WASHINGTON - U.S. Immigration and Customs Enforcement (ICE) is launching a bold, new audit initiative today by issuing Notices of Inspection (NOIs) to 652 businesses nationwide - which is more than ICE issued throughout all of last fiscal year. The notices alert business owners that ICE will be inspecting their hiring records to determine whether or not they are complying with employment eligibility verification laws and regulations. Inspections are one of the most powerful tools the federal government has to enforce employment and immigration laws. This new initiative illustrates ICE’s increased focus on holding employers accountable for their hiring practices and efforts to ensure a legal workforce.

“ICE is committed to establishing a meaningful I-9 inspection program to promote compliance with the law. This nationwide effort is a first step in ICE’s long-term strategy to address and deter illegal employment,” said Department of Homeland Security Assistant Secretary for ICE John Morton.

Employers are required to complete and retain a Form I-9 for each individual they hire for employment in the United States. This form requires employers to review and record the individual’s identity document(s) and determine whether the document(s) reasonably appear to be genuine and related to the individual.

The 652 businesses being presented with a NOI today for a Form I-9 audit have been selected for inspection as a result of leads and information obtained through other investigative means. Due to the ongoing, law enforcement sensitive nature of these audits, the names and locations of the businesses will not be released at this time.

In FY 2008, ICE issued 503 similar notices throughout the year. In April, ICE implemented a new, comprehensive strategy to reduce the demand for illegal employment and protect employment opportunities for the nation’s lawful workforce. Under this strategy, ICE is focusing its resources on the auditing and investigation of employers suspected of cultivating illegal workplaces by knowingly employing illegal workers. The nationwide initiative being launched today is a direct result of this new strategy.

http://www.ice.gov/pi/nr/0907/090701washington.htm

By Dunn, Carney, Allen, Higgins & Tongue

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“By the end of the year, babies will no longer be born at Prineville’s Pioneer Memorial Hospital. The hospital made the difficult decision to phase out obstetric services by 2010 this week due to a sharp decrease in the number of primary care physicians available to provide the service, PMH Executive Director Don Wee said. He emphasized that the hospital’s decision to pull the service is not financial in nature.”We’re losing the physicians that do OB and thus far, we’ve been unsuccessful in replacing those that are leaving,” he said. “You can’t do it with one or two.” Continue reading.

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I’ve been saying that consumer spending would soon increase.  It has not happened yet, but consumers are now in position to get going.  The key concept is that consumers have not been income constrained, as a group.  In the aggregate, they are simply scared.  They have the income to spend more, but they choose not to.  Here’s the month-by-month changes in disposable income and spending since last September (when the economy really started to tank):

Late last year, incomes were down sharply (the orange columns) but spending was only down a little.  So far this year, there have been significant income gains, but without spending gains.  So it is absolutely wrong to say that people have cut back on their spending because they don’t have the money to spend.  Certainly some people are in that condition, but not the aggregate mass of consumers.

As a result, the savings rate has risen sharply:

My look at long-run history (see this post) leads me to think that consumers will get back to savings of 8 to 10 percent of disposable income.  Here are two ways to get there: continue recent patterns of saving all income gains for another four or five months, then spend the bulk of the income gains.  That would add a good push to consumer spending, and thus the economy.

The second approach, which I think is more likely, is for the savings rate to come down a bit from the latest spike, like down to three or four percent.  Then consumers would gradually ramp it up to the 8 to 10 percent range.  If this happens, then spending growth will outpace income growth for a few months.  This seems to be how past long-term changes in savings have occurred.  This scenario is very positive for the economy in the next six months.

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In my search for the perfect car to replace my current one, I have stated that I am in no hurry: mine is pretty fuel efficient, relatively low-mileage and has been a great car to own and drive. Above is a picture of the Tesla S, an all-electric car that should be available when mine is ready for replacement and can go up to 300 miles on a single charge. Now we are talking my language!  Anyway, the idea that I would hasten to trade-in my current car raises some interesting general equilibrium issues as I have mentioned: what does this do to the used car market, the volume of new car production, etc.

