August 2013 Business Magazine

A New Electricity Alliance:Manufacturer & Business Association, EEA-PA and NRG Business SolutionsSince its inception, Employers’ Energy Alliance of Pennsylvania (EEA-PA) has supported our members’ energy needs. The latest example comes with our new alliance with NRG Business Solutions.

Many of our members wanted a variety of energy services to choose from that we alone couldn’t provide. An alliance with NRG Business Solutions allows us to provide this range – from fully fixed to fully variable and everything in between. The choice is yours and we’re here to help you. You will also receive the same level of service you’ve come to expect from the Manufacturer & Business Association (MBA) and EEA-PA while significantly expanding our experience and expertise in servicing your electricity needs with NRG Business Solutions.

Trust and expertise … a combination you can continue to count on.

Contact us today to learn how we can help meet your electricity needs.

Chuck Jenkins814.833.3200

[email protected]

NRG is a federally registered trademark of NRG Energy Inc. “Reliant” and “Reliant Energy” are federally registered trademarks of Reliant Energy Retail Holdings, LLC. (DE No. 7894, MD No. IR-2058, PA No. A-2010-2192350, DC No. EA-10-15, BPU No. ESL-0093, MA No. CS-072). NBS.1645

BUSINESSM A G A Z I N E

VOLUME XXVI, NUMBER 8 AUGUST 2013Manufacturer & Business Association

Montessori Regional Charter School Where Kids Learn to Love to Learn / Page 10

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VOL. XXVI, NO. 8 AUGUST 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 Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org

Manufacturer Joel Berdine & Business John Cline Association Board Dale Deist of 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 Joe Bione Writers John W. Draskovic Len Eisenbeis Steve Findlay Jim McKibben, CLU Tungsten Creative

Photography Drumheller Creative

Jessica McMathis Casey Naylon Karen Torres

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

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ON THE COVER: The Montessori Regional Charter School (MRCS) is a tuition-free, public school that enrolls students grades K through 6 throughout Erie County. With campuses in Millcreek and Erie, MRCS offers an educational approach that encourages learning from peers in a setting that offers individualized attention and involvement between teachers and parents. For full story, see page 10.

SPOTLIGHT >

How are programs such as Erie GAINS benefitting our community? Gannon possesses such a strong set of assets in our students, faculty and staff — and we can and must share these assets by engaging fully in the daily lives of our neighbors for their benefit as well as our own. The Erie GAINS (Gannon Alliances to Improve Neighborhood Sustainability) initiative is at the heart of our strategic plan goal to engage in the community. It has had many significant successes, including great work toward improving educational attainment through partnership programs such as GO College, truancy initiatives and the Club Fit program. An annual cleanup and transformation of Gridley Park has been another point of pride, as has been the important work in health, social concerns, and wellness resulting from programs such as the Erie County Child Abuse Task Force.

In light of current concern about student loan debt and interest rates, what is Gannon doing to ensure value for students? Value, of course, is determined both by cost and by what one receives for one’s expenditure. Gannon’s strategic plan goal of fostering innovation is directed specifically at this issue: to ensure that access, affordability and the quality of the education our students receive, as well as the quality of the student experience they encounter here, are very high. For the past decade, we have maintained tuition costs in the bottom quartile of our peer group. We also offer a higher level of student financial aid on average than our peers, and 95 percent of our students receive some form of this aid. In a difficult economic climate, the decision to do these things is never financially easy for an organization, but it is a decision we gladly make in keeping with our mission.

What challenges does the university face in the coming years? The faculty and administration are taking necessary steps to preserve our mission of providing exceptional quality higher education to those who want and need it. The first goal of our strategic plan is designed to foster innovation, including new approaches to program development and delivery; supporting the learning needs of our current students; and imagining, designing and implementing more efficient, effective methods to expand our markets for existing programs and to reach new groups of learners, here in Erie and elsewhere across the country. We are exploring strategies to reduce the cost of service delivery while delivering improved services and better learning outcomes and career success.

In order to meet the changing needs of current and future students, we have established a one-stop Student Success Center that provides advising, mentoring, tutorial services, career and experiential learning support. We have had early success in raising substantial funds for endowed scholarships, and have also been very successful with the recruitment of international students to Erie.

What have been the most rewarding achievements that you’ve experienced during your tenure at Gannon? Our University community is growing in confidence and commitment to creative and innovative change that meets the dynamic environmental challenges that face us. We have begun to set our course for success by looking internally, and rightfully focusing our plans for transformation not only on our own University community, but on our efforts to transform our local, regional and global communities. Strategic reorganizations in several areas, including the new division of Student Development and Engagement, the International Student Center and an integrated team of marketing and communications, are already driving student-centered program expansions.

Ultimately, our success is always measured in the success of our graduates. In May, we awarded 768 degrees at spring commencement. Each of those degrees represents the immeasurable contributions of a student services structure that provides a welcoming and stimulating campus environment, and our inspired and inspiring faculty, whose contributions extend beyond the classroom and into the community. What they — and our graduates — contribute to their communities is the ultimate measure of Gannon’s success and we are very proud of each of them and the tremendous impact Gannon is having in changing our world.

Gannon University, a Catholic, Diocesan university dedicated to excellence in teaching, scholarship and service, has reinforced its commitment to its students, faculty and the community in which it operates through various strategic goals. University President Dr. Keith Taylor spoke to the Business Magazine about some of the resulting initiatives, as well as how Gannon is ensuring value for students and stakeholders in an increasingly challenging economy.

August 2013 > www.mbabizmag.com > 3

ISM, PLASTEK HOST TOURS FOR FORT LEBOEUF STUDENTSA group of 11 students from Fort LeBoeuf High School who participate in the Manufacturer & Business Association’s Your Employability Skills (Y.E.S. ™) program got a firsthand look at entrepreneurship, technology and thriving manufacturing companies, during recent facility tours of Industrial Sales & Mfg. (ISM) and Plastek in Erie.

ISM prepared students for the field trip with a board meeting (Power Point discussion) and then took the group on a plant tour, emphasizing the importance of showing up for work with a good work ethic. “I think the message clicked with many of the students,” said Fort LeBoeuf School District Business Chairperson Mike Shady.

At the next stop, Plastek’s team discussed all the products they

MBA HONORED AT 2013 APTEAN EDGE CONFERENCEThe Manufacturer & Business Association (MBA) was honored as a winner at the first annual Aptean Edge Awards & Gala during the 2013 Aptean Edge Conference — North America’s largest gathering of Aptean solution users — in Las Vegas.

The Aptean Award honors organizations that have achieved exceptional results with Aptean technology.

