Small Business News | January 1998 | Page 4

Small Business Hawaii | Volume 23 Number 2 | January 1998

GUEST COMMENTARIES BY SBH MEMBERS

By Cliff Slater

The Governor's Revitalization Task Force affair has been a sad one. For the most part, its members have been sincere dedicated people who worked hard to produce a document they could describe as "workable." However, for the most part they are people who have spent their working lives subject to Hawaii's political powers. And while their proposals may be a step in the right direction - albeit a short, mincing one - it might have been better to have done nothing at all. We would not then all be fooling ourselves that their recommendations would make that much difference.

The Task Force business leaders know what has to be done but because of "political realities" they had to avoid the heart of the problem - the power of our public worker unions. They (and we) all know that for the economy to grow again we need tax cuts -- real and deep tax cuts. We also all know that such tax cuts require spending cuts and that means a reduction in public workers. That is not rocket science.

We presently have more public workers than when our economic stagnation started in 1992. Had we at that time instituted a 50% hiring freeze (for every two that leave, hire one), we would have today about 5,000 less public workers. This would have given us the same ratio of private to public workers as we had in 1986. The resulting savings of about $250 million annually would have been enough to cut state income tax rates in half. However, a hiring freeze hurts union leaders since fewer union members means lower compensation for their leaders.

Such a freeze might also have helped relax the iron grip that the public worker unions have on our education system - UPW control of building and maintenance staff and HGEA's control of school principals. These two union - not the teachers' union - have been the stumbling blocks to any reform of our public education system. With continued UPW and HGEA control we will never see the implementation of real charter schools or even real SCBM - school/community-based management.

Nor did the Task Force address reform of the Jones Act shipping regulations whose restrictive practices drive up our cost of living. Safeway officials say that shipping is the sole cause of the price difference between here and the Mainland. Reform opponents - Matson and the maritime union - disagree. They say that shipping costs are minimal. However, if shipping costs do not cause high prices, what does? Rents are only a minor percentage of a supermarket's prices, so what else can the cause be other than high shipping costs? And if shipping is not the problem why do ship owners oppose even studying the subject? The question answers itself.

Nor did the Task Force recommend eliminating CLEAR - the UH Center for Labor Education and Research. This taxpayer-funded nest of union organizers provides "research and training for Hawaii's union." They produce such publications as, "A Picket Guide for Hawaii Public Employees" available at UH for $.50. This kind of activity is fine at union expense but at taxpayer expense it is an outrage.

Our economy will continue to stagnate until those in power, in Herman Kahn's phrase, "think through the unthinkable" and come to grips with the power of the public worker unions.

Only then will we get real tax reduction, real reform of public education, a real reduction in public workers and reform of our shipping regulations. This will begin to put us back on the right track.

Clear, Concise Business Writing

By Jeffrey Bingham Mead
President, The Bingham Mead Group of Hawaii

One of my students, who works for a Waikiki-based hotel chain, came to me in almost total exasperation. "I just can't stand it anymore!" Tania exclaimed. The reason? Her supervisor had developed a reputation for writing some of the most incoherent memos and reports known to humankind. Tania told me that she and her associates routinely spend at least one-third of their workday deciphering the meaning of these documents. It was costing time, money, and nerves.

Business people like you and me today are saturated with more data than ever before. But how many of you have more time? They don't teach hieroglyphics in business communication courses for a reason. It's why most managers and executives want information to be clear and concise.

Clarity is basic to effective communication. We need to choose our language with care to improve the chances that the messages we intend to send are the messages that our readers receive. Unclear language gives a reader such a range of possible meaning to choose from that shared meaning may be impossible. Furthermore, as Tania and her associates would attest, unclear language runs the risk of frustrating the reader and arousing unintended emotional reactions.

You can clarify your language by selecting precise, specific, and concrete words in your written communications.

Selecting the most precise words means selecting the words that most accurately expresses your meaning. Too often, especially in our interpersonal communications, we tend to get careless. With the best of intentions, professionals use words and expressions that aren't quite right. They often hope that our readers will understand the point anyway. Precision is especially important when you are trying to communicate specific information.

What can you do? Keep these points in mind when you write your memos, reports, proposals, and other written business documents:

1. Write clearly. Express yourself in messages your reader will understand, depend on, and ultimately act on. That means you'll need to know your reader's expectations.

2. Write to achieve comprehension by focusing on pertinent information. Keep the frills to a minimum, and use short, simple words.

3. Write concisely, and get into the habit of making every word count.

Dumped in the High Risk Work Comp Dust Pan

by Carol Ramie, Island Investigative Services

Well, much to my "not surprise," the Traveler's Insurance Company has notified me that our work comp insurance will not be renewed this year. They are no longer an assigned risk carrier in the State of Hawaii.

I have managed a private investigative company in the state of Hawaii for 17 years. We specialize in the detection of worker's compensation fraud. Just as we have all seen on the national broadcast such as 60 Minutes and Dateline, we help the insurance companies save money by obtaining evidence of their 'claimant's' exaggerating the extent of their injuries. Just this week we obtained film of an individual on four different days who was quite active. One day he helped to push a pickup truck down the road with some friends. On another day he did some heavy duty yard work. He walked fine, no limp, no cane. Several days later we see him show up at his doctor's appointment with a cane walking ever so slowly. It is alarming how many of these cases we see a month, let alone a year.

My point...We have not had a claim in the history of our company. I resent being put into a high risk category when we are a well established, well respected company. On the contrary, we should be put into a low risk category as no fraudulent claims will arise from our company.

I love my business. I love to work. I love to help people. But there are days like today when I feel like closing the door to these ridiculous problems such as this Workcomp nightmare. How positive it would be to return to the day when we are judged by our own merit rather than being clumped into a category where we have no business belonging.

Producers vs. Consumers

By Tracy Ryan, Freedom Advertising

Sam Slom has a sign in his Senate office that says, "No Sniveling!" It's often the term used to describe the complaints small business people direct at our government. But let us suppose for a minute we had a government that did just what we wanted it to. Suppose we had all the regulatory and tax relief passed, realistic labor laws, and a healthy economy. Do you think running a small business would really be easier or more profitable? Economic theory tells us it would not. A more favorable climate for small business should encourage more people to start small businesses. The increased competition would mean small business people would have to work just as hard for the same amount of money as they always did before.

Why then should we spend our times seeking relief? Simply put, we must give equal consideration to our roles as consumers as we do as producers. An increase in the number of businesses will bring down consumer prices by increasing the supply of goods on the market. This will increase the purchasing power of every member of the community. Earned purchasing power will go to many people who were previously on the dole. With the increase in production and employment, people will be able to buy more of everything. Small business will see gains in the purchasing power of its income too. These will be real gains, not illusionary ones caused by inflation of the money supply.

Unfortunately, big business and big unions are obsessed with getting government help for themselves in their roles as producers. Too often they succeed to the detriment of the community. Small business and non union workers are particulary harmed.

In the unfettered economy the consumer is king. In our interventionist system the government misdirects labor and capital to the advantage of the politically powerful instead. This system is our real enemy.