The new ‘Cash for Clunkers’ bill is a good vehicle to use to discuss these issues. In it, if you have a relatively low mileage car (18 mpg or less) no older than a 1984 model, you can get a voucher worth up to $4,500 for trading-in that car and buying one with significantly higher mileage. But will this lower fuel consumption and emissions? It is not clear. First, with all of these traded-in high mileage cars on the used car market we can expect the price to be pushed down significantly which will increase quantity demanded even with the high mileage. So people will buy these cars that might not have bought at car at all or who would have bought a higher mileage car. Second, this may lower the threshold for scrapping cars and increase the production of new cars which is pretty energy intensive one imagines. So will the net effect be a reduction in carbon emissions? I am doubtful.

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Lake Oswego, OR – Oregon’s Senator Jeff Merkley announced today at a meeting of Clackamas County Chambers of Commerce that he will introduce the Small Business Jump Start Act to encourage job creation and support small business owners by cutting taxes for the start-up costs of small businesses.  Merkley’s Small Business Jump Start Act is cosponsored by Senator Lamar Alexander (R-Tenn.) and endorsed by the U.S. Chamber of Commerce, the National Federation of Independent Businesses (NFIB), and the National Association for the Self-Employed.

“As our economy begins to recover, small businesses will lead the way,” Merkley said.  “One of the best ways we can encourage job growth is to help small businesses through their first year.  For the majority of small business owners, the first year is the toughest.  New entrepreneurs must hire employees, attract clients, start up administrative systems, and find a suitable facility.  By doubling the deduction for start-up costs, this new legislation will encourage the job growth that will get our economy moving again.”

Small businesses are a vital part of America’s economy.  They employ approximately half the private workforce and, in rural America, comprise nine out of ten businesses.

Small business formation increases during periods of high unemployment.   Over the last decade, small businesses have generated 60 to 80 percent of net new jobs annually.

The Small Business Jump Start Act of 2009 will:

* Give small businesses a financial boost in their first year, encouraging them to open their doors and create jobs now, instead of waiting for the economy to recover;
* Increase the small business start-up expenses deduction from $5,000 to $10,000; and
* Increase the threshold for the deduction phase-out from $50,000 to $60,000.

Increasing the threshold for the deduction phase-out for start-up costs from $50,000 to $60,000 widens the pool of businesses who can claim the entire $10,000 deduction that first year.  If a new small business has over $60,000 in expenses, the first-year deduction is phased out on a dollar for dollar basis.  For example, if a start-up company has $61,000 in expenses, they can take a $9,000 deduction in their first year with the remaining $1,000 spread out over the next 15 years, just as in current law.

“NFIB thanks Senator Merkley for his leadership on this issue,” said Susan Eckerly, NFIB senior vice president. “Funding and cash flow are often one of the main roadblocks in starting a new business. By passing the Small Business Jump Start Act of 2009, Congress would help ease the financial burden facing many new small business owners during their expensive first years in business. NFIB looks forward to working with Senator Merkley to get this needed legislation signed into law.”

“A robust small business community is a vital component to America’s economic recovery. Allowing small business owners the opportunity to expense additional start-up costs up front would foster more entrepreneurial activity and further encourage the important role of small business as the job producers in our economy,” said R. Bruce Joston, Executive Vice President, U.S. Chamber of Commerce.  “As a longstanding advocate of tax relief for small businesses, the U.S. Chamber of Commerce applauds Senator Merkley’s leadership on introducing the Small Business Jump Start Act of 2009.”

“In this difficult economic time it is imperative that we help our nation’s newest entrepreneurs start their business off right.  The Small Business Jump Start Act of 2009 will greatly assist start up ventures at the most critical time — their first year of business — and give them the financial boost they need to succeed,” said Kristie Arslan, Executive Director of the National Association for the Self-Employed.

This bill will help out small business owners like Jack and Giovanina Giaccarini who started Adaptive Technology Assistance in Grants Pass.  Their company provides products and services that make homes more accessible and functional for the disabled.  Jack and Giovanina started their business in 2007 and, like many entrepreneurs, had a tough time securing new capital.  But they stuck to their plan, made smart decisions, and are already making a profit this year.

“Senator Merkley’s plan to help small businesses will provide a major incentive for folks looking to start a business in this economy,” said Giovanina Giaccarini.  “A first-year tax deduction can help new businesses purchase equipment and set up shop right out of the gate.  The sooner a business can get up to speed, the more likely they are to become a long-term contributor to their community.”