Having competed across 12 product lines, the MBA was recognized for the impressive results of their deployment of Aptean’s GoMembers product, a complete services and support solution that streamlines the Association’s front and back office processes for membership and meeting management, publications, products and finances.

Project managers Amy Pontillo, manager of Computer Training, and Jessica McMathis, digital communications manager, accepted the award on behalf of the Association.

Business Buzz

From left: Kenneth Frank, chief operating officer of Aptean, Amy Pontillo and Jessica McMathis of the MBA, Aptean CEO Paul J. Ilse, and Kyle L. Bowker, senior vice president, Global Sales, Aptean.

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manufacture, before taking a guided tour with a plastics engineering student from Penn State Erie, The Behrend College.

“He explained everything about manufacturing and the plant,” said Shady. “We were amazed that they manufacture over 1 billion products per year out of the Spectrum plant.”

In collaboration with local school districts, employers and business organizations, the YES™ program is designed to help youth acquire the fundamental skills that employers regard as important to a well-trained work force. It addresses key concerns of the employers, while preparing applicants for quality employment opportunities and a pathway to a secure future.

To learn more about YES™, visit www.mbausa.org.

DEPARTMENTS > Contact: Karen Torres

CARVER INTERNATIONAL RECEIVES EXPORT SERVICE AWARDCarver International, Inc., along with 56 other U.S. companies and organizations that export goods or services, was honored by U.S. Acting Secretary of Commerce Rebecca Blank at the 2013 President’s “E” Awards ceremony. The award, which recognizes significant contributions to increasing American exports, was presented to Gary Carver, president of Carver International, during a May meeting at the Manufacturer & Business Association.

“These companies truly represent the spirit of American business and entrepreneurship — bringing some of the best and most innovative products and services to the global marketplace with the sought after ‘Made in the USA’ label,” said Acting Secretary Blank. “Exports continue to be the engine of our economy, supporting nearly 10 million good, high-wage jobs in cities and communities across the country.”

The President’s “E” Award was created by President John F. Kennedy in 1961, and more than 2,500 firms have been recognized since the program’s inception.

Based in Erie, Carver International is an international freight forwarder providing export services — including ocean and air freight shipments, complete export documentation, express shipping programs, and marine insurance coverage, among others — from the United States.

From left: Sheila Sterrett, regional manager for U.S. Senator Pat Toomey; Lyn Doverspike, director of the U.S. Commercial Service Pittsburgh office; Gary Carver, president of Carver International, Inc.; State Senator Sean Wiley (D-49); and Brad Moore, district director for U.S. Representative Mike Kelly.

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Onsite workplace health clinics are evolving, growing from their beginnings as traditional in-house occupational health clinics where someone who was injured on the job could get basic care, to more extensive total health management centers. Such centers typically offer acute care treatment, health and wellness programs, health coaching, behavioral health assistance and chronic disease management support.

The type of onsite health clinic that’s right for a company can depend on many factors, including the size of the company, the type of company and the location of its workers. Finding a model that makes sense can help companies lower health-care costs and support their bottom line.

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treat acute conditions.

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in a comprehensive management of lifestyle behavior and disease management through physician and health care support team referrals.

Onsite Centers FeaturesAn onsite center could be a fully staffed health center located at or near your place of business. Staff provides primary care support, and onsite care for acute health-care services such as sinusitis, minor injuries, sore throats, sprains and strains. Any treatment should be communicated to an employee’s primary care physician or appropriate specialist to ensure seamless coordination of services.

An onsite center can also serve as a front door to occupational health services, where occupational injuries can be reviewed quickly and triaged or treated; and occupational health exams, drug testing and OSHA reporting could take place.

Good onsite total health management centers provide health and wellness education and referrals to prevention programs such as weight management, nutrition, tobacco cessation, stress management and physical activity programs. Employers may include prescription medication services by providing a courier service to deliver prescriptions to employees.

Different Models of Onsite Centers:

1. Fully equipped onsite health centers located on the employer’s campus. This model is ideal for larger companies with many employees.

2. “Near-site” health centers can work for large employers that have employees working at several different sites.

3. Mobile medical units are a cost-effective option for targeted medical services or testing. Mobile medical services may include a van or just a team of clinical staff based on an employer’s needs.

4. Employers can take advantage of telehealth technology within an onsite center to effectively service a number of worksite campuses. There are many options in the deployment of telehealth that make providing total health management care very scalable to companies of all sizes.

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Leonard Eisenbeis is Director, Clinical Health Services for UPMC WorkPartners, which is an affiliate company of the UPMC Insurance Services Divi-sion. The other integrated partner companies of the Insurance Services Division include: UPMC Health Plan, UPMC for Life, UPMC for You, UPMC for You Advantage, UPMC for Kids, Community Care Behavioral Health, LifeSolutions, EBenefit Solutions, and Askesis Development Group.

EDITORIAL > By Leonard Eisenbeis


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On July 7, 2011, the Pennsylvania Workers' Compensation Act was effectively amended to include what is sometimes referred to as the Firefighter Cancer Presumption Law. Under the new law, firefighters suffering from cancer are entitled to a presumption that the cancer is work-related.

To be eligible for the presumption, the firefighter must have served for four or more years in continuous firefighting duties and must establish direct exposure to a carcinogen that is recognized as a Group 1 Carcinogen by the International Agency for Research on Cancer. Additionally, prior to asserting his workers’ compensation claim, the firefighter was required to have successfully passed a physical examination that found he was free of the condition of cancer.

The law, which also applies to volunteer firefighters who meet certain similar conditions, provides the presumption of causation can be rebutted by substantial competent evidence that shows the firefighter's cancer was not caused by the occupation of firefighting (i.e., tobacco use, family history, non-occupational exposures).

Additionally, it extends the period within which the firefighter can file a claim for the occupational disease of cancer. Specifically, the new law extended the period from 300 weeks to 600 weeks; the presumption of causation, however, applies only to claims raised within the first 300 weeks after the last date of employment in the firefighting occupation.

Interestingly, the legislative history reveals that an original draft of the law provided for the presumption to be rebutted by the burden of proof of “beyond a preponderance of the evidence.” It was amended to provide for a standard

of proof characterized as substantially reasonable competent evidence, which was then said to be consistent with existing workers' compensation law.

“Substantial competent evidence” in the workers’ compensation arena constitutes “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” As a practical matter, many believe that workers’ compensation judges and appellate tribunals will treat the “substantial evidence” burden of proof as synonymous with the “preponderance” burden of proof.

