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June 2005 Archives

June 2, 2005

How strong is your pension plan?

The government's paying more and more money to prop up failing pension plans, according to a report that a financial manager friend tipped me to today.

The Pension Benefit Guaranty Corp. paid out $14.3 billion on failed single-employer pension plans from 2000-2004, the group's new Data Book reports this week. That's 70 percent of all claims paid since the group was set up by the feds 31 years ago. A press release explains it, if you don't want to wade through the stats.

The group has assumed management of the failed Pillowtex and Cone Mills plans, and many others around the country that closed down.

Some say companies are wiggling out of their pension responsibilities too easily.

My friend scribbled two words on the report copy he sent me: "Grim news."

Dell Update

Construction on the giant computer manufacturer's Winston-Salem plant is in full-swing. The company plans to open the 700,000 square foot facility on September 19.

Interviews for the first 130 positions will finish in about a week, said Michele Blood, a company spokeswoman. Those who take a job with Dell will start a month-long training session split between North Carolina and Texas on July 11.

Those hires will open the shop floor. The company will start looking for another 130 employees in August or September, said Blood. Originally the company had said it would hire 200 people in the first round.

Employees will earn between $9.50 and $14.00 per hour, based on experience.

Dell won about $280 million in tax breaks, cash and other business from state and local governments to move to the region.

June 6, 2005

Concerts, tickets and scalpers II

Rolling Stone is out this week with a new story about ticket brokers and ticket scalpers. "Can Scalpers Be Stopped?"

In case you hadn't already figured out the answer, it's "no" according to the magazine.

When musicians create a requirement that buyers pick up tickets in person, scalpers go along. Have to join a fan club to get good seats? Scalpers join the clubs.

All of this is legal, of course. And let's face it, even average fans get into the act, sometimes buying their maximum of tickets and then reselling them for a profit, the magazine reports.

There's a lot more going on to help brokers get in line ahead of individual fans. Rolling Stone wrote about it here.

Here's a twist: Scalpers are also blamed for the super-high prices of tickets these days. The Rolling Stones are selling some seats for more than $400. The report says that performers are resigned to scalping, so they get a bigger cut up front of a ticket they know is going to be sold for much more.

Still, there may be a positive by-product for the casual fan: Some acts, like the Stones, are selling cheaper seats for $60 so people can get into the shows, even if they can't sit up front.

June 8, 2005

Marriage and finances

If you've been married awhile or are contemplating the big leap, you'd do well to take a gut-check of your finances. That's certainly what I did after 12 years of marriage when I started reporting a story for this Sunday's Work & Money section about newlyweds and money.

I'll be up front about my vices: Dragging out small credit card balances and selling cars too early. That's what I learned from this site - which takes a mighty severe view of finances. What do you expect? It's compiled by accountants.

But it's pretty good advice, and certainly something to shoot for, even if you're not in the perfect category.

My wife and I talk a lot about money, probably too much, but we certainly know where we stand.

That's the message I got this week even for newlyweds. Don’t argue, but do talk about finances. Work out differences. Approach challenges with an eye toward compromise.

That goes for even the simplest decision: Which bank gets the joint checking account?

For Jennifer and Derek Chiasson, newlyweds I talked to for the story, it was simple, says Derek. They chose her bank. "She can't stand my bank."

Target to add beer and wine?

The giant retailer applied for a liquor license for beer, wine and wine tastings in January, a News&Record search of N.C. Alcohol Beverage Control Commission documents found.

It's not clear when or if the store plans to add libations to its shelves on Bridford Parkway and Lawndale before its temporary licenses expire in August. Check back for an update tomorrow.

Pour House vs. Natty Greene's

The owners of Chumley's, the Speakeasy Tavern and Blur just opened a brew pub downtown at 360 Federal Place.

The Pour House will offer $2 draughts of Poor Man's Pilsner when its approved to sell its own beer, planned for July. Prices for its three other home brews have not been set yet, said co-owner Mark Zerfoss. For now it offers a 12-beer selection that includes Stella Artois, Guinness, Newcastle and a handful of domestics.

Poor Man's beats Natty Greene's prices by a buck. We'll see where the other brews fall.

Can downtown handle two brew pubs?

Zerfoss says he's looking for a different sort of crowd. "Natty's goes after a yuppy crowd that want to be seen."

