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EDITOR’S MESSAGE

EDITOR

Daniel Suddeath

daniel.suddeath@newsandtribune.com

Bill Hanson

PUBLISHER bill.hanson@newsandtribune.com

Mirror, mirror, on the wall It’s that time of the year where we face some hard truths.

We’re fat. That’s why we’re joining the gym. We’re struggling, and that’s why we’re going to seek out a new job. We don’t spend enough time with our families, so we resolve to be more involved.

The long looks in the mirror don’t have to be regulated to personal lives. From a business standpoint, there are some realities that may not sound great on the surface, but that doesn’t mean they aren’t still true.

We have heard for several years attempts to market Floyd and Clark Counties as basically the same Southern Indiana community, but they are not twins. It may sound warming to hear speeches about unified fronts, but we’re talking about business here, not a war on terrorists.

The reality appears to be that Floyd County will never be Clark County, and thus, they can’t be the same community.

Look at the biggest cities in each, Jeffersonville and New Albany.

Jeff is located just across the Ohio River from the major dining and entertainment districts of Louisville. New Albany is just across the Ohio River from Louisville’s west end, which has faced more economic struggles than other parts of the city.

There are plans by developers to refurbish Portland, but until that happens, New Albany isn’t connected to the same client base when it comes to Louisville as Jeffersonville.

While Jeffersonville can do more to piggyback off Louisville, New Albany, especially downtown New Albany, has to do more to attract local residents. But from a dining and retail standpoint, there seems to be little marketing by New Albany businesses within Floyd County. Quite frankly, that may explain why we’ve seen so many businesses close downtown over the past few years.

Government cannot do everything for businesses.

However, another difficult truth for some

to realize is that businesses don’t have to open in our cities.

When tax abatements and incentives are proposed, we often hear those opposed criticize the practice and deem it as corporate welfare.

Let’s take an average tax abatement of 50 percent off property taxes over 10 years. In many cases, the businesses that receive those abatements couldn’t afford to open or would choose to go elsewhere if the incentives weren’t offered.

I went to the University of Kentucky, so I’m not the brightest bulb in the shop, but isn’t 50 percent in taxes paid better than no taxes paid?

And as a community, let’s all look in the mirror together. We have quite a bit of room for improvement. There are too many empty commercial buildings and retail stores in Southern Indiana, and something has to be done about it.

The government, which cannot be in the business of just being a business, still has to play a role in aiding economic development through incentives, infrastructure improvements and marketing.

Beyond public involvement, merchants and business owners must do more to organize themselves. And there are times when entrepreneurs must take matters into their own hands.

As a city beat reporter, I cover quite aSteering committee for regional initiatives few municipal meetings. It’s rare that I hear thinking big a business group or representative speak about general issues they are dealing with, and how the government can help.

Our nonprofit business groups need to look in the mirror and realize to truly serve the community, they must do more than organize cocktail hours and social gatherings.

Unemployment has waned over the past year, but take a look around. Is Southern Indiana prime for business growth and excellence? If not, what are we going to do about it?

4 :: SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015

Daniel Suddeath

EDITOR daniel.suddeath@newsandtribune.com

Mary Tuttle

ADVERTISING DIRECTOR mary.tuttle@newsandtribune.com

Stephen Allen

PRODUCTION MANAGER/DESIGNER brandi.jones@newsandtribune.com

Christopher Fryer

PHOTOGRAPHER christopher.fryer@newsandtribune.com

CONTRIBUTING WRITERS BLAYR BARNARD WENDY DANT-CHESSER VERN ESWINE MICHAEL LAMSFUSS JASON LOPP ALLEN PLATT PAUL SANDERS

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SOUTHERN INDIANA BUSINESS SOURCE 221 Spring Street Jeffersonville, IN 47130

COVER STORY

The Business of Residency Mayor, Develop New Albany President talk next wave of development Downtown New Albany is pictured in May of 2013.

PHOTO BY CHRISTOPHER FRYER

PAGE 16 PHOTO BY CHRISTOPHER FRYER

LAW TALK

14

Under Construction:

“Letters of Intent” and their Impact on Southern Indiana Business Owners

06 Personnel Promos Recent news and updates

12 Book Review

“The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers”

15 Labor Laws

Indiana Supreme Court Upholds Right-To-Work Law

JASON A. LOPP AND ALLEN C. PLATT

21 Insurance

Protecting the stay-at-home spouse

WYATT, TARRANT & COMBS, LLP WYATTFIRM.COM

23 Economic Development

Workplace Culture – the Most Elusive and Influential Employee Benefit

25 Human Resources FEATURE

Hellova Year for Equality, 2014

A BILLION DOLLAR PLAN Steering committee for regional initiatives thinking big

PARTNERS

28 SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015 :: 5

PERSONNEL PROMOS

Andy Walker joins Your Community Bank as Vice President, Senior Commercial Lender

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Walker’s office will be located at 110 W. Vine Street in Lexington.

