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Employee E-mail: is It Really Private?

With the increasing use of electronic mail and voice mail in the workplace comes the potential for a new kind of friction between companies and their employees—over the privacy issue. Employees' claims and grievances relating to privacy often stem from employers' monitoring of messages, says Linda Bluso, founding partner of Buckley King & Bluso, a Cleveland-based law7 firm. Whether the employer is looking for leaks of proprietary information, is monitoring quality or employee activity, or is merely checking on the computer system itself, many employees see it as an intrusion.



"The difficulty is that employees tend to believe that information on e-mail systems at work [is] private and confidential and not for the eyes of employers," says Bluso. "What's often overlooked by the employee is that the computer system is owned and operated by the company and that [employees'] activities use computer memory and other resources of the employer."

Even so, in the absence of much case law on the subject, prudent employers should balance the privacy of employees with the needs of the company, Bluso says. She recommends that companies do the following to pre-empt problems:

• Avoid using phrases such as "private" e-mail system, "personal" or "confidential" voice mail, or "personal" password. They create the impression that these communications are not subject to review by others.

• The best approach is a succinct written notice included in the firm's employment manual or posted on a bulletin board as well as a message that appears on the computer screen. (Before composing the message, review7 your state laws on employee privacy.)

• Periodically remind employees that the computer equipment is company property and intended for business use and that transmissions may be monitored. In a legal action, says Bluso, the key is whether the employee had a reasonable expectation of privacy when using the system. "Once the employer has regularly delivered these messages, that argument can't be made."

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Nurturing Part Timers to Be Entrepreneurs

Motivating part-time workers has become something of an art at Rachel's Bus Co., in Chicago. From the time E. Rachel Hubka, the company's president, stalled the business in 1989, she has looked for ways to hire good workers and help them develop. Now, the company's 120 mostly part-time drivers enjoy a benefits package that includes holiday and vacation pay and bonuses for perfect attendance. In addition, they get a chance to develop their own entrepreneurial skills in a way that not only enriches them but also helps the company. The firm contracts with the Chicago Board of Education to transport children to and from school. Hubka is also building revenue by offering trips for private groups.



She recognized a few years ago that helping her drivers become more professional would enhance the company's image. (Lack of respect from children and their parents was a regular source of employee complaints and morale problems.) Hubka also believed that increasing drivers' professionalism would help Rachel's stand out among its 35 area competitors and would improve the firm's chances of cultivating repeat private-trip business. To foster a professional attitude, Hubka provides all drivers with business cards.

She helps them with their personal appearance and manner, and she teaches them how to talk effectively with customers and ask for their business. She also throws in a powerful incentive for the drivers: a chance to earn more. Private jobs are rotated among drivers, who get one-third of the revenue from their trips. Drivers who bring in business or are requested by name get an additional 10 percent of the job's invoice. For her most aggressive driver-entrepreneurs, the revenue from those jobs represents as much as two-thirds of their paychecks. For some, it has turned a $7,500-a-year job into one that generates more than $20,000 in income.

The company's revenues from private jobs have risen to about 15 percent of total revenues. Hubka wants it to be 25 percent in a few years and 40 percent eventually. "If I can teach drivers to become more professional in their dealings with the public, that makes their job easier," Hubka says. "And if they have any interest in becoming entrepreneurs—as I did—this shows them how to do it."

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Locking on to Teamwork

When your product is designed to be "stronger than steel," it's hard to believe your business still might need Superman. Yet with sales of our Kryptonite locks pointing the company in new directions—and with a raft of competitors working furiously to make inroads on our traditional sales—a Superman of soils was exactly what the company needed, someone who could come in and lift the business to a higher plane.

Many entrepreneurs confuse giving something up with giving something away. But if you can't be a superhero and take on every challenge yourself, it pays to own up to what you don't know and find someone who can fill your voids.

Kryptonite Corp., the Canton, Mass., company I stalled in 1971, makes locks, notably Ushaped bicycle locks. By last year—with my brother Peter and I running the business—we had grown to 70 employees and roughly $20 million in sales.



Over the past 25 years, our market has grown from just bikes to mopeds, motorcycles, and, most recently, automobile security. While we were expanding into obvious markets, our locks were also being used for lots of things besides wheeled vehicles. In fact, people were going to bike and motorcycle shops for the locks and then securing everything from gates to power tools and ladders on trucks. We wanted to pursue this new business. With competitors making cheap knockoffs of our products, new markets were needed to sustain growth. But we didn't want to go bankrupt tilting after windmills—trying to steer people toward home-security distributors, for example, when at least a segment of that market already knew where to find our products.

All signs pointed to bringing someone in from outside to help us grow and to give Peter and me the time to pursue those avenues of business that best suited our talents and interests. Bringing in new personalities to a company with strong family ties—our late father made our first locks, and Mom still signs checks and opens the mail—isn't an easy decision; our choice was complicated by the fact that past efforts to expand the top management team with outsiders had failed. Finding the right leadership for any company means knowing and being honest about both personal and corporate strengths and weaknesses, as wTell as culture and goals.

