Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.
Dangerous Labor Ambush Set for Struggling Small Employers
“If the people don’t want to come out to the ballpark,” baseball’s Yogi Berra once misquipped, “nobody’s going to stop them.” Labor bosses must feel the same way about wage and salary workers who are avoiding union halls these days. According to the Bureau of Labor Statistics’ latest union membership report, only 6.9 percent of […]
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
“If the people don’t want to come out to the ballpark,” baseball’s Yogi Berra once misquipped, “nobody’s going to stop them.”
Labor bosses must feel the same way about wage and salary workers who are avoiding union halls these days. According to the Bureau of Labor Statistics’ latest union membership report, only 6.9 percent of private-sector workers carried cards in 2011, which is a historically low rate for the private sector.
After failing to ram its “card-check” unionization ploy through Congress recently, big labor sees no future in playing by the rules. That’s why bosses have turned to their friends at the National Labor Relations Board (NLRB). No longer a non-partisan, fair-handed government agency concerned with balancing labor relations in the workplace, the NLRB is only too eager to help reverse union members’ rush to the exits.
Now dominated by former labor lawyers, the agency is scurrying to rewrite federal regulations before the polls open in November. Its latest gift to labor is an “ambush” rule designed to speed up union elections by shortening the period between petition filing and voting to less than 20 days. The rule would remove a critical 25-day waiting period to give small employers time to seek counsel and talk with their employees.
But U.S. Sen. Mike Enzi of Wyoming, ranking member of the Health, Education, Labor and Pensions Committee, is rallying colleagues to block the rule’s April 30 implementation. He’s getting strong support from the National Federation of Independent Business (NFIB), which played a key role in thwarting labor’s card-check assault.
NFIB is ramping up a nationwide grassroots effort among its 350,000 small-business-owner members to build momentum for Enzi’s resolution. Concerned that some employers mistakenly believe narrowing the petition-to-filing window might give them an advantage in union elections, the business organization warns the reverse is true: If this change were bad for unions, would they be working to promote it?
Fortunately, the unions have a more-than-able, and powerful, opponent in the small-business community. For example, NFIB was the only business group to legally challenge the constitutionality of President Obama’s mandated health-reform law, ensuring it would be reviewed by the Supreme Court.
Unions already win more than 70 percent of their elections, says Enzi, thus there is no justification for ambushing employers with elections in 20 days or less. He said this regulatory reversal could limit businesses’ free speech and other legal rights, calling it a transparent attempt to increase unionized workplaces.
If the NLRB’s ambush rule takes effect, small employers will have little time to educate their employees so they could make informed decisions in union elections. And since small firms typically lack labor-relations expertise and in-house legal departments, their disadvantage would be even greater. Add that to employers’ inability to compete with professional union organizers who can secretly campaign and unfairly promise workers high wages and better benefits, and small businesses would be easy pickings.
Labor and the NLRB must play by the rules. This attempt to ambush job-creating entrepreneurs who are already struggling to survive is a dangerous game, especially when the legs of our economy have yet to regain their strength.
Dan Danner is president and CEO of the NFIB, which represents 350,000 small-business owners in Washington, D.C. and every state capital.
Vets institute, Whitman win grant
SYRACUSE — The Institute for Veterans and Military Families and the Martin J. Whitman School of Management at Syracuse University (SU) won a grant of
Enable names executive director
SYRACUSE — The nonprofit organization Enable has promoted Prudence York, its former director of community services, to executive director. York has worked at Enable since
Spring Binghamton Restaurant Week packed in the crowds
BINGHAMTON — More than 13,000 diners turned out for Binghamton’s fifth Restaurant Week this past March, helping restaurants show off their cuisine and hopefully win
JET moves to Arnot Health campus, management
ELMIRA — Joint Education and Training, Inc., (JET) is now operated by the Arnot Health education department and has moved to the Arnot campus on
Survey: Few consumers plan to spend their tax refunds this year
This time of year, the television and radio are usually chock full of ads from businesses peddling tax-refund specials for shoppers. However, the Siena College
AICPA Survey: Digital world has made it easier to spend, not save
The explosion in mobile and online music, games, apps, connections, and movie downloads are taking a toll on Americans’ wallets, according to a new survey
New program to provide training to domestic-violence survivors
SYRACUSE — Starting a business is an amazing opportunity for any woman, but it rises to another level for domestic-violence victims, says Joanne Lenweaver, director of the WISE Women’s Business Center. “Having this phenomenal opportunity offered to you and having the resources to actually see that this is a possibility,” Lenweaver says. “That you have
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
SYRACUSE — Starting a business is an amazing opportunity for any woman, but it rises to another level for domestic-violence victims, says Joanne Lenweaver, director of the WISE Women’s Business Center.
“Having this phenomenal opportunity offered to you and having the resources to actually see that this is a possibility,” Lenweaver says. “That you have a choice now is remarkable.”
The WISE Center, Syracuse University’s South Side Innovation Center, and Vera House are working together on a new project to offer those choices to domestic violence victims through entrepreneurship training.