Now that nearly two years have passed since its effective date of July 7, 2011, municipalities across the Commonwealth have experienced some rather significant and perhaps unanticipated consequences. Various trade and professional journals have reported a rise in the filing of claim petitions, while some insurance carriers have simply ceased providing coverage for volunteer firefighters. If a volunteer fire company is dropped by a conventional private insurance company, the municipality can seek coverage through the State Workers’ Insurance Fund. Moreover, some municipalities are reporting an increase in workers’ compensation coverage costs and are now beginning to receive decisions on claim petitions previously filed under the new law.

In an effort to address the consequences of the new law, it has been suggested that municipalities and fire departments institute programs requiring routine medical examinations that involve cancer screenings. Other suggestions involve heightened use of personal protective equipment, more safety training, and more detailed documentation regarding the circumstances, time, duration and concentration of exposures to carcinogenic materials.

Despite what some may view as unintended consequences of the Firefighter Cancer Presumption Law, it is unlikely the legislature will engage in any meaningful effort to address these consequences through additional amendments.

As a result, municipalities, fire departments and insurance carriers will be subject to the presumption and its effects while simultaneously attempting to seek relief from the legislature and reduce the impact of the law and number of claims through the use of routine cancer screenings, increased use of personal protective equipment and better recordkeeping.

For more information, contact John Draskovic at MacDonald, Illig, Jones & Britton LLP at 814/870-7653 or [email protected].

John W. Draskovic is a senior partner in the law firm of MacDonald, Illig, Jones & Britton LLP, where he is chairman of the firm’s Workers’ Compensation Group and a member of the firm’s Litigation and Labor Groups. He practices exclusively in the areas of civil litigation and workers’ compensation. His litigation practice consists primarily of defending insurance carriers and businesses from all variety of claims. His employment practice includes representing carriers and self-insured employers in workers’ compensation and other employment-related claims.

Legal BriefThe Pennsylvania Firefighter Cancer Presumption Law: Two Years Later

EDITORIAL > By John W. Draskovic


In a bright, spacious classroom, a kindergarten student holds in one hand one small, golden bead; in the other, a cube comprised of 1,000 golden beads. Instead of looking at numbers on a piece of paper, the child experiences the difference in the depth, weight and quantity of the beads.

As he manipulates the concrete materials of the golden beads, he begins to understand the concepts of quantity, place value, composition of a number, addition, subtraction, multiplication and division. As he practices with them, he is establishing a foundational knowledge of the decimal system that will lead to a deeper understanding of mathematical operations and allow him to solve mathematical problems abstractly.

The golden bead material is one of dozens, perhaps hundreds, of specialized learning materials found in the classrooms at the Montessori Regional Charter School in Erie. Each specialized material — the heart of any Montessori classroom — is designed to evoke sensory responses in children, enabling them to experience learning through visual, tactile and auditory experiences in a hands-on approach to learning.

Individual and small group lessons replace classroom lectures. Teacher observation and individual anecdotal notes documenting each student’s progress, together with data from required standardized testing, drive a student-centered, dynamic, spiraled curriculum that sets both the students and the school apart.

Montessori in ErieChartered in 2004, the Montessori Regional Charter School (MRCS) is a tuition-free, public elementary school that enrolls students throughout

Erie County, although any child in Pennsylvania is eligible to attend. With campuses on Sterrettania Road in Millcreek, and 6th and Raspberry streets in Erie, the school is planning an addition at the Sterrettania campus —one that will approximately double its capacity and accommodate an ever-increasing waiting list.

MRCS offers grades K through 6, and is committed to multiage, multi-ability and multicultural classrooms. The Montessori approach encourages peer learning in which older students frequently assist and mentor younger children in the same group.

Montessori teachers are Pennsylvania certified and have Montessori teaching credentials, a program of study that is comparable in time, effort and scope to a master’s degree. A teacher and a teaching assistant — all of whom are PA-certified teachers themselves — are present in a MRCS classroom. The student-to-teacher ratio in the classroom is 12 to 1, and if you count administrative and support staff, as most schools do, the ratio decreases to 7 to 1 — a distinct advantage that enables differentiated instruction and individualized attention.

Where Kids Learn to Love to Learn

Students work cooperatively to achieve common goals and break down complex subjects into their simplest parts to find solutions.


“Montessori is a closely knit community and the communication between parents and teachers is very, very good,” says Nicole Lavery, owner of Lavery Brewing, whose eldest daughter is a graduate of MRCS, and who has two younger children currently enrolled at the school. “There is a lot of one-to-one interaction with teachers that is much harder to get in a larger setting.”

The Montessori classroom is a dynamic space where tables are arranged into open networks facilitating group participation and interaction. Students are free to move about the room to gather materials to complete their work. A Montessori teacher is typically engaged in preparing the environment, observing students as they work and guiding them in their discovery of solutions, a method that facilitates independence and self-reliance.

Cheryl Schodt, program and curriculum research analyst at MRCS, has been a member of the faculty and administration for 11 years. Having taught elementary education in traditional schools prior to Montessori, she appreciates the way the program focuses on meaningful and fulfilling educational experiences. “All of our students have the opportunity to manipulate materials and ideas to discover creative solutions to problems. This ability is a valuable life-long skill that will enable each of our students to live successfully and be an asset to the work force in the 21st century.”

The curriculum at MRCS is interwoven so that activities and discussion encompass multiple academic subjects. No subjects are taught in isolation. As students progress in the exploration of a particular topic, additional subjects are naturally introduced, building upon previous discoveries toward greater and greater degrees of complexity. MRCS also has a character education program where children acquire grace, courtesy and a sense of communal responsibility. Latin and classical studies are also offered, unique programs both locally and nationally.

Anthony Pirrello, chief executive officer of MRCS, believes that the school plays a critical role as an alternative to public education, providing parents the opportunity to find what’s best for their children on the “educational menu” of our community. “This is the free market at work in education,” he says. “We have to be flexible, to react to the marketplace. Public school choice is all about making sure that the quality remains high. Competition in the educational marketplace promotes higher quality. That’s what taxpayers deserve.”

Parent PerspectivesAs a Millcreek School District teacher and mother, Lori Bischof had specific ideas regarding the elementary curriculum she wanted for her three children. While in the process of evaluating schools, she received a flyer about MRCS. Although she knew almost nothing about Montessori education, she decided to visit the school.

Among Lori’s criteria was finding a curriculum that could accommodate different levels of learning. Her kindergarten-aged child was an early reader, and Lori feared she would have to repeat phonics, a skill she had already acquired. To her surprise, she discovered that each child in the Montessori classroom progressed independently, regardless of age. “Differentiated learning to accommodate different ability levels is what influenced me the most,” says Bischof.