For our part, this past September we named Gary Furst as Kryptonite's chief executive officer. As chairman and company spokesman, I now devote most of my time to the manufacturing and product-development aspects of the business. Peter oversees sales, and Gary has ultimate responsibility for new-market development, greater corporate profitability, and the use of technological advances to better communicate with retailers.

There have been several keys to making this new corporate structure work. In Gary, we found someone with experience in large-corporation and international sourcing—knowledge we needed—but who understood the culture of a family business, something we felt was vital to the success of any new relationship. Gary, who had been on our board of directors, was the fourthgeneration head of American Bnish Co. before Stanley Works, of New Britain, Conn., purchased the company.



Equally important, we're responding to Gary's efforts to formalize not onlv our internal communieations but also the procedures of our board of directors. Gary reports directly to the board, and what had been an informal group has been professionalized with clear objectives.

Rather than seeing Gary's addition as a loss of control or a blow to our egos, Peter and I see it as an opportunity for all of us. While our family remains majority stockholders, we have given Gaiy an ownership stake in the firm—a reason beyond his paycheck to make things happen. And we're taking advantage of the reduced responsibility, from having more time to ourselves to focusing on what we do and enjoy best to help Kryptonite reach its full potential. Individually, none of us is a superhero—but you don't have to be, if you have the right amount of help and teamwork to keep your small business growing.

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The Ups and Downs of a Postal Rate Proposal

Almost every business would see its postage costs either rise or fall under a modified rate-overhaul plan issued in late January by the U.S. Postal Rate Commission to encourage mailers to prepare items for cost-saving automated processing. If the commission's recommended rates are allowed to take effect, bulk mailers1 postal rates would drop, provided they "workshare"—the U.S. Postal Service's word for affixing ZIP-coded bar codes to items and presorting them by destination. Rates for small-volume mailers, however, generally would rise under the plan. The rate commission is an independent body empowered by law to review and adjust rate changes sought by the Postal Service. Under the unusual postal ratemaking process, the rate commission's modifications are subject to approval by the Postal Service's Board of Governors.



The commission's recommendations are in line with a 1995 Postal Service proposed—with two key exceptions: The commission modified significantly the Postal Service's proposed realignment of the second-class rates applied to newspapers and magazines, and it rejected the proposed creation of several "subclasses" of bar-coded bulk mail. The commission's plan would affect the rates charged for all U.S. mail except first-class letters, whose first-ounce rate would remain 32 cents. Here are some highlights:

First-class mail: Companies that send personally addressed bulk mail, such as customer bills, would see rates drop about 2 cents per ounce if pieces are bar-coded and presorted by destination. Rates would increase by about 2 cents per ounce for presorted items that aren't bar-coded.

Second-class mail: About 800 publications with large, concentrated circulations and that meet bar-coding and other requirements would see their costs drop an average of 3.7 percent. But small-volume periodicals and many larger-volume periodicals would see an average price increase of 3.5 percent.

Third-class mail: Most bulk-advertising mailers would pay about 1 or 2 cents less per item if they use bar codes and presort their mail. A bulk mailer who presorts but does not bar-code would pay about 2 or 3 cents more. The cost to send mail that is presorted by carrier route would decrease by about half a cent per piece.

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Bills Would Affect the Hiring of Skilled Foreign Workers

U.S. businesses would have to pay the federal government at least $10,000 for each skilled foreign worker they hire, under immigration legislation pending in the Senate. A provision in the bill would impose a fee—10 percent of a skilled immigrant worker's first-year pay or $10,000, whichever is greater—on businesses for each hire. The provision also would cut by onethird the annual number of employmentrelated visas.



Proceeds from the fees would be earmarked to fund job-training and education programs to help U.S. workers qualify for the kinds of jobs employers now seek to fill with skilled foreign workers. The provision, which is strongly opposed by the U.S. Chamber of Commerce and other business groups, is pail of an immigration bill sponsored by Sen. Alan K. Simpson, R-Wyo. The measure is designed to reduce the amount of legal immigration allowed each year and to bolster efforts to curb illegal immigration. The Senate Judiciaiy Committee is expected to consider the measure soon.

A House immigration bill sponsored by Rep. Lamar S. Smith, R-Texas, would not impose a fee for hiring skilled foreign workers; it is scheduled for floor debate in late April. Overall, the two bills would reduce total legal immigration from the current level of <X( (0,000 a year to about (500,000 to f> 10,000. The bills also would provide about 100,000 slots annually for the next few years to diminish an immigration waiting list of relatives of those who have immigrated under a 1986 law. In addition, the measures would cut employment-related visas—to 90,000 (Senate bill) or 135,000 (House)—from the current maximum of 140,000 a year and would eliminate the 10,000 visas allowed annually for unskilled workers. The fee plan involves foreign workers in the H-1B category, which provides visas for up to sLx years. The Simpson overhaul plan has been criticized by business leaders, including William H. Gates III, chairman of Microsoft Corp. Echoing others in the business community, he has called it an absolute disaster" and said its passage would lead many companies to take production overseas.

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