Employees Now Asking Companies to Leave California
If I hadn’t heard it from clients I wouldn’t have believed
it – Californians are asking their companies to leave the state.
Some time ago a decision-maker told me he had evaluated the
benefits of moving his department out of Los Angeles. He said: "When I
discovered how substantial the savings would be, I quipped in front of my
staff, ‘We should move to Texas.’ I was surprised by what happened next –
people approached me one by one, came in my office, closed the door, and asked
that we move to Texas. Once I saw the employee reactions, I’d like for the
relocation to occur."
Businesses relocate generally for cost factors (taxes, the
burdens of excessive regulations, high rents) but people move for life-style
reasons. Here is a sampling of employee motivations:
National Budget Compromise deals a Major Blow to Community Clinic Expansion Plans
The budget compromise struck last week by President Obama and Republicans in Congress deals a major blow to plans by community clinics in California and across the nation to expand in order to serve people who will be newly eligible for subsidized health care when the federal health reform takes effect in 2014.
The agreement will take $600 million from the anticipated growth in funding for community clinics, which were expected to play a major role in providing care as part of the federal Affordable Care Act, passed last year and under assault by Republicans in Congress.
The deal shaves that money from $1 billion that had been set aside for the expansion of community health centers, according to Carmela Castellano-Garcia, president and chief executive officer of the California Primary Care Association.
Of the remaining $400 million in that fund, $250 million is already committed, leaving just $150 million to finance new expansions for the health centers. Three hundred and fifty health centers have already applied for a piece of that money.
Testifying to Save Vernon
Editor’s note: The
following is the prepared text of Mr. Corselli’s testimony before the Assembly
Local Government Committee yesterday opposing AB 46, which would dissolve the
City of Vernon. The bill passed
the committee.
Good
afternoon Mr. Chair and members of the committee. My name is Peter Corselli. I am the engineering manager for US Growers
Cold Storage, we have been in the City of Vernon for 61 years, and I am opposed
to AB 46.
US Growers
employs 150 people directly and several hundred more through contractors and
other business operations throughout the city.
Ninety percent of our employees are members of either the Teamsters or
the Operating Engineers union.
City Hall Thinks It Knows What is Good For Business
When L.A. City Hall thinks it knows what’s good for business, the business community usually ends up with a raw deal. As if Councilmembers don’t have enough of their own issues to grapple with—starting with the City’s own budget deficit—now they want to make hiring decisions for you. That’s right, the “Hotel Worker Right of Recall” proposal from Councilmembers Paul Koretz and Janice Hahn would require all 50-room or more hotels that close for renovation or reconstruction to offer former employees their former job when the new facility opens.
First of all, the City of Los Angeles should be 100 percent in support of owners who wish to upgrade their properties. Unless hotels invest in upgrades, they soon find themselves out of business or serving a clientele that generates less money to pay employee wages and benefits—also less money for city employees. No one wins under that scenario.
Hotels that close for renovation or reconstruction are in many cases under new ownership and usually are redesigned to reach a different market segment. Whether it’s a modest 2-star hotel or a luxury 5-star hotel, each establishment, along with a physical upgrade, wants to establish an upgrade in service as well. They do that by hiring a staff that is most qualified for the new jobs. That new staff may very well be their former staff, but not always. Just as newly-elected City Councilmembers seek to hire the best people for their new staff, rather than simply hiring the staff of the previous Councilmember, a private employer must be entitled to interview and hire the staff they deem best qualified to serve their customers.