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Biotech / Medical : HRC HEALTHSOUTH -- Ignore unavailable to you. Want to Upgrade?


To: Tunica Albuginea who wrote (141)2/8/2001 11:12:43 AM
From: Tunica Albuginea  Respond to of 181
 
Partial cure to Baumol's Disease

TA

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February 5, 2001

Page One Feature

Bonne Bell Retires Stereotypes

With Seniors-Only Department

By CLARE ANSBERRY

Staff Reporter of THE WALL STREET JOURNAL

interactive.wsj.com

LAKEWOOD, Ohio -- By noon, the women of Line 2 have packed and boxed 10,800 tubes of Bonne Bell's swirled Lip Shake, a liquid lipstick popular among teenage girls who want their lips to both glisten and taste like whipped vanilla cream.

interactive.wsj.com
Anything over 10,000 is considered very good, and Ann Schnably, her white hair pulled back smartly in a knot on the top of her head, wonders aloud whether the afternoon shift "will be able to top this."
They gather purses and sweaters and say their goodbyes. One woman grabs her cane.
The average age of the 86 assembly line workers in this department is 70. The oldest just turned 90. Their boss, Jess Bell, is 76 years old and is the son of the founder of this $100 million family-owned cosmetics firm based in a working-class neighborhood outside Cleveland.
Mr. Bell launched this seniors-only production department here four years ago, not as a grand social experiment but as a practical business move. The company needed workers. Seniors were available.
Retirees now account for close to 20% of Bonne Bell's work force of 500. The group handles work that was once outsourced, saving the company more than $1 million since it was launched and effectively silencing skeptics who thought running a department with septuagenarians was ridiculous. Shipment goals are set and met. Turnover is almost nil.
Mr. Bell's own father, Jesse Grover Bell, was 80 when he quit working and only then, says his son, because he died. The senior Mr. Bell was a Kansas cosmetics and hosiery salesman who came to Lakewood and began selling Ten-O-Six, a skin cleanser named after the office number of the chemist who concocted it. The clear brown, slightly sweet- and slightly antiseptic-smelling liquid was mixed in huge 8,000-gallon tanks. It became the trusted companion of successive generations of blemish-anxious teens. Its popularity launched and anchored the company named after his eldest daughter.
Bonne Bell grew steadily and surged with the introduction of flavored lip gloss. That strawberry Lip Smacker was followed by 33 other flavors and inspired a full line of products. The company had a plant in Canada and sales world-wide.
But five years ago, in a cost-cutting move, it closed its Canadian operations. Orders were still strong and with the extra Canadian workload and the tight job market, the company was desperate for extra hands. Several temporary agencies supplied workers, but on the whole they were unreliable. Mr. Bell and his wife, Julie, pitched in on weekends, feeding Lip Smackers into boxes. To help with the holiday rush that year, Bonne Bell retirees were asked to help out, and they did with relish and skill.
Mr. Bell had an epiphany. Why not create an entire production department of older workers? The notion was based in part on numbers: the convergence of low unemployment and a large -- and growing -- population of older adults. But it was also rooted in instinct. He knows that segregation on any level involves trade-offs and that lives can be enriched by intergenerational exchanges. Older workers can offer younger ones perspective gained from experience and younger workers can offer their elders a bridge to new technologies and what is, at times, an unfathomable culture.
But Mr. Bell discovered something working with people who were younger and faster than he was. He didn't like it. He felt self-conscious about his own ability to keep up.
He has spent 52 years in the cosmetics industry, which is all about youth and looking good. He walks a few miles to work or spends part of the morning in the company's exercise room. Still, he turned 76 last month, and aging, in a youth-oriented culture, isn't easy for anyone. He is competitive by nature. If he is going to compete, he wants to do so on his own level. He figured others would want the same. Besides, when you are 60-plus, you don't necessarily want to listen to the conversations of 20-year-olds, let alone to their music.

interactive.wsj.com

Workers on Line 2 in Bonne Bell's seniors-only department package the company's Lip Smackers. Clockwise from left -- Manaced Baez, Josie Kothera, Christian Miller, Julian Inglefield and Margaret Thomas

