StrategyDriven Podcast Series

StrategyDriven Editorial Perspective – The Ugly Truth About Partisan Public Project Labor Agreements

While we voice concerns about debt and spending, we also need to be mindful of the state of employers, particularly small business and their struggles to remain competitive and viable. Statistically small business, employers of at least 50 percent of our workforce, are struggling, and eager to get your business. They are begging to serve you while balancing unclear taxes, health insurance obligations, and uncertain ability to make payroll. Public project labor agreements (PLAs) provide another hurdle, unless their employees choose to pay union dues.

Here is the ugly truth for small business employers without union workers…

As the result of $50 Million in Hurricane Sandy damage, the New Jersey Senate passed Bill S24251 that approves PLAs. That means that non-union employers will not be included in the bidding process for public work or state funded contracts unless there is a collective bargaining (union) contract representing employees. This is not only bidding preference, this is a freeze small businesses out of competitive bidding unless their employees pay union dues.

In other words, non-union contractors have no place in this public work, period. The NJ Senate Bill S2425 enhanced their existing law in New Jersey for PLAs to include roads, bridges, and water treatment. The bill was introduced and sponsored by Senate President Steve Sweeney, former vicinity president of Iron Workers District Council of Philadelphia. This is a stark contradiction to Sweeney’s inaugural goals including “encourage shared public services among local governments as a way to reduce spending… and make the state business friendly.”2 This Senate Bill is hardly a cost saving, business friendly measure.

Further, in support of unions, on February 6, 2009, President Obama signed an executive order reversing George H. W. Bush’s prohibition on the requirement for project labor agreements on federal projects.3 Obama claimed “it was the government’s policy to encourage the use of labor agreements to avoid misunderstandings about the cost of labor and to ensure that one contractor’s workforce problems during a project not delay other teams involved in the contract.” What it does not address is the freezing out of non-union bidders and the increases in taxpayer costs.

Statistically speaking, only 13.2 percent of the 2012 U.S. private construction workforce belongs to unions.4 This information represents that 87 percent of this employment sector are non-union employees, a solid supposition that they are from the small business sector.

Is this precipitating and/or worsening the status quo with small business? The success of small business is largely measured on their ability to hire and maintain employees. Their success for work is neither viable nor likely considering PLAs. According to the 2012 Year End Economic Report of the National Small Business Association,

  • Just over one-third (38 percent) anticipate their firms will grow in the coming year—the lowest this indicator has been since we began asking this question in December 2009;
  • Hiring remains stagnant with the number of small-business owners who project decreases to their employment size in the coming year rising from 12 percent to 16 percent;5

The reality is that there is a major difference between supporting unions and taking away legitimate bidding power from small contractors and family owned, non-union businesses. And, the competitive bidding process is in place to assure the best look at products, quality of services, at the best price. Competitive bidding is most often used by government agencies that are required by law to open contracts for bid and must award business to the lowest bidder. This is intended to ensure impartiality in buying decisions and assure the best price.

Further included in a PLA is the stipulation that may require even non-union contractors to make contributions to the union benefit and pension funds for each employee. That would result in additional contributions (possibly double the cost) to employers for benefits and pensions that have already been provided.

All eyes are on New Jersey Governor Chris Christie to see what he will do with the NJ approved State Bill 2425. According to Chris Christie’s Office, he will consider the bill including a possible veto when it reaches his desk. Republican Governor Christie is a union supporter, who is up for re-election in November, 2013.

We must not forget, the costs to taxpayers on project labor agreements is between 12 and 18 percent higher when union contractors are only part of the bidding process.6

House Bill HR 436 has been introduced by Congressman Andy Harris (R) from Maryland which would prohibit preference to labor unions or other discriminatory provisions in government projects.7 The Bill has been referred to the House Committee on Oversight and Government Reform.

We know our priorities, at least according to public opinion; Jump start the economy, provide avenues for small business to thrive, patronize local business – not exactly the focus of legislators. The survival of small business is being largely ignored by the elected officials of New Jersey and Washington who must remember that they also represent small businesses, and workers who choose not to be represented by labor unions.

Keep in mind that the National Labor Relations Act clearly protects the rights of employees to form and join unions but it also provides the right to refrain from association with unions. These actions could result in a process of “pay to play” – or in this case, pay to work.

Final Request…

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About the Author

Wendy Powell is the author of Management Experience Acquired. With more than twenty-five years of human resource and management consulting experience, Wendy has spent most of her career at the University of Michigan. She is currently on the business faculty at both Palm Beach State College and the University of Phoenix. A member of the Society of Human Resource Management, she received a leadership award in 2002 from the Midwest College and University Professional Association for Human Resources. She is routinely featured on The Huffington Post and has appeared on Fox Business’s The Strategy Room. Wendy holds a Bachelor of Science degree in business management and a Master of Arts degree in organizational management.


