Smlr_net March 2009

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Pay for Play? Tax Credits for Paid Time Off
by Eugene McElroy 31 Mar '09

31 Mar '09

Economists are increasingly coming to the recognition that the current downturn is likely to be longer and more severe than they had expected at the time the last stimulus package was approved in February. As a result, there is likely to be interest in additional stimulus in order to boost the economy and lower the unemployment rate. http://www.cepr.net/index.php/publications/reports/pay-for-play-tax-credits… -- Eugene McElroy Rutgers University School of Management and Labor Relations Library 50 Labor Center Way New Brunswick, New Jersey 08901 732-932-9513 tel: 732-932-9513 ********

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Workers unions take legal action to stop furloughs
by Eugene McElroy 31 Mar '09

31 Mar '09

Workers unions take legal action to stop furloughs Tuesday, March 31, 2009 BY CLAIRE HEININGER AND CHRIS MEGERIANSTATEHOUSE BUREAU Unions representing about 100,000 public employees went to court yesterday to stop Gov. Jon Corzine and local governments from furloughing workers. Taking action in three court filings, leaders from a half-dozen unions said an emergency rule allowing state and local governments to furlough workers would undermine existing contracts. http://www.nj.com/news/ledger/jersey/index.ssf?/base/news-13/12384730398984… -- Eugene McElroy Rutgers University School of Management and Labor Relations Library 50 Labor Center Way New Brunswick, New Jersey 08901 732-932-9513 tel: 732-932-9513 ********

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NYTimes.com: For Injured Workers, a Costly Legal Swamp
by sagauro＠rci.rutgers.edu 31 Mar '09

31 Mar '09

This page was sent to you by: sagauro(a)rci.rutgers.edu. NEW YORK REGION | March 31, 2009 A World of Hurt: For Injured Workers, a Costly Legal Swamp By N. R. KLEINFIELD and STEVEN GREENHOUSE The N.Y. State Workers' Compensation Board remains mired in dysfunction and inefficiency. http://www.nytimes.com/2009/03/31/nyregion/31comp.html?emc=eta1 ---------------------------------------------------------- ABOUT THIS E-MAIL This e-mail was sent to you by a friend through NYTimes.com's E-mail This Article service. For general information about NYTimes.com, write to help(a)nytimes.com. NYTimes.com 620 Eighth Avenue New York, NY 10018 Copyright 2009 The New York Times Company

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NYTimes.com: City Room: Racial Bias Seen in Hiring of Waiters
by sagauro＠rci.rutgers.edu 31 Mar '09

31 Mar '09

This page was sent to you by: sagauro(a)rci.rutgers.edu. N.Y. / REGION | March 31, 2009 City Room: Racial Bias Seen in Hiring of Waiters By Jennifer 8. Lee A new study sent pairs of applicants to New York restaurants and found that the white applicants received better treatment. A European accent helped, too. http://cityroom.blogs.nytimes.com/2009/03/31/racial-bias-seen-in-hiring-of-… ---------------------------------------------------------- ABOUT THIS E-MAIL This e-mail was sent to you by a friend through NYTimes.com's E-mail This Article service. For general information about NYTimes.com, write to help(a)nytimes.com. NYTimes.com 620 Eighth Avenue New York, NY 10018 Copyright 2009 The New York Times Company

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NYTimes.com: French Workers Hold Bosses at Caterpillar Plant
by sagauro＠rci.rutgers.edu 31 Mar '09

31 Mar '09

This page was sent to you by: sagauro(a)rci.rutgers.edu. BUSINESS | March 31, 2009 French Workers Hold Bosses at Caterpillar Plant By THE ASSOCIATED PRESS French workers facing layoffs at a Caterpillar factory detained four of their bosses Tuesday at a plant in the Alps, union representatives said. http://www.nytimes.com/aponline/2009/03/31/business/AP-EU-France-Caterpilla… ---------------------------------------------------------- ABOUT THIS E-MAIL This e-mail was sent to you by a friend through NYTimes.com's E-mail This Article service. For general information about NYTimes.com, write to help(a)nytimes.com. NYTimes.com 620 Eighth Avenue New York, NY 10018 Copyright 2009 The New York Times Company

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Paula Voos article in today's Star Ledger
by Eugene McElroy 31 Mar '09

31 Mar '09

Employee Free Choice Act is backbone of strong unions and a strong economy Lost in the headlines over AIG bonuses, Bernie Madoff, the credit crunch and rising unemployment is an important trend that has been building for 20 years and was a major contributing factor to what many are already calling the Great Recession.... http://blog.nj.com/njv_guest_blog/2009/03/employee_free_choice_act_is_ba.ht… -- Eugene McElroy Rutgers University School of Management and Labor Relations Library 50 Labor Center Way New Brunswick, New Jersey 08901 732-932-9513 tel: 732-932-9513 ********

