July 23, 2008

The Latest Business Headlines from WWJ Newsradio 950

Ghosn Sees No '09 Recovery | Nissan CEO Carlos Ghosn does not expect U.S. auto sales to bounce back in 2009 after a sharp decline this year, Reuters reports. | Story

Runway Expansion Deal | An agreement could be in the works on the new runway proposed for Detroit Metropolitan Airport, Crain's Detroit Business reports. | Story

Domino's Stock Rises | Shares of the pizza delivery company jumped Tuesday after the chain reported that its second-quarter profit soared, the Associated Press reports. | Story

Zoo Levy Could Pass | A poll shows more than two-thirds of area voters would approve a 0.1-mill property tax to support the Detroit Zoo, the Detroit Free Press reports. | Story

Bank Web Sites Flawed, UM Finds | A new University of Michigan study finds that more than 75 percent of bank Web sites have at least one design problem that could make customers vulnerable to cyber crooks | Story

Financials Boost Market | Stocks shot higher Tuesday after crude finished at a near seven-week low and Wachovia Corp. fronted a turnaround among financial shares. | Story

COMPANIES OFFERING FINANCIAL HELP TO EMPLOYEES HIT BY SOARING FUEL COSTS

As the price of employee commutes continues to accelerate, employers are beginning to pump more energy and dollars into creative cost-saving strategies for their road-weary workers.

The strategies range from shorter workweeks and flexible schedules to transit subsidies and carpooling incentives. Now, employers also are tapping IRS rules for relief.

The little-known section 132(f) of the Internal Revenue Code allows employers to assist employees with transportation costs by reimbursing or excluding up to $115 per month for each qualified employee, said Jay Kennedy, chairman of the State Bar of Michigan taxation section and senior counsel at Warner Norcross & Judd, a Southfield-based law firm. The employee must use the money for carpools, mass transit, or qualified parking.

"It's a tax-free benefit that an employer can provide to an employee or employees that commute to work in a qualified vehicle," he said. "It's really a subsidy."

For a vehicle to qualify for the subsidy, it must have room for six passengers plus a driver. The employer can hire a third party to provide the transportation or employees can qualify with the right vehicles. Employers can offer the benefit in one of two ways: they can cut a check for $115 or they can offer it by reducing an employee's salary by that amount – much like how 401(k) contributions work. The salary reduction option would require an employee to provide written consent and would allow the company to use the money to purchase transportation services. More...

Employers Should be Wary of ‘Blackberry Overtime’

It used to be that tracking employees' hours was as simple as checking to see whether they were sitting at their desks or what time they punched the time clock for that day. That's not true anymore.

Today, the line between our lives at and outside work has blurred. People these days check their e-mail at home and on the go, they update Web sites from coffee shops, and, of course, they always have that cell phone handy. All this connectedness has helped make us more productive, but it also could lead to legal trouble for employers, said Daniel J. Bretz, labor and employment law attorney for Clark Hill PLC in Detroit.

"People are predicting that it's just a matter of time before class-action attorneys get together a group of plaintiffs who will sue their employer, potentially, for overtime for time they spent working at home, checking their e-mail, doing work off their laptops.," Bretz said. More...

COMPANIES TURN TO TECH TO SLASH BIZ TRAVEL COSTS: Like many companies, Accenture is looking for ways to trim high travel costs these days. In May alone, the company used virtual meetings to avoid 240 trips and 120 domestic flights – a move that has equaled millions of dollars in annual savings for the company, according to a recent New York Times article. The videoconferencing technology, known as telepresence, is beginning to reshape the way companies “do” meetings. And Accenture is not alone. In a survey completed last month, Orbitz and Business Traveler Magazine found that 42 percent of businesses were looking into business travel alternatives such as videoconferencing and Web-based meetings. For more, click here.

ECONOMY TAKES TOLL ON WOMEN'S PROGRESS: The number of women in the workplace has declined during this decade, despite a sharp growth trend since the 1960s, according to a Congressional study released earlier this week. According the New York Times, economists first surmised that women were retreating from the workforce based on choices to stay home and raise children, or because their spouses were doing well, allowing them to exit the workforce. However, the study shows that women's numbers in the workforce are on the decline due to many of the same issues that have impacted men in recent years – layoffs outsourcing, stagnant wages, the sluggish economy, and pay cuts. To read more, click here.

WOMEN CAN MAKE CAREER HEADWAY WHEN COMPANIES DOWNSIZE: When companies downsize and restructure, it's generally not good news for anyone. But a recent study shows that when firms trim staff, women often find greater opportunities for career advancement. Based on new research by a University of Illinois sociologist, women can make significant career progress into male-dominated management ranks when companies downsize and restructure. More...

REMOVING BARRIERS FOR WOMEN IS GOOD FOR BUSINESS: Women may hold 40 percent of all managerial positions in the United States, but only 6 percent of the top executives in Fortune 500 firms are women, with only 2 percent sitting in the CEO seat, according to a recent article in the Harvard Business Review and Portfolio. Why? Discrimination at every level, some experts say. But eliminating barriers to women's climb to the top can pay big dividends for business because women often have leadership styles characterized by innovation, building trust, and empowering others. Companies can help remove some of these obstacles by giving women challenging assignments to help prepare them for line management. To read more, click here.

IS YOUR OFFICE SPACE CONTRIBUTING TO TURNOVER, LOW PRODUCTIVITY? Bad office space can increase employee turnover, a study finds. According to the study, conducted by Blumberg Capital Partners, a real estate investment management firm in Coral Gables, Florida, one in five workers said their office building's condition decreased productivity and motivation. One-third of those polled said they have left jobs or have accepted new ones based on the condition of their office buildings or the amenities offered in their workplaces. More...

GAO FAULTS DOL FOR FAULTY WAGE, HOUR ENFORCEMENT: Miscommunication and poor coordination of staff and resources are hampering the U.S. Labor Department's Wage and Hour Division (WHD), according to testimony during a hearing last week before the House Education and Labor Committee. The findings are based on information about WHD practices from a General Accounting Office (GAO) report and testimony before the committee. The WHD is charged with protecting basic rights of U.S. workers by enforcing the Fair Labor Standards Act (FLSA). More...

PODCAST HIGHLIGHTS FMLA RULES, PROPOSED DOL RULE: Is the Family and Medical Leave Act (FMLA) stumping people in your organization? Are you confused about the impact that the proposed Department of Labor FLMA rule may have in your company? An employment legal consultant in Hewitt's Lincolnshire, Illinois office answers many questions about the FMLA and related issues in a new “Ask the Expert" page and podcast on Hewitt.com. To read the article and listen to the podcast, click here. For additional resources, click here.

WORLDWIDE AUTOMOTIVE REPORT PODCAST: The auto industry is expecting more tough sales months ahead. The sales downturn could even extend to other countries. Mini, however, sees a stronger shift to smaller vehicles.

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