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The legislature earlier this week abandoned Governor Ted Kulongoski’s proposal to siphon $50 million from the state’s Unemployment Trust Fund to fund a temporary summer jobs program. As late as last week, it appeared that AOI was facing long odds in defeating the proposal, which was embedded in House Bill 3500. AOI was told last week that a deal had been struck that paved the way for the legislature to pass HB 3500, which included both a $30 million emergency unemployment benefits extension as well as the $50 million raid on the state’s Unemployment fund.

As AOI continued to lobby against the measure (you can read AOI’s arguments here), a very curious development took place. Legislators, particularly in the Senate, began to question the wisdom of taking these employer-paid funds and using them for a purpose that employers do not support. Along the way, AOI received support from the Employment Department’s own Advisory Council (read their comments here). But the final straw came when the Governor vetoed the legislature’s schools budget. At that point, frustrated legislators became unwilling to help the Governor pass his key priority. In the span of one week, the passage of the $50 million Unemployment Fund raid went from a near certainty to being completely derailed.

The issue culminated this week in the passage of a new bill – House Bill 3483 – which included the emergency benefits extension, but did not include the Governor’s $50 million temporary summer jobs program. As the session comes to a close, AOI will continue to remain vigilant on this issue. AOI remains opposed to precedent-setting diversions from the state’s Unemployment Trust Fund.

By J.L. Wilson - 6/26/09
Associated Oregon Industries
Oregon’s largest business lobby

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The UO Index fell slightly in May, down 0.1 percentage points.  The relative stability over the past three months, however, is a welcome relief after many months of steady decline and is consistent with a recent pattern of economic stabilization, both state and nationwide.  Highlights include:

•    Initial jobless claims edged downward, but remain at high levels.  Ongoing high levels of initial claims would be consistent with the “jobless recovery” scenario, in which economic growth is insufficient to generate net positive job growth.
•    Residential housing permits continue to decline, more evidence that the housing recovery – or even stabilization – remains elusive.  High unemployment and tighter credit continue to weigh on the sector.
•    New orders for core manufactured goods jumped, an indication that firms are no longer cutting investment spending.  If this trend is sustained, it would feed through to stabilizing and eventually stronger manufacturing activity in Oregon in the months ahead.
•    The pace of economic deterioration has slowed markedly, and while the Oregon economy likely remains in recession in May, the improvement in the 6 month annualized change in the UO Index is consistent with the recession (period of negative growth) ending in the second half of 2009.  Without a clear upward turn in the UO Index itself, it would be premature, however, to decisively declare that the recession has ended.
•    Even after the recession ends, economic growth is likely to be anemic for an extended period of time as activity continues to adjust to a reversion to more traditional credit underwriting standards.

SPECIAL INVITATION FROM THE OREGON ECONOMIC FOURM:

We are pleased to announce the 6th annual Oregon Economic Forum:  The Economy Under Obama: Assessing the First Nine Months, Looking Toward the Future.

October 22, 2009, Portland,OR

The Obama Administration came to office facing a financial market in shambles and an economy in crisis, a situation that required quick and decisive policy initiatives on fiscal stimulus and banking policy.  Ten months later what has been the impact of those programs, for the nation and for Oregon?  Did the Administration jumpstart economic activity, or are we looking at a prolonged period of economic weakness?  And what is next on the agenda – in particular, what are the Administration’s plans for entitlement programs?  Will Medicare and Social Security reform be on the agenda, and what shape would those reforms take?

REGISTRATION SOON AVAILABLE
For more information, visit http://econforum.uoregon.edu
Special thanks to KeyBank, presenting sponsor of the 2009 Oregon Economic Forum

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Some friends have been debating the role of housing prices in consumer spending, stimulated by two recent articles in the Wall Street Journal’s Real Time Economics blog.  First, Charles Calomiris, Stanley Longhofer and William Miles wrote that effect of housing wealth on consumption is about zero.  Then, Atif Mian and Amir Sufi of the University of Chicago offered a differing view.

I am very cautious before throwing out conclusions that have been tested in multiple ways over many years.  The wealth effect on consumption has been studied since the 1930s, with fairly consistent findings of low elasticity (one to three percent is common). 

I quickly scanned some macro-econometric books on my shelf (Michael Evans, Macroeconomic Activity, 1969; Otto Eckstein, The DRI Model of the U.S. Economy, 1983, and Ray Fair, Estimating How the Macroeconomy Works,  2004).  All these guys, very familiar with past research and deeply hands-on in their own model development, have negligible to low wealth elasticities in their models.  Their work also spans several decades.

