june 2013 business magazine

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BUSINESSM A G A Z I N E

VOLUME XXVI, NUMBER 6 JUNE 2013Manufacturer & Business Association

Revitalizing a Tradition of Excellence / Page 10

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10FEATURES > 3 / SpotlightMike Batchelor, president of The Erie Community Foundation, explains how Erie’s Future Fund is impacting the Vital Signs community indicator through early childhood education — a crucial element in the development of young children who grow up to be Erie’s future work force.

10 / The Advanced Diversified Manufacturing Industry PartnershipSteering Committee members discuss the progress made by the Advanced Diversified Manufacturing Industry Partnership (ADMIP) and how this industrial training resource is setting out to revitalize a tradition of excellence in manufacturing through its programs and strategic initiatives.

13 / 2013 Locco AwardsFind out which students the Association honored for their technical skills and academic excellence during the annual Patrick R. Locco Scholarship Awards Ceremony in Erie.

EDITORIAL > 7 / Health Matters How you can save time, money and resources by outsourcing your retiree billing administration.TAMMY CLAY

9 / Legal BriefWhy you should be aware of patent trolls and their questionable claims.JONATHAN D’SILVA

15 / Financial AdviserWhat self-insurance means for employers under health-care reform.WILLIAM L. LILLIS, CLU

19 / On the HillAnna McCauslin, the Association’s state government relations representative in Harrisburg, maps out the public pension saga — the past, present, players and the budget.

June 2013

4

SPECIAL SECTION > Training Insert Learn about the Association’s upcoming HR, professional development and computer training courses in our new Training Catalog.

13

DEPARTMENTS > 4 / Business Buzz16 / HR Connection

20 / Legal Q&A24 / People Buzz

Read on the Go!For the most current Business Magazine updates, visit our website, www.mbabizmag.com, fan us on Facebook and follow us on Twitter!

EVENTS > 22 / 108th Annual EventSee exclusive photos of keynote speaker Carly Fiorina, former chairman and CEO of Hewlett-Packard, political satirist Mark Russell, and guests.

June 2013 > www.mbabizmag.com > 1

VOL. XXVI, NO. 6 JUNE 2013

© Copyright 2013 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The maga-zine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

Mission StatementThe Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors

Manufacturer & Business Association2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org

Manufacturer Joel Berdine& Business John ClineAssociation Board Dale Deistof Governors Bill Hilbert Jr. Mark Hanaway Donald Hester Timothy Hunter Paul Kenny J. Gordon Naughton Dennis Prischak Sue Sutto

Editor in Chief Ralph Pontillo [email protected]

Executive Editor John Krahe [email protected]

Managing Editor & Karen Torres Senior Writer [email protected]

Contributing Tammy Clay Writers Jonathan D’Silva William L. Lillis, CLU Tungsten Creative

Photography Meghan Badolato & Rob Frank R. Frank Photography 4320 Miller Avenue Erie, PA [email protected]

Advertising Sales Patty Welther 814/833-3200 or 800/815-2660 [email protected]

Design, Production Printing Concepts Inc. & Printing [email protected]

ON THE COVER: Members of the Advanced Diversified Manufacturing Industry Partnership (ADMIP) — front row, from left: Tami Adams, NWPA Chapter of the National Tooling and Machining Association, and Dennis Harris, The Warren Company; and back row, from left: John Watkins, JBM Technologies, Inc.; Jon DeArment, Channellock; and, Joe Snyder, Process and Data Automation — explain how the employer-driven Partnership is helping bridge the gap in technical skills and industrial training in northwest Pennsylvania. For full story, see page 10.

SPOTLIGHT > by Karen Torres

Erie’s Future Fund Impacts Vital Signs Community IndicatorQuality and education-based early childhood education is a crucial element in the development of young children, who grow up to be Erie’s work force. Lack of school readiness among many children entering kindergarten will have a significant impact on the future on Erie County’s economy and quality of life.

To address this Vital Sign, The Erie Community Foundation’s Early Childhood Advisory Panel, in partnership with United Way of Erie County, Success By 6, members of the Early Learning Investment Commission and Erie Together, created Erie’s Future Fund in 2011 under the umbrella of Erie Vital Signs and under the direction of Early Connections Executive Directior Nancy A. Kalista.

For the 2012-13 school year, Erie’s Future Fund provided 230 scholarships, valued at $2,100 per child. These scholarships allowed children to attend a high-quality early childhood education program at ages 3 and 4. Families selected from area public and private early childhood education programs that met the STARS* criteria of Level 3 or 4.

“Next year, we hope to serve 285 children; however, there are still many more children who are in need of a scholarship,” notes Scholarship Director Michelle Harkins. “For the coming year, we are able to provide approximately 40 program locations, covering a large area in Erie County. In fact, early childhood programs are now contacting Erie’s Future Fund because they have improved their standards becoming a STARS 3 or 4 program.”

Currently, two-thirds of the money needed for 2013-14 has been committed, but the needs in Erie County are great:

• 43.3 percent of children under age 5 live in low-income families, up from 41.9 percent the previous year.

• 18.6 percent of births are to mothers with less than a high school education, up from 17.3 percent the previous year.

• 26.1 percent of third graders scored below proficient on the 2009 PSSA reading test, up from 23.8 percent the previous year.

Research proves children affected by risk factors such as poverty, family status, or poor school system, are more likely to enter school behind their peers, struggle in school, or drop out altogether, but Erie’s Future Fund is making a difference.

Three Ways the Business Community Can Become Involved with Erie’s Future Fund 1. Pre-K Education Improvement Tax Credit — provides tax credits to eligible businesses that contribute through Erie’s Future Fund. Business owners can direct tax dollars to fund scholarships to children. Last school year, a total of $13 million in tax credits were authorized for contributions to Pre-K Scholarship Organizations. Tax credits are awarded on a first-come, first-served basis.

Visit www.unitedwayerie.org/EFF to view the Pre-K Tax Credit application guide. All applications must be made online — the state is no longer accepting paper applications. If you intend to apply for tax credits, please notify Bill Jackson at United Way at 814/456-2937 Ext. 238 for further instructions. To qualify for the tax credit, the business must be located in Pennsylvania and must pay any of the following taxes:

• Corporate Net Income Tax• Capital Stock and Franchise Tax• Bank and Trust Company Shares• Title Insurance Companies Shares Tax• Insurance Premiums Tax• Mutual Thrift Institutions Tax

2. Cause-Related Marketing — Companies can express their support for an important cause, like Erie’s Future Fund, thus helping the “cause” to grow and strengthen while at the same time receiving positive public relations and increased sales potential. To learn more, please contact Nancy Kalista at Early Connections at 814/874-0144 or [email protected].

3. Direct Donation/Gift — Give a direct gift to Erie’s Future Fund through The Erie Community Foundation at www.eriecommunityfoundation.org, or by calling 814/454-0843.

Mike Batchelor is the president of The Erie Community Foundation, one of several area organizations that are collaborating on Erie Vital Signs, a project that tracks indicators that reflect and measure Erie County’s well-being.

A.a


ERIE AD CLUB NAMES MBA ORGANIZATION OF THE YEARThe Manufacturer & Business Association (MBA) was honored as the Erie Ad Club’s Organization of the Year in recognition of its efforts in promoting the Erie community and business in the region — through such work as its charitable motorcycle rally Roar on the Shore®.

