Hartford Business Journal

28 Hartford Business Journal • June 1, 2015 www.HartfordBusiness.com OPINION & COMMENTARY EDITORIAL Banning pay secrecy won't cure gender wage gap S ome state legislators think they can address the gender wage gap by barring employ- ers from punishing workers who freely discuss salary and wage information. Unfortunately, their presumptions amount to nothing more than wishful thinking. Allowing workers to freely share salary information won't dramatically impact employee wages or lead to sudden pay hikes for female workers. Ultimately, it's the employer's job and right to place a value on each employee and pay them accordingly as long as they don't discriminate based on gender, age, race, or sexual orientation. Just because workers share the same title or log the same number of years of service doesn't mean they should receive the same pay. There are many factors that determine employee pay, including growth potential, commitment to the job, and, of course, overall performance. Giving workers free rein to compare wages won't dramatically change that dynamic or provide the necessary context for why one employee is paid more than another. That being said, we aren't opposed to free speech in the workplace. Workers should not be punished for disclosing their wages to other employees, which is a safeguard included in House Bill 6850. Labor unions and other top Demo- crats, including Gov. Dannel P. Malloy, have thrown their support behind the measure, which passed the House last week and is awaiting Senate approval. Even some House Republicans backed the bill. The Connecticut Business & Industry Association voiced opposition to the proposal, arguing it could lead to morale issues in the workplace. CBIA has a valid argument. You can imagine the ruffled feathers that could result from free and open discussions about employee pay, but restricting work - ers the right to tell others how much they make is anti-democratic; it's the equivalent of outlawing water-cooler talk in the office. The argument, however, that pay dis- closures will lead to pay equity is hard to fathom (according to a recent report by the Institute for Women's Policy Research, women in Connecticut earn 76.7 cents for every dollar a man makes). Such a conclusion was made in a 2013 report published by the state's Gender Wage Gap Taskforce, which said "prohibiting discussion among employees about salary information is a contribut- ing factor in perpetuating the gender wage gap." The report went on to say that allowing employees to discuss wage informa- tion would help women more accurately gauge their earning potential, particularly since many employers are often unaware that the gender gap exists. That conclu- sion, however, is overly simplistic. It's nearly impossible to accurately conclude that pay discrimination is occurring simply because a female and male employee with similar pedigrees are paid differently; it fails to recognize the myriad factors that determine a salary. So, while we aren't opposed to a ban on pay secrecy rules, we don't buy into the notion it will have a major effect in shrinking the gender wage gap. n OTHER VOICES State legislature needs to invest in aerospace By Scott Livingston M anufacturing matters to Connecti- cut's economy. With the right legisla- tive action, we can attract new busi- ness, help existing firms expand here, and create good jobs. We just need to reduce risk. Horst Engineering, the 69-year-old fam- ily business that I lead, recently closed our Mexican operations and is expanding precision machining and forming opera- tions in Connecticut and Massachusetts. We see opportunities here but are keenly aware of the weak- nesses and threats that could derail our growth. We decided to take the risk. Connecticut needs to do more if it is going to gain from the expansion of the high-value aerospace sector. The Connecticut Business & Industry Association reported in the 2014 Sur- vey of Connecticut Manufacturing Workforce Needs that manufacturing is the single largest contributor to Connecticut's gross state prod- uct. The survey highlighted that 4,500 firms directly employ more than 161,000 people, which is 10 percent of all nonfarm jobs. Many of those firms are small businesses that are hiring and increasing wages and benefits. In addition to these human resource investments, many are investing in advanced manufacturing tech- nologies, equipment, and facilities. A recent Hartford Business Journal story cited a Price- waterhouseCoopers report ranking Con- necticut in the bot- tom half of states in attractiveness for aerospace manufac- turing. These sorts of proclamations grab your attention, but the story points out that the report did not necessarily iden- tify the best places for aerospace manufacturing. Statistics aside, Con- necticut has a deep base of talented aerospace manufacturing companies but is saddled with the highest operating costs in the country. Several additional jobs are needed to sup- port each manufacturing employee, and this beneficial compound effect is stronger during an expansion. Manufacturers in high-preci- sion industries rely heavily on an ecosystem of suppliers to produce complete products. New England is fortunate to have a large cluster of companies in this ecosystem, many along the Connecticut River Valley. The Aerospace Components Manufactur- ers (ACM) and Connecticut Tooling & Industry Association (CTMA) are two industry groups that exhibit the strength of our ecosystem. These peer networks are built on collaboration, educa- tion, and networking. They should be fostered. In Mexico, computer-numerical-control machining and manufacturing engineering are sought-after careers. Recently, Mexico has run into the same challenge that has dogged Connecticut for years. There aren't enough skilled workers in the pipeline to satisfy the current needs of industry. With the right technology and lean enterprise, we can compete with places like Mexico — if we invest in education and training needed by Connecticut companies. Connecticut's manufacturing workforce is accustomed to a high-value mix of low-volume products, but the availability of those skills is tighter than ever. Connecticut faces huge challenges as a result of the high cost of doing business in our state. Yet the headlines are dis- heartening. Why would a legislature risk derail- ing a manufacturing recovery by hiking taxes, increasing mandates, and adding to unsustain- able levels of government spending? Over the next 10 years, Connecticut's manufacturers will battle an additional drain as another generation of skilled labor moves towards retirement. If Connecticut is to retain the workers it has and capitalize on its strengths, then, it will have to wake up to the fact that industries like aerospace are growing at a rapid rate in South Carolina, Georgia, Alabama, and Florida, where these jobs are desired. According to the PwC survey, several of those states are in the top 10 most attractive. Our legislators and governor should rec- ognize how important manufacturing is to our economy. They should be friendlier to all businesses, reduce the cost of doing busi- ness, increase support for technical educa- tion, and allow entrepreneurs to innovate. Despite a harsh economic climate, Con- necticut's business- es have persevered, but that resilience is being tested again. Highlighting the current strength of the aerospace sec- tor, it is worth noting that Connecticut is known worldwide for its supply chain. An unprecedented wave of growth in commer- cial aviation is creat- ing opportunities for the customers that many Connecticut companies depend on. If you don't provide water and sunlight to a flower, it won't grow. Sadly, our politicians are doing the opposite of what is needed. Their harmful bills and policies are like a man-made drought with shade, starving plants of another type, plants that should be a critical engine of our economy. So if manufacturing is going to continue to matter to a state that has depended on it for a long time, then all stakeholders should revisit the weaknesses and threats that are a disincentive for manufacturers to reinvest in our home state. Horst Engineering has taken a big risk by closing in Mexico to expand in New England. Let's hope our legislature can reduce that risk and increase Connecticut's desirability so all types of businesses will look to our state as that right place to expand, grow, and prosper. n Scott Livingston is the president and CEO of the Horst Engineering Family of Cos., based in East Hartford. HARTFORDBUSINESS.COM POLL Should employees be given free rein to compare their wages? ● Yes ● No To vote, go online to HartfordBusiness.com. Last week's poll results: Should state government incentivize electric or fuel cell car purchases? 45.7% Yes 54.3% No Scott Livingston ▶ ▶ Despite a harsh economic climate, Connecticut's businesses have persevered, but that resilience is being tested again. ▶ ▶ Ultimately it's the employer's job and right to place a value on each employee and pay them accordingly as long as they don't discriminate based on gender, age, race, or sexual orientation. Just because workers share the same title or log the same number of years of service doesn't mean they should receive the same pay.

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