We must differentiate an actual wealth elasticity from the method of funding consumption.  A person who chose to increase consumer spending and who was acting in accordance with a mainstream consumption function might well have used home equity financing so heavily that it looked like it was housing wealth that enabled consumption.  That’s because  mortgage finance was a cheaper (especially net of taxes) way to fund car purchases than car loans. Also cheaper to use an HEQ or cash-out refi to buy furniture or take a vacation than run a high balance on credit cards.   In addition, many consumers consciously leveraged up their balance sheets: lots of mortgage debt to fund investments, not just consumption.

Mian and Sufi’s most interesting conclusion is:
“… the effect of house prices on homeowner borrowing is isolated to homeowners with low credit scores and high credit card utilization rates.”

It surprising that they find such a large macro effect from this one segment of consumers.  If they are right, here’s the interpretation I’d give:  normally housing wealth has a negligible effect on consumption.  Then for a few years it had an unusually positive effect, as it allowed otherwise credit-constrained families to spend more.  But now that’s over and we’re back to normal  The transition back to normal is tough, but we will resume the old fashioned consumption function.  However, the Calomiris et al research disputes this view.  It’s quite possible that their analysis, which covers a large swath of post World War II economic history, misses the Mian and Sufi effect because it wasn’t just housing prices that stimulated consumer spending, but the combination of rising housing prices and readily available sub-prime debt.

In any event, I think we’re headed back to a normal relationship now.  Consumer spending will move independently of housing price changes in the future.

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Teens looking for work face tough prospects during this summer’s hiring season. Not only are there fewer jobs available because of the current recession, but there is also a host of skilled, experienced older workers flocking to fill any job opening that comes up, thereby wedging out many prospective young workers. Nevertheless, many Oregon teens will still venture into the employment world this summer in hopes of earning a little extra pocket money, saving for college, or perhaps just to keep busy.

Where Do Teens Work?

Five broad industries captured a large share of Oregon’s total employment in 2008: education and health services, professional and business services, retail trade, manufacturing, and leisure and hospitality. Altogether, these industries accounted for about two-thirds of Oregon’s employment, while the remaining third of workers were divided among Oregon’s eight other broad industries.

Some of these large industries were the same ones where the majority of working teenagers found employment. Of Oregon’s approximately 56,700 working teens in 2008, nearly two-fifths found employment in leisure and hospitality, with nearly one in three teens in the food services sub-sector. Food services includes businesses ranging from full-service restaurants to fast food to caterers. About one in four working teens was in retail trade.

Retail trade and the leisure and hospitality industry both had a high concentration of younger workers in 2008, as shown in Graph 1. Among all industries, workers younger than 25 accounted for 15 percent of the workforce. In retail trade, however, they accounted for 27 percent, and in leisure and hospitality they accounted for 35 percent of the workforce. Both of these industries have a close-to-average portion of workers age 25 through 44, but a smaller-than-average portion of workers age 45 and older.

Leisure and hospitality and retail trade were not the only two industries where Oregon’s teenagers chose to work in 2008. Although it takes a distant third, education and health services employed nearly 9 percent of working teens, and professional and business services employed nearly 8 percent. Natural resources and mining employed slightly more than 5 percent of working teens. The other eight broad industries accounted for the remaining 21 percent of working teens.

Teens’ Wages are Generally Low
In total, about 61 percent of Oregon’s working teens were employed in either leisure and hospitality or retail trade in 2008. The average annual wage in both industries was considerably lower than the all-industry average of $40,500. Retail trade paid about $25,500 a year, while leisure and hospitality paid about $16,350.

Although it is difficult to determine exactly how much Oregon’s teenage workers earned in 2008, the majority were likely below these industry averages. This is partially due to the federal and state laws that restrict how many hours teens can work, which dampen their earnings potential. As a group, young workers also tend to be relatively inexperienced and have fewer skills. Understandably, employers tend to pay them less than more experienced and/or skilled workers.

Thus, in leisure and hospitality, most teen workers probably made minimum wage ($7.95 an hour) in 2008. Retail wages were likely similar, although perhaps slightly higher, given the slightly higher average wage in this industry.