Since its inception, Roar® has raised more than $585,000 for charitable organizations, including the John Kanzius Cancer Research Fund, Shriners Hospitals for Children — Erie, Operation Iraqi Freedom and Operation Enduring Freedom veterans and their families, SafeNet’s Big Backyard Children’s Garden, the Flight 93 National Memorial Campaign and, most recently, for the Perry 200 Commemoration and the Erie July Fourth Community Fireworks Fund, beneficiaries of the 2012 rally. This year’s Roar®, to be held July 18, 19 & 20, benefits The Boys & Girls Club of Erie.

Nancy O’Neill of Engel O’Neill Advertising & Public Relations Agency nominated the Association, noting, “The nomination was for more than the Roar®. It’s also for the awareness you all generate for Erie by bringing world leaders into Erie too; you have a proven record of going for the big ideas which come with big risks and, so fortunately for Erie, big rewards. Our team ... is very impressed.”

A video was shown during the ADDY Awards presentation, held April 12 at the Bel-Aire Clarion Hotel & Conference Center in Erie, featuring O’Neill, Erie Mayor Joe Sinnott, major Roar® sponsor Joe Askins of Off-Road Express, and Marketing Director Bob Howden of the Shriners Hospitals for Children — Erie.

For more information about the upcoming 2013 Roar® rally, visit www.roarontheshore.com.

Business Buzz

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Manufacturer & Business Association Board members and staff attended the ADDY Awards with several members of the Roar on the Shore Board of Directors, rally sponsors as well as the professional staff of Engel O’Neill.

4 < www.mbabizmag.com < June 2013

Every day E.E. Austin lays its tradition of construction excellenceon the line. Our extensive list of satisfied clients is testimony toAustin keeping its longstanding promise: “Do the right thing... all the time”.

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GE CREDIT UNION RENAMED WIDGET FINANCIALAfter 77 years of carrying ties to GE in its formal business name, the Erie General Electric Federal Credit Union has unveiled its new name and logo — Widget Financial.

The credit union was originally created to serve employees working at Erie’s General Electric Transportation plant, but has since opened its doors to offer financial services to all who live in Erie and Crawford counties. In recent years, the former Erie General Electric Federal Credit Union has merged with 16 other credit unions in the region.

In early January 2013, credit union management was informed by the GE Corporate Office in Fairfield, Connecticut that it must cease all use of the GE mark and General Electric wording in its name. The same letter, sent by GE corporate attorneys, also was received by several other credit

unions bearing the General Electric name across the United States.

According to a credit union press release, Widget Financial was selected for its tribute to GE Transportation (widGET) and to the Erie region, which produces its share of “widgets.” It also was chosen for its familiarity in a variety of service industries including technology, manufacturing, education and health care.

For more information, visit www.widgetfinancial.com.

JERSEY SHORE STEEL WINS COVETED GOVERNOR’S AWARDPennsylvania steel manufacturer Jersey Shore Steel Company’s sustainability initiatives have earned the 2013 Governor’s Award for Environmental Excellence.

In addition, the company has been recognized as a finalist for technology innovation and industry leadership in the 2013 Platts Global Metals Awards.

The Governor’s Award is the “highest statewide honor bestowed upon businesses and organizations for environmental performance and innovation,” according to the Pennsylvania Environmental Council. The awards “highlight the best in environmental innovation and expertise throughout the Commonwealth.”

At almost the same time, Jersey Shore Steel was named a finalist in two categories of the 2013 Platts Global Metals Awards: “Innovative Technology of the Year” and “Industry Leadership — Steel.” Platts, a leading global provider of energy, petrochemical and metals information, is owned by McGraw-Hill.

Celebrating 75 years in business in 2013, Jersey Shore Steel is in its third generation of family ownership. The company produces high carbon, rail steel angles and other shapes. Its steel is used by leading manufacturers in the bedding support, furniture, agricultural products, highway signs and barricades, and other industries. For more information, visit www.jssteel.com.

DEPARTMENTS > Contact: Karen Torres


An employer’s commitment to an employee doesn’t necessarily end at retirement. But delivering benefits for retirees in an effective and affordable manner is not always possible for all businesses.Employers can meet retirees’ needs in several ways, including outsourcing services to a firm that specializes in that area. Outsourcing retiree billing administration, for example, can save a company time, money and valuable resources. Retiree billing is a Web-based service that provides coordination of enrollment and billing. For many companies, however, it is an unwelcome, difficult task — and generally considered to be among the most time- and paperwork-intensive assignments for a human resources (HR) department. An outside source can often be an employer’s best solution.Retiree Billing ’Necessary Evils’

1. Account reconciliation. This is the process used to determine if the money leaving an account matches the amount spent, and ensuring that the two values are balanced at the end of a recording period. In some cases, an employer provides credits to the retirees to apply toward Medicare supplement plans. Account reconciliation is important because it helps with cash management and protects businesses against fraudulent activities.

2. Consistent growth. Regardless of the size of the company, the retiree populations will always

continue to grow. For some companies, that growth might dwarf the active population. As a result, many companies find that they cannot afford to grow their HR departments to keep up with it.

Advantages of Outsourcing to Retirees

• Retiree premium billing administered by a neutral third party can protect retiree privacy.

• Health and financial matters are sensitive issues that retirees may not want to share with a former employer.

• When complications and frustrations in dealing with the complexity of retiree benefits arise, it is best for all involved that the frustration not be directed at a former employer.

Advantages of Outsourcing for Employers

• No longer do retirees have to call an employer’s human resources department to get answers to questions that the HR department may or may not be able to answer. This can save both time and money, and increase the productivity of the HR department.

• When billing is outsourced, the people who deal with the retirees are specialists in this area and they can answer any questions or concerns that the retirees might have. In many instances, there are 800-numbers, and 24/7-websites that retirees can access to make it easier on

them to get information and answers to their questions.

• An employer is saved the hassle of dealing with multiple phone calls and e-mails to resolve these issues.

Employers who outsource retiree billing to an experienced, reliable organization can be confident that this service will be handled in compliance with federal, state and local laws. Employers also like the fact that by outsourcing retiree benefits administration, they have more time to focus on strategic planning that can create value for a company. For more information about outsourcing retiree billing administration, go to www.upmchealthplan.com/producers/litrequest and click on “Commercial Sales (Employer) Materials.”

Save Time, Money and Resources By Outsourcing Your Retiree Billing

Health MattersEDITORIAL > By Tammy Clay

Tammy Clay is the manager of Flexible Spending Accounts and COBRA for UPMC Benefits Management Services, which is part of the UPMC Insurance Services Division. The integrated partner companies of the UPMC Insurance Services Division, which offer a full range of insurance programs and products, also include UPMC Health Plan, UPMC WorkPartners, LifeSolutions, UPMC for You (Medical Assistance), UPMC for Life (Medi-care), UPMC for Kids, Askesis Development Group, EBenefits Solutions, and Community Care Behavioral Health.


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Cash Flow Insight! | for the achiever in you®

Introducing Cash Flow Insight powered by PNC CFO — a suite of user-friendlyonline tools that can help you understand and project your business’s cash fl ow,

so you can turn insight into action. Try it at no cost today*. Call the Cash Flow InsightCenter at 855-762-2361, stop by any PNC branch or go to pnc.com/cashfl owinsight

if your cash fl ow can handle a new expense.if your cash fl ow can handle a new expense.