Walker is a graduate of Eastern High School (Louisville) and received his MBA from University of Kentucky. Walker has 19 years of experience in the banking industry. Outside the bank, Walker serves as a Board Member and a member of the loan committee for Community Ventures Corporation, and serves on the Finance Council at St. Elizabeth Ann Seton Church and Seton Catholic School. He and his wife, Lee, reside in Lexington.

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SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015 :: 6

FEATURE

ABOVE: Brinly-Hardy Co.’s fifth generation CEO Jane Hardy inside the company’s headquarters in Jeffersonville.

RIGHT: Employees of Brinly-Hardy Co. celebrated Brinly-Hardy Day earlier this year.

PHOTOS SUBMITTED.

From the farm to the golf course Brinly-Hardy celebrates 175 years in lawn and garden equipment business

BY DANIEL SUDDEATH News and Tribune :: daniel.suddeath@newsandtribune.com

T

he legacy of Brinly-Hardy Co. dates back to the steel plow and saw blade.

The national lawn and garden equipment company — which is based in Jeffersonville — traces its roots to agriculture. Thomas E.C. Brinly designed what was a state-of-the-art steel plow in 1837 that quickly caught on with farmers, especially in the south.

By 1839, it was time to expand the idea into a lucrative business.

The Brinly family partnered with James E. Hardy, and Brinly-Hardy Co. grew its Kentucky operation into one of the biggest agricultural equipment companies in the country over the next several decades.

The company eventually grew out of its Simpsonville, Ky. location and located to downtown Louisville.

Even if you’re not familiar with the company’s name, you’re likely familiar with its clients, or at least its former location. BrinlyHardy’s former Main Street headquarters in Louisville was sold in 2000, and is now

Louisville Slugger Field.

The company moved to Jeffersonville in 2000, and 2014 marked its 175th year in business.

“One of the most significant things that, I think, has allowed us to stick around has been the ability to flex and change,” BrinlyHardy Chief Executive Officer Jane Hardy said.

She is among the fifth generation of the family who owns the business.

No longer focusing on the farming industry, Brinly-Hardy’s footprint is now in the lawn and garden business. The company purchased Spyker Spreaders in 2008, which entails a sizable line of push, tow and drop spreaders.

Brinly-Hardy attachments and accessories are sold by John Deere, and the company also does business with other industry leaders. Its products are found in stores such as Home Depot, Sears and Rural King.

“Moving into lawn and garden was the thing that allowed us to completely reinvent

who we are and still stay connected to the customer base,” Hardy said.

The company also recently took over manufacturing for Cozy Heating Equipment.

“We’ll do with the [Cozy] brand what we’ve done for Spyker, which is really grow it and expand it, so we’re really excited about it,” Hardy said, adding the company’s goal is to continue into a sixth generation of family ownership.

Brinly-Hardy “is now five times larger than we were when I took over in 1994.”

Employees have been a big part of the success of the company, as Hardy said handing out profit-sharing checks is one of the most enjoyable parts of her job.

Like her father and the family owners that came before Hardy, she realizes that staying connected to customers is the key to staying in business.

“I learned that being open and honest was effective and built the trust,” she said.

8 :: SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015

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THE ROBERT TRENT JONES GOLF TRAIL AT CAPITOL HILL is home of the Yokohama Tire LPGA Classic on the Senator Course September 18 to 24, 2014. The Marriott Prattville is part of the Resort Collection on Alabama’s Robert Trent Jones Golf Trail.

Visit www.rtjgolf.com or call 800.949.4444 to learn more.

LAW TALK

Under Construction:

“Letters of Intent” and their Impact on Southern Indiana Business Owners

BY JASON A. LOPP AND ALLEN C. PLATT WYATT, TARRANT & COMBS, LLP :: WYATTFIRM.COM As 2014 rapidly comes to an end, and 2015 looms on the horizon, southern Indiana is under construction—both with respect to its roads and bridges, and with respect to many of its offices and business centers. As the construction of offices and business centers is completed so that the spaces become available for lease, several business owners might find themselves facing choices involving real estate. When this occurs, it is important to remain cognizant of “letters of

You make your money the hard way. Why invest it the old way?

intent”—and the role they play in real estate negotiations. In order to explain “letters of intent,” an example is helpful.

After having a successful and profitable year, a business owner, ABC, who rents commercial property begins considering expansion. ABC’s current landlord, XYZ, is open to this possibility. XYZ thus sends a “letter of intent” to ABC, stating that XYZ will sell a portion of its property to ABC, after ABC signs and returns the letter and makes

a deposit for the property. Not wanting to miss out on the opportunity, ABC signs the letter immediately and returns it with a deposit check—so that it can begin making plans for its new business space. Only a week later, however, XYZ sends back the check and informs ABC that there are problems with the sale of the property. This, of course, is devastating news for ABC. ABC wishes to proceed with the purchase of the property. continued on page 14

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BOOK REVIEW

The Hard Thing About Hard Things:

Building a Business When There Are No Easy Answers

BY PAUL SANDERS

“The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers”

By Ben Horowitz

There is any number of CEO-story books that describe how a particular head of an organization honed leadership skills through a long career. Many provide insights and lessons based on long years of CEO experience.