Much Teen Employment Peaks in Spring

Interestingly, teen employment shows at least a slight seasonal pattern in every industry. The most obvious seasonal patterns are in agriculture, leisure and hospitality, and retail trade. Many industries show teen employment peaking during the spring - that is, from April through June - although in a handful of industries, summertime employment (July through September) is either the same as or only slightly lower than springtime employment.

In agriculture, teen employment peaks in the spring, when nearly 7 percent of working teens are in the industry, on average. In winter, only 3 percent of working teens are in the industry. This pattern exactly follows the pattern of employment for all ages in agriculture, although the difference between employment in the spring and the rest of the year is more dramatic for teenagers. Among all ages, the portion of the workforce in agriculture varies only a little - from a low of 2.2 percent to a high of 3.2 percent.

Teenagers also show a seasonal employment pattern in leisure and hospitality - especially in the food services sub-sector. Like agriculture, leisure and hospitality sees the highest total number of teens employed during the spring. Unlike agriculture, the industry’s summertime employment is also fairly high, especially compared to fall and winter (Graph 2). The teen employment pattern in this industry follows the average for all ages.

Teen employment in retail trade peaks at the end of the year, likely because companies hire additional workers during the busy holiday season. Each retail industry, however, has a slightly different employment pattern. For instance, more teens are employed at gas stations during the late summer and early fall, whereas teen employment at clothing, electronic, and department stores peaks at the end of the year. Food and beverage stores see heightened teen employment during both spring and summer.

Urban or Rural? Small Differences

A comparison of teen workers from Oregon’s urban and rural areas in 2008 showed nearly identical employment patterns; that is, the portion of working teenagers in each major industry was about the same in both metro and non-metro areas.

One of the few differences was that a slightly higher portion of rural teens worked in leisure and hospitality and logging and mining. About 41 percent of working rural teens were in leisure and hospitality, compared to about 37 percent of working urban teens. For mining and logging, the difference was 7.5 percent vs. 3.9 percent, respectively.

Oregon’s urban teens, however, were slightly more likely than rural teens to work in education and health services, professional and business services, and retail trade. Retail trade had the largest gap of these three industries, as it employed more than 24 percent of working urban teens but just 21 percent of rural teen workers.

Overall, about the same portion of working teens in both urban and rural areas found employment in leisure and hospitality or retail trade. Combined, these industries accounted for about 61 percent of urban teen employment and 62.5 percent of rural teen employment in 2008.

Boys vs. Girls - Industries Differ

Although Oregon’s metro and non-metro teens had only subtle differences in their employment distribution, there were several significant differences between the young men and young women who worked in 2008. It is commonly known that certain industries have a higher portion of one gender or the other. This was true of working teens in 2008, although the pattern by industry was somewhat different than for all age groups combined.

Overall, Oregon’s workforce was about 51 percent male in 2008. Among Oregon’s teenagers, however, only 46 percent of workers were male. Nevertheless, there were a few industries where young men represent well over half of the teen employment. These industries were construction, manufacturing, mining and logging, transportation, and wholesale trade (Graph 3). Industries where more than half of the teen workers were female included education and health services, financial activities, leisure and hospitality, and other services.

Almost across the board, these same industries showed a gender imbalance in the total workforce. The imbalance, however, tended to be more aggravated among all ages than among working teens. In manufacturing, for instance, about 73 percent of total employment was male. Among teen workers, only 61.5 percent was male. In education and health services, women accounted for nearly 74 percent of all workers, but only 69 percent of teen workers.

There were two industries with notable differences between the teen workforce and all ages: other services and information. Employment in other services was about 58 percent female among the teen workforce, but it was almost evenly split in the general population. Employment in information was nearly balanced in the teen workforce, but male-dominated among all ages.

Just three industries were nearly evenly divided between males and females in both the total and teen workforce: professional and business services, public administration, and retail trade.

Conclusion

Although Oregon’s teenagers looking for work this summer face tough prospects, some will still find employment. A large portion will likely find jobs in leisure and hospitality or retail trade - perhaps waiting tables in a restaurant, stocking shelves in a department store, or bagging items at the local grocery store.

– The State of Oregon Employment Department has additional analysis and material to better understand Oregon’s economic changes.  Please visit here.

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The program has no restrictions to membership, no income requirements, no age limitations and there are no applications to fill out. “The Oregon Rx Card has already had a tremendous impact on the residents of Oregon and, through our coalition of chambers, we should be able to help many more Oregonians afford their medications”, said Leslie Carnes, Chairman of OSCC Board of Directors.

