or through an administrative fix, which he has been told is in the works over at the Department of Labor."
The House Subcommittee on Workforce Protections held a hearing on April 28 on the OSHA “Enhanced Enforcement Program” included in the bill, which identifies high risk employers by their past behavior and targets them for additional scrutiny.
The U.S. Department of Labor Inspector General’s Office issued a report on April 1 that found the Bush administration did not properly enforce worker health and safety laws used to oversee employers with history of safety violations. It shows that over the last five years, since the program was established, the EEP has failed to effectively deter employers from putting workers’ lives at risk.
The House Education and Labor Committee also held a hearing on whether our nation’s health and safety laws ensure that employers who fail to protect their workers are adequately penalized and deterred from committing future violations.
Congress passed the Occupational Safety and Health Act in 1970 with the goal of assuring safe and healthful working conditions to all American workers. Nearly 40 years later, while workplace health and safety has improved, many workers remain at risk of death, injury or illness while on the job.
At the subcommittee hearing on April 28, Rep. Miller said, “We found that well documented hazards, like exposure to a chemical that causes popcorn lung disease and combustible dust dangers, as well as basic regulatory work like updating construction standards, were not being addressed.
In fact, OSHA’s regulatory function shut down. The Bush administration promulgated only one significant health and safety standard during its tenure. And that was under court order.
“Additionally, we found that enforcement tools were left on the shelf at times.
These facts uncovered by this committee show that the last eight years have left OSHA significantly weakened,” said Miller.
But he pointed out, that even if current regulations are enforce, “no matter how bad an employer acted, killing a worker is only a class B misdemeanor.”

NEWS - Work Force Development

SBJ Staff

The Imperial Sugar explosion in Port Wentworth in Feb. 2008 was the deadliest industrial dust explosion in the United States since 1980, one of more than 281 dust explosions at U.S. plants since 1980. 
The potential for a dust explosion exists at many of the Savannah area’s manufacturing facilities. Dust is produced by many different types of plants, including food production, metal processing, wood products, chemical manufacturing, rubber and plastics plants and coal-fired power plants.
In the aftermath, a federal investigation has been conducted by The U.S. Chemical Safety and Hazard Investigation Board (CSB), bringing new focus on industrial dust prevention and removal procedures, on the need for improved employee training and on the inspection processes of the Occupational Health and Safety Administration (OSHA).
The CSB will make a presentation in Savannah on Sept. 25.
Imperial Sugar’s position to date has been that the company followed existing regulations, and dealt with problems that senior management were made aware of. (See SBJ story, pg 1, Aug 24, 2009 edition.)
CSB findings so far include that OHSA inspectors in general are insufficiently trained, and that the long-established recommendations of the National Fire Safety Board (NSFB) regarding industrial dust are not being used routinely by US manufacturing plants.
Ultimately, whether or not OSHA regulations are changed, a significant issue appears to be enforcement of the federal, state and local regulations that are supposed to provide safety for workers at manufacturing facilities.  And, the lack of penalties for failing to do, as well.
The problems are not just about federal agencies. There appear to be issues regarding the role of state and local fire marshals, including whether they have the authority to deal with problems they encounter. In general, enforcement of OSHA and NSFB requirements have been left to state and local officials, resulting in a "patchwork of adapted and adopted voluntary standards that are challenging to enforce," according to the CSB.
After a series of tragic dust explosions and fires at U.S. plants from 2003 to 2005, the CSB held hearings and found that there were procedures available to control industrial dust, but they were not being adhered to and, “ there is no comprehensive Federal standard requiring adherence to these practices.”  That report was issued in November 2006.  But little changed regarding enforcement or an expansion of penalties for failing to comply.
Industrial dust can accumulate on surfaces and lie around dormant for years. The NFPA has standards for designing systems that reduce the production of dust, and procedures for performing rigorous dust housekeeping procedures, but “the problem is they’re not forced in any regular way,” according to John Bresland, CSB chairman. Many of the regulations exist at the State or even local level, he said; they are just not enforced.
The findings after many of the explosions over the past two decades have also often found that the workers were not informed of the hazards of the dust that was accumulating around them. 
Sometimes accumulating dust occurs in areas that are not immediate visible, such as up in suspended ceilings above plants, as in the deadly fire at West Pharmaceutical in Kinston, NC a few year ago, even though the plant area appeared to be amazingly clean. Dust from the production process and cleaning procedures was present in the suspended ceiling as it traveled out of the building through the dust removal system.
“The knowledge is out there to make sure that no deaths occur due to dust explosions,” states national expert Amy Beasley Spencer of the NFPA.
In April 2009, a comprehensive national regulatory standard was announced by Hilda Solis, the new Secretary of Labor, appointed by the Obama administration.  OSHA has begun the “rule making” for industrial dust, she said.  But will enforcement be sufficient?  And will enforcement responsibility be at the state or federal level?