References

  1. http://www.njleg.state.nj.us/2012/Bills/S2500/2425_I1.HTM
  2. http://www.impact-net.org/news/iron-workers-district-council-president-steve-sweeney-sworn-in-as-nj-senate/
  3. http://www.whitehouse.gov/the_press_office/EXECUTIVEORDERUSEOFPROJECTLABORAGREEMENTSFORFEDERALCONSTRUCTIONPROJECTS/
  4. http://www.bls.gov/news.release/union2.t03.htm
  5. http://www.nsba.biz/?p=5242
  6. http://thetruthaboutplas.com/get-the-truth/
  7. http://thomas.loc.gov/cgi-bin/bdquery/z?d113:HR00436:@@@D&summ2=m&
StrategyDriven Resource Management Warning Flag Article

Resource Management Warning Flag 3 – Marginalizing Employee Contributions

StrategyDriven Resource Management Warning Flag ArticleAll employees need to feel their work contributes to and is valued by the organization. While leaders may express appreciation for an individual or group’s work effort, resource management programs sometimes unintentionally marginalize employee contributions. Doing so causes employee dissatisfaction, burnout, and unwanted attrition. Resource management and strategic planning programs must therefore be carefully constructed so as to not unintentionally marginalize employee effort.


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About the Author

Nathan Ives, StrategyDriven Principal is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.

Jeffrey Gitomer

LinkedIn is great for business – er, I mean SMART business.

I am NOT a LinkedIn expert, but I do have more than 15,000 LinkedIn connections. Do you?

I may have more visibility and notoriety than you do, but we are equal in exposure and linking possibilities. And 98.5% of my LinkedIn connections are the result of people wanting to connect with me.

I do not accept everyone. I click on everyone’s profile before connection. Many are impressive. Most are average or less. Some are pathetic.

How’s yours? How many connections do you have? How are you communicating with your connections? How are your connections helping your sales or your career?

Your LinkedIn profile is one more social media image. And you choose exactly what it is. When others search for you on Google, LinkedIn is one of the first links they click on. You have a chance to make a positive business and social impression.

THE GOOD: When I realized the business significance of LinkedIn, I immediately sought professional help. I hired Joe Soto at One Social Media to help me with the keywords, layout, and what to include on my profile page. He also recommended what and how to post.

It must be working. In the two years since I hired him, I have added more than 9,000 organic connections. Or should I say, more than 9,000 potential customers. Huge opportunity. At an acquisition cost of ZERO.

REALITY OF LINKEDIN: I receive requests to link and I also get messages. Some are very nice, some are self-serving, some are insincere, and some are stupid (very stupid). And ALL messages are a reflection of the person sending them. That would be you.

Here are some THINGS about LinkedIn to make you think, re-think, and act:

  • Your picture is NOT an option. Show a professional, but approachable, image. Be proud of who you are.
  • Have a LinkedIn profile that gives me insight, not just history. Not just what you’ve done, but also who you are. Your profile is your pathway to connection.
  • DANGER: DO NOT USE stock LinkedIn messages. It shows your laziness, lack of creativity, and overall lack of professionalism. Standard LinkedIn messages need to be replaced with your own. EVERY TIME.
  • If you’re looking for a job, or working a lead, tell me WHY I should connect. (Where’s the value?)
  • If you’re looking for leads, use the keyword feature (rather than the job title option) in the ‘advanced search’ link to the right of the search box. It’s free, and you’ll find hundreds of people in your industry or in your backyard that you never knew existed.
  • • Why are sending me an e-card on Easter? I’m Jewish, not a good move. Three words to ask yourself with any message you send or post: WHERE’S THE VALUE? E-cards are a total waste, unless it’s family.
  • If you’re asking me (or people) to join your group, TELL ME WHY I SHOULD.
  • If you’re asking me to connect you with a 2nd level connection, DON’T. The only way to ask is from 1st to 1st. And tell me in a sentence or two WHY you want to connect.
  • Asking for a recommendation or endorsement is BAD. If you’re asking your connections for a recommendation: DON’T. It is perhaps the dumbest, rudest thing on LinkedIn. Think about it, you’re asking people to “please stop what you’re doing and tell me about ME.” Two words: GO AWAY. If you have to ask, it’s probably because you don’t deserve. Think about that.
  • Don’t tell me you “found something interesting” in your group message, especially if the link is to join your MLM down-line or attend your ‘free’ webinar.
  • Allocate 30-60 minutes a day to utilize this vital business social media asset.

THE BAD and THE UGLY: Here are some examples of MESSAGES and INVITES I have received on LinkedIn. Hopefully they’ll make you think, re-think, and act…

BAD: Hi Jeffrey, My name is — with —, a leading — provider that helps organizations connect with their customers through email, mobile, and social networks. I would like to connect about a potential partnership to help Buy Gitomer, Inc. increase their interactive marketing ROI.
This is a typical self-serving (and deleted) message. Why not give me a tip, and ask if I’d like more like it? And stop using dead sales words like ‘ROI,’ and ‘helps organizations.’ Help me, don’t sell me.