* Offer requires a PNC Business Checking account and enrollment in PNC Online Banking. Offer valid during your current statement cycle period and two additional statement cycles. At the end of your free trial, you will remain enrolled in Cash Flow Insight and be charged a fee of $10/month. If you do not want to continue with Cash Flow Insight, you may opt out of the service on your Preferences page within Cash Flow Insight. Beyond the trial period, certain account types have Cash Flow Insight for no additional monthly fee, including Business Enterprise Checking, Industry Solutions Checking and Retail Businesses Checking. Cash Flow Insight and CFO: Cash Flow Options are service marks of The PNC Financial Services Group, Inc. ©2013 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC

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The patent system is supposed to be a tool to provide inventors a way to benefit from their hard work and to gain some element of protection in the marketplace. Unfortunately, there are entities that take advantage of the letter of the law by buying ownership rights to patents in order to squeeze licensing revenue out of them. These entities often don’t practice the invention themselves (hence, they are politely referred to as Non-Practicing Entities or NPEs, rather than patent trolls). But they are out to monetize a patent by enforcing its claims against those parties that are practicing the invention.

Their methodology is simple: Find patents with broad, vague language that can be applied to a wide variety of situations; buy the rights to those patents; target as many licensees as possible, preferably those not big enough to put up a serious fight but still able to afford a good license fee; and, send cease-and-desist letters to these targets that demand payment of a license fee large enough to make it worth the NPE’s while, but not so large that the target would rather pay an attorney to fight the demand. The patents are licensed to a number of shell companies that have a common office location. The demand-and-license letters often come out of law firms located in jurisdictions in Texas known to have a particularly speedy patent trial system.

Regional Employers at RiskOne particular line of demands that appears to be making its rounds in northwestern Pennsylvania relates to patents that have claims related to

"computer data management" systems and methods. In this case, letters are being sent to businesses that are claimed to be using a scanner or copier that can scan a document into an electronic file and transmit that file to an email system. This combination is said to be violating their patents.

After two attempts to solicit a license from the business, a third letter from a law firm is sent, this time with an attached draft “Complaint” addressed to the local Federal District Court. The letter threatens to file the Complaint if the business doesn’t respond to the license request. Different versions of the Complaint have been uncovered and examined, and all of the versions are essentially identical, with the exception that the target’s name and address are changed. It’s also been noted that some versions of the Complaint cite different shell companies as being the “exclusive licensee” of the rights claimed under the patents. These companies, suspiciously, have the same mailing address. The Complaint lays out a claim of infringement of the patent claims based on employees of the target business using a Microsoft Outlook system to send email from the described scanners to the employee’s email address. But it carefully states that it doesn’t allege that Microsoft is infringing any of its patents.

Getting letters like this can be a scary, intimidating experience. But that’s the point: Get the target scared enough to respond. They will even encourage the target to contact a patent attorney. If the patent attorney has never seen such a letter, he/she will tell you that

patent litigation is expensive: It can cost upward of $1 million to fully litigate a simple patent with no guarantee of success. That often scares people into acquiescing with the demand and paying for a license. But that’s not the way to deal with these claims.

Find someone who’s been there before and find out what they did to get out of the situation. Often it’s possible to get the troll to back off and drop the suit by threatening to bring in those parties that got you to use the system in the first place: the scanner manufacturers and even Microsoft. In any case, you cannot ignore these letters and you must respond. It only remains to determine what your response will be.

For more information about patent trolls, contact Jonathan D’Silva at MacDonald, Illig, Jones & Britton, LLP at 814/870-7715 or [email protected].

Jonathan D’Silva is a partner at the law firm of MacDonald, Illig, Jones & Britton, LLP. He is a graduate of Cornell University and the University at Buffalo School of Law. He is a registered patent attorney and chairs the firm’s Intellectual Property Department.

Legal BriefPatent Troll Targets: If You Have a Scanner, You May Be One

EDITORIAL > By Jonathan D’Silva

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CLIENT: PNC BANK

PUB: A1a-Manufacturing

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PROD: Melissa Betancur

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DATE MODIFIED: 5-2-2013 5:44 PM

AE: Claire Hogan

AD: Art Boonklan

CW: Nicole Przybojewski

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Cash Flow Insight! | for the achiever in you®

Introducing Cash Flow Insight powered by PNC CFO — a suite of user-friendlyonline tools that can help you understand and project your business’s cash fl ow,

so you can turn insight into action. Try it at no cost today*. Call the Cash Flow InsightCenter at 855-762-2361, stop by any PNC branch or go to pnc.com/cashfl owinsight

if your cash fl ow can handle a new expense.if your cash fl ow can handle a new expense.

* Offer requires a PNC Business Checking account and enrollment in PNC Online Banking. Offer valid during your current statement cycle period and two additional statement cycles. At the end of your free trial, you will remain enrolled in Cash Flow Insight and be charged a fee of $10/month. If you do not want to continue with Cash Flow Insight, you may opt out of the service on your Preferences page within Cash Flow Insight. Beyond the trial period, certain account types have Cash Flow Insight for no additional monthly fee, including Business Enterprise Checking, Industry Solutions Checking and Retail Businesses Checking. Cash Flow Insight and CFO: Cash Flow Options are service marks of The PNC Financial Services Group, Inc. ©2013 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC

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Revitalizing a Tradition of Excellence

As operations manager at The Warren Company, a family owned fabrication and steel service center in Erie, Pennsylvania, Dennis Harris understands the value of technical training for his maintenance employees. He needs his team to be versatile and have a clear knowledge of hydraulics, pneumatics, programming PLCs, and troubleshooting on high-tech equipment.

“Most larger plants have an electrician, plumber, and a mechanic who will fight to solve a problem,” Harris explains. “Being a smaller, 70-person facility, I can’t afford to have three people do one person’s job. I need them to be able to fix just about anything without having to get somebody else involved.”

For Harris, it’s one of the many reasons the company’s participation in the Advanced Diversified Manufacturing Industry Partnership (ADMIP) is so valuable. The Partnership gives manufacturers access to affordable industry driven training programs, such as PLC programming, machining, and industrial maintenance courses that enable them to stay current and competitive.

Harris, an active ADMIP Steering Committee member for the past six years, says the benefits of the Partnership’s work-force development programs are substantial, especially for a company such as The Warren Company, which prides itself in its investment in employee training. The company currently has two employees enrolled in the Partnership’s three-year industrial maintenance apprentice program — a program offered at both the Precision Manufacturing Institute (PMI) in Meadville and the Erie Institute of Technology (EIT) in Greater Erie.

“They’ve been in the program for a year, so they have at least two more years to go, and I already have seen the benefits,” he says. “This training will cut down on our costs, downtime and keep our production up.”

The ADMIP has long been an industrial training resource for area manufacturers, previously existing as four separate manufacturing partnerships — plastics, metal, food and electronics. At the end of the

2008-2009 fiscal year and to better utilize resources, the partnerships were combined to form the ADMIP.

Today, the Partnership could best be described as a collaboration and communication medium for work-force training and development, serving member companies in northwest Pennsylvania. The ADMIP encompasses six counties — Erie, Crawford, Forest, Clarion, Warren and Venango — and brings together regional employers, economic developers, labor leaders, and educators to improve the competitiveness of businesses and organizations sharing similar products or services.

At its core, the Partnership is committed to developing the work force to best utilize technology and automation by being employer-driven. “The strength of the Partnership is the employers’ participation,” says Jon DeArment, vice president of Engineering and Manufacturing at Channellock, a manufacturer of high-quality pliers and assorted hand tools, which employs about 400 people in Meadville. “You get out of it what you put into it. The region as a whole has to recognize the fact that if we want to keep our economy strong and vibrant, we need a competitive work force.”

One of the greatest values of the Partnership is that it eliminates duplication of training by better coordinating the efforts between training providers. The program also provides a state subsidy of up to 75 percent for training, on a first-come, first-served basis, for eligible employers.