“Once I saw the classroom and became familiar with the materials and the method, I was convinced.” Lori has two children enrolled at MRCS, and plans to have her third child attend in two more years.

Montessori’s self-directed, individual learning approach also made it the school of choice for Vice President of Academic Affairs and Dean of the LECOM School of Pharmacy, Dr. Hershey Bell. “What distinguishes Montessori is the emphasis on critical thinking and problem-solving,” he says. “It fit our philosophical view.” Bell’s three children are graduates of Montessori and have moved on to secondary, college and postgraduate education. His eldest son is studying for a master’s degree in International Relations and European Politics at the University of Amsterdam. He also has a son entering his junior year at Clemson University who is studying abstract mathematics. The youngest, a daughter, is enrolled at Mercyhurst Prep, a school whose curriculum Bell says “aligns with Montessori.” >

At the Montessori Regional Charter School in Erie, students manage their own work plans and progress at their own pace in a hands-on environment.

Montessori’s Face ValueBarbara Walters once asked Google founders Larry Page and Sergey Brin what the secret was to their success. Their Montessori education was the key, they answered. Chef Julia Child, Washington Post owner Katherine Graham, Amazon.com founder Jeff Bezos, business expert Peter Drucker and Princes William and Harry were also Montessori-taught.

They all benefitted from visionary educator Maria Montessori, a physician and educator who grew up in Rome in the late 19th century. Her interests included psychiatry and child development, and she began teaching impoverished children and those with developmental disabilities. Her extraordinary success drew attention to her unique “method,” and during the 20th century, her approach achieved international acclaim. Montessori believed that children are born with a propensity for learning, and a basic tenet in her approach is providing opportunities to enable children to learn independently.

“A child in his earliest years, when he is only 2 or a little more, is capable of tremendous achievements simply through this unconscious power of absorption,” she wrote. “After the age of 3, he is able to acquire a great number of concepts through his own efforts in exploring his surroundings.”

One of the most important platforms in Montessori’s approach is to offer children a dedicated place to facilitate learning. “We must create a favorable environment that will encourage the flowering of a child’s natural gifts,” she wrote in The Secret of Childhood. “All that is needed is to remove the obstacles. And this should be the basis of, and point of departure for, all future education.”


All three children are outstanding students who have earned academic recognition and scholarships. Bell is convinced that these achievements are grounded in their Montessori backgrounds. “Montessori is not about grades, but about learning. Grades become inconsequential to the process, and the children aren’t burdened by the need to score a certain grade. Competition is replaced by cooperation and real learning, and this is what enables them to succeed.”

Measuring SuccessThe Pennsylvania System of School Assessment (PSSA) is the standardized test in English and mathematics taken by students in grades 3 through 8 throughout the Commonwealth in compliance with the No Child Left Behind Act. In addition to PSSA achievement tests, the Montessori Regional Charter School is evaluated with the Pennsylvania Value-Added Assessment System (PVAAS), a statistical analysis that provides growth data to supplement achievement Results. MRCS continually experiences unqualified success in its PSSA results and PVAAS assessments, despite the fact that student testing is not part of the Montessori Method and that students are not “coached” to take the annual exam.

According to Pirrello, the school’s success is a result of its emphasis on learning versus training. “Montessori is an outcome-based learning model,” he says. “Outcome-based education stresses knowledge and understanding, not rote skills. It’s not a gold star on a piece of paper, it’s an outcome. It’s real and it works. We’ve made our AYP every year, even though we don’t have a system designed for standards-based results.”

In a book titled How Children Succeed, Paul Tough, a former editor of The New York Times Magazine, argues that simply teaching math and reading — the so-called cognitive skills — isn’t enough, especially for children who have grown up enduring the stresses of our times. He asserts that the most important things to develop in students are “non-cognitive skills,” which he calls “character” and “grit.”

Pirrello sees grit as one of the distinguishing attributes of the Montessori child. “Grit is a trait that separates successful and unsuccessful students,” he claims. “It’s the ability to problem solve, the ability not to get knocked down when you get the wrong answer, the ability to think critically and follow through. Montessori develops the ability to do these things, to develop grit.”

Proponents also believe Montessori brings inherent value to the local community by preparing children to be responsible, community-oriented adults. “Montessori children learn how to collaborate and how to be leaders,” says Schodt. “The inclusiveness of Montessori becomes part of the fabric of their lives, and it’s rewarding to see alumni go on to become leaders and take on adult responsibilities.” Nicole Lavery adds, “Montessori opens the eyes of children to all of their possibilities. It’s a blessing.”

For more about the Montessori Regional Charter School, visit www.mrcserie.org.

The specialized learning materials of the Montessori Method introduce mathematical operations that lead to a deep understanding of advanced math concepts.

Busing is provided at no extra cost to and from MRCS for students who reside within 10 miles of the school, which covers most of Erie County.

Involvement beyond the classroomAt a time when public schools are faced with eliminating extracurricular activities due to budget constraints, MRCS has been expanding its programs to continually engage students outside of the classroom. Extracurricular activities at MRCS include a gardening club, junior great books club, art club, violin lessons, and dance lessons in ballet, jazz and hip-hop. And more are being planned.

The school also has a roster of annual activities that serve as a testament to the importance of art in learning and self-realization. They include a student art show, school musical, Erie Philharmonic experience, Erie Art Museum partnership, a celebration of writing event, student feast, and Montessori Parent University. MRCS also offers organized cross-country, basketball and soccer sports programs.


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This summer, insurance carriers have been making early renewal offers to small (under 50) employers. The offer gives an employer the option to renew coverage in late 2013 instead of waiting to renew on their 2014 policy anniversary date. For example, if you renewed on January 1, 2013, you could renew your coverage one month early on December 1, 2013 and have your first renewal subject to the Patient Protection and Affordable Care Act (PPACA) one year later on December 1, 2014, thereby delaying the impact of health-care reform for 11 months.

According to health insurance carriers, by renewing before the end of 2013, small employer plans would not be subject to PPACA reforms, such as new Adjusted Community Rating requirements, until their 2014 renewal.

For plan years beginning on or after January 1, 2014, insurance carriers in the small-group market are prohibited from setting rates based on health status, gender or other factors; they will only be able to vary premium rates based on age, geographic area, family coverage and tobacco use. Also, there will be “rating band compression” wherein groups with older average ages cannot be charged more than three times what the youngest groups would be charged.

Although we don’t know what premium rates will look like under Adjusted Community Rating,

today it is widely anticipated that there will be “rate shock” and significant increases.

