Daily Dash - July 16, 2008

Daily Dash: Wednesday

July 16, 2008

The Latest Business Headlines from WWJ Newsradio 950

Clock Ticks for Wagoner | The General Motors chief has about 80 days to convince investors he can keep the struggling car company afloat, Dow Jones Marketwatch reports. | Story

GM Retirees Face Shock | Former workers may be in for sticker shock now that GM is cutting health benefits for retirees over 65, Michigan Business Review reports. | Story | Related Podcast

New Jobs | Thousands of new jobs are coming to southeast Michigan. Among the announcements: Dow Chemical Co. in Midland is partnering with a plastics firm in Kuwait and will bring 800 new jobs to Metro Detroit. | Story | Related Podcast

Toyota Cutting Target | The automaker will lower its global sales target for calendar 2008 to 9.5 million vehicles from December's 9.85 million estimate, Reuters reports. | Story

Coal Warning | Environmentalists say Michigan will be stuck with more coal-fired power plants if lawmakers don't alter an energy plan passed by the state Senate last month | Story

Dow Falls 92 | A plunge in the price of oil and government intervention failed to quell stock market worries about mortgage-finance giants Freddie Mac and Fannie Mae. | Story

Stories marked with have a related podcast at WWJ.com.
Listen to WWJ Newsradio 950 Live on the Web anytime

 


This Week in 'Your People'

Avoid age-discrimination claims when laying off staff.

Survey finds U.S. workers see value in workplace diversity.

Timing helps with retention of older workers.

Long-term loss could overwhelm short-term gain of layoff.

Company asks workers to name their own salaries.

Lawmakers seek to help small businesses with health costs.

Today's Worldwide Automotive Report podcast.

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HOW TO AVOID AGE-DISCRIMINATION CLAIMS WHEN DOWNSIZING YOUR STAFF

A recent U.S. Supreme Court ruling about age discrimination in the workplace, an aging workforce, and an increasing number of layoffs in the face of worsening economic conditions all are creating an environment ripe for a surge of age-discrimination lawsuits, many business leaders say.

Central to the concern of many is the high court's recent ruling in the Meacham vs. Knolls Atomic Power Laboratory case. The case tested a provision of the Age Discrimination in Employment Act (ADEA) that allows employers to take otherwise-prohibited actions if they are "based on reasonable factors other than age." The court found that the employer shoulders the burden when it comes to providing a reasonable explanation other than age when older workers are disproportionately affected by an employer's decision or action. More...



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U.S. WORKERS VALUE DIVERSITY, SURVEY FINDS: While a majority of American workers believe that a more diverse workforce means a more successful organization, nearly half say they have felt discriminated against at the office. The survey, recently conducted by staffing and recruiting firm Adecco, found that while 61 percent believe that diversity brings more success to an organization, 47 percent say they have experienced discrimination in the workplace, with age cited as the most common form of discrimination. More...

TIMING HELPS WITH RETENTION OF OLDER WORKERS: Companies that want older workers to delay retirement have a short timeframe to convince them to stay, says a new survey by the Employee Benefit Research Institute. When offering an incentive offer to delay retirement, timing is vital. Sixty-three percent of retirees said that these offers would have been more effective had they known about the incentives in the two years prior to announcing their plans to retire from the company. More...

DO LAYOFFS CAUSE A LONG-TERM LOSS? If you think laying off a few employees might put your company's finances back on track, you might want to reconsider that line of logic. According to a recent BNET article, the short-term gain of trimming some salaries and benefits from your budget just may cause your business lasting damage – especially if you cut employees who have had strong a strong rapport with clients. The gains from layoffs also diminish if new employees are hired within six to 12 months. And studies show that star employees may be less likely stick around if your company has a history of repeated layoffs. To read more, click here.

FIRING BADLY CAN BE A REPUTATION KILLER: What do firings and your firm's ability to attract and recruit talent have in common? A lot, experts tell The Wall Street Journal. How your company terminates employees can tarnish your reputation among business partners, vendors, clients, and even potential hires, workplace experts say. An insensitive firing "sends a message that this is the way we treat employees," says Julie Freeman, president of the International Association of Business Communicators, a trade group based in San Francisco. "It's a ripple effect." To read more, click here.

COMPANY ASKS WORKERS TO NAME OWN SALARIES: Managers at Skyline Construction Inc. in San Francisco have what some may describe as the ultimate perk: They get to pick their own salaries within a given range, according to a recent Wall Street Journal article. If they pick a higher salary, they receive a smaller bonus. If they pick a lower salary, they have the opportunity to earn a higher bonus. This year, 12 out of 15 eligible managers opted for the lower salaries. The construction company is among a handful of companies experimenting with flexible programs like these – all part of an effort to appeal to an increasingly diverse workforce. To read more, click here.

FEDS, STATES LOOK TO HELP SMALL BIZ WITH HEALTH CARE: As the cost of health insurance continues to climb, many employees are simply going without. Now, the New York Times reports, federal and state lawmakers are starting to look into one of the contributing factors: many small business owners and their employees simply cannot afford coverage. Unlike larger businesses, small employers often are unable to spread the costs and risks of employees' high medical bills over a large group of people, and as a result, they sometimes are forced to offer coverage that requires higher out-of-pocket expenses for employees. But lawmakers in many states are starting to step in to help employers foot the high cost of health care. Arizona now extends tax credits to small employers that provide medical coverage to employees. And in other states like Colorado, lawmakers have passed legislation that regulates how much insurers can charge small businesses. To read more, click here.

CORPORATIONS DON'T PROVIDE ENOUGH COACHING FOR LEADERS: Employees who rise up the ranks into leadership positions often don't receive the coaching they need to realize their full potential, according to a recent Right Management survey. Only 23 percent of new leaders receive the needed coaching after assuming positions that require supervision or management of others, according to the Philadelphia-based human capital consulting services firm. More...

WORLDWIDE AUTOMOTIVE REPORT PODCAST: We take an in-depth look at the cutbacks at General Motors Corp.

GRANHOLM TALKS ABOUT STATE ECONOMY: Gov. Jennifer Granholm talked with Greg Bowman and Roberta Jasina live this morning. Hear the entire interview here.

BE OUR FRIEND ON FACEBOOK: The Daily Dash now has a profile page and a group on Facebook. If you have a Facebook account (or have been looking for a reason to set one up), we'd like to hear from you. To visit the Daily Dash profile, click here. To join the group, click here.


Editorial Staff:
The Daily Dash - Wednesday edition is written and edited by James Melton, Jenny Cromie, Ed Coury, and Matt Roush

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