New technology companies have pushed “CONTROL-ALT-DELETE” on this traditional CEO trajectory. Entrepreneurial, high-tech, Silicon Valleytype companies have rapidly produced a new generation of CEOs and leaders,

who know they have to operate differently.

Ben Horowitz is definitely in this new group as he shares in his book, “The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers.” He was cofounder and CEO of Opsware, formerly Loudcloud, which was purchased by Hewlett-Packard for $1.65 billion in 2007. He is now general partner of Andreessen Horowitz, a venture capital firm investing in

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923-6000 12 :: SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015

the next generation of technology firms. His blog has a readership of an estimated 10 million people.

He kicks off with the story of his early career as a young computer science student who quickly takes to founding and heading up technology companies. Halfway through the book he shifts into high gear, steering us through need-to-know essentials on running a high tech company. This is a blended book, part memoir and part how-to.

It’s a lot of ground to cover, but Horowitz sets a rapid pace and carries it through. He opens each chapter of the book with quotes from rap songs seeming to mimic the fast beat that is synonymous with the high-energy world of tech companies as well as the pace he sets in his book.

Horowitz gives a compelling insider’s story of the role of company leadership needed in today’s technology companies.

The first half of the book is an exceptional, anxiety-ridden story of his leadership experience-- including surviving the dot.com bust and the economic turmoil following the

tragedy of 9/11. At one point, Horowitz said, “With nearly three hundred employees and very little cash left, I felt like I was going to die.”

Instead, he not only weathered the storm, but also ended up selling the company to Hewlett Packard for $1.65 billion. Horowitz argues, “by far the most difficult skill I learned as CEO was the ability to manage my own psychology.” Hiring the right team, organizational and process design are easy compared to “keeping my mind in check,” he says.

The Hard Thing About Hard Things differs from many CEO Leadership books in its intended readership. While many of the ideas can be utilized at any management level, the audience addresses his writing to CEOs and top company executives. These individuals, often making billion dollar decisions in isolation, are under unique types of stress.

CEO is an unnatural job, Horowitz says.

The assumption that CEOs are born, not made, is a false one. It generally takes years

for the founder of a company to develop the CEO skill set. It requires “lots of unnatural motion.” For example, it’s natural to do things that make people like you. Yet to be a good CEO and liked in the long run, you may have to do things that will make them dislike you in the short run.

The author openly explores the emotional aspects of leading a company. For example, when deciding whether to sell a company, the emotional part can be schizophrenic, he continued on page 25

Paul Sanders

Paul Sanders is an award-winning writer who worked for the past 10 years in the training industry with best-selling authors including Stephen Covey, Ken Blanchard and Tom Peters.

He is an adjunct professor who works with the Sullivan University Dale Carnegie Group.

SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015 :: 13

LAW TALK: Under Construction continued from page 11 But XYZ no longer believes that selling the property is in its best interest.

As attorneys, we are often presented with these sorts of situations. The question, of course, is whether ABC can proceed with the purchase of the property from XYZ, an unwilling seller. Under Indiana law, the answer depends. The courts have held that a letter of intent can be converted into an enforceable contract if it contains sufficient definiteness of terms and shows the intention to be bound. The courts will consider several factors, including: the make-up of the transaction (lease or sale); the price and terms; what is included (parcels, assets, and/ or liabilities); time elements (due diligence, closing, possession); and other contingencies. The courts will also analyze whether the letter of intent included avoidance language stating that the parties would attempt to negotiate an agreement, but consummation of the transaction would be subject to the negotiations.

To prevent the uncertainty and costs associated with this sort of litigation, it is advisable for sellers or landlords who wish to draft letters of intent—and business owners who receive letters of intent—to consult their attorneys. Getting counsel involved at the negotiation stage can benefit both parties, ensuring that business owners are able to expand their companies, while sellers and landlords are protected from selling their properties in unfavorable circumstances. Indeed, while southern Indiana’s construction continues, and until and after it is completed, business owners and sellers of real estate should remain cognizant of the construction of “letters of intent.” Expansion for a Andrew B. Campbell is a partner in the Nashville office of Wyatt, Tarrant & Combs, LLP, and has been a civil litigation attorney for 22 years. Previously, he served as a judicial clerk to the Honorable Thomas A. Higgins in the U.S. District Court for the Middle District of Tennessee.

business owner—and selling property for a seller or landlord—is certainly an exciting time. But to ensure that this time does not end in litigation, “letters of intent” should not be ignored.

This article is not offered as, or intended as, legal advice. The subject matter is complex and how it applies to any particular individual or business may vary significantly depending on specific facts and situations which cannot be determined without full review and consultations. Readers should not rely upon information in this article as a substitute for competent legal advice specific to the circumstances of the reader.

Stephen C. Hall is a partner in the Louisville office of Wyatt Tarrant Combs, LLP, and has advocated his clients’ interests in the courts and before the Patent Office during his 22 year legal career. Previously, he worked as a research and development chemist in the coatings industry.