A decision to renew early can defer the impact of adjusted community rates until December 2014 when the full impact of health-care reform will be billed to the plan. In many cases — particularly those groups with younger employees and healthy workers — savings may be substantial, and a small number of other groups with older workers or very significant adverse claims experience may actually see lower rates.

A decision to renew early, say in December 2013, will need to be communicated to the carrier in early September in order for the carrier to produce the Summary of Benefits and Coverage (SBC) that is required to be distributed to employees 60 days prior to any mid-year plan change.

If you are a small employer and have not already examined this option, you should contact your insurance broker and request pricing and procedures for a December 1, 2013 early renewal so that you can make an inform- ed decision.

To read our legislative brief on early renewals, visit www.lmbcoerie.com.

UpdatesIn March 2013, my partner John Bongiovanni authored an article on health insurance changes. Since then, Health and Human Services

(HHS) has reversed its position and the Small Business Health Options Program (SHOP exchange) will not permit your employees to choose from among various carriers until 2015, eliminating one of the most attractive features of SHOP.

Also, and more significantly, during the week of July 4, HHS backtracked on the large employer penalty for not offering affordable or adequate health-care-deferring penalties until 2015.

We will be surprised if there aren’t additional Friday afternoon regulation dumps before the end of the year. It will take ever-increasing skill levels for employers to manage these challenges effectively.

For more information, please contact Jim McKibben at Lillis, McKibben, Bongiovanni & Co. at 814/452-4085 Ext. 231 or [email protected].

Can Early Renewal of a Small Employer’s Health Plan Delay the Impact of Health-Care Reform?

EDITORIAL > By Jim McKibben, CLU

Financial Adviser

Jim McKibben is a partner at Lillis, McKibben, Bongiovanni & Co., an Erie-based group benefits firm. He is a member of the Society of Financial Service Professionals and National Association of Insurance and Financial Advisors-PA.


HR ConnectionSALARIES HOLD STEADY FOR 2013 INTERNSThe average salaries for bachelor’s and master’s degree interns in the U.S. held steady in 2013, according to a survey by the National Association of Colleges and Employers (NACE).

In the survey of 1,060 NACE employer members, while the average salary for bachelor’s degree interns ticked up just 0.3 percent to $16.26 per hour, interns in several majors earned an average of more than $18 an hour, including those majoring in engineering ($20.36), computer science ($18.96) and mathematics ($18.15).

The average salary for master’s degree interns, however, dipped to $21.90 per hour, representing a slight decrease of 0.1 percent. Among master’s degree interns, engineering majors earned the highest average salary ($24.43 per hour), followed by those studying physical

sciences ($23.58), mathematics ($23.40) and business ($23.02).

Most importantly, students who reported applying for a job prior to graduation and had completed a paid internship were given a distinct advantage over their peers who had unpaid ones — or no internship at all. Of respondents, 63.1 percent of paid interns received at least one job offer before graduation — and their starting salary fared significantly better. The median starting salary for new graduates with paid-internship experience was $51,930 — far higher than their peers with an unpaid internship ($35,721) or no internship experience ($37,087).

SURVEY: WORK-FORCE SKILLS LACKING IN MANY WORKERSWhile it’s crucial that students and employees master reading, writing and arithmetic, nearly 75 percent of managers and executives believe that mastery of the four Cs — critical thinking,

communication, collaboration and creativity — will become increasingly important skills in the next three to five years, according to a study by the American Management Association (AMA).

The majority of respondents indicated that the four Cs already are priorities for employee development, talent management and succession planning, and that companies rely heavily on assessing those skills in their recruit- ing efforts.

It also identified a gap between the skills workers possess — and the skills their employers would like them to have.

Sixty-two percent of executives reported that their work force was average or below average in communication skills; 61 percent reported average or below average skills in creativity, followed by collaboration (52 percent) and critical thinking (49 percent).


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

DEPARTMENTS > Contact: Stacey Bruce

Getting people to accomplish something is much easier if they have the inspiration to do so. Inspire means “to breathe life into.” And, in order to perform that, we have to have some life ourselves. Three main actions will aid you in accomplishing this:

1. Be passionate: In organizations where there is a leader with great enthusiasm about a project, a trickle-down effect will occur. You must be committed to the work you are doing. If you do not communicate excitement, how can you expect your people to get worked up about it?

2. Get your employees involved in the decision-making process: People who are involved in the decision-making process participate much more enthusiastically than those who just carry out a boss's order. Help

them contribute and tell them you value their opinions. Listen to them and incorporate their ideas when it makes sense to do so.

3. Know what your organization is about: The fundamental truth, as General Creighton W. Abrams used to say in the mid-1970s, is that “the Army is not made up of people. The Army is people. Every decision we make is a people issue.” Your organization is the same. It may make a product or sell a service, but it is still people! A leader's primary responsibility is to develop people and enable them to reach their full potential. Your people may come from diverse backgrounds, but they all have goals they want to accomplish. Create a “people environment” where they truly can be all they can be.

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.

Inspiring Your Employees is Easier Than It Seems

Enroll today!mercyhurst.edu/graduate [email protected]

Corey Murphy, Class of 2012Erie County Adult Probation/Parole Officer

Your time is now.Graduate programs at Mercyhurst University

Faced with little time to go to grad school, Corey turned to Mercyhurst for help. From start to finish, Mercyhurst worked with him — from guiding him through admissions to helping him select courses — to complete a Master’s in Administration of Justice on his time.

“I would recommend Mercyhurst; they made my time there welcoming and stress-free. As a working professional, life can be busy. I appreciated having the option of utilizing some of the online classes that were offered.”

Mercyhurst is currently enrolling students in the following graduate programs: • Administration of Justice • Organizational Leadership • Secondary Education: Pedagogy and Practice • Special Education


Erie Day School provides a rigorous high-quality curriculum, small class sizes of 18 or less, and a ‘parent partnership’

that enriches a diverse population of learners -- from early education (Toddler, Preschool, PreK and Kindergarten) -- to elementary and middle school. Learn more about our

educational philosophy, programs and affordability (sibling discounts, scholarships and financial aid).

814-452-4273 eriedayschool.com Follow us on Facebook.

Is your child’s school making the grade?

Learning today, leading tomorrow. Erie Day School

wise choices when choosing an energy supplier.

