Walmart to Promote Health and Wellness

The First Lady of the United States and America's largest grocer are partnering to promote health and wellness through better diets. Some of the initiatives for the future include:

• Reformulating of the company's Great Value private label brand to reduce sodium and sugars;
• Sourcing less expensive fresh fruits and vegetables by using the company's economies of scale;
• Re-branding healthier products;
• Increasing market presence in under-served markets; and
• Increasing charitable support for nutrition programs.

The First Lady will be holding speaking engagements to promote the idea of making healthier choices when selecting food. The partnership will build on the Let's Move campaign championed by the First Lady from 2009 - 2010.

IT Outflow Continues in US Economy

This week I am sitting down with Steve Michaels, the owner of an I.T. outsourcing company currently relocating jobs to India.

Q.: It's nice to talk to you Mr. Michaels; would you mind providing some background as to how you got into the Information Technology business?
A.: Well, in the mid-1980s I was heavily involved with starting some of the first Bulletin Board Services in the Genesee County-area. It led me into having a great appreciation for programming and eventually I finished my degree and went to work for the Federal government in the SIPRNet project.

Q.: So why is your company moving to India?
A.: In short, labor costs and difficulty finding qualified talent willing to work for prevailing industry wages. I looked into moving to California, but the cost of doing business there versus India was limiting and I decided it would just be better for my customers to tap into the Indian pool of labor.

Q.: So who are your customers?
A.: Everyone from local governments to small businesses state-wide. I've discussed it with them, and the ability to lower their bills is key; I will still be in the area, providing a human presence, but instead of using American labor for maintaining the contracts, I will be fulfilling them with foreign labor using remote desktop interfaces and lights-out management for servers -- we're able to provide similar services to what we were for a fraction of the cost.

Q.: Don't many companies not want to work with foreigners like that?
A.: Yes and no; most are interested in the lower bills. I am now able to undercut a significant portion of my competition. And for those who require a human, American presence, I will be there for them when possible.

Q.: Do you see that mentality as what is driving the American labor market to the bottom of the barrel as it were?
A.: Well, it does have an impact. But there are many factors to take into account; Firstly, I've been unable to find enough hard workers who are qualified to take on challenges such as these at the prevailing wages in the area. Secondly, if I were forced to hire substandard labor, it would hurt my business and my bottom line. As far as the economy as a whole, if they fall into that substandard category and they are unable to get hired, they should find a different profession.

Q.: Are these jobs going overseas for good, or do you see them coming back in the future?
A.: It depends. I am planning on continuing work in the area, expanding my business. If I need more of a physical presence, I will wind up hiring additional workers. It is very possible that as I take over contracts from my competition I will need more of that presence and I will hire American workers again, paying above the prevailing wages. I do believe this is a good thing for the American economy as a whole.

Q.: Well, I would like to thank you for your time. I have one final question; what team is your Super Bowl pick?
A.: Packers, for sure.

Public Sector Workers, Need for Pay Parity

Public sector workers working for the State of Michigan are subject to the myth that they are overpaid as opposed to the private sector. In a measure of 4 different job categories, the average pay in the private sector is significantly higher. Yet, ignoring these facts and the relatively small size of payroll as compared with the budget, elected officials are targeting budget cuts and seeking to balance the budget on the backs of public sector workers.

According to recent job descriptions from the State of Michigan, the minimum requirement for the ITPA-12 (Information Technology Programmer/Analyst, the job category representing over 2,000 State employees in the IT industry according the Lansing State Journal) is a four-year degree with three years experience. The starting salary for this position is $35,000 dollars, plus health, dental and vision insurance with an upper range of under $70,000 dollars after 10 years experience.

According to PayScale.com, in the title of Programmer/Analyst, the average salary of private sector workers with a four-year degree in Michigan with an average of three years experience is $68,000 dollars, plus profit sharing, bonuses, health, dental and vision insurance, with an average of $85,000 dollars after 10 years experience.

According to the data provided by the Lansing State Journal, the average wages of all IT-related state workers is $50,000. The average wages of all private sector workers in the IT industry with similar training and experience is $75,000. This results in a 33% lower payment to public sector workers working for the State of Michigan. The table shows additional job descriptions compared to data on PayScale.com.

	Public Sector	Private Sector
IT Programmer/Analyst (B.S.)	$35,000 - $68,000	$68,000 - $85,000
Engineer (B.S.)	$35,000 - $67,000	$52,000 - $84,000
Master Electrician (Licensed, Unionized)	$37,000 - $55,000	$42,000 - $60,000
Laboratory Scientist (Ph. D.)	$35,000 - $68,000	$62,000 - $95,000

According to the State Budget office, approximately $400 million dollars per year goes to paying the wages and benefits of each and every State of Michigan employee currently working for the state. With a budget of over $50 billion dollars, the wages of all State workers make up less than 0.8% of the State Budget.

Can politicians balance the budget on the back of State workers? No; it is by definition impossible. Will trying to do so hurt the economy and simultaneously lead to less effective government? Yes; by continuing to cut wages of public sector workers in the State of Michigan the best workers will be less likely to join State government and current employees will be spending less in the local economy.

Note: Data provided by the Lansing State Journal, State of Michigan and PayScale.com.