The gantlet is thrown.

Note: The Pour House has no relation to the music venue in Raleigh The Pour House.

June 9, 2005

Target Update

The Lawndale store has been selling wine for about a month. Prices range from about $9 up to $50.

The Bridford Parkway store has been selling wine for about two and a half months. The store stocks wine -- including North Carolina brands --ranging from $7 to $35, said Mike Arney, the assistant store manager.

Both stores may add beer in the coming months, but managers at both locations said plans were still up in the air.

Arney said adding wine fit into the stores expansion into "entertainment" food like high end cheeses.

Both he and Scott Behe, the manager at Lawndale, said wine sales are brisk.

June 14, 2005

Job Outlook

Finding work in Greensboro may be easier in the next few months.

A new job survey shows that 30 percent of Greensboro employers plan to hire more people over the next three months.

Another 67 percent plan to maintain current staff and 3 percent are uncertain of their hiring plans, according to Manpower, a national employment services company.

The results are better than last year. in June of 2004 23 percent of Greensboro companies palnned to hire more people and 13 percent said they planned to cut back.

For the coming quarter, the best prospects are in construction, non-durable goods manufacturing, transportation and public utilities, and wholesale and retail trade and services.

June 15, 2005

Spooks Among Us?

The American Society for Training and Development gave the CIA a "Best Practices" award for workplace training. The agency developed the program with Greensboro-based the Center for Creative Leadership.

Seems like the agency could use some training, given its intelligence gathering failures of late.

"Our objective is to foster a new management culture with shared values and practices that will help break down internal and external organizational stovepipes," said Barbara Ramey, chairwoman of the New Leaders Department of the Central Intelligence Leadership Academy.

Let's hope it works. Let's also hope she learns how to speak conversational English. "Stovepipes?"

June 20, 2005

Ain't that grand

Southern Business & Development magazine named North Carolina the South's State of the Year. The state shares the title with Alabama for the region's largest business deals.

The magazine ranks southern states according to the number of jobs created and investments logged. Government stats show that the state added 18,312 new jobs and $2.8 billion in investment.

My beef is with the lies, damn lies and statistics. The Greensboro Economic Development Partnership announces yearly how many jobs were created in the city. But the group never talk about jobs lost. Sure, there may be lots of investment, but what about the tax breaks given to companies. Those never seem to be included in the investment figures.

So, I have a hard time trusting the numbers.

I'd have to take a closer look at the ranking system to see how the magazine chooses states before giving an assessment. The publisher sure loves turgid prose, though.

"It was only a matter of time before the 'Grand Dame' of economic development came back in grand fashion," said Michael Randle, the publisher of Southern Business & Development.

In other news...the National Federation of Independent Business ranked North Carolina first among the 26 largest state economies for small business owners.

The catch: the overall ranking was negative. But it received positive marks in some areas, including business conditions and prospects.

Philly

The latest press release eminating from the amorphous locale of Piedmont Triad, NC, announces that the Piedmont Triad Partnership is sending three people to Philadelphia.

Purpose: recruit biotechnology companies. I wish them luck. They will be competing with the rest of the world.

In between arm wrestling sessions with Silicon Valley and Buenos Aires recruiters I have a few food and leisure recommendations:

Continue reading "Philly" »

June 21, 2005

One step forward ... one step back

We know how you're addicted to those non-stop flights to Pittsburgh, Triad residents. But get ready for the end of those flights.

Trans States Airlines, an affiliate of US Airways, is dropping all three of its non-stop flights on turbo-prop planes.

So get used to those 20 minute flights to Charlotte from PTI. Looks like every US Airways flight from here to Pittsburgh will be going through the Queen City.

This news comes just as our Piedmont Triad Airport Authority is fighting to expand our number of non-stop flights. Right now, there are only 21 cities you can reach without having to stop somewhere and change planes. With the loss of Pittsburgh and the addition later this summer of flights to Miami, we'll remain at 21 cities.

I can't help but wonder if the limitation on non-stop flights out of our airport is hurting our attractiveness to businesses whose execs travel a lot. I would think that many find it a lot easier to base themselves in Charlotte and save one less aggravation.

June 22, 2005

The Rich Among Us

A recent ranking of the most affluent communities placed the Triad 53rd of 321 metropolitan areas included in the report. It's right behind Charlotte and Raleigh, who rank 47th and 49th, respectively.