Trust and expertise:

NRG is a federally registered trademark of NRG Energy Inc. “Reliant” and “Reliant Energy” are federally registered trademarks of Reliant Energy Retail Holdings, LLC. (DE No. 7894, MD No. IR-2058, PA No. A-2010-2192350, DC No. EA-10-15, BPU No. ESL-0093, MA No. CS-072). NBS.1645

Contact Chuck Jenkins, Employers’ Energy Alliance, Regional Representative Email: [email protected] or call 814-833-3200

Trust and expertise are critical when choosing an energy supplier. We’ve

helped hundreds of Manufacturer & Business Association members,

businesses of every size and type, save more than $10 million on their

electricity costs. And we can help you too.

Our energy experts will answer your questions, clarify the complexities and

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Junior Achievement. Today, achieving even more.

She is eager for real world skills. To find out more about the business world, and acquire the knowledge she needs to succeed. Junior Achievement gives volunteers the tools they need to teach young people about money management and how business works. Students get hands on experiences to help prepare them to compete in the workforce. Learn more about the difference your contribution can make at Junior Achievement at www.janorthwestpa.org. 814.898.6385.

Your skills. Their future.


Editor’s Note: This article is the third in a four-part series devoted to understanding the transitioning of a company from operational excellence, market intelligence and buy-side strategies, business valuations and exit strategies. This month’s column is focused on providing business owners with an in-depth view on specific parts of understanding the importance of market intelligence and competitive analysis.

The path forward in uncertain times begins not with a well-intentioned first step, but rather a clear understanding of where a company stands both operationally and competitively. Competitive advantages and market positions don’t disappear overnight; they slowly lead a company astray one small misstep at a time. The problem usually isn’t the big facts or the big picture, but rather the little assumptions that derail a firm. No matter how sincerely believed or persuasively argued, those faulty assumptions lead business planning in the wrong direction.

Why risk incorporating faulty assumptions into critical planning when you can acquire the market intelligence with a competitive analysis that can validate where your company stands competitively?

Proper competitive analysis facilitates both external and internal development activities. When focusing on internal issues, good intelligence identifies areas requiring operational improvement, enabling executives to prioritize resource allocation accordingly and monitor progress. When analyzing external opportunities, new market oppor-tunities, acquisition options (including “not-for-sale” sellers), and acquisition due diligence, the right intelligence provides executives the confidence they missed nothing.

A well-known survey asked several hundred companies why they failed or fell short of expectations. Neither accounting nor legal due diligence made the list. This is interesting because companies spend an enormous amount of time and money on accounting and legal due diligence. Arguably, over the years, accountants and lawyers have created a due diligence process so effective that surprises in these areas are very rare. They are provided most of the information required to conduct their due diligence by the company itself — and their obligation is to conclude whether or not that information is accurate and complete. Furthermore, the information they require is easily and readily available.

As we have written before, every company is always in some form of transition. With today’s ever-changing global competitive landscape, everyone has to bring their “A” game all the time to remain competitive. Benchmarking your company with the market intelligence of a competitive analysis keeps you in the game. Whether you want to grow your company organically, acquire a company to expand your market presence or product capabilities, improve your operational performance for greater efficiencies and bottom-line performance, or prepare your company for the ultimate exit strategy for either an internal or external sale, having market intelligence of the competitive business you’re in enhances and optimizes your opportunity to be successful.

Business executives’ critical strategic decisions require more than easily accessible public information. While the Internet inundates them with right-or-wrong information, just knowing the difference between the two provides the most critical advantage. Gaining this market intelligence and competitive

knowledge requires direct competitor contact through the very inquiries that are virtually impossible for business executives to undertake internally.

Good market intelligence will help you identify your company’s position against your competition. Once your competitive position is understood, you can put an action plan in place to close the gap with the leaders in your field. With a plan of execution for both operational and financial improvements, you will not only become one of the leaders in your industry, but also optimize your company’s performance.

Remember, for every dollar of improvement to your bottom line, you will not only impact the overall profitability of your company, but more importantly, optimize the real market value of your company, likely, your largest investment.

Steve Findlay is the managing director of The McLean Group’s Erie, Pennsylvania office, an investment bank providing mergers and acquisitions (M&A), business valuation and strategic consulting services to middle market businesses. The McLean Group has been a partner of The Whitehall Group since 2012.

Joe Bione is the founder of The Whitehall Group, which has been assisting companies for more than 25 years in how to maximize current operations and improve the bottom line perfor-mance of companies all over North America.

Business ManagementUsing Competitive Intelligence to Drive Your Strategic Thinking

EDITORIAL > By Joe Bione and Steve Findlay


Events2013 Bike Rally // Erie, PA

July 18, 19 & 20

The seventh annual Roar on the Shore® bike rally, presented by the Manufacturer & Business Association, along with more than 40 local and national business sponsors, was bigger, badder and better than ever. For complete photo coverage from the Roar® weekend, visit www.roarontheshore.com.Blue Ocean Strategy Center

The first of eight rides over the course of the three-day rally, the Roar Through History Ride & Raffle, sponsored by YMCA of Greater Erie, provided a scenic ride to historical sites throughout Erie County.

Roar® veterans Geneva rocked The Hub’s Main Stage during Thursday’s Biker Block Party, sponsored by New Concepts Car Wash.

Danny “The Count” Koker, owner of Counts Kustoms® and star of “Counting Cars,” met fans during several meet-and-greets in The Hub.

MBA Board Chairman John Cline, Erie Mayor Joe Sinnott and Roar Board Chairman Greg Rubino welcomed the crowd gathered in The Hub.

Crowds cheered as the bike parade — Roar’s® annual kickoff — rolled into downtown Erie.

Nascar legend and 2013 Grand Marshal Kyle Petty led more than 5,000 bikes into The Hub during Thursday’s annual bike parade, sponsored by Toyota.

Thousands of bikers packed the Presque Isle Downs & Casino parking lot for the Bringin’ in the Roar pre-parade gathering.

20 < www.mbabizmag.com < August 2013 20 < www.mbabizmag.com < August 2013

FireHouse rocked the Main Stage on Thursday night.

Each night, thousands of rally goers filled The Hub in Perry Square.

Friday’s headline act Jackyl.

Riders at Friday’s Roar to the Microbrews Dice Run, sponsored by Moe’s Southwest Grill, enjoyed an 80-mile scenic ride to four local microbreweries.

As a nod to past Grand Marshal Peter Fonda, riders gathered to toast fallen fawns during Saturday’s Lake Escape: A Beer for the Deer Legend Ride, sponsored by Roth Cadillac.

Natalie Coleman was crowned Miss Roar on the Shore 2013-2014.

Steve Torok won this year’s Harley raffle, sponsored by Kelly and Susan Lapping of Harley-Davidson of Erie.

The 2013 rally ended with Saturday’s Rock ‘n’ Roar concert, sponsored by Russ Brown Motorcycle Attorneys, with Queensrÿche.