“There is a lot of overlap out there and obviously competition, but there is also a lot of money spent — both public and private — and I think we need to be very efficient in how that money is spent,” says DeArment. “When you have employers at the table evaluating a program, whether it be School A or School B, they are going to go with the program that is most economical and provides the best overall value.”

For example, “The programs we have developed are a result of assessing all of the employers’ common needs. The mechatronics apprenticeship

The mechatronics apprenticeship program has been invaluable to Brett Jastromb (center), an employee at Channellock in Meadville, by giving him the opportunity to further develop his skills and improve his work performance through courses offered at PMI.


program was one of the first put together as a result of more than just one company coming to the table saying we have a skills gap in our maintenance areas. We all came together and defined what those gaps were and developed the curriculum.”

DeArment understands the advantages of the ADMIP firsthand. His family owned company, where he has worked for the past 17 years, has utilized the ADMIP-sponsored certified production technician (CPT) and mechatronics/industrial maintenance apprenticeship programs, developed in partnership with PMI.

Brett Jastromb, a 28-year Channellock employee and Class 4 maintenance worker for the past four years, says the apprenticeship program has been a good investment for both the company and him. He is already two-and-a-half years into the program and will complete his training this November.

Jastromb says the class allows him to learn in an environment where he can work one-on-one with other students and apply skills and techniques the very next day. “It’s a plus for them (Channellock) and a plus for me. I am gaining an education that I need for my job, and they are trusting me to go down and work on their equipment,” he says.

Kelly Carr insists the six- to eight-week CPT program was just as valuable. Carr, a five-year robotics cell operator and relief supervisor at Channellock, says the training materials — both literature and e-Learning program — were easy to retain and apply.

“I work with torches and every piece of machinery down there, and the course broke it down and gave you more technical information,” he states. “It helped keep me safe and able to perform my job in a better way.”

Employers and most anyone involved in industry recognize that the skills required to come into a manufacturing career today are much different than they were 10 years ago. The CPT program helps fill this skills gap by providing a strong foundation for people who are motivated and

interested in working in a manufacturing career by offering a broad, high-level orientation of production and quality systems, safety, and general understanding of maintenance systems, mechanical systems and drives.

“From there, they can determine if they really like broaching or milling, or whatever the particular type of manufacturing they are interested in,” says DeArment. “They can build on that through continued training programs that we provide.”

The mechatronics/industrial maintenance apprenticeship program is one example. The apprenticeship program, which came about from a detailed skills gap analysis, combines all the different types of systems into one cohesive program, so that participants gain a clear knowledge of mechanical systems, electronics, PLC programming, troubleshooting, automation and robotics.

“It is no longer just relays and switches; it is a lot more involved and you have to understand how all those systems work together,” says DeArment. “The luxury of having duplicate pieces of equipment — >

Revitalizing a Tradition of Excellence

About: The Advanced Diversified Manufact-uring Industry Partnership (ADMIP) is an employer-driven collaborative aimed at advancing the manufacturing industry in the region through work-force development, pipeline enhancement and advocacy initiatives. The ADMIP encompasses six counties in northwest Pennsylvania — Erie, Crawford, Forest, Clarion, Warren and Venango.

History: Prior to the creation of the ADMIP, there existed four separate manufacturing partnerships — plastics, metal, food and electronics. At the end of the 2008-2009 fiscal year, these partnerships were combined to form the ADMIP.

The Partnership helps member employers retain and recruit employees by identifying training needs, developing new career pathways, and aligning educational curricula to industry demands.

Membership: The ADMIP currently has approximately 30 active members, but is encouraging other companies to join. There is no cost for being a member, but a participation rate of 75 percent is required for those that apply and are accepted. Monthly meetings are held the third Friday of the month in Edinboro.

Website: http://madeinnwpa.org

With high-tech equipment and increased automation, manufacturers need their employees to have a strong foundation in technical education.

The certified production technician program has provided workers, such as Kelly Carr (in yellow hard hat), with a broad, high-level orientation of production and quality systems, safety, and a general understanding of maintenance systems, mechanical systems and drives.


because they are cheap, they are manual, and you can run them till they die — those days are gone. To be competitive, you have to be efficient and your equipment has to run.”

Pipeline Development and Strategic InitiativesAlong with work-force development, the ADMIP is equally focused on filling the pipeline with skilled, career-ready individuals.

As part of the Partnership’s strategic plan — a regional project funded in collaboration with the National Tooling and Machining Association (NTMA) and the Northwest Commission — the ADMIP is mapping out a structured career lattice that will enable employers to see the different career pathways there are and what resources are available in the region to satisfy for those needs.

Just as important, the ADMIP is planning on rolling out a curriculum that will help employees develop the skills they need to be leaders in these technical organizations.

“To be a leader in a manufacturing facility is different than a leader in other industries,” says Kevin Smith, the Partnership’s project manager. “In manufacturing you have to speak a manufacturing language and manage a different set of competencies.”

The Partnership also is taking the lattice one step further, by working on a career pathway so that students, parents, teachers and guidance counselors can see how a certain technical path can lead into such careers as engineering, marketing and sales.

Through programs, such as the CPT and the apprenticeship programs, workers — and even students — can gain college credits to apply toward a degree at Clarion University of Pennsylvania, and soon Edinboro University.

Employers say it is an opportunity for these students to choose a career that doesn’t necessarily involve going straight to a four-year college program. “While you are still in high school, you can dual enroll into programs, such as post-secondary technical education schools like PMI, get some credit and graduate high school with a certificate, be highly employable with industry, and start a career,” notes DeArment. “Most companies today are then going to continue to train and develop people.”

Partnership members say recruiting students early and often — at functions such as TechFest, RoboBots and the NTMA’s manufacturing student clubs — and getting employers better connected with the technical schools, high schools, and middle schools, is critical to bridging the skills gap in manufacturing careers.

Smith describes the effort as a “systems change” in the way the technical educational system is viewed. The goal of the strategic plan is to get parents and students to embrace the message that technical education is for those who excel and want to pursue a path that prepares them for both gainful employment and a degree-awarding institution.

Smith says the ADMIP is currently working on getting area educators

together for a summit to discuss and implement the initiative. “One of the things in the pipeline development initiative was getting rid of the false dichotomy that you either work in a manufacturing plant or you go to college,” he explains. “You can get a college education and work in manufacturing at the same time and get the credentials that employers find valuable.”

Future SuccessThe ADMIP is constantly looking toward the future needs of its members and the region. A key component of the Partnership’s strategic plan is to establish best practices and a “how to” guide for market expansion.

According to Smith, the development of the Marcellus Shale has game-changing potential, but many businesses don’t know how to successfully market their products and services from one industry to another. The Partnership’s role is to provide a central list of resources and step-by-step action items for employers that are interested in expanding into new markets.

“We have such a web of different industry support groups that employers often choose not to use any of them,” says Smith. “We will be presenting the information, with a series of seminars and presentations, to help them along.”

Essential to the success of these initiatives — and the future of the ADMIP itself, Steering Committee members say — is getting more employers involved.

“It continues to amaze me how so many companies don’t participate that could, and it really would help not only their business but the region as whole by being competitive and effective with work-force development,” says DeArment. “The more employers that you have at the table sharing their needs, identifying common goals and working as a whole, the better.

“We need to get our economic development groups at the table. We need to get more of our education shareholders at the table, and this thing will really start to hum.”