See the list here.

What's interesting to me is that the Triad has an almost identical percentage of uber wealthy households (those having more than $5 million in liquid assets) as New York City -- about 0.3%.


June 27, 2005

Fly the friendly Web

For a fee, you can crank up your laptop at Piedmont Triad International Airport and surf the Web on a wireless connection. But what if you could plug into the Internet once your flight is airborne? That may be a reality very soon.

The Los Angeles Times reports today that Boeing has already invested $1 billion to develop Web technology it can offer so passengers on the planes it builds can access the Web. Sixty-seven planes are already offering the service. Boeing's system uses satellites to connect the planes. Passengers pay a fee, either for a set amount of time or for unnlimited time during long-haul flights.

Airlines, too, are getting in the game. The story reports that United Airlines has received approval for its version, which is based on cellular phone technology.

Just think! Soon, you'll be able to keep up with Biz Buzz somewhere over Denver.

June 28, 2005

Undocumented Students Given Green Light at GTCC

If illegal immigrants can pay, they can study.

The full board of trustees at GTCC voted earlier this month to allow undocumented students to study for degree programs, provided they pay out of state tuition. In May a subcommittee recommended the change.

That works out to be about $13,000 over two years.In state students pay about $2,400.

The decision comes amid increasing state and national debate about the access that undocumented students should have to higher education.

Nine states currently allow students to attend universities and community colleges at in-state rates.

North Carolina law prohibits extending in state tuition to undocumented students. Such students are not allowed to access federal or state loans or scholarships either.

Because many illegal immigrants come from low income backgrounds, "I do not anticipate a large number of students enrolling," said Don Cameron, president of GTCC.

In order to enroll students must demonstrate at least three year's attendance at a U.S. high school and graduation. They must also acknowledge that they should not study for professional degrees because the state cannot grant licenses to illegal immigrants.

June 29, 2005

Unemployment holds steady

The jobless rate is stuck at 5 percent in Greensboro and High Point, according to the latest figures released by the N.C. Employment Security Commission.

Meanwhile, Winston-Salem is churning out new jobs in health care and construction. The twin city's unemployment rate dropped to 4.4 percent in May from 4.6 percent in April.

Mark Vitner, an economist with Wachovia, said cutbacks in textiles and furniture are offsetting job gains in financial services and other service sector areas in Guilford.

Another reason the number is holding steady is that more job seekers are entering the market, he said.

Going forward, high oil prices could affect growth in retail and restaurants, as people compensate for pump prices by spending less on clothes and eating out, said Vitner. "But it won't be a dramatic impact. High oil prices are a slow drag on the economy."

Note: The figures released by the ESC were not seasonally adjusted, and therefor not as accurate. Economist Don Jud is going to run the numbers and will give the N&R a fuller picture of the outlook later today.

Guilford and Triad surpass peak employment

The number of people with jobs in Guilford county in May rose to 226,564 -- surpassing peak employment of 225,048 in January 2001.

Same thing happened in the Triad, where 631,573 people are working. That level beats the 622,394 peak in November 2000.

Figures courtesy of economist Don Jud, professor emeritus at UNCG.

That's great, re: jobs, but what do they pay? And do they have benefits. A recent study by Don Jud showed that from 2000 through 2004, overall wages declined 2.7 percent in the Greensboro-High Point region, after inflation is factored in.

June 30, 2005

Working at Dell

I met the head of HR for the new Dell plant, Ann Arzer, this morning.

Chief on my mind was a statement made at yesterday's Triadism love fest, aka the Piedmont Triad Partnership's annual meeting. (Really, it would not have been surprising if the session ended with everyone holding lighters up, swaying to Take me home, Piedmont Triad. Thank goodness John Denver's classic has not been co-opted, yet.)

Watts Carr, the chairman of the board of PTP, said the company had received 30,000 applications.

According to Arzer, that is a bit of an exaggeration. Dell's job web site was accessed 30,000 times. But it did not receive that many applications.

Arzer said she was surprised how many people had only held one job. And how many people had never interviewed before. She said people showed up in t-shirts, flip flops and generally inappropriate attire. The company is going to work with Forsyth Tech on a program that will teach people the ins and outs of the interview process.

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