“We are very fortunate to have the Oregon State Chamber of Commerce (OSCC) and their chamber members join us in this statewide prescription assistance initiative,” states Oregon Rx Card Program Director, Andrew Stocks. “This partnership should help us bring this program to many more people who need help across Oregon.”

Oregon Rx Card can also be used by people who have health insurance coverage with no prescription benefits, which is common in many health savings accounts (HSA) and high deductible health plans. Additionally, people who have prescription coverage can use this program for non-formulary or non-covered drugs. Oregon Rx Card is accepted at over 50,000 pharmacy locations across the country. Oregon residents can download a free card, search drug pricing, and locate participating pharmacies at www.oregonrxcard.com or www.oregonstatechamber.org.

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Each member of the Alliance supports Oregon’s Initiative and Referendum Process. While each of our organizations has won and lost our fair share of elections, we are steadfast in our belief that the check and balance provided through our initiative and referendum process should not be confused through legislative action.

House Bill 2414, as gut-and-stuffed, is an outright attempt to confuse the referendum process and we cannot support it. HB 2414 attempts to overturn Oregon’s longstanding election history and sew confusion for Oregonians voting on referrals.

Under the new language of the bill, referendum elections will have drastically different meanings at the ballot box. Under HB 2414, a YES vote will mean “No,” while a NO vote will mean “Yes.”

In other words, if you like what the legislature did on the issue being referred, you vote NO; if you don’t like it, you vote YES. If you want to adopt it, you reject it.

We suspect that the real aim of HB 2414 is to help steer the outcome of the pending referendum on the legislature’s tax increases. Otherwise, there would be no other reason to adopt such a mischievous bill that overturns both Oregon election history and elemental logic in one fell swoop without a single minute of public testimony or policy justification. The integrity of Oregon’s election process is at stake. HB 2414 is a cynical attempt to steer election outcomes.

Legislators have the right to simply vote yes or no on a measure. Oregon voters should not have this right stripped away.

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PC sales growth in the U.S. continues to take a beating at the hands of the economic recession.  Yet, one glimmer of hope remains:  laptop computers.  Dell Computer recently announced declining quarterly profit and revenue results.  Hewlett-Packard also announced similar weak results.  And Intel’s four-quarter long growth streak has ended with the world’s largest chipmaker seeing a decline in both sales and market share. Shipments of PCs during the first quarter were down 7.1 percent from a year ago, according to the research firm IDC.  And it may not be totally behind us: IDC is predicting roughly 8 percent declines in growth for the second quarter.

Low-cost portables, like Netbooks, continue to be the bright spot for many PC makers and helped to stem the overall decline worldwide.  And laptop computer sales outpaced desktop PC sales for the first time last year.

The ratio of laptop PC sales to desktop PC sales is expected to continue to widen this year with 63 percent of the computers sold in 2009 expected to be laptops, according to the Consumer Electronics Association (CEA).  It said that in 2005, the ratio of desktop PC unit sales to laptop PC unit sales was 58 percent to 42 percent.

However, portables will increase sales, not revenues, projects IDC.
In the non-Windows world, Apple continued to increase its market share, moving to number four in the U.S. market, displacing Toshiba, according to The New York Times.

“One unknown for Apple: How it will compete with the newest wave of notebooks from PC makers—small, cheap, less powerful ‘netbooks,’ which are catching on with geeks and some business travelers. Netbooks cost around $400-500, while Apple’s cheapest laptop starts at $1,000 and has a large display,” states The New York Times.

Other noteworthy PC industry trends, according to Hoover’s:

Consolidation. Consolidation has altered the landscape of the PC market and the computer hardware industry as a whole in recent years. In the personal computing segment specifically, two companies—Dell and Hewlett-Packard—dominate.

Continuing Productivity Gains. Automation and redesign of manufacturing operations have increased industry productivity by more than 100 percent in the last five years. Industry employment fell 30 percent, while output rose 50 percent. Productivity gains have been a major factor in the steady fall of computer prices.

Off-Shore Design Facilities. Since many U.S. manufacturers have established manufacturing operations off-shore, the design of new products and technologies is occurring abroad as well.

More Industry-Standard Platforms. The server market has shifted from proprietary hardware and operating systems to standards-based architecture. The broad acceptance of open standards allows the hardware to more easily absorb new technical innovations.

