Daily Dash - July 2, 2008

Daily Dash: Wednesday

July 2, 2008

The Latest Business Headlines from WWJ Newsradio 950

Sludge Pact Probe | The investigation of a controversial sludge disposal contract focuses on at least four Detroit City Council members, the Detroit Free Press reports. | Story | Related Story

Auto Sales Plunge | All major automakers except Honda reported steep sales declines for June. Buyers passed over trucks and SUVs in favor of fuel-efficient vehicles. | Story | Related Podcast

VW Looking South | Michigan's chances of persuading Volkswagen to build a new assembly plant in the state appear to be shrinking, The Detroit News reports. | Story

ePrize Lets Staffers Go | The Pleasant Ridge online promotions company ePrize LLC let go some staffers Tuesday, but founder and CEO Josh Linkner said it wasn't a layoff. | Story

College Costs Rising | Less state aid for Michigan's public universities threatens to undermine the state's efforts to dramatically boost its number of college graduates. | Story

Purchasing Managers Index Stays Sluggish | The June Metro Detroit Purchasing Managers Index showed little significant improvement relative to May, increasing only 0.7 points. | Story

GM Boosts Market | The Dow and Nasdaq pushed off bear market levels after GM reported a June sales loss that was steep, but not as steep as had been expected. | 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'

Ruling raises concern about age discrimination cases.

Companies Selectively Outsource HR, Tech and Functions.

E-mail lawsuit challenges an untested area of the law.

Supreme Court to decide pregnancy leave case.

U.S. lawmakers approve ADA expansion.

Report finds illegal practices at Justice Department.

Make generation gaps work for your company,

Today's Worldwide Automotive Report podcast.

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RECENT HIGH COURT RULING RAISES CONCERNS ABOUT AGE-DISCRIMINATION CASES

Before Knolls Atomic Power Laboratory in upstate New York laid off a group of workers in 1996, the government contractor took several precautions to stay on the right side of the law. But that was not enough to keep it out of court. And based on a recent U.S. Supreme Court ruling, it's not clear what actions it should have taken to avoid being sued.

Knolls carefully reviewed its criteria used in the layoff decision against the best practices at other companies. And, before deciding to eliminate the 31 positions involved, it sought approval from the U.S. Department of Energy – the agency it works for – and an internal committee.

But following the layoffs, 28 of the affected salaried workers – including Clifford Meacham – sued Knolls, claiming the RIF had a discriminatory impact on workers protected by the Age Discrimination in Employment Act (ADEA). The suit, which led to a decision that potentially makes it easier for others to sue in such cases, was filed because 30 of the laid off workers were at least 40 years old – the age at which an employee is covered under the ADEA. More...

Study: Companies Selectively Outsource HR Tech and Functions

Companies are continuing to selectively outsource HR technology and functions rather than relying on one provider, a Watson Wyatt study finds.

Selective outsourcing has continued to grow over the past few years, and given current economic conditions, that trend is expected to continue, according to the global consulting firm. And based on the survey of 182 U.S. companies, many say they expect to do more outsourcing in areas such as health and welfare programs.

CedarCrestone, a technology research firm based in Alpharetta, Ga., also found in its 2007/ 2008 HR Systems Survey that selective outsourcing is preferred to total business process outsourcing in most HR categories. The study also predicts that selective outsourcing will continue to expand in 2008, especially as small- and medium-sized companies begin to utilize the strategy. More...

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EMAIL LAWSUIT CHALLENGES UNTESTED AREA OF LAW: A lawsuit filed in federal court in Connecticut by a former Structured Settlement Investments employee is testing an unsettled area of law that could set a precedent for how companies handle personal e-mail at work, The New York Times reports. In the Connecticut case, Scott Sidell filed the lawsuit after discovering that his employer was reading e-mails from his personal Yahoo! account after he had left the company. The e-mails included discussions between Sidell and his attorney about strategy for winning an arbitration claim over his lost job. Generally, courts have found that employers can monitor e-mail on company computers, but courts also have recognized greater privacy protections for e-mail messages sent via Web-based accounts. To read more, click here.

U.S. SUPREME COURT TO CONSIDER PREGNANCY LEAVE CASE: The high court agreed to review a case that could affect thousands of women at or near retirement age, according to the Washington Post. At issue is whether the Pregnancy Discrimination Act should apply to women who took pregnancy leave before 1979, when the law went into effect. At the center of the case is Noreen Hulton, who gave birth to her daughter in 1968, and due to surgery, had to miss 240 days of work. The 74-year-old woman contends that Pacific Bell, now AT&T, did not properly factor in her pregnancy leave into her retirement and other benefits. To read more, click here.

U.S. LAWMAKERS APPROVE ADA EXPANSION: The U.S. House of Representatives last week approved the ADA Amendments Act to broaden the scope of the Americans with Disabilities Act, Business Insurance reports. Supporters say the legislation would help reverse some of the narrow coverage of the act – due in part to U.S. Supreme Court decisions that have excluded many individuals with cancer, epilepsy, muscular sclerosis, and diabetes. To read more, click here.

REPORT FINDS ILLEGAL PRACTICES AT JUSTICE DEPT.: A report released last week by the inspector general at the U.S. Department of Justice says that the federal agency used illegal screening criteria – political leanings and ideology – as a way of hiring law school candidates with conservative leanings into an elite recruitment program, according to a recent New York Times article. Meanwhile many qualified candidates were rejected for the department's honors program due to liberal bias. The report says those practices “constituted misconduct and also violated the department’s policies and civil service law that prohibit discrimination in hiring based on political or ideological affiliations.” To read more, click here.

MAKE GENERATION GAPS IN THE WORKPLACE WORK FOR YOU: Now that there are four generations in the workplace, the Wall Street Journal say, many companies are trying to find the right combination of tactics to make the differences work to their advantage. And some, like Novo Nordisk AS regional sales executive Andrew Ajello, are finding the wisdom in an increasingly popular management theory: To boost productivity, treat workers of different ages differently. To read more, click here.

THE SECRET TO GREAT COMPANY GROWTH: When it comes to helping your company grow, what's more important than your business strategy? It’s getting the right people on board, according to management guru and best-selling author Jim Collins. And sometimes it means rethinking your existing staff, according to a recent BusinessWeek article. As business climates change, that star employee you hired five years ago may no longer be the right fit for the job. And the salesperson you promoted last year may not be management material like you originally thought. To be successful, businesses have to successfully manage talent. Sometimes, that means making tough decisions. For some tips on how match the right people to the right jobs, click here.

WORLDWIDE AUTOMOTIVE REPORT PODCAST: Sales drop in June, with some surprises. Auto companies ask for more time to meet fuel economy rules. Is Michigan really a finalist for a new VW plant?

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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