14 :: SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015

LABOR LAWS

Indiana Supreme Court Upholds Right-To-Work Law

BY TODD B. LOGSDON AND TIMOTHY J. WEATHERHOLT FISHER & PHILLIPS LLP :: LABORLAWYERS.COM On November 6, the Indiana Supreme Court upheld the state’s right-to-work law against a constitutional challenge brought by the International Union of Operating Engineers (IUOE) Local 150. (Zoeller v. Sweeney, Case No. 45S00-1309-PL-596). The ruling followed on the heels of a decision by the Seventh Circuit which, only two months earlier, dismissed a similar case brought by the union. (Sweeney v. Pence, Case No. 13-1264, September 2, 2014).

Indiana enacted its right-to-work law in 2012, joining the more than twenty states that have enacted similar laws. Indiana’s law prohibits anyone (including employers and labor organizations) from requiring a covered individual, as

a condition of initial or continued employment, to: 1) become or remain a member of a labor organization; 2) pay dues, fees, assessments, or other charges to a labor organization; or 3) pay a charity or third party a dues equivalent.

Violating the law is a Class A misdemeanor.

Almost immediately after the law’s passage, IUOE Local 150 sued the State of Indiana in state court seeking a declaration that the law violated the Indiana Constitution by forcing the union to provide a service (representing employees) without compensation. A Lake Superior Court judge initially ruled in the union’s favor, finding the law violated Section 21 of the Indiana Constitution. The state appealed the decision to the Indiana Supreme Court, which

has now overturned the lower court’s ruling.

Article I, Section 21 of the Indiana Constitution provides that “[n]o person’s particular services shall be demanded, without just compensation.” The union argued the right-to-work law violated Section 21 because it required the union to provide free services to workers who do not pay union dues. The Indiana Supreme Court soundly rejected this argument, holding that the union failed to show either state involvement or a demand for services.

“On the face of the Indiana Right to Work Law, there is no state demand for services; the law merely prohibits employers from requiring union membership or the payment of mon-

SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015 :: 15

continued on page 24

COVER

Downtown New Albany is pictured in May of 2013.

PHOTO BY CHRISTOPHER FRYER

SOUTHERN INDIANA BUSINESS SOURCE :: DECEMBER 2015 :: 16

The business of

Residency Mayor, Develop New Albany President talk next wave of development

BY DANIEL SUDDEATH News and Tribune daniel.suddeath@newsandtribune.com

N

ew Albany’s downtown business surge may have suffered a few setbacks, but many of the movers and shakers of the city believe the boom is far from over.

While noteworthy establishments and organizations like La Rosita, Endris Jewelers and the Vintage Fire Museum and Education Center have either vacated downtown or announced their closure, businesses such as The Comfy Cow, Seeds and Greens and Regalo have opened downtown. continued on page 18

COVER

“You roll the ball forward, and it comes back on you, but you keep on pushing,” she said. “We’ve really been pushing these past few years, and I think it’s really been paying off” STEFANIE GRIFFITH, 2014 PRESIDENT OF DEVELOP NEW ALBANY

Retail and dining can be fragile sectors, and officials have acknowledged they must address the “store without customers” issue that in many ways, downtown faces.

“We need to take the next steps to get additional residency, and additional residents downtown,” New Albany Mayor Jeff Gahan said.

There are ongoing projects such as the revamp of the building that houses Habana Blues — as the restaurant will move to Pearl Street in 2015 — into apartments that should provide more

54

#

living space downtown.

There are also rumors of other substantial residential projects that could have a great effect on downtown New Albany.

There are already restaurants in place, and attractions like the Carnegie Center for Art and History and the YMCA to draw millennials downtown once there are more places for them to live.

“They want a place where they can live, work and play, literally,” said Stefanie Griffith, the 2014 President of Develop New Albany and the co-

Stefanie Griffith, 2014 President of Develop New Albany and co-owner of Strandz and Threadz salon.

PHOTO BY CHRISTOPHER FRYER

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owner of Strandz and Threadz salon.

It’s what Gahan refers to as the “business of residency.”

In order for businesses to thrive, they need people living nearby, which is why it’s crucial for New Albany to focus on attracting more residents, he continued.

“The basic building block, really, has been slipped over sometimes,” Gahan said.

Of course it isn’t only about apartments and condominiums. Dating back to Mayor Doug England’s administration, the city has concentrated on improving the housing stock in the Midtown neighborhood via a federal Neighborhood Stabilization Program grant.

New Albany is also grappling with street grid reform.

The tolling component of the Ohio River Bridges Project is expected to make New Albany roads busier, and the city is expected to adjust some of its streets this year following a study by planner Jeff Speck.

Lots of new issues to address, and of course, it’s never wise to forget about retention.

Officials said the city can’t forget its pioneering businesses that led the reawakening of down-

town six years ago. Some have closed, but many have stayed, and Griffith said there’s an awareness of New Albany in surrounding communities that hadn’t been palpable in several years.

“You roll the ball forward, and it comes back on you, but you keep on pushing,” she said. “We’ve really been pushing these past few years, and I think it’s really been paying off.”

Civic events such as the summer concert series at Bicentennial Park are helpful for downtown businesses, Griffith continued.

Develop New Albany has been evaluating its purpose and how it can better serve downtown businesses. She said they are restructuring and working on a new organization plan.