Growth of Alliances. More manufacturers are developing alliances to offer a wider range of products and services. Examples include Dell and EMC announcing a co-branding agreement to market joint products, and IBM and Network Appliance Corp. announcing a co-branding agreement back in 2005;
.

By Oregon Small Business Association

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According to recent statistics released by the Equal Employment Opportunity Commission (EEOC), overall discrimination claims rose 15% in 2008 from 2007. One reason for an increase in discrimination claims is that more people are being laid off from their jobs. A certain percentage of affected employees will file discrimination claims.

Interestingly, age discrimination claims rose at a much higher rate (29%) over the same period. Employers may unintentionally be targeting older workers for several reasons. There may be a desire to layoff the more highly-compensated employees in order to cut costs. This can have a greater impact on older workers. Older workers also have a harder time finding a new job. This gives them more time to dwell on the situation and focus on filing a discrimination claim rather than moving on to a new job and a new employer.

What can you do to minimize your risk of discrimination claims during a reduction in force and specifically, minimize the risk of age discrimination claims?

Perhaps the best way to minimize legal exposure when implementing a reduction in force is to document your decision making and implementation processes.
• Decide on the business goals of the layoff. How many positions will be cut and what departments will be affected?
• What is your criteria for selecting employees for lay off? The criteria you use needs to be consistent and objective.
• Make sure you have documentation that supports your selection decisions.
• Conduct a disparate impact analysis to determine if the lay offs affected any protected class of workers disproportionately. Make adjustments as necessary to the lay off selection list to avoid an adverse impact on any protected groups.

The decision to reduce your work force is difficult. Proper planning and documentation can ensure that you do not end up spending all the savings you gained in a layoff on defending a discrimination claim. For more information on this topic, please contact the Resource Center at resourcenter@iecgroup.com.

– Information courtesy of AmeriBen/IEC Group Exlporer: About AmeriBen: As a full-service TPA with 50 years of administration experience, AmeriBen/IEC Group (“AmeriBen”) is the largest group in the Northwest possessing both human resource consulting and benefit administration services.  AmeriBen currently administers benefit plans for nearly 100 employers and universities numbering 170,000 participant and student lives. Our Retirement Benefits Department administers more than 200 defined contribution retirement plans while our Human Resource Consulting customer base numbers over 400 employers. In total, AmeriBen has approximately 700 clients.

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Portland, Ore. – Today, the Portland Business Alliance’s Board of Directors released the following statement about the Oregon State Attorney General’s report on its investigation of Portland Mayor Sam Adams. “Attorney General John Kroger today issued a report concluding there is no basis to file criminal charges against Mayor Adams as a result of his relationship with Beau Breedlove,” said Sandra McDonough, President and CEO of the Portland Business Alliance. ”With encouragement from Portland City Council members, Chief Rosie Sizer and District Attorney Michael Schrunk asked Attorney General Kroger to conduct an independent review of the facts around the Adams situation.

City Council — and most other leaders in our region — appropriately withheld from drawing conclusions about the situation until after the attorney general’s report was issued. The Alliance supported that approach. ”Clearly, the mayor showed a lack of judgment in having any contact with Breedlove before he turned 18, and it was wrong for him to lie about the relationship when it first became public during his campaign for mayor. However, the attorney general has determined that there is no basis to find that there was illegal contact between the
mayor and Mr. Breedlove. For that reason, the attorney general has concluded that criminal charges will not be filed, and there is no evidence to support other charges. ”It is time to move on: Mayor Adams must now demonstrate that he can move beyond these personal issues and lead the city at a time when leadership is crucial.

“Oregon and Portland face one of the highest unemployment rates in the country. Portland needs and deserves a strong mayor who will enable us to stand united as a community and focus on how to create jobs that will put unemployed residents back to work. We cannot afford further distractions. This situation surrounding Mayor Adams has been a significant distraction for six months; the attorney general’s report gives us a basis to move forward and start working on issues that matter to Oregonians.”

The Portland Business Alliance is Greater Portland’s Chamber of Commerce representing more than 1,400
businesses in the region. Our mission is to ensure economic prosperity in the Portland region by providing
strong leadership, partnership and programs that encourage business growth and vitality. Visit the Alliance at
www.portlandalliance.com.