DUMB: Hi All, As I continue to work on building my network, can I ask that you do me a huge favor and endorse me here on LinkedIn? I would be more than happy to return the favor and endorse you as well. Thank you for your support! (name withheld to avoid public embarrassment)
Scratch my back and I’ll scratch yours. Give me a break. Spare me. Beg someone else.

BAD AND DUMB: I got this in my message box (I get a few like this every week)
(subject line) Your Opinion please. (name withheld) Supplier Business Executive
If you’re hoping for an endorsement or a recommendation on LinkedIn, or anywhere, here’s the two-word mantra: EARN IT!

LinkedIn is the business social media site of today AND tomorrow. Harness its power, do notabuse its options, and you will reap its rewards.

Reprinted with permission from Jeffrey H. Gitomer and Buy Gitomer.


About the Author

Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at [email protected].

StrategyDriven Podcast Series

StrategyDriven Professional Podcast Episode 4 – Skills Mismatch: Business Acumen and Strategy Execution

StrategyDriven Professional PodcastStrategyDriven Professional Podcasts focus on the tools and techniques business professionals can use to accelerate their careers and personal goals achievement. These podcasts elaborate on the principle, best practice, and warning flag articles found on the StrategyDriven Professional website.

Episode 4 – Skills Mismatch: Business Acumen and Strategy Execution explores the importance of acquiring and maintaining business acumen skills as a key component of strategy execution. During our discussion, Rommin Adl, Executive Vice President and Global Partner at BTS USA, shares with us his insights and illustrative examples regarding:

  • business acumen and its importance to strategy execution
  • marketplace shortage of executives and managers with business acumen skills and the impact on companies with this skills deficiency
  • business acumen skills differences between executives and managers
  • actions that can be taken to close the business acumen skills gaps
  • trend towards and benefits of using business simulations over traditional classroom training

Additional Information

In addition to the invaluable insights Rommin shares in this podcast are the resources accessible from his company’s website, www.BTS.com.


About the Author

Rommin Adl, Executive Vice President and Global Partner at BTS USARommin Adl is Executive Vice President and Global Partner at BTS USA, a leader in the development and delivery of high-impact experiential learning initiatives that drive alignment, mindset, and capability around strategic priorities. For over twenty years, Rommin has advised leaders at companies including Aetna, AT&T, GlaxoSmithKline, Honeywell, Humana, Time Warner, and many others on issues of strategy development and implementation.

Nathan Ives, StrategyDriven Principal is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.

StrategyDriven Enterprises Extends its Energy Advisory Services, Partners with NTE Solutions

StrategyDriven Enterprises, LLC and NTE Solutions partner to provide energy industry executives and managers with asset lifecycle management and regulatory compliance advisory services.
 
 
Power and Utilities ConsultingStrategyDriven Enterprises, LLC and NTE Solutions have announced a partnership that will expand energy services to clients and prospects of both companies. The relationship combines StrategyDriven’s leading experience in asset lifecycle management and regulatory services with NTE Solutions’ capabilities in all aspects of power development, from engineering to commercialization.

“Utility leaders must find cost effective ways to replace aging assets, transfer knowledge to a new generation of workers, release currently unavailable capital, and optimize strategic operations and maintenance programs,” explains Nathan Ives, StrategyDriven’s Chief Executive Officer. “We are excited about the opportunity to combine StrategyDriven’s experience with NTE Solutions’ capabilities. This partnership will create a more complete set of offerings that efficiently serve diversified generation utility executives.”

“StrategyDriven and NTE Solutions share a similar focus,” asserts Seth Shortlidge, NTE Solutions’ Chief Executive Officer. “We both aim to offer a variety of services that meet the growing needs of our clients and prospects.”

The StrategyDriven/ NTE Solutions team provides energy industry leaders with actionable performance improvement and regulatory compliance support in the areas of:

  • Strategic solutions
  • Risk management and compliance
  • Project development and management
  • Asset management and operational programs improvement
  • Performance monitoring and assessment

About StrategyDriven

StrategyDriven provides energy industry executives and managers with the planning and execution advice, tools, and practices needed to improve the safety, reliability, and efficiency of electric power generation and delivery. Our advisors are seasoned power and utilities professionals supported by tools and methods tailored to meet the unique needs of utility operations.

StrategyDriven refers to the family of organizations comprising StrategyDriven Enterprises, LLC. For more information, please visit www.StrategyDriven.com/advisory-services.

About NTE Solutions

Headquartered in St. Augustine, FL, NTE Solutions provides energy and infrastructure services across the United States and internationally. The team has expertise in marketing, development, engineering, legal and regulatory affairs, with executive staff previously holding leadership roles in major energy, legal, and construction/engineering firms. NTE Solutions’ project teams work collaboratively across disciplines to provide high-value solutions to clients in the power, water and oil & gas industries. For more information, visit www.ntesolutions.com.