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NYTimes.com: For Injured Workers, a Costly Legal Swamp
by sagauro＠rci.rutgers.edu 31 Mar '09

31 Mar '09

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Deregulation has wrecked port trucking system
by sagauro＠rci.rutgers.edu 30 Mar '09

30 Mar '09

*Please note, the sender's email address has not been verified. op-ed piece by david bensman and yael bromberg ******************** If you are having trouble with any of the links in this message, or if the URL's are not appearing as links, please follow the instructions at the bottom of this email. Title: Deregulation has wrecked port trucking system Copy and paste the following into your Web browser to access the sent link: http://www.emailthis.clickability.com/et/emailThis?clickMap=viewThis&etMail… Copy and paste the following into your Web browser to SAVE THIS link: http://www.savethis.clickability.com/st/saveThisPopupApp?clickMap=saveFromE… Copy and paste the following into your Web browser to forward this link: http://www.emailthis.clickability.com/et/emailThis?clickMap=forward&etMailT… ******************** Email pages from any Web site you visit - add the EMAIL THIS button to your browser, copy and paste the following into your Web browser: http://www.emailthis.clickability.com/et/emailThis?clickMap=browserButtons&…" ********************* Instructions: ----------------------------------------- If your e-mail program doesn't recognize Web addresses: 1. With your mouse, highlight the Web Address above. Be sure to highlight the entire Web address, even if it spans more than one line in your email. 2. Select Copy from the Edit menu at the top of your screen. 3. Launch your Web browser. 4. Paste the address into your Web browser by selecting Paste from the Edit menu. 5. Click Go or press Enter or Return on your keyboard. ********************

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IWS] Mercer: 7 SINS of EXECUTIVE PERFORMANCE MEASUREMENT [11 March 2009]]
by Eugene McElroy 30 Mar '09