Stunt riders Jason Britton and Eric Hoenshell wowed the crowd during their Friday and Saturday shows, sponsored by Off-Road Express.

Hundreds of riders gathered for Saturday’s Roar to the Vineyards Poker Run, sponsored by Off-Road Express.

Friday and Saturday featured live music from local bands and celebrity appearances on the mobile Jägermeister Stage.

August 2013 > www.mbabizmag.com > 21August 2013 > www.mbabizmag.com > 21

Catholic Schools of the Diocese of Erie

For more information: http://www.eriercd.org/schools3.asp

Quality, Faith-Filled EducationPre -School through 12th Grade

Help us continue the mission!Support the TuitionAssistance Workof the STAR Foundation through the EITC Program.

Helping the future workforce understand the free marketsystem is essential to our nation's future economic strength.

Over 1200 students participated in Pennsylvania Business Week lastyear and 96% reported a better understanding of the American

economic system after the program.

Volunteer advisors helped make that possible.

I REQUESTED REASONABLE MEDICAL DOCUMENTATION FROM AN EMPLOYEE IN CON-JUNCTION WITH HIS REQUEST FOR AN ACCOMMODATION UNDER THE ADA. EVEN THOUGH I DID NOT ASK FOR IT, THE EM-PLOYEE’S MEDICAL PROVIDER INCLUDED GENETIC INFORMA-TION ALONG WITH THE RE-QUESTED MEDICAL INFORMA-TION. WHAT SHOULD I DO? Generally, inadvertent acquisitions of genetic information do not violate the Genetic Information Nondiscrimination Act (GINA), however, you may not use that information to discriminate against the employee. Regardless of the inadvertent acquisition, remember that it is also unlawful for a covered entity to disclose genetic information about applicants, employees or members. Therefore, keep genetic

information confidential and in a separate medical file. Employers may place the genetic information in the same file as other medical information in compliance with the Americans with Disabilities Act (ADA).

IS THERE ANYTHING I SHOULD TELL MEDICAL PROVIDERS WHEN I AM REQUESTING MEDICAL DOCUMENTATION FROM MY EM-PLOYEES FOR ADA PURPOSES OR FMLA CERTIFICATION PURPOSES? Yes, the final rule states that when an employer makes a request for health-related information (e.g., to support an employee’s request for reasonable accommodation under the ADA or a request for sick leave), it should warn the employee and/or health-care provider from whom it requested the information not to provide genetic information. The final rule suggests language such as the following:

The Genetic Information Nondiscrimination Act of 2008 (GINA) prohibits employers and other entities covered by GINA Title II from requesting or requiring genetic information of an individual or family member of the individual, except as specifically allowed by this law. To comply with this law, we are asking that you not provide any genetic information when responding to this request for medical information. “Genetic information,” as defined by GINA, includes an individual’s family medical history, the results of an individual’s or family member’s genetic tests, the fact that an individual or an individual’s family member sought or received genetic services, and genetic information of a fetus carried by an individual or an individual’s family member or an embryo lawfully held by an individual or family member receiving assistive reproductive services.

Legal Q&A


Hire educationGraduating top prospects for Erie employers for more than 129 years.

Looking for a specific employee or training for existing employees? Contact Brett Wiler at 814.456.7504 ext. 117 or at [email protected].

246 West Ninth Street • Erie, PAwww.eriebc.edu

Visit our website for important consumer information.

erie business centercenter for business careerscenter for computer careerscenter for healthcare careerscenter for hospitality careerscenter for legal careers

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

A few months ago, the Equal Employment Opportunity Commission (EEOC) settled its first lawsuit filed under the Genetic Information Nondiscrimination Act (GINA).

In its lawsuit, the EEOC charged that an employer violated the Americans with Disabilities Act (ADA) when it refused to hire a woman because it regarded her as having carpal tunnel syndrome, and violated GINA when it asked for her family medical history in its post-offer medical examination.

When the worker went for her physical, she was required to fill out a questionnaire and disclose the existence of disorders in her family medical history. She was also required to undergo medical testing to determine whether she had carpal tunnel syndrome. The worker’s own physician evaluated her and concluded that she did not have carpal tunnel

syndrome. Nonetheless, the employer rescinded its job offer.

The EEOC sued, alleging the company violated GINA, which makes it illegal to discriminate against employees or applicants because of genetic information, which includes family medical history; and also restricts employers from requesting, requiring or purchasing such information. The worker also brought a claim that the employer violated the ADA when it revoked its job offer based on the carpal tunnel syndrome diagnosis.

The employer agreed to settle the case and pay the worker $50,000 along with taking specific actions aimed to prevent future discrimination, including posting an anti-discrimination notice, disseminating anti-discrimination policies to employees and providing anti-discrimination training to employees with hiring responsibilities.

Employers should be aware that the EEOC is paying close attention to health-related employment discrimination. Therefore, make sure your managers are properly trained when dealing with health-related issues.

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.

EEOC Settles Its First GINA Lawsuit

DEPARTMENTS > Contact: Tammy Lamary


DEPARTMENTS > Contact: Karen TorresPeople BuzzFIRST NATIONAL BANK ADDS TWO PROFESSIONALSFirst National Bank of Pennsylvania, the largest subsidiary of F.N.B. Corporation (NYSE: FNB), has announced the recent promotion of William (Marty) Taylor to assistant vice president and business development officer. Based in Meadville, Taylor is responsible for establishing and maintaining business banking relationships throughout Crawford and Lawrence counties.

In addition, FNB has hired Darla Boca-Wimer as manager of the bank's Meadville office. In this role, Boca-Wimer will manage branch operations and sales efforts including the development of new business and customer service efforts.

KNOX ATTORNEY AUTHORS LABOR RELATIONS BOOKAttorney Richard Perhacs of Knox McLaughlin Gornall & Sennett, P.C. in Erie recently published Labor Relations for School Leaders: A Practical Guide to Labor Contracts, Negotiations, Strikes and Grievances.

In his book, Perhacs draws on more than 35 years of experience in counseling employers on labor and employment law issues in the public sector. The publication leads school board members and administrators through the labor relations environment, statutory framework, negotiations process, contracts, strikes and arbitration.

In addition, three Knox attorneys have been named to Pennsylvania Super Lawyers® for 2013, including Guy C. Fustine, Mark G. Claypool and Peter A. Pentz. Pennsylvania Super Lawyers

is compiled by Law & Politics through both peer review and independent research and is intended to highlight the top 5 percent of Pennsylvania attorneys in more than 60 practice areas.