The last plan dated back to 2008, and was focused on attracting restaurants and retail.

Now, the strategic goals of Develop New Albany are shifting to promote and incorporate other sectors.

“I think sometimes people believe it happens overnight,” Griffith said.

The past year also saw a resurgence of a downtown merchants organization, which has called regular meetings to address issues with the city.

Develop New Albany is a volunteer organization with one part-time employee. It has about 100 members, and uses its funding to support various downtown initiatives.

In 2015, the organization will kickoff a new program to help small businesses. The Horseshoe Foundation of Floyd County offers $15,000 loans to businesses already. Develop New Albany will contribute $5,000 this year for a small business loan to help fill-in the gap.

The city is served well by the downtown merchants group and Develop New Albany, Gahan said.

“I would say both those organizations are really key, and for the most part they’re full of team players, and they both really work well together to promote New Albany,” he said.

And the hope is that the promotion continues to lead to investment.

The 2015 Develop New Albany President is Teresa Baxter. For more information on the organization, visit the website www.developna.org.

SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015 :: 19

INSURANCE

Protecting the stay-at-home spouse

BY MICHAEL LAMSFUSS New York Life Insurance Company When married couples have young children, often one spouse stays home while the other works outside the home.

While most parents understand the necessity of purchasing a life insurance policy on the income earner, few realize the importance of also insuring the stayat-home spouse.

BEING PREPARED FOR THE UNEXPECTED.

What if the stay-at-home spouse suddenly died? The family would be devastated. While friends and family members would initially pitch in to help, eventually they would return to their regular lives.

Before the surviving spouse returned to work, a caretaker for the children and home would need to be hired, presenting a potential financial hardship. Had life insurance been purchased on the stay-athome parent, however, the family’s needs would have been protected.

MEASURING THE VALUE OF THE STAY-AT-HOME SPOUSE.

Despite the importance of the stayat-home parent, there’s little research to quantify its value. In its 13th annual “Mom Salary Survey,” Salary.com reports the most popular functions performed by mothers equate to $113,586 per year1 in salary. Also, it states the stay-at-home

spouse works a 94-hour week, performing, among other roles, the duties of housekeeper, cook, day care teacher, driver, and psychologist.

FLEXIBLE, CUSTOMIZABLE CHOICES.

The type of policy you select depends on your needs and budget. Term life insurance provides affordable coverage for several years. In contrast, permanent life insurance offers protection for your entire life (provided premiums are paid) and accumulates cash value tax-deferred. This cash value can be accessed (loans accrue interest and reduce the policy’s cash value and death benefit). Plus, riders, available with term and permanent life insurance, enable you to customize your policy to meet and grow with your changing needs.

The loss of a parent is an emotional hardship for a family; purchasing insurance coverage for a stay-at-home spouse can help ensure that it doesn’t become a financial hardship as well.

This educational, third-party article is provided as a courtesy by Michael Lamsfuss, Agent, New York Life Insurance Company. To learn more about the information or topics discussed, please contact Michael Lamsfuss at mjlamsfuss@ft.newyorklife.com or 502-509-5880.

1Salary.com, “Mom Salary Survey,” June 2013, http://www.salary.com/2013-mom-infographics/.

Michael Lamsfuss is an agent licensed to sell insurance through New York Life Insurance Company. To learn more about the information or topics discussed, please contact Michael Lamsfuss at 502-509-5880 or mjlamsfuss@ft.newyorklife.com.

SOUTHERN INDIANA BUSINESS SOURCE :: DECEMBER 2015 :: 21

HI, I’M JOE TAYLOR. Overton, Texas. What keeps me coming back to the Trail? It’s just absolutely sensational.

I have people tell me what they’ve spent playing one round at Pebble Beach and a night at the hotel, or going to Pinehurst for a couple rounds. We do the entire week, travel, hotel, green fees, good meals and everything for the price of one day at these places. And it’s absolutely a sensational place to come.

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ECONOMIC DEVELOPMENT

Workplace Culture –

the Most Elusive and Influential Employee Benefit

BY WENDY DANT CHESSER ONE SOUTHERN INDIANA :: 1SI.ORG Much has been said in the last several years about the influx of Millennials in the workplace. Millennials, a.k.a. “Generation Y” or “Gen Y,” are individuals born between the years 1977 and 1994, are joining workers in the other generations (Gen X, or those born between 1966 and 1976 and Baby Boomers, born between 1945 and 1965) and the presence of these three generations is creating a new challenge. Company leaders, who wish to attract and retain the top talent from all three generations,

are reevaluating their current compensation and benefit plans to include things that were never considered in years’ past.

We have all likely experienced the challenges that can arise when employees have varied life experiences that are radically and fundamentally different. For the sake of argument, let’s say you have already overcome those obstacles and your team is working like a well-oiled machine. If not, there are a plethora of books that can help you navigate those shark-infested waters.

The role of workplace culture is increasing critical to recruiting and keeping top talent. Labor is not a commodity and it

takes a lot of time and resources to hire and train a good team. Companies who wish to get ahead have to adapt their culture for a changing workforce so they can not only produce, but also innovate.