A $100,000 grant from Verizon is funding the effort, known as Project Phoenix. It’s one of five grants Verizon awarded to work-force development groups and domestic-violence agencies across the state to develop entrepreneurship training programs.
The one-year grant aims to train 15 to 20 people, says Randi Bregman, director of Vera House, a Syracuse nonprofit that works on issues involving domestic and sexual violence. Ten women have signed up so far and some already have ideas for businesses or have started young companies, she says.
One of the greatest challenges for victims of domestic violence is gaining economic independence, Bregman says.
“Part of the healing is knowing that you can take care of yourself and move on from having lived in fear,” she says. “The economic reality leaves people in fear for a long time.”
The flexibility of owning a business will allow domestic-violence survivors to work from home and around child-care arrangements, Bregman notes. Entrepreneurship is also largely about empowerment and figuring out how to advance one’s goals and visions.
Much of the language involved is similar to how Vera House speaks with victims, Bregman says.
“It’s really empowering people to find themselves,” she says. “That’s consistent with what we do.”
South Side Innovation Center Director Bob Herz agrees.
“The link is really empowerment,” he says. “We help people take control of their lives and over their futures as entrepreneurs.”
The South Side Innovation Center will help Project Phoenix participants take the first steps toward launching their companies. Training will involve basic money management, time management, and public speaking.
The center also expects to help participants form business entities and move some of them on to more advanced training in business-plan development, Herz says. Participants will also have the chance to apply for a Verizon Domestic Violence Entrepreneurship Grant at the end of the training.
The grants, worth up to $5,000, are meant to help fund business startups. The South Side Innovation Center can also connect participants with micro-loans, Herz says.
Some of the Verizon grant will be set aside to allow Project Phoenix participants to attend the annual Women Igniting the Spirit of Entrepreneurship (WISE) Symposium. The symposium and the WISE Center provide networking opportunities and support for members of the program, Lenweaver says.
Women business owners face unique challenges and the WISE Center can help Project Phoenix participants overcome them, she adds. Many of them, for example, may have worked on or even owned companies with ex-spouses, she notes.
Business contest winner MicroGen plans for growth
ITHACA — MicroGen Systems, Inc. expects hiring this year in the wake of winning the $200,000 grand prize in the Creative Core Emerging Business Competition. The company, based in Ithaca, plans to add four to five new employees this year to its current staff of five. MicroGen had been a finalist in the Creative Core
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
ITHACA — MicroGen Systems, Inc. expects hiring this year in the wake of winning the $200,000 grand prize in the Creative Core Emerging Business Competition.
The company, based in Ithaca, plans to add four to five new employees this year to its current staff of five. MicroGen had been a finalist in the Creative Core competition for the past two years.
The money will go toward hiring and supporting the work of the company’s scientists. Each of the past two years, company leaders felt like they had won the contest, says Michael Perrotta, MicroGen CFO, chief operating officer, and interim CEO.
“I think one of the reasons is that just because we had made much more progress,” Perrotta says of the win this year. “We’re moving things along.”
The firm also expects to close a $1.6 million round of financing in the coming months, Perrotta says. The company has raised almost $400,000 of that total so far.
MicroGen is commercializing a chip-sized power generator that can transform subtle vibrations into energy. The product will be used initially in commercial and industrial monitoring.
The firm had been expecting its first sales this year, but Perrotta now says its first major sales will come in 2013. The firm’s fundraising push has moved slower than hoped, he adds.
“It’s a difficult market right now,” he says.
The amount of money MicroGen is seeking is bigger than what most angel groups would contribute, Perrotta says. So the company has been talking lately with companies interested in using MicroGen’s technology in their products.
The hope is to bring one or more of those firms on board as strategic investors, Perrotta says. MicroGen has been hitting expected milestones in developing its technology, which is helping those conversations move forward, he adds.
Perrotta doesn’t expect any pressure to relocate, even though the investors probably won’t all be local. Companies interested in investing in MicroGen will be doing so to use the firm’s product, not to buy it out.
Forcing a relocation could mean losing the scientific talent the company already has on board, Perrotta notes.
“They’re not going to move us because they don’t want to upset the apple cart,” he says.
Future investment is also one reason Perrotta is serving as “interim” CEO, he says. Investors will likely want a say in who leads the company in the future.
That’s a standard facet of life with startups, Perrotta notes. MicroGen’s previous CEO, David Hessler, departed amicably after bringing the business to a certain point in its development.
Perrotta expects to do the same. MicroGen’s founder, Robert Andosca, is still with the company as president and chief technology officer.
MicroGen’s product could be used to power wireless sensor networks that monitor manufacturing processes, the health of roads and bridges, and even tire pressure in cars, Perrotta says.
Work done in the past year has also made the company more confident that its generator can work with vibrations of lower frequency, Perrotta adds. At some point, that would allow a consumer to charge a cell phone simply by walking.
Andosca first began developing the MicroGen device while in graduate school at the University of Vermont.
MicroGen is funded by a combination of angel investment and grants from sources like the New York State Energy Research and Development Authority.