Fustine is chairman of the Bankruptcy & Creditors’ Rights Group and has been with the firm for more than 25 years. His practice is focused on business reorganization, commercial litigation and sports law.

Claypool is vice chairman of the Bankruptcy & Creditors’ Rights Group. His practice is focused on creditors’ rights, bankruptcy and commercial litigation.

Pentz is chairman of the Workers’ Compensation Group. His practice is focused on workers' compensation representing employers and insurance carriers throughout western Pennsylvania.

BOSTWICK DESIGN PROMOTES THREEBostwick Design Partnership recently promoted Damian A. Henri, RA, LEED A.P. to senior associate, Matthew D. Bode to director of Healthcare Planning, and David J. Hogue, RA, LEED A.P. BD+C to associate.

Henri has been practicing architecture for more 13 years, and during that time he has focused almost exclusively on the design of innovative classrooms and laboratories for higher education institutions. In particular, he is recognized nationally for his design of simulation based learning environments in medical, nursing, and allied health education.

Bode joined Bostwick Design Partnership in 2011 and has more than 12 years of experience in the planning and design

of complex medical projects. His recent work includes the expansion of the Cole Eye Institute, a surgery renovation at Fisher Titus Medical Center, and hybrid operating room suites for the Cleveland Clinic’s main and Weston campuses.

Hogue began his career at Bostwick Design Partnership in 2006, and has since contributed to the construction of numerous health-care and higher educational projects. With a bachelor’s in civil engineering and a master’s in architecture, Hogue has applied his attention to detail and intuitive understanding of complex systems to his role on the design team.

Founded in 1962, Bostwick Design Partnership is a full-service architect- ural design firm with offices in Erie (formerly Rectenwald Architects) and Cleveland, Ohio.

TRI-STATE PAIN INSTITUTE HIRES INTERVENTIONAL PAIN MANAGE-MENT SPECIALISTTri-State Pain Institute, the region’s premier pain management specialists, recently welcomed Jung-Woo Ma, MD, to its medical staff. A Harvard-trained, board-certified specialist in physical medicine and rehabilitation, Dr. Ma is now treating patients at Pain Institute locations in Erie and Corry.

Dr. Ma has worked alongside the only board-certified Interventional Pain Management (IPM) specialist at the Deuk Spine Institute in Florida. He received specialized IPM fellowship training in Boston at Spaulding Rehabilitation Hospital, a Harvard teaching hospital, and served his medical residency in physical medicine and rehabilitation at The Mount Sinai Medical Center in New York City.


OntheHillDEPARTMENTS > Contact: Lori Joint

What does a Middle Eastern battlefield from biblical times "have to do with where you buy your booze? Actually, quite a lot. Like the Israelites of old, we too have a “Goliath” to face in this commonwealth — the leadership of the government employee unions. They are the power that maintains the status quo and fights against innovative reforms on almost every issue of critical importance to the hardworking families and taxpayers of Pennsylvania.

One of these is reforming the arcane liquor control laws of our state. Whether you drink or not, privatizing the government-run liquor stores — which is not a core function of government — and letting citizens buy their bread, beer and Bordeaux all at the same place makes sense. So why has it been so difficult?

Lawmakers are being intimidated by Goliath.

Did you see the TV ad showing a young girl at a funeral, mourning a parent who was killed by a drunk driver and then claiming this would happen more if grocery stores sold wine?

These were funded by one of Pennsylvania’s government unions, the UFCW, which claimed it had spent $1 million on these political ads.

What about political ads accusing Governor Corbett of giving away money when he reduced business taxes by the anonymous “Pennsylvanians for Accountability”? While not all of the group’s funders are known, one is.

That’s right, government union bosses. In this case, it was the SEIU, whose Pennsylvania chapter, Local 668, spent more than $210,000 on political activity and lobbying in 2012.

What may shock you is this: Pennsylvania’s taxpayers are indirectly funding these attack ads on Governor Corbett and state legislators through government-provided union dues. This is a gross violation of the public’s trust, and it shows just how far union bosses will go to protect their own power — even if it comes at the expense of the taxpayer.

State government, school districts and local governments deduct unions’ dues — even PAC contributions — from workers’ paychecks, then send funds to union leaders.

For example, the state sends UFCW about $1.2 million in dues collected from state liquor store workers each year. This allows the UFCW to fund politically charged ads and lobbying efforts.

Our political Goliath, with his vested interests in keeping government in the booze business, depends on taxpayers’ money to maintain his fight against their interests. And it is the same political power with which they influence legislators, who end up serving the interests of the same Goliath, instead of the taxpayers.

But, like David, we should not fear stepping onto the battlefield with Goliath.

Worker fairness victories in Wisconsin and Michigan offer tangible examples for us to follow and adapt to the situation in our commonwealth. Goliath may be strong — in fact, he out-mans and out-guns us freedom-lovers on almost every front — but he has a weakness.

You see, Wisconsin has taught us that eliminating automatic dues collection fundamentally changes the battlefield by decimating the union bosses’ political and economic clout. Ending the practice of using taxpayer-funded resources to automatically collect union political money fundamentally changes the game in which Goliath dominates the policy battlefield.

Putting an end to automatic dues deduction is the “Keystone Reform” on our way to defeating the government union Goliath. With it, every future battle for freedom will be easier to fight, and each achievement easier to defend. In Wisconsin and Michigan, business and community leaders communicated their expectations to their elected officials and held them accountable to their actions (or lack thereof). It is this type of involvement in Pennsylvania that is critical to ensure the success of Keystone Reform and that taxpayer Davids, not Goliath, are being served by Harrisburg.

If Wisconsin and Michigan did it, we have no excuse not to follow their lead.

For more information, visit www.commonwealthfoundation.org.

Charles F. Mitchell is vice president and chief operating officer of the Commonwealth Foundation.

Stepping Onto the Battlefield


PRSRT STD US POSTAGE

PAID ERIE, PA

PERMIT #199

…the smart new solution for small and mid-sized businesses in Erie, Crawford, Warren, and Mercer counties — from UPMC Health Plan.

Come on In!

Lower employer premiums. Lower employee costs.

UPMC Inside Advantage™ is a tiered network plan that provides the same types of coverage as other UPMC Health Plan offerings — but at a lower premium and lower out-of-pocket costs whenever employees choose to use quality hospitals right in their community.

It’s about savings. It’s about quality. It’s about convenience.

It’s about time.What are you waiting for?Come on In!

For information, call:UPMC Health Plan – Erie Office109 Boston Store PlaceErie, PA 16501814-833-6633

Documents

August 2013 Business Magazine