ESG International News Release (12/03/12)

Energy Services Group International announced that it has acquired BCP Technical Services, a privately held provider of specialized staffing and work force solutions to the U.S. energy industry, with a focus on the nuclear power sector. The acquisition was completed on Nov. 30, 2012. Following the completion of the acquisition, BCP will become a wholly owned subsidiary of ESG.

Albany Times Union (New York) (12/02/12) James M. Odato

New York state officials plan to save $60 million over five years by cutting the pay of the temporary employees who supplement the state’s work force. Temporary employees will have their wages reduced by up to 42%. Many of these employees have worked alongside state employees for months or even years. They range from technical and management personnel to agricultural and service workers to doctors and nurses.

Thirty-eight temporary staffing firms have been awarded new contracts. The new contracts will result in a 30% reduction in temporary service costs, compared with the previous contracts.

“They don’t take into consideration where these [firms] are, or [workers’] reputations or their credentials,” says Maisie Hillenbrandt, area director of Nursefinders. The firm has supplied nurses to the state for years, but recently lost its contract to a lower bidder. Hillenbrandt says the nurses she has been supplying to state agencies won’t accept lower wages and won’t sign on with the winning contractors.

Wall Street Journal (12/04/12) Neil Shah

U.S. manufacturing slowed in November for the first time in three months as factories rolled back hiring and investment. The Institute for Supply Management’s index of manufacturing activity declined to 49.5, the lowest level in more than three years. Figures under 50 mean activity is declining instead of expanding. Employment in the manufacturing sector, meanwhile, fell significantly from 50 to 45, suggesting companies are putting off hiring. Many manufacturers are taking on a defensive posture over uncertainty about the “fiscal cliff.” Hurricane Sandy has not had much of an impact.

Wall Street Journal (12/04/12) Janet Hook; Carol E. Lee; Damian Paletta

Immediately rejected by the White House, a plan issued by U.S. House Republicans on Dec. 3 to avert the “fiscal cliff” calls for $800 billion in increased tax revenue, $600 billion in cuts to Medicare and other health programs over a decade, and slower growth in Social Security benefits. The White House says nothing new was proposed, and it continues to pressure Republicans to raise tax rates on upper-income Americans. The plan did not address $110 billion in defense and discretionary spending cuts slated for Jan 2.

NBC News (12/03/12) Allison Linn

Although the job market has shown signs of improvement, experts say there are several reasons that employers have not increased hiring. Companies are worried about higher taxes if a deal is not struck to avoid the “fiscal cliff,” which could significantly slow the economy. Businesses also feel little pressure to hire more workers, especially since they can wring more work out of existing employees without boosting their incomes and increase productivity through new technologies. Additionally, employers have shifted their business strategies to focus less on expansion, and they are less likely to take a risk on new products, markets, or industries that would require them to add more staff.