Small Business Hiring Plans on Hold

February 8, 2002 (PLANSPONSOR.com) - The majority of small businesses, although cautiously optimistic on the future of the economy, will not be expanding their staff this year, a new survey finds.

In stark contrast to 2001 findings, which showed small business owners hiring some 850,000 workers, the survey, released by Partner America, found that: over 75% of small businesses do not expect to add new employees in 2002. Another 4% plan to cut staff this year.

 The Small Business Owner Economic Outlook Survey, revealed a fragile confidence on the part of small business owners:

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  • while 79% of those surveyed believe our economy will emerge from its current recession by the end of this year
  • over 40% say sales will stay the same as last year
  • a similar percentage think their sales will increase only slightly

But the majority believes that the Federal Reserve’s efforts to kick-start the economy have had little impact, in fact:

  • only 35% of the small businesses surveyed think the Fed’s interest rate reductions have had a positive impact on their businesses
  • while 55% think rate cuts have had no impact.


The Small Business Owner Economic Outlook Survey was conducted by polling firm StategyOne. The survey comprised telephone interviews with 200 US small business owners.

Partner America is a partnership between the US Conference of Mayors and American Management Services to help small and mid-sized businesses improve profits and sales.

Pumped Pension Payouts Prompt Resignations

February 7, 2002 (PLANSPONSOR.com) - Five Milwaukee County officials have resigned amid accusations that they pumped up the county's pension plan to provide politicians million dollar retirement payouts at the expense of salary increases for ordinary workers.

According to a report from the Associated Press, instead of giving bigger pay rises to its 5,000 full-time workers last year, Milwaukee opted to make its pension plan more generous.

Under the new rules:

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  • employees, who had worked past their retirement dates, could collect retirement benefits retroactively, and 
  • employees could be claim a larger share of their unused sick time at retirement

However, it came to light that under the new rules County Executive F Thomas Ament, who became eligible to retire in 1996, would receive a lump sum payment of $2.3 million, while several other officials would receive payments of $1 million or more.

Outraged citizens groups are leading a drive to recall Ament and other members of the 25-person county board, while Ament has filed a lawsuit challenging the signatures that the group has gathered in its effort to force a recall election, the AP reports.

The state Justice Department’s criminal division is investigating the matter.


 

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