Workplace culture happens whether it is intentionally shaped or comes about naturally. Outstanding organizations take great care in deliberately shaping their company culture. This is a conscious and ongoing effort that starts with the CEO and management team and flows throughout the organization. As we look toward the beginning of a new year, now is the time to

SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015 :: 23

continued on page 27

Labor Laws: Right-To-Work Law continued from page 15 ies as a condition of employment,” Justice Dickson wrote for the majority. According to the Court, Article I was intended to protect Indiana citizens “from the reaches of their state government.” But it is federal— not state—law that requires unions to fairly represent all workers in a bargaining unit (a bargaining unit is a group of employees, e.g., “all the green widget makers at XYZ, Inc.,” with respect to whom a union has been elected as their exclusive representative for purposes of bargaining with their employer).

The union’s representative duty (and exclusive right) under the federal National Labor Relations Act (NLRA) extends to both duespaying workers and workers who do not pay union dues. Because the NLRA both gives the union exclusive representation rights and imposes the duty to represent all members of the bargaining unit, the Court reasoned, the state law does not constitute a state “taking” of the union’s property.

The Court further held that the new state law did not constitute a demand for services.

The union had argued that the NLRA does not permit a members-only bargaining unit, mean-

ing a unit composed solely of dues-paying members. Justice Dickson rejected this contention, noting a union’s “federal obligation to represent all employees in a bargaining unit is optional; it occurs only when the union elects to be the exclusive bargaining agent, for which it is justly compensated by the right to bargain exclusively with the employer.”

Because the union is “compensated” by being granted the exclusive right to represent all the workers, it must absorb the costs of representing workers who choose not to join the union and not to pay union dues.

Governor Mike Pence heralded the ruling as a “victory for the freedom of every Hoosier in the workplace” because it “reaffirmed Indiana law that no Hoosier may be compelled to join a union as a condition of their employment but every Hoosier is free to join a union if they choose.” James Sweeney, the president of IUOE Local 150, said the union may consider appealing the decision to the U.S. Supreme Court. As a practical matter, however, Indiana is now likely to remain a right-to-work state.

The foregoing provides an overview of certain legal issues. It is not intended, and cannot be construed, as legal advice for any purpose.

Todd B. Logsdon is a Partner in the Louisville office of Fisher & Phillips LLP, a national firm representing employers in labor and employment matters.

More information about the firm may be found at www.laborlawyers.com. He practices exclusively in the areas of labor and employment on behalf of employers, with a particular emphasis on discrimination, wage and hour issues, FMLA, and OSHA issues. Todd is licensed to practice law in both Indiana and Kentucky. Todd may be contacted directly at 502561-3971 or tlogsdon@ laborlawyers.com.

Timothy J. Weatherholt is a Partner in the Louisville office of Fisher & Phillips LLP. He practices exclusively in the areas of labor and employment on behalf of employers, with a particular emphasis on discrimination, ADAAA, and wage and hour issues.

Tim also has substantial experience in defending class actions and collective actions. Tim may be contacted directly at 502561-3982 or tweatherholt@ laborlawyers.com.

24 :: SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015

HUMAN RESOURCES

Hellova Year for Equality, 2014

BY CAROL DAWSON EEO GUIDANCE, INC. :: EEOGUIDANCE.COM Although racial and gender based tensions continue throughout the United States, just last week I was asked why our country still has Equal Employment Opportunity (EEO) laws.

This EEO sceptic stated he believed minorities and women are no longer being discriminated against; in fact, he felt they were receiving unnecessary priority treatment by the government. As with all EEO related discussions, I turned him on to the facts.

Discrimination lawsuits filed with the federal government in 2014 resulted in millions of dollars in settlements for thousands of individuals.

The Equal Employment Opportunity Commission (EEOC) secured $296.1 million in monetary relief for victims of employment discrimination in private sector/state/local government workplaces through mediation, conciliation and other administrative enforcement, while $22.5 million in monetary relief for charging parties was secured through litigation, and $74 million

in monetary relief for federal employees and applicants. This is not the result of frivolous charges.

While there were 5,000 less EEO complaints filed by the private sector (88,778), the monetary settlements were higher than previous years because many cases were the result of systemic discrimination, which typically includes larger groups of victims.

The legal actions were predominately filed by minorities, women and individuals with disabilities; however, there were complaints also filed by non-minority males, with resulting settlements. The EEO laws cover everyone in the U.S. workforce. Everyone has a national origin, sex/gender, sexual orientation, race, color, etc. The laws on the books are solid, strong, inclusive, and meaningful. They have a place in our society and they are…an unfortunate necessity.

Here are a couple of the major updates/

changes/clarifications in 2014 in the EEO arena: • Pregnancy Discrimination Act (PDA) was redefined to include that nursing mothers have the legal right to express milk in the workplace. DOL Wage and Hour provides guidance: “Employers are required to provide a reasonable amount of break time to express milk as frequently as needed by the nursing mother. The frequency of breaks as well as the duration of each break will likely vary.