Consumer confidence spikes in Syracuse area in 1st quarter
Quarterly confidence gains in all New York regions Consumers’ willingness to spend rose sharply in the Syracuse metropolitan statistical area (MSA) in the first quarter of 2012, keeping pace with New York State’s other cities, where consumers also became more likely to crack open their wallets. The Syracuse MSA’s overall Quarterly Consumer Confidence
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
Quarterly confidence gains in all New York regions
Consumers’ willingness to spend rose sharply in the Syracuse metropolitan statistical area (MSA) in the first quarter of 2012, keeping pace with New York State’s other cities, where consumers also became more likely to crack open their wallets.
The Syracuse MSA’s overall Quarterly Consumer Confidence Index jumped 10.7 points to 71.3, according to a survey conducted by the Siena (College) Research Institute (SRI). Consumer confidence increased in each of New York’s nine MSAs in the year’s first quarter.
The quarterly results, issued on April 11, came a week after SRI’s monthly Consumer Confidence Index showed that confidence fell in upstate New York during the month of March. The two indexes can show confidence levels heading in opposite directions because they come from different sets of consumers, according to Douglas Lonnstrom, professor of statistics and finance at Siena College and SRI founding director.
“The monthly index takes into account what’s happening all over the state,” he says. “The quarterly index takes into account just what’s happening in the nine major urban areas. Generally speaking, confidence is higher in the urban areas than it is in the rural areas.”
It is also important to remember that the quarterly survey covers a three-month span, according to Lonnstrom. So one month of sliding confidence — March — does not necessarily send the quarterly indexes into a tailspin.
“The first quarter, if we look at it, was pretty good,” Lonnstrom says. “The stock market had a great first quarter. The job market looked better. Psychologically, there was less negative news.”
Syracuse’s overall first-quarter consumer confidence of 71.3 slotted below the SRI index’s break–even point of 76.01. Index results above 76.01 indicate more consumers are optimistic than pessimistic, while results below 76.01 mean more consumers are pessimistic.
Two MSAs, New York City and Rochester, moved above the quarterly index’s break-even point. In New York City, consumer confidence jumped 15.4 points to 81.5. In Rochester, it climbed 6.9 points to 77.6.
The Utica MSA posted a confidence boost of 12.1 points in the first quarter, giving it an overall index of 68.3. In Binghamton, confidence swelled 9.1 points to 65.9.
Confidence in Albany rose 12.6 points to 75.3, and confidence on Long Island climbed 10.3 points to 73.1. The Mid-Hudson MSA’s confidence ticked up 8.5 points to 68.8, and the Buffalo region’s confidence ascended 6.2 points to 70.8.
SRI made random telephone calls to adults over the age of 18 to conduct the quarterly survey. Each MSA index is based on more than 400 respondents, except for New York City and Long Island. SRI averages results from its monthly consumer-confidence surveys to develop quarterly indexes for New York City and Long Island.
Current and future confidence
Syracuse’s increased first-quarter confidence came as the region’s current and future confidence also rose. SRI gauges overall confidence by combining current and future-confidence measurements.
Current confidence in Syracuse spiked 11 points to 76.6. Future confidence ballooned 10.5 points to 67.9.
In Utica, current confidence jumped 11.3 points to 73.9. Future confidence in the area rose 12.6 points to 64.7.
And in Binghamton, current confidence gained 6.5 points to 69.4. Future confidence rose 10.9 points to 63.7.
Buying plans
SRI also asked consumers in each of the state’s nine MSAs whether they plan to buy a car or truck, a computer, furniture, a home, or a major home improvement in the next six months.
The portion of survey respondents planning to make a purchase increased in 34 of the 45 possible categories across the state. It fell in the remaining 11 categories.
Buying plans typically rise as consumer confidence climbs, Lonnstrom says.
“It’s a cycle,” he says. “If people become more confident, they tend to spend more.”
In the Syracuse MSA, consumers increased their plans to purchase cars and trucks, furniture, and major home improvements.
They cut back on plans to buy computers and homes. SRI found that 13.9 percent of consumers plan to buy a car or truck in the next six months, an increase of 3.7 points from survey readings in the fourth quarter of 2011. That is also above the survey’s historical average, which shows 12.8 percent of consumers typically plan to buy cars or trucks.
And 15.1 percent of Syracuse consumers expect to buy furniture, up 4.4 points from the previous quarter and above the survey’s historical average of 14.9 percent. For major home improvements, 15.5 percent of Syracuse consumers plan a purchase, up 1.9 points from the previous quarterly survey but below the historical average of 19.6 percent.
Just 2.8 percent of Syracuse consumers plan home purchases, SRI found. That’s a dip of 0.1 points from the last quarterly survey and below the historical average of 3.6 percent.
Finally, 11.8 percent of consumers plan to buy computers, down 1.8 points from last month. However, that’s still above the survey’s historical average of 10.6 percent.
“Even the buying plans that were down weren’t down much,” Lonnstrom says. “It certainly [was] a very positive quarter.”
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.