Tami Adams, a member of the ADMIP Steering Committee and executive director of the NWPA Chapter of the NTMA, says it is important to participate and get involved. “Every group is doing great things,” she insists, “but if we don’t know what the other is doing, we are wasting resources.”

Adams has been actively involved in the Partnership since its inception and believes it is the best it has been in the past two years by letting industry drive the decisions, not funding streams.

“The synergy is at a point that I have never seen before,” she says. “We have a really good core group on the Steering Committee and we can make things happen.”

It’s all part of revitalizing a tradition of excellence — and manufacturing in northwest Pennsylvania.

To learn more about ADMIP, visit http://madeinnwpa.org.

Members of the ADMIP’s Steering Committee — including, from left, Tami Adams, NWPA Chapter of the National Tooling and Machining Association; Dennis Harris, The Warren Company; Kevin Smith, Vie Associates; and Jon DeArment, Channellock — are focused on the future of manufacturing and getting more companies to participate in the Partnership’s strategic initiatives.

The ADMIP is planning on rolling out a curriculum that will help industrial employees develop the skills they need to be leaders in their organizations.

12 < www.mbabizmag.com < June 2013 12 < www.mbabizmag.com < June 2013

July AugustProfessional Development

Certified Supervisory Skills Series Course IV 8/15 and 8/22 Course IV (Meadville) 8/6 and 8/13 Course IV (Warren) 8/15 and 8/22 Course V 8/7 and 8/14 Course V (Meadville) 8/27 and 9/3

Food Safety Certification 8/19

HR Essential Certification Series Compensation & Benefits 8/22 Interviewing & Hiring (Titusville, 8 – 10 a.m.) 8/14 Termination (Titusville, 10:15 a.m. – 12:15 p.m.) 8/14 Employment Law (Titusville, 1:30 – 3:30 p.m.) 8/14 Discrimination & Harassment (Titusville, 9 – 11 a.m) 8/15 Compensation & Benefits (Titusville, 12:30 – 3:30 p.m.) 8/15

ComputerAccess 2007/2010 Level I 8/13 Excel 2007/2010 Level I 8/15 Excel 2007/2010 Level II 8/22 Excel 2007/2010 Level III 8/6

Professional DevelopmentCertified Supervisory Skills Series Course III 7/25 and 8/1 Course III (Meadville) 7/23 and 7/30 Course III (Warren) 7/25 and 8/1 Course IV 7/24 and 7/31 Course V 7/23 and 7/30

Leadership for Team Leaders Course II (Butler) 7/2 Course III (Butler) 7/24 Course V 7/10

Women in Leadership 7/9

Finance for Nonfinancial Managers 7/11


HR Essential Certification Series Effective Interviewing & Hiring Techniques 7/25

ComputerAccess 2007/2010 Level II (Two Days) 6/25 and 7/2

Access 2007/2010 Level III (Erie) 7/25

Excel 2007/2010 Level I 7/9 Excel 2007/2010 Level II 7/30

“Whether it is computer classes or professional development courses, the training provided by the Manufacturer & Business Association has allowed us to provide a cost-effective solution that is criti-cal to our ability to stay competitive.”

— Joy Sherry, Human Resources Director

Ainsworth Pet Nutrition“Environmental Reclamation Services takes pride in the continued education of our employees. In seeking out a program that clearly defines the ex-pectations we have for our supervisors, we looked no further than the Manufacturer & Business Association in Erie, Pa. Their leadership seminars identify and sharpen the skills necessary to pro-duce qualified supervisors while fine-tuning the natural abilities our employees bring to the table.”

— Bridget Trojanowski, Human Resource Manager

Environmental Reclamation Services

“After taking the HR Essential Certification Series at the MBA, I have found that all the informa-tion has become very useful in my everyday work environment. Our instructor did an excellent job presenting the information in a way that kept your attention and also taught you what you needed to know.”

— Dina Heile, Administrative Assistant

Intellectual Property Services

SeptemberProfessional Development

Certified Supervisory Skills Series Course V 9/12 and 9/19 Course V (Warren) 9/12 and 9/19


HR Essential Certification Series Employment Law – What HR Should Know 9/19 Interviewing & Hiring (Franklin, 8 – 10 a.m.) 9/10 Termination (Franklin, 10:15 a.m. – 12:15 p.m.) 9/10 Employment Law (Franklin, 1:30 – 3:30 p.m.) 9/10 Discrimination & Harassment (Franklin, 9 – 11 a.m.) 9/11 Compensation & Benefits (Franklin, 12:30 – 3:30 p.m.) 9/11

ComputerAccess 2007/2010 Level I 9/19

Access 2007/2010 Level II (Two Days) 9/5 and 9/12

QuickBooks 2012 9/20

Excel 2007/2010 Level I 9/10 Excel 2007/2010 Level II 9/17

TrainingRegional Locations

All courses are held at the MBA Conference Center in Erie, unless otherwise noted.Bradford: Holiday Inn Express 30 Tarport Drive Extension

Butler: Fairfield Inn & Suites Route 8 and Route 422

Erie: Manufacturer & Business Association Conference Center 2171 West 38th Street

Clarion: Holiday Inn 45 Holiday Inn Road

DuBois: Best Western 82 North Park Place

Franklin: Franklin Industrial & Commercial Development Authority 191 Howard Sreet

Hermitage: LindenPointe 3182 Innovation Way

Kittanning: Armstrong Educational Trust 81 Glade Drive

Meadville: Holiday Inn Express 18240 Conneaut Lake Road

Mercer/Grove City: Hampton Inn, Grove City 4 Holiday Boulevard

St. Marys: Community Education Council of Elk and Cameron Counties 4 Erie Avenue, Suite 200

Titusville: Titusville Community Development Agencies 110 West Spring Street

Warren: Warren/Forest Higher Ed Council 589 Hospital Drive, Suite F

Williamsport: Genetti Hotel 200 W. Fourth Street

* Handicap access and parking available at all sites.

Onsite TrainingGet more flexibility and convenience with our onsite training options — one of the most cost-effective choices for group instruction.

• Flexible and convenient scheduling • Customized instruction • Eliminate travel expenses

Course RegistrationContact Terry Nunez at 814/833-3200, 800/815-2660 or [email protected] to register or for more information on upcoming courses. Online registration also is available at www.mbausa.org.

“Shorty after joining the Manufacturer & Business Association, I learned of the HR Essential Certifica-tion Series. Knowing that our company was grow-ing and there were aspects of Human Resources with which I needed guidance, I signed up for the series. Our instructor was very familiar with both PA and federal laws. I enjoyed the fast-paced classes, which were packed with pertinent, up-to-date information and real-life scenarios from other local businesses. No matter what level of HR ex-perience you have, you will find these classes very educational.”

— Tammy Ricci, Office Manager

Moody and Associates, Inc.

First Annual

HUMAN RESOURCE EMPLOYMENT LAW

CONFERENCE

FRIDAY, OCTOBER 11

Join us at the Association’s Conference Center in Erie on Friday, October 11, for the !rst annual MBA HR and Employment Law Conference featuring keynote speakers:

Author Marty Clarke — Leadership Land Mines! Making Good Decisions When the Heat is On

Author Jim Roddy — Hire Like You Just Beat Cancer

A full day of highly interactive sessions, networking opportunities and more await, so reserve your seat now!

Call 814/833-3200 or 800/815-2660 or visit www.mbausa.org.

The Manufacturer & Business Association recently honored the winners of the Patrick R. Locco Scholarship Awards during a recognition ceremony on April 25 at the Association’s Conference Center in Erie.

