lower rates first - they still don't get it

-----Original Message-----
From: Dasovich, Jeff 
Sent: Friday, November 02, 2001 12:13 PM
To: Robertson, Linda; Shapiro, Richard; Steffes, James D.; Kaufman, Paul; Mara, Susan; 'bhanson@lhom.com'; 'hgovenar@govadv.com'; Scott Govenar (E-mail)
Subject: FW: CMTA Legislative Weekly - 11/02/01


FYI.  Note that, in response to Davis' "economic summit," the California Manufacturer's Association included in its top 3 initiatives the need to re-instate DA.
 
Best,
Jeff
-----Original Message-----
From: Geri L. Royer [mailto:groyer@cmta.net]
Sent: Friday, November 02, 2001 11:58 AM
To: undisclosed-recipients
Subject: CMTA Legislative Weekly - 11/02/01


Legislative Weekly 
November 2, 2001 
Issue 43, Volume 3 

A weekly publication from the 
California Manufacturers & Technology Association 
detailing legislative and regulatory developments in Sacramento






CMTA PARTICIPATES IN GOVERNOR'S ECONOMIC SUMMIT 
Press Release 

Today at Governor Davis' Economic Summit at Walt Disney Studios in Burbank, California, the California Manufacturers & Technology Association (CMTA) proposed three recommendations to help bring immediate relief to the state's faltering economy. 

"California is in a dramatic economic decline," said CMTA President Jack M. Stewart.  "Manufacturing employment is down 63,000 this year and by more than 10,000 jobs in September alone. The state's unemployment rate has risen steadily for the eight consecutive months, peaking at its present 5.4 percent." 

"It's time for the state to implement new policies that will incent investment sooner rather than later," said Stewart. 

CMTA today will introduce proposals to: 

Implement a Sales Tax Exemption <http://www.cmta.net/press/salestax110201> ( <http://www.cmta.net/press/salestax110201>) on Manufacturing, Processing and Telecommunications Equipment 
Reduce Electricity Rates <http://www.cmta.net/press/electricrates110201> ( <http://www.cmta.net/press/electricrates110201>) and Provide Customer Choice in Energy 
Declare a Moratorium on New and Increased Regulatory Fees <http://www.cmta.net/press/stopfees110201> ( <http://www.cmta.net/press/stopfees110201>) and Taxes 

These initiatives will comprise the association's focus in the coming months, and were a collaborative effort among CMTA members. 

"The costs associated with a battered business community are not only measured by stock-tickers and cable financial networks.  They are the human toll of jobs that are lost, mortgages that fail and families that go with less," added Stewart.  "These measures will restore confidence in every manufacturers' ability to remain productive and allow them to reinvest in the state's workforce." 

California's manufacturing sector currently produces: 

80 percent of state exports 
One sixth of state payroll 
40 percent higher wages than the statewide average 
And for every manufacturing job, an additional 1-3 jobs are produced 

"These proposals are common sense ideas that will send a strong message to the largest and most important sector of our economy that the state will provide the critical relief they need to help themselves and help California through this economic crisis," concluded Stewart. 
  

BAY AREA VENTURE INVESTMENT FALLS 

According to just released data from Venture Economics and  the National Venture Capital Association (NVCA), venture capital investment in the Bay Area during the 3rd quarter dropped 27 percent over the 2nd quarter of this year. Investment has slowed significantly this year and the 3rd quarter investment is 74 percent lower than the $9.3 billion high reached during the 2nd quarter of 2000. 

The Bay Area drop in investment nearly matched the national trend for the 3rd quarter. Venture capitalists invested $7.7 billion nationally during the quarter, down 31 percent from the previous quarter, and 73 percent from the $28.5 billion high of last year. 

"Although these are clearly difficult times for all business sectors, the venture industry will persevere. Veterans in our industry recognize this downturn as part of the long-term venture capital cycle. Real value can be created in down cycles by sticking with committed entrepreneurs with strong business models and the tenacity to see their ideas through," commented Mark Heesen, NVCA President. 
  

CMTA GETS VETO ON BILL RESTRICTING SICK LEAVE 

At the urging of the California Manufacturers and Technology Association (CMTA) and other employer organizations, Governor Gray Davis vetoed SB 1197 by Senator Gloria Romero (D-Los Angeles). The bill would have prohibited an employer to count any sick leave taken by an employee to tend to a sick child, parent or spouse in any absence control program 

Current law permits an employee to use half of their annual accrued sick leave in a calendar year to attend to the illness of a child, parent, or spouse who would not otherwise qualify under the family medical leave act that only applies to serious health conditions.  The provision covers brief illnesses such as colds, high temperature, sore throats etc., that are more likely to be associated with children and is less likely to involve physician or hospital care.  However, employers opposed the bill because many employees take advantage of the easy threshold and use it to avoid workplace sanctions. 

When employees don't show up or show up late for work, it negatively impacts production.  In order to mitigate this problem, employers have implemented absentee control programs that may include counseling, suspension and termination.  After the above provision became law, employers began to see a steady rise in the use and abuse of sick leave under this provision, so employers decided to include sick leave in their employee absence control programs in order to eliminate the abuse.  SB 1197 would have eliminated that option and could have forced employers to take a more drastic action to resolve the problem. 

In addition to insuring that production schedules are met, the main reason for an employer's absence policy is to provide a fair way to identify and deal with those employees who have trouble coming to work as scheduled and/or on time.  Making a decision to sanction an employee under an absence control policy is not taken lightly by employers and must be based on sound reasoning.  For example, if an employee's attendance records were examined and patterns of use involving sick leave were to show unusually high usage on Fridays, Mondays and holiday weekends and the employee were to declare that the absences were for family member sick leave purposes, no disciplinary action could be taken. In other instances, it is used to cover for tardiness that would otherwise be sanctioned under the employer absence control program by calling in just before the shift begins in order to start the shift late. 

SB 1197 would have provided for new lawsuits for violation of the statute where an employer has an absence control policy.  Consider that employers are not required to provide sick leave and the bill would only apply to those employers who voluntarily provide sick leave for their employees.  CMTA discussed with legislators the counter-productive nature of restricting an employer's ability to manage a voluntarily provided benefit. When laws become overly restrictive or very difficult to comply with and the employer is facing sanctions for violations, it provides a strong incentive for the employer to simply eliminate their sick leave program. 

CMTA believes that it would be poor public policy to protect those employees who have trouble getting to work under SB 1197 and could end up eliminating the benefit for all employees.  CMTA applauds Governor Davis's veto of the bill. 
  
  

www.cmta.net <http://www.cmta.net/> 
California Manufacturers & Technology Association 
980 9th Street, Suite 2200 
Sacramento, CA  95814 
(916) 441-5420 phone 
(916) 447-9401 fax 

You are receiving this message today because your company is a valued member of the California Manufacturers & Technology Association (CMTA).  While we'd be pleased to continue to tell you about CMTA's efforts to make California a better place for manufacturing you can unsubscribe by e-mailing a message to members@cmta.net