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Senate Bill 519 will pass House today, new bill introduced to expand scope of “Gag Bill”.   The Oregon House of Representative is poised to pass SB 519 – “the Employer Gag Bill” – under direction from House Democratic leadership to pass the bill in its exact form without any business input.  Passage of SB 519  by the House, plus a signature from Governor Kulongoski, will mean the “Employer Gag Bill” will go into effect on January 1, 2010.  But in an unprecedented twist, new legislation was introduced this week to change SB 519 before it even passed the legislature.  House Bill 3507 was introduced this week to “fix” SB 519 before SB 519 has even been passed.

As has been typical of this legislative session, HB 3507 merely adds insult to injury by expanding the scope of religious, political or union matters that fall under the dictates of SB 519.  HB 3507 is expected to sail through the legislature in the waning days.

In its current form, SB 519 (and HB 3507) undermines an employer from requiring attendance at an organization’s meetings concerning the employer’s opinions on “religious or political matters.”  This also extends to the employer’s use of mandatory meetings to inform workers of the organization’s perspective on union organization; an employer right allowed under the National Labor Relations Act (NLRA) for more than seventy years.

The restrictions imposed on employers by SB 519 (and HB 3507) not only interfere with necessary and productive workplace communications, but also restrict an organization’s ability to require employee attendance at certain meetings – even if such meetings were held during the workday and if employees were paid for their attendance.

AOI argued strongly that SB 519 is unconstitutional and saddles employers with the potential for devastating liability by creating a new protected class of employees.  AOI also argued that HB 3507 only makes SB 519 worse.

If SB 519 and HB 3507 become law, they would severely inhibit an employer’s ability to communicate with its workers and, most importantly, would diminish the competitiveness of Oregon employers.

By J.L. Wilson
Association of Oregon Industries
Oregon’s largest business advocate

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Oregonians are losing ground to the average American based on 2008 per capita statistics recently reported by the Oregon Employment Department.

•   Oregon’s per capita personal income fell 1.5 percent in 2008. From $36,492 in 2009 to $35,956. (inflation adjusted).
•    Oregon’s per capita personal income went from 28th to 32nd. (From 2003-2008).
•    Oregon’s growth over the period (3.8%) ranked 43rd.
•    Oregon’s per capita personal income as a percentage of the national figure reached an all-time low in 2008. Oregonians were earning 90.5 percent of the national average, compared to 93.9 percent in 2003
•    Oregon’s per capita personal income grew 3.8 percent, compared to the national average of 7.7 percent (Over the past five years) . The gap between Oregon’s per capita personal income and the national figure is the widest since at least 1929, the very first year data was collected.
•    The Far West States ranked third among the eight regions of the U.S. with an average of $41,994. The states includes Alaska, Hawaii, California, Nevada, Washington, and Oregon. All of the Far West states other than Oregon recorded gains of more than 8 percent in their per capita personal income over the period.
•    Oregonians were best off in 1943 . This is when they earned 124.4 percent of the national per capita personal income. The last time that Oregon’s figure was on par with the national average was 1980.
•    About 40 percent of Oregon children currently live in low-income households. According to Oregon Live.
Nationally, per capita personal income rose from an adjusted $36,894 in 2003 to $39,751 in 2008, a 7.7 percent increase. However, the national figure peaked at an all-time high in 2007 when the average person made about $40,000.
Only 12 states and the District of Columbia posted gains to their adjusted per capita personal income in 2008—the national average declined 0.9 percent over the year.

In 2008, per capita personal income figures ranged from a high of $64,911 in the District of Columbia to a low of $29,569 in Mississippi.
New England and the Mideast were the wealthiest regions in 2008, with per capita personal incomes of $48,715 and $46,635, respectively. The Southeast ranked as the poorest region with a per capita personal income of just $35,706, just $250 below Oregon’s level.
Some possible reasons for Oregon’s downward slide:
•    The result of relying on a manufacturing and a resource removal economy. It is unlikely that loggers, millworkers and factory assemblers can be retrained to be computer programmers, accountants, bio-research technicians or health care workers.
•    With the exception of Intel and Nike, the lack of major technology and other major corporate headquarters that pay high salaries.
•    Oregon’s tax system restructuring in the early 1990s.  The demands on the state’s general fund, when faced with a decline in revenues, means pervasive paring of government services.

– Highlighst provided by Oregon Tax News 6/2009

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