Winners were: Matthew Washburn, Erie County Technical School; Carley Unger, Crawford County Career & Technical Center; Ashley Johnson, Mercer County Career Center; Stephanie Puckly, Corry Area Career & Technical Center; and Austin Walls, Central Career and Technical School.

A $1,000 scholarship has been awarded to winners to assist them in future academic endeavors. Awards also were presented to nominees during the event.

Nominees included: Todd Goss, Vitaliy Koblyuk, Jesse Bean and Anthony Visalle, of Erie County Technical School; Eric Brocious, Adam Riddle and Charlotte Roxberry, of Crawford County Career & Technical Center; Zachary Rushwin, of Mercer County Career Center; Garrett Shields, Justin Messenger, Evan Melnichak and Jeremy Palmer, of Corry Area Career & Technical Center; and Joshua Bowersox and Onjane Goodwin, of Central Career and Technical School.

“We’re honored to recognize these students and their achievements in scholastic and technical skills acquisition, and to assist them in their future academic endeavors,” said John Cline, chairman of the Association’s Board of Governors and president and CEO of Sunburst Electronics and Bliley Technologies. “Technical education is vital to our regional manufacturers and the economic welfare of our community as a whole.”

The Locco Awards were created by the Association to recognize outstanding high school students who distinguish themselves in pursuit of technical and academic excellence. Students must apply

and be nominated by a teacher to be considered. Each school narrows the nominees to their top five candidates. These students are then interviewed by local businesspeople who choose the winners.

To see photos from the awards ceremony, visit the Business Magazine photo gallery at www.mbabizmag.com.

2013 Locco Award Winners and NomineesFront row, from left: Charlotte Roxberry, Austin Walls, Ashley Johnson, Carley Unger, Stephanie Puckly, Matthew Washburn and Onjane Goodwin. Second row, from left: Josh Bowersox, Evan Melnichak, Anthony Visalle, Jesse Bean, Vitaliy Koblyuk and Todd Goss. Back row, from left: Liz Allen, Jeremy Palmer, Justin Messenger, Eric Brocious, Adam Riddle, Zachary Rushwin, Garrett Shields and John Cline, chairman of the Manufacturer & Business Association Board of Governors and president and CEO of Sunburst Electronics and Bliley Technologies.

Panel of JudgesFrom left: Liz Allen, Erie Times-News; Lori Dever, Industrial Sales & Manufacturing; Barb Kimmy, Corry Contract; Gordon Naughton, J.H. Bennett Moving & Storage; and Patty Smith, Manufacturer & Business Association. Not pictured: Tami Case, EnTech Plastics; Immediate Past Chairman of the Association’s Board of Governors Dale Deist, Deist Industries; Debbie Iavarone, LORD Corporation; Carol Donahey, Tech Tool and Molded Plastics; and Association Board Treasurer Don Hester, MAJR Products.

June 2013 > www.mbabizmag.com > 13June 2013 > www.mbabizmag.com > 13

Only about 10 percent of firms with fewer than 200 employees and virtually none with fewer than 50 self-insure. Insurance carriers have traditionally been unwilling to serve as administrator for smaller employers, insisting that groups have a minimum of 100 or more enrolled. Today, however, all carriers in our marketplace are launching self-insurance programs for groups of 50 or as few as 25 employees. It is unusual for insurers to make such a dramatic change, particularly at the same time. The triggering event is the implementation of the Affordable Care Act beginning in 2014, which will dramatically shift the risk reward equation of self-insurance. Reforms That Apply to Self-Insured PlansMany of the Patient Protection and Affordable Care Act (PPACA) reforms affect all group plans regardless of whether they are fully insured or self-insured. These include:

• Dependent coverage for adult children to age 26

• Coverage of preventive health service without cost sharing

• No lifetime limits on essential health benefits

• Improved internal claim and appeal process and minimum requirements for external review.

Both fully insured and self-insured plans are subject to PPACA’s notice requirements and reporting the aggregate costs of employer-sponsored group health plan coverage on their employee’s

form W-2. There are also fees or taxes that must be paid to the government by both fully insured and self-insured plans. These include the Comparative Effectiveness Research Fee and a stiffer Reinsurance Assessment. Reforms That Do Not Apply to Self-Insured PlansA larger cost associated with PPACA is the Health Insurance Industry Fee. It is assessed on insurance companies based on their fully insured business only. In Pennsylvania this fee will be approximately 2 percent of premium in 2014, increasing to more than 3 percent of premium in 2015 and thereafter. Employers that self-insure are not subject to this fee.Where Self-Insurance FitsUnder PPACA, small groups have their rates set based on age, zip code, tobacco use and plan of benefits only. SIC code, gender, and, most importantly, the health of the group, cannot be used to set rates. Many believe that the pooled Community Rates will increase cost for most employers due not only to benefit mandates, taxes and fees, but the addition to the Community Rating pool of previously uninsured individuals. It is for this reason that many experts feel an opportunity exists for smaller employers with employees in relatively good health to self-insure, thereby effectively opting out of the expected higher rates under Community Rating. Interestingly, while PPACA prohibits use of medical information or claims history to develop fully insured rates, the law does not prohibit reinsurance

carriers from using that inform-ation to set rates for the stop-loss insurance contracts used in self-insurance.With open enrollment on the Exchanges beginning on October 1, 2013, there are still a myriad of rules and regulations yet to be released by the government. For most employers, health insurance costs continue to be one of the largest and fastest-growing line items on their budget. The rate of change in the marketplace continues to accelerate, and it will take ever-increasing skill levels for employers and their brokers to manage these challenges effectively. For more information on self-insurance, please contact Bill Lillis, CLU at Lillis, McKibben, Bongiovanni & Co. at 814/452-4085 Ext. 230 or [email protected].

What Self-Insured Plans May Meanto Employers Under Health-Care Reform

EDITORIAL > By William L. Lillis, CLU

Financial Adviser

Bill Lillis, CLU is a partner at Lillis, McKibben Bongiovanni & Co., an Erie-based group benefits firm. He is a member of the National and Pennsylvania Associations of Health Underwriters, serves on multiple insurance carrier broker advisory panels and on Congressman Mike Kelly’s Healthcare Advisory Board.


HR ConnectionTECH ISSUES MORE DISRUPTIVE THAN SICK EMPLOYEE, SURVEY SHOWSAccording to a recent survey by international print maker Brother, 75 percent of small business owners found crashed computers to be more disruptive to their business than a sick employee. Why? Technology is crucial for small business productivity. Tech malfunctions caused a frequent loss of productivity for 49 percent of the survey respondents, with a total of 86 percent experiencing productivity losses at some point in their businesses’ histories. Additionally, 77 percent of respondents said that malfunctions negatively impacted their businesses at least once with regard to missed deadlines or lost opportunities.The Brother Small Business Survey included 500 companies in the United States with 100 or fewer employees.

SMALL BUSINESSES SEE GREATER VALUE IN CUSTOMER ENGAGEMENTThe importance of customer engagement to small businesses has grown as the economy continues to struggle to recover and, according to new survey data from Constant Contact, Inc., small business owners are evaluating their technology tools through an engagement lens.

Sixty percent of respondents said online survey tools were the most effective at engaging existing customers, followed closely by digital loyalty/frequent shopper tracking systems (56 percent), with customer relationship management systems (46 percent), email marketing (45 percent), and contact management tools (38 percent) rounding out the top five responses.“Eighty-two percent of small business owners have said their main source of new business is referrals, so it’s no surprise they’re taking a hard look at technologies that boost social visibility and feed the referral engine,” said Joel Hughes of Constant Contact.