30 Mar '09

Press Release The seven sins of executive performance measurement http://www.mercer.com/summary.htm?idContent=1338700 UK London, 11 March 2009 * Limited metrics, uniformity, oversimplification, balanced scorecards, me too approaches and a lack of objectivity damage incentive programmes * Organisations must address key issues in incentive programmes in light of recent executive remuneration failings Mercer has outlined the flaws in the current approach used by major companies, including financial services organisations, in measuring and rewarding the performance of their executives. Mark Hoble, a principal in Mercers executive remuneration team, said: Developments over the past six months have heightened the focus on incentive plans and the measures for setting targets and rewarding performance. Despite increased scrutiny of rewards for performance, many companies continue to struggle with defining and managing their performance measurement system. Most apply a standard approach to executive performance measurement, but what works for one company might fail for another. Common performance measurement sins According to Mercer, the following are the seven sins that companies commonly commit when deciding their performance measurements: 1: Earnings per share (EPS) is the main driver of shareholder value As one of the most common metrics used in discussing corporate performance, EPS is easily understood by executives and investors and is generally reported by the press as an indicator of the success of a company. But EPS can be affected by changes in accounting policy and does not account for the cost of capital and the capital structure of the business. It also yields growth percentages that can be misleading or meaningless when calculating growth from a small base or from negative earnings. EPS also highlights the difficulty of determining the validity of one-time, non-recurring and extraordinary items. Most importantly, actual EPS performance (as opposed to performance against expectations) may not always be well correlated with creating long-term shareholder value. 2: Total shareholder return (TSR) is the only performance metric required TSR allows objective benchmarking of performance against peer companies but the relationship between executive behaviour and TSR results is less direct. TSR is affected by factors outside managements control or influence, including macroeconomic factors, broad market trends and specific sector competitive issues. It also represents actual performance and expectations of future performance, so rewarding for TSR means rewarding for results that have not yet been delivered. Participants, particularly those below the most senior executive level, cannot meaningfully affect this measure, given the number of possible drivers of share price. The most effective incentive programmes should include metrics that are linked directly to the business strategy, provide a clearer line of sight to executive behaviour, and measure outcomes, not expectations. 3: A balanced scorecard is the best framework for measuring performance Scorecards measure results against a range of factors and are used to paint a more holistic picture of performance outcomes than can be captured by one or two metrics. They recognise the trade-offs in decision-making, such as maximising returns today versus investing for future growth. Yet balanced scorecards, which typically place equal weight on financial objectives and a host of other operational and strategic objectives, may not appropriately reflect business priorities. Some business goals are more important than others, and using too many measures dilutes executive focus. Scorecards are often more effective if they are unbalanced as they provide greater flexibility to reflect the business strategy as it evolves, and can concentrate on fewer metrics sending a clear message to executives regarding business priorities and holding them accountable for the most important dimensions of performance. 4: If a competitor or peer uses this measure, our company must use it too Performance metrics should be selected based on a variety of internal and external factors. Simply adopting metrics used by peer companies may cause organisations to fail due to differences inherent in their business. Growth-related metrics usually play a more prominent role in performance measurement in younger companies, for example, while profitability or return-based metrics tend to become more important as a company matures. Performance metrics should also support an organisations unique business strategy. 5: To be effective, your performance measures must be commonly accepted and well understood by everyone The simplest measurements are often adopted because companies fear over-complexity will make incentive plans too difficult to communicate and administer. However, more complex metrics include additional information that more accurately captures performance results. Some complexity may be necessary to deal with specific business measurement challenges such as performance in a cyclical industry, a merger or acquisition, or ensuring the profitable use of capital. Simple performance measures may make plan administrators happy, but an overly simple plan is unlikely to deliver the results that shareholders expect. Ideal performance programmes should be designed and then the simplification of administration and communication should be undertaken. 6: Your budget and strategic plan is your performance target In European companies, incentive payments are often linked to company performance compared to the planned budget. While these may seem common-sense standards for assessing performance, using only internal measures often leads to under- or over-calibration of performance and a misalignment of incentive payments. For example, executives may be under-rewarded for achieving target results in the case of a stretch budget and over-rewarded if the budget is conservative. Companies that set goals based purely on their own historical performance are likely to build incentive payments into their budget even in poor years. Creating targets from a number of different perspectives rather than relying solely on the strategic plan and budget will more accurately assess performance. Providing a more objective basis for evaluating performance and breaking the link between incentive plans and the budget helps to maintain the integrity of the budget-setting process, and it reduces the tendency of executives to underestimate the companys future potential. 7: All senior executives should be rewarded using the same performance measurement programme Most companies reward all executives using the same performance vehicles and plan metrics, as common goals encourage collaboration and team-work. Yet large, more diversified organisations often require more differentiation as business units can have different strategic priorities or may be in very different stages of business development. Differences in talent needs driven by either business characteristics or geographical factors may also present unique performance measurement challenges. Companies must balance the objective of fostering collaboration and team work with the need for customisation. For senior executives, at least a portion of the incentives should be tied to overall corporate performance to ensure proper alignment with shareholder interests. Performance measurement virtues Mercers executive remuneration team recommends a number of virtues, or best practices, to ensure companies incentivise and reward their executives only for good performance, to help them beat the competition and generate sustainable profits: * Identify what you need to accomplish to beat the competition and generate sustainable economic profits. Then design your performance measurement system around those factors. * Pick internal and external performance measures that accurately reflect the behaviours and outcomes you want to achieve, given your companys current strategy and stage of development. Revisit these as your priorities change. * Consider using standard performance measures such as EPS and TSR, if helpful but dont rely on just one or two metrics to assess performance. * Create a robust target-setting process. If your industry offers a viable number of comparable peers to allow for relative goal setting, consider setting incentive targets based on how your company performs on specific measures versus those of your competitors. * Make sure that your goals and incentives are clearly defined and applied across business units and that they encourage the appropriate balance between collaboration and accountability. * Build sustainable, long-term performance into your measurements to ensure payments are not made, for example, on the basis of one years good performance that could be overturned in subsequent years. * Ensure your short- and long-term incentive plans are aligned to avoid paying twice for the same performance or paying high annual incentives year after year without ever reaching your long-term goals. * Be clear about what specific behaviour you want to encourage and what measurable outcomes you want to achieve and follow through with clear, consistent communication to help participants understand exactly whats expected of them to achieve their incentive targets. **************************************** Stuart Basefsky Director, IWS News Bureau Institute for Workplace Studies Cornell/ILR School 16 E. 34th Street, 4th Floor New York, NY 10016 Telephone: (607) 255-2703 Fax: (607) 255-9641 E-mail: smb6(a)cornell.edu **************************************** -- Eugene McElroy Rutgers University School of Management and Labor Relations Library 50 Labor Center Way New Brunswick, New Jersey 08901 732-932-9513 tel: 732-932-9513 ********

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FedEx Threatens to Cancel Jet Orders
by Eugene McElroy 30 Mar '09

30 Mar '09

FedEx Corp. is threatening to cancel the purchase of billions of dollars worth of new Boeing Co. cargo planes if Congress passes a law that would make it easier for unions to organize at the package-delivery company. http://online.wsj.com/article/SB123791678454427343.html -- Eugene McElroy Rutgers University School of Management and Labor Relations Library 50 Labor Center Way New Brunswick, New Jersey 08901 732-932-9513 tel: 732-932-9513 ********

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Smlr_net March 2009