A bathroom, even if private, is not a permissible location under the Act. The location provided must be functional as a space for expressing breast milk. If the space is not dedicated to the nursing mother’s use, it must be available when needed in order to meet continued on page 27

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says. How can you sell a company where you’ve recruited and sold every employee on your vision? Yet, how can you walk away from financial reward you’ve worked for?

Still, many of Horowitz’s creative ideas can be applied at many levels. For example, after watching the classic movie Freaky Friday, Horowitz developed “The Freaky Friday Management Technique.” In the movie, a mother and daughter are frustrated with each other and wish they could switch places.

Magically, this happens. In Horowitz’s application, he forced the heads of Sales and Customer Support to switch jobs. After a week, they had a clear understanding of issues that had created conflict between the two.

It’s the same pragmatic honesty that Horowitz uses in his book. It is hard work to run a company he tells us. Ultimately, many decisions are made by one person: the CEO. Only that individual has the comprehensive knowledge, the rationale and the feedback from others. It exposes all your strengths and weaknesses.

“People always ask me, “What’s the secret to being a successful CEO?” Sadly, there is no secret, but if there is one skill that separates the women from the girls, it’s the ability to focus and make the best move when there are no good moves.”

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SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015 :: 25

WORKPLACE CULTURE: the Most Elusive and Influential Employee Benefit continued from page 19 examine your own company’s culture and evaluate its impact on the contentment of your employees. Implementation of the policies that are appreciated by the current and future workforce will not only help you attract the talent you want, but also engage your customer base.

The most notable, and in many ways intangible, characteristic of tomorrow’s workplace culture is the inclusion of corporate social responsibility (CSR). According to Sodexo, a consultant in customer support and relations serving 10 million consumers in 6,000 locations, 86% of new college hires would consider leaving an employer whose social responsibility values fell short of their expectations. Does your company have a CSR statement? While CSR can be incredibly subjective and vary widely from company to company, it is generally agreed that a CSR statement should include support and involvement in community volunteerism, acknowledgement of the impact the company has not only on their employees but their community at large, and sustainability, not only in the materials being used but in the workplace itself.

When you think about workspace, consider the 1950’s and 60’s, when employers attracted and rewarded office workers by giving them the corner office and an assistant. Today, the watch word for office space is flexibility and workers would rather have

Hellova Year for Equality, 2014 continued from page 25

•

the statutory requirement. A space temporarily created or converted into a space for expressing milk or made available when needed by the nursing mother is sufficient provided that the space is shielded from view, and free from any intrusion from co-workers and the public.

Also, required accommodations, harassment, and leave relating to pregnancy were clarified by the EEOC. There is a focus by the EEOC to address the declining number of employees with disabilities in the federal government. LEAD (Leadership for the Employment of Americans with

“peers” than “subordinates.” Spaces that invite collaboration, learning and socializing, three of the four types of knowledge work defined by The Knowledge-Creating Company by Ikujiro Nonaka and Hirotaka Takeuchi, will be communal in nature, filled with bright engaging colors, comfortable residential furniture and light-weight work out equipment which invigorate the mind and the body. Gone will be the conference rooms, typically filled with hard tables and heavy, uncomfortable chairs. Individual offices that shut out co-workers will be replaced with interchangeable spaces for focus work, available to anyone needing “alone time” to complete projects.

Because today’s worker is continuously engaged, checking email and social media sites, watching blogs and monitoring news sites for events that may affect their company and industry, they are never really “off the clock.” Many of us sleep with our smart phones by the bed. We go on vacation (hopefully) but rarely are we truly unplugged. This is not a trend – it is a shift in American culture.

Millennials do not see technology as a tool to help them achieve a goal - technology is an extension of themselves. It is an essential part of life. Because of this shift, the term “work-life” balance is no longer accurate. Workers now see their work and life as one – there is no balance since the two can no longer be separated. The question of where they are located physically becomes moot. Work teams consist of partners in a variety of cities by teleconference. Flexible work schedules accommodate parents and

Disabilities) is the EEOC’s initiative to address employment of individuals with disabilities, including individuals who are severely disabled. LEAD goals are: • Reverse the trend of decreasing participation in federal employment • Increase the awareness • Educate federal hiring officials about how to use special hiring authorities • To bring people with disabilities on board, particularly those with severe disabilities • Educate applicants with severe disabilities about how to apply using the special hiring authorities available • Supply information and resources on recruitment, hiring, and providing reasonable accommodations

students. Telecommuting can not only save space and reduce costs, it can also increase worker productivity up to 20 percent according to M. Moser Associates, an award winning interior design firm specializing in workspaces.

The suggestions for making your company an attractive workplace are varied and not every suggestion is right for every company.

Some companies may embrace mentoring as a way to impart tacit information while others may concentrate on transparency of decisions and solicitation of feedback.

Whatever you choose, keep in mind that workers now seek a clear vision of the organization’s purpose and plan and purposeful work that has meaning to their life.

Workplace culture is the personality of a company and it can’t be counterfeited.

Through social networks, review sites and word-of-mouth, a company’s culture is revealed. If employees are happy and fit in the culture, an organization will have a strong name and attract great talent. Millennials will do business with these companies because of what they represent and the impact they have on the world. Being the best at what you do is no longer enough to truly succeed. Your company must be the best it can be – for its customers, its employees and the world.