DEPARTMENTS > Contact: Stacey Bruce

I had a very interesting conversation recently with a friend of mine who was looking to change jobs. His reason for leaving might surprise some, but not me. He said he didn’t feel appreciated and couldn’t remember the last time anyone praised him for his efforts. While money certainly is important, study after study shows that appreciation is what people really crave.Showing appreciation for our workers is simple. However, it must be sincere. Below are three ways to make sure your effort to recognize your staff is genuine.

1. Be specific. Single out specific behaviors so the employee will repeat them. Remember, recognized performance repeats itself. “Great job” is too general and sounds phony. Also, specific praise is a great way to communicate expectations.

2. Be timely. Praise people as close to the performance as possible. If we want people to repeat their performance, it makes little sense to wait. Besides, if you put off the praise, you might forget. And make sure you do it in person. Congratulatory emails are OK, but for most employees, nothing beats seeing their boss’s face when hearing good news.

3. Be public. People are justifiably proud of their accomplishments and want everyone to know how hard they worked. Plus, by praising people in public, you are sending a message to others that you will gladly recognize them if their work measures up.

A pat on the back for a job well done is an investment that costs nothing, but it’s one that pays tremendous dividends. Give it a try; I think you will like the results.

With more than 15,000 participants trained, the Manufacturer & Business Association is the leading resource for professional development and computer training in the area. For more information, please contact me at 814/833-3200, 800/815-2660 or [email protected]. I also encourage you to visit the Association’s website, www.mbausa.org, to learn more about our upcoming offerings.

A Pat on the Back, Please! Recognize Your Employees for a Job Well Done

Dan Monaghan is the director of Training at the Manufacturer & Business Association.


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OntheHill DEPARTMENTS > Contact: Lori Joint

The Past — Excerpts from the Commonwealth Foundation’s Unsinkable:

• 2001: Pensions are 110-percent funded. Legislature enacts retroactive 50-percent increase for themselves, 25 percent for state and public school employees. Creates $8.2-billion debt, which is to be paid off in 10 years.

• 2002: Legislators are pushed to extend increases to retirees, adding $1.75 billion to the pension debt. After stock markets tumble, actuarial smoothing is used to keep the debt off the books for five years.

• 2003: Serious stock market troubles prompt the legislature to further reduce the amount employers pay in, and extends payoff of the debt from 10 years to 30 years.

• 2008-09: Additional refinancing of the debt after higher market losses.

• 2010: To alleviate the spike in contributions, the debt is refinanced again and pension benefits for new hires are at pre-2001 levels.

• 2011 – 2012: Pensions systems officials determine that 8-percent rate of return is excessive, and lower it to 7.5 percent – which is still too high according to financial experts.

• 2013: A surplus in 2001 has turned into a $41-billion unfunded liability.

That history leads us to…The Present Problem —Current and future employees receive a defined benefit plan — this means upon retirement, an employee will receive a guaranteed amount per year for the rest of their life. Most pension reform advocates want new employees moved to a defined contribution plan, such as a private employee’s 401(k) plan.Because of previous reform, employer contributions (which are taxpayer contributions) are skyrocketing. The state currently is paying $1.5 billion to the pension funds, but that will increase to $4.3 billion in fiscal year 2016-2017. The pensions are only 68.7-percent funded, which is a $41-billion deficit. If nothing is done, that will increase to $65 billion, assuming the 7.5-percent return assumption is met. Difficult decisions aplenty, which will be decided by…

The Players —Governor Tom Corbett: The Corbett administration has an aggressive new plan that they say will not only decrease liabilities in the future, but also reform the current pension system. According to an administration press release, the plan has three main tenants: implementing a 401(a) plan for new employees; changing future benefits for current employees; and, placing a limit on how much employer contributions can be increased. Again, the governor is proposing that current employee benefits be changed going forward — something that nearly everyone has determined (without Pennsylvania Supreme Court input) would be unconstitutional. The House: Chris Ross (R-Chester) is relatively new to the pension debate. Ross is one of the few remaining legislators who cast a vote in favor of the pension increase. Touting the plan at a recent press conference, Ross said, “… It’s very difficult for state government to predict in advance how a defined benefit program is going to develop over time. Defined contribution is going to help in the long term.”The Senate: Senator Michael Brubaker (R-Lancaster) replaced pension guru Senator Patrick Browne (R-Lehigh) as Senate Finance Committee Chairman in 2009. During last month’s pension press conference, Brubaker said, “As chair of the Senate Finance Committee, I am keenly aware of the financial crisis that this Commonwealth is facing in regards to our pension system.”Pennsylvania School Boards Association: The PSBA recently supported Corbett’s plan to change future benefits for current employees by describing a “possible blueprint” of constitutionality. In testimony, a representative of the PSBA said, “Essentially, the General Assembly would create a plan so an employee is deemed to accept the new rules and trigger applicability by accepting a promotion, new position, some kind of new benefit, or perhaps even just a pay raise (or step movement on a salary scale). Entering into a successor collective bargaining agreement may likely be enough.”Pennsylvania State Education Association: The largest teachers union in the state is currently on record saying any change in current benefits is unconstitutional, and has said they will sue if the governor’s plan would be signed into law.

Anna McCauslin is the state government relations representative for the Manufacturer & Business Association in Harrisburg. Contact her at 717/525-7213 or [email protected].

Public Pension Saga: The Past, Present, Players and the Budget


I AM LOOKING TO HIRE HIGH SCHOOL STUDENTS DURING THE SUMMER. IF THEY HAVE A WORKING PERMIT, DO I NEED TO WORRY ABOUT ANYTHING ELSE?Beyond the requirement of a work permit for individuals who are under 16 years of age, an employer must receive a written statement by the minor’s parent or legal guardian acknowledging understanding of the duties and hours of employment and granting permission to work subject to the provisions of 18 PA.C.S. § 4904 (relating to unsworn falsification to authorities). The employer must notify the issuing officer in writing of the employment of a minor and detail the normal duties and hours of employment within five days after employment begins; they also must include the age and

permit number of the minor. The employer must keep a copy of the work permit, the original verified permission statement, and a copy of the letter sent to the issuing officer announcing the minor’s employment. Upon terminating a minor’s employment, the employer must notify the issuing officer within five days of his or her final workday that the minor no longer is employed by them.

I HAVE AN EMPLOYEE WHO IS 18 AND STILL ATTENDING HIGH SCHOOL. DOES SHE NEED A WORK PERMIT? Even though the employee is still in high school, once they turn 18, the Child Labor Act no longer covers them.

I OWN MY OWN BUSINESS AND WANT TO EMPLOY MY

16-YEAR-OLD SON TO WORK IN MY STORE THIS SUMMER. ARE WE EXEMPT FROM THE CHILD LABOR ACT? Unfortunately, no. While there is such an exemption under federal law for family businesses that do not involve manufacturing, there is no similar exemption under Pennsylvania law.

HAVE A LEGAL QUESTION? GET ANSWERS. At the Manufacturer & Business Association, we know urgent employment issues can arise at a moment’s notice. That’s why, as an Association member, you have FREE unlimited access to our Legal Hotline staffed by our labor and employment law attorneys. Call today at 814/833-3200 or toll-free at 800/815-2660.

Legal Q&A


Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division.