Georgia State Fire Inspectors
The Georgia Insurance and Safety Fire Commissioner sets the minimum fire safety standards in the state. The office enforces the fire safety rules and regulations for hotels, apartment buildings, schools, day care centers, personal care homes, churches, hospitals, nursing homes, mercantile occupancies, buildings four or more stories in height and race tracks. The engineering staff reviews and approves construction plans while the fire safety compliance officers examine new and existing structures for compliance with safety fire laws.
Note that this language, directly from Commissioner John Oxendine’s website for the Georgia Dept of Insurance, does not mention industrial or manufacturing plants, though the Georgia code covers such commercial facilities.  
Further, Georgia law requires that counties with over 100,000 persons and municipalities with over 45,000 persons are mandated by law to enforce the state's minimum rules and regulations on such buildings in their area of jurisdiction. Was this done?
State fire officials would have to sign-off of renovations to the Imperial Sugar plant in order for it to reopen after an “incident,” according to the Georgia code.
Immediately after the Port Wentworth fire, Georgia Fire and Insurance commissioner John Oxendine criticized OSHA, and announced that he was implementing emergency safety guidelines statewide at facilities dealing with combustible materials
“Persons who shall violate a provision of this code or shall fail to comply with any of the requirements thereof or who shall erect, install, alter, repair or do work in violation of the approved construction documents or directive of the fire code official, or of a permit or certificate used under provisions of this Code, shall be guilty of violation of Code Section 25-2-37 of the Official Code of Georgia Annotated. Each day that a violation continues after due notice has been served shall be deemed a separate offense. Such violations shall be subject to civil penalties as prescribed in Code Section 25-2-37. Any person, firm, or corporation violating this chapter or failing or refusing to comply with any other regulation promulgated under Chapter 2 of Title 25 shall be guilty of a misdemeanor,” the law states.
OSHA officials announced this summer that Imperial Sugar should face fines of $8.7 million for violations at two of its plants, Port Wentworth and in Louisiana, the third-highest in the history of OSHA. The dept. found 120 violations at the Port Imperial Sugar Wentworth plant, calling 61 of them “egregious.”
CEO Phillip Sheptor, responded: "We believe that the facts do not merit the allegations made,” and OSHA said it was preparing for a lengthy appeal and litigation process with the company.
In August, the Obama administration named Dr. David Michaels to lead OSHA, an epidemiologist and research professor at the Department of Environmental and Occupational Health at the George Washington University School of Public Health and Health Services. He has conducted numerous studies of the health effects of occupational exposure to toxic chemicals, including asbestos, metals and solvents, and has written extensively on science and regulatory policy.

NEWS - Work Force Development

The Georgia Department. of Labor is handling the applications for the 30 production workers that EFACEC is planning to hire for its new facility in Effingham County, nearing completion. Applications are being accepted through Sept. 8.  The company is seeking power transformer production specialists.
The Effingham County Development Authority has established a Facebook site that contains details at http://www.facebook.com/l/;www.effinghamcounty.com.