Wendy Dant Chesser, a native of Jeffersonville, Ind., is the President and CEO of One Southern Indiana, the local economic development organization and chamber of commerce for Clark and Floyd counties.

Contact the EEOC at www.eeoc.gov for more information regarding their LEAD program. Both federal and private industry would benefit from this initiative.

There are more changes and clarifications coming in 2015, as the Supreme Court continues to review and issue decisions on how our EEO laws dealing with issues discrimination based upon sex, age, and religion are to be interpreted. Happy New Year.

Carol A. Dawson is president of EEO GUIDANCE, Inc., a national EEO/AA/diversity training and consulting business in Jeffersonville. Send comments to cdawson@ eeoguidance.com

SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015 :: 27

FEATURE

A billion dollar plan Steering committee for regional initiatives thinking big

28 :: SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015

BY DANIEL SUDDEATH News and Tribune daniel.suddeath@newsandtribune.com Mike Moore, Jeffersonville Mayor

Wendy Dant Chesse One Southern Indiana President

C

onvention centers, a sizable expansion of the Ohio River Greenway and even a light rail system — the initial ideas of the kinds of projects Floyd and Clark Counties could pursue through a tantalizing state program are staggering.

“We’re thinking big,” New Albany Mayor Jeff Gahan said. “The possibilities are very large.”

And the clock is ticking.

A 16-member steering committee including Gahan, Jeffersonville Mayor Mike Moore, Charlestown Mayor Bob Hall and Clarksville Town Council President Bob Polston has been established to seek up to $1 billion in investment for Clark and Floyd Counties over the next decade.

It’s part of Gov. Mike Pence’s Regional Cities Initiative which focuses on curbing population stagnation as a way to boost economic development. A state study showed that Indiana’s primary working age — from 25 to 44 — is projected to decline by 5 percent in the next 15 years.

The gist of the study was that Indiana isn’t attracting an “adequate level of new talent” to fill jobs and grow the state’s wage rate.

The study also stated that outside of Indianapolis, none of Indiana’s cities are consistently ranked in the top 200 of places to live in America. The study calls for an initiative to grow the state’s population and to become a draw for talented people.

Improving quality-of-place is how the study suggests Indiana will attract more residents, and Gahan said New Albany is on board with Pence’s plan.

The equation appears simple on paper, as 40 percent of the $1 billion in funding would come from local and state government with the other 60 percent footed by private investment. continued on page 30

New Albany Mayor Jeff Gahan is pictured in front of the City-County Building in downtown New Albany.

PHOTO BY CHRISTOPHER FRYER SOUTHERN INDIANA BUSINESS SOURCE :: JANUARY 2015 :: 29

A MILLION DOLLAR PLAN:Steering committee for regional initiatives thinking big continued from page 29 The Indiana Economic Development Corp. will pursue enabling legislation this year from the state to establish the financial framework of the program.

In the meantime, cities and regions have been advised to start planning so they can position themselves for grants.

“In order to compete with larger metropolitan areas such as Indianapolis, Fort Wayne and Evansville, it is imperative that communities within Clark and Floyd Counties work together now,” One Southern Indiana President Wendy Dant Chesser said.

“This is an incredible opportunity to fund a variety of projects that could significantly enhance Southern Indiana’s appeal to businesses, professionals and families, as well as provide new opportunities and services to current residents.”

Applications for funding could begin rolling into the state as early as July.

To make it simple, a successful grant application would probably work something like this: A project is identified and awarded funding by the state. The state puts up 20 percent, the local government comes up with

20 percent of the project cost, and private investors are approached to generate the remaining funding.

Of course that funding doesn’t have to all come from a developer, as organizations like the Horseshoe Foundation of Floyd County and the Paul Ogle Foundation would likely be asked to contribute toward the match.

During an October election forum, State Rep. Ed Clere criticized New Albany leadership for using tax-increment financing funds to foot a more than $19 million bond primarily used for the construction of an aquatic center and Silver Street Park.

But Pence’s Regional Cities Initiative seems to match New Albany’s decision to use TIF as a way to fund quality-of-life projects, Gahan said.

“I think it’s safe to say that in New Albany, we’ve recognized that we needed to use public dollars to improve quality-of-place,” he said.

TIF and Economic Development Income Tax funds are the tools local governments have to leverage projects that attract new residents, Gahan continued.

“It’s our opportunity to push public dollars into public service,” he said.

And on a larger scale, the local steering committee has an opportunity to compete for funding that could bring regional attractions to Clark and Floyd Counties.

Of course each community has its own wish list, and the committee will be charged with focusing on which projects are attainable and of the most benefit to the region.

Moore would love to see a 23-mile bike and pedestrian loop around Jeffersonville.

“We have got a big east-end bridge [under construction] that is creating a whole new economic boom for the city near River Ridge and the surrounding subdivisions,” Moore told the News and Tribune in December.

It’s truly a people-centered initiative, as the goal is drive more residents to Indiana. It’s about competing for jobs and people, Gahan said.

“Statewide, they’re starting to recognize there’s tremendous value in residents,” he said.

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