Summer is finally upon us, and many employers are looking to hire minors for seasonal employment. When doing so, employers must be aware of specific rules under both federal and state laws regarding the employment of individuals under 18 years old.Earlier this year, the Pennsylvania Child Labor Act (“Act”) went into effect. The Act lays out age limits, permissible working hours and permitting requirements, and makes Pennsylvania law consistent with federal child labor laws. The Act should make it easier for employers to ensure that they are in compliance with Pennsylvania law and to understand the parameter for employing minors. This article summarizes only a few of the most notable requirements of the Act.The Act, with limited exceptions, prohibits the employment of minors under age 14. The Act prohibits Pennsylvania employers from allowing

individuals under age 18 from working more than six consecutive days, and from working more than five consecutive hours in a day without a 30-minute break. Minors who are 14 and 15 years old may not work before 7 a.m. or after 7 p.m.; however, during school vacation periods, these minors may be permitted to work until 9 p.m. Minors in this age group also may not work for more than three hours on a school day or more than eight hours on a day when there is no school, and for no more than 18 hours during a regular school week or more than 40 hours when school is not in session. In addition, minors who are 16 and 17 years old may not work more than 28 hours during a regular school week, more than eight hours in a single day, or before 6 a.m. or after midnight, except until 1 a.m. on Fridays and Saturdays, or on days preceding a vacation during a

school year. During school vacation, a minor age 16 or 17 may work up to 10 hours in a single day and 48 hours per week. For a complete look at the new Pennsylvania Child Labor Act requirements, visit the Pennsylvania Department of Labor & Industry’s website, www.dli.state.pa.us. The Association’s Legal Services Division can assist you with a variety of employment law issues. Please contact me at 814/833-3200, 800/815-2660 or [email protected] for more information.

Hiring Minors for Summer Work Has Its Limits

DEPARTMENTS > Contact: Tammy Lamary

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EventsThe Manufacturer & Business Association recently held its 108th Annual Event on May 14 at the Bayfront Convention Center in Erie. For extensive photo coverage, visit the Photo Gallery on www.mbausa.org.

Another huge crowd attended this year’s Annual Event at the Bayfront Convention Center in Erie.

The highlight of the night was a keynote address from renowned businesswoman Carly Fiorina, former chairman and CEO of Hewlett-Packard Company.

Lorenzo Simonelli of sponsor GE Transportation greets this year’s keynote speaker.

The Association introduced the Board of Governors who unanimously elected John Cline (far right), president and CEO of Sunburst Electronics and Bliley Technologies, as the 2013-2014 chairman.

The Association thanked representatives from sponsors Howard Industries, Conventry HealthCare, GE Transportation, the Lake Erie College of Osteopathic Medicine (LECOM) and Logistics Plus, and major sponsors UPMC Health Plan, PNC Bank and Ridg-U-Rak, Inc.

The Most Reverend Bishop of Erie, Lawrence T. Persico, led the invocation.

John B. Pellegrino Sr. (center) of major sponsor Ridg-U-Rak, Inc. with Bishop Persico, and friends and family.

22 < www.mbabizmag.com < June 2013 22 < www.mbabizmag.com < June 2013

At far right, Sue and Gary Schneider of sponsor Howard Industries.

Each guest received a complimentary edition of the Business Magazine’s signature Annual Report.

Legendary lampooner Mark Russell entertained the crowd with his whimsical piano performance and political satire.

Marlene Mosco (left), representing major sponsor PNC Bank, and Association Board Member Sue Sutto.

Star performers from the Erie Playhouse sang a stirring rendition of the National Anthem.

Jim Berlin (center) of sponsor Logistics Plus talks with friends at the member reception.

Major sponsor UPMC Health Plan, represented by Boo Hagerty.

Dr. Silvia Ferretti (right) of the Lake Erie College of Osteopathic Medicine (LECOM), a first-time sponsor of the event, mingles with Carly Fiorina.

Conventry HealthCare, represented by Patricia Haley (left), was one of the sponsors of the unforgettable evening.


People BuzzACES TO HONOR BANK PRESIDENT, SCHOOL SUPERINTENDENTAmericans for the Competitive Enterprise System (ACES) will honor Jim Martin, Erie region president of Northwest Savings Bank, and Jay Badams, Ph.D., superintendent of the Erie School District, at a luncheon on June 26 in Erie for their personal achievements, business success and commitment to economic education.

Martin will be honored as the recipient of the Bob and Betty Merwin Outstanding Citizen Award, which recognizes his success in business and his active participation in charitable community endeavors. Under Martin’s direction, Northwest Savings Bank has been a major supporter of ACES programming. During this past program year, the bank’s

employees provided more than 200 hours of volunteer service to ACES’ Pennsylvania Business Week program.

In addition, Badams will be recognized as ACES Educator of the Year. Under his leadership, ACES’ Pennsylvania Business Week program was brought to Central Tech this past October. He is also being recognized for his commitment to the Erie School District and for recognizing the importance of economic education as part of an overall curriculum.

KIDDER WACHTER WELCOMES URBAN DESIGNER, OFFICE MANAGERKidder Wachter Architecture and Design in Erie recently welcomed two new employees, urban designer/intern architect Jeremy Smith and office manager/ accountant Andrea Mong.

Smith, a native of Erie and a Harbor Creek High School graduate, received a bachelor’s degree in architecture from Kent State University and master’s degrees in both urban design and in architecture from Kent State University’s Cleveland Urban Design Collaborative in 2008. He has completed the Intern Development Program and is currently sitting for his Architecture Registration Examinations through the National Council of Architectural Registration Boards.

Mong received her bachelor’s degree in business administration from Pennsylvania State University, University Park, and her master of business administration degree from Pennsylvania State

A fun and unforgettable celebration of imagination for the Imagination Library, an initiative to provide a free, high quality book to all children in Erie County from birth to five years of age. Tickets are $150 each. Contact United Way of Erie County at 814-456-2937 or visit UnitedWayErie.org for ticket and sponsorship information!


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DEPARTMENTS > Contact: Karen Torres

University, Behrend. She has more than 20 years of experience in accounting and administration.

D&E MACHINING APPOINTS SALES AND MARKETING MANAGERD&E Machining, Ltd., a contract precision machining manufacturer in Corry, has announced the appointment of Kirk Curilla as the company’s new sales and marketing manager. Curilla brings more than 30 years of experience in sales, management and operations. He has extensive expertise in servicing customers in the power generation, petro-chemical, refinery, and steel industries.

In his new role, Curilla will be responsible for all the sales and marketing functions to a company that currently supplies precision machined products to the aerospace

and defense industries. He also will have the responsibility for penetration and development of new markets, negotiating contracts, and long-term agreements for D&E.

AG AEGIS COMPANY HIRES SAFETY PROGRAM MANAGERAG Aegis Company, Inc. (Aegis Company) recently welcomed Robert R. Maedje as the consulting company’s safety program manager in Corry. In his new role, Maedje will be responsible for working with a variety of manufacturing clients to achieve safety goals, as well as maintain compliance with regulatory agencies.

Maedje holds a bachelor’s of science degree in Health and Safety Manage- ment from Slippery Rock University of Pennsylvania.

AMERICAN TURNED PRODUCTS ANNOUNCES TWO PROMOTIONSAmerican Turned Products (ATP), a contract manufacturer of high-volume precision machining with two Erie County locations, recently promoted two employees at its Fairview operations.

John Neubert has been with ATP for more than two years serving as the Fairview facility’s shipping coordinator and has been promoted to production and inventory control specialist. Frank Eckweiler has been with ATP since 1998 and has been promoted to process engineer technician.

According to the company, both of these new roles will provide ATP with advancement in achieving manufacturing and lean excellence.


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june 2013 business magazine

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