During morning shift, Frank Sinatra serenades Line 3, courtesy of 850 WRMR-AM, easy-listening music of the 1940s and '50s. Juliana Carlton, 65 and the mother of 11 grown children, is in charge of eight workers who insert glittery cheek gel, nail polish, a keychain and a Lip Smacker into a tiny plastic purse. Mrs. Carlton checks her work order to see how many boxes are needed. She keeps count during the shift to make sure they meet their quota. It's not hard work, she says, but it's precise, which she likes. That and the fact that she works with her peers.
Mrs. Carlton has little interest in working with younger people. "I raised my kids. It's my turn to be with people my own age group. We can talk to each other. We don't have to compete," she says. If someone is sick she fills in. She moves people to easier tasks if they wake up one morning with stiff joints. "I know what arthritis feels like," she says.
Connie Bowen, a neighbor of Mrs. Carlton's, stands toward the front of the line because she's fast and keeps a steady stream of product coming down the conveyor belt. Mrs. Bowen worked for years at International Business Machines Corp. punching data into cards, then feeding cards into computers. For a long time, the company trained her when new machines came out, but then it didn't bother.
"Why train me when younger kids coming out of college already knew it? My time came. I was aged out. It happens to everyone in the computer world," she says matter-of-factly. "When new machines come out, they retrain or replace."
Not every type of work is suited for older workers, but Mr. Bell believed it could work at Bonne Bell -- though it would require a different approach and mindset. He didn't know of any other company that had a senior department. In general, there are few options or opportunities for older people who want or need to continue working and not just because of mandatory-retirement policies. Older workers are largely dismissed as too slow and costly or as misfits in a world gaga for the latest technology. He found that out when he floated his idea by the people in charge of manufacturing and packaging. They balked. They said older people would be inefficient; they worried they'd complain they couldn't do the work or that they needed breaks or weren't feeling well. "I just refused to accept any of that," he says. "Let's try it and see if it works," he proposed.
He began conservatively, taking three older packaging machines and two conveyor belts out of storage. He didn't want to invest a lot of new equipment until he was sure it would work. More importantly, the machines were slower. If they went too fast, people would become frustrated and leave. Word went out to senior-citizens centers and churches. Sixteen people were hired to work part-time on four-hour shifts.
There are now close to 50 retirees on each shift. There is a waiting list of 10 -- notable in an economy which, even as it weakens, still enjoys low unemployment, especially for this type of assembly work. Most workers here are women, many of them widows, although there are four men. Pay starts at $7.50, more than a dollar above minimum wage, and moves to $8 an hour after a year. They get 72 hours of paid time off and $50 worth of free products a month, bonuses usually reserved for full-timers. There are no health benefits, which helps keep costs down. Most of the workers are covered by their husbands' medical plans or Medicare and say they don't need extra coverage.
Word of Mouth
Referrals are generally word of mouth, which means people like it enough that they tell people they care about. That, in turn, creates a more familial group. Six members of the St. Clement's bowling league work here. Mrs. Carlton recruited her neighbor and her son's mother-in-law. Hilda Metzgar told her hairdresser, Duane, at Alternatives Hair Design, who passed the word to Evelyn Cicehri.
Mrs. Cicehri had been out of work for seven weeks before she applied for a job. She was 87 at the time. When Mr. Bell heard about her application, he thought, "Oh My God. What are we getting ourselves into?" and rushed from his office to meet her. This isn't a sitting job, Mr. Bell informed her. She didn't need a chair and preferred to stand, she replied.
She told him that she owned a custom-drapery company for 40 years and made drapes for his older sister, Bonne. She sold the business in 1987 and worked 10 years for the new owner but left with a few others when the owner started screaming and slamming his ruler on the desk in front of her. "He was trying to get rid of all the old people," she suspects.
She got the job and has been there since. She turned 90 in August. She drives to work and arrives a half hour early to get a parking space and walk on the tread mill in the employee weight room. She looks 20 years younger than she is, although that would make her about the same age as her two sons, who are both in their 70s and retired.
Mrs. Cicehri works on Line 2, scooping up Lip Shakes as they tumble out of the machine that seals them into a package ready to be displayed in stores. She inserts four in each small cardboard box. If it's slow, she labels the boxes or moves over to Mrs. Carlton's line to help out. She isn't here for the money, although it comes in handy for concerts and gambling trips. She plays pinochle and poker nine times a month. More important is the daily routine the job provides. Her husband died 20 years ago. "If I stayed at home, I wouldn't get dressed until noon," she says. "I like to lead a more structured life."
They all have their own reasons for working into their seventh decade and beyond. About half need the $300 biweekly paycheck to pay bills. Nearly six in 10 workers in the private sector reach retirement age without a defined-benefit pension from their lifelong work, the Labor Department reports. That leaves them largely dependent on Social Security, which on average covers two-thirds of an older middle-class person's needs.
Taking Care of Mother
Judy Lavelle receives a monthly pension of about $2,000 from her years as a teacher in the Cleveland Public School system. That takes care of her mortgage, car payments and insurance. Her Bonne Bell check pays for food and clothing, and gives her a chance to go out to lunch or dinner.
Ms. Lavelle also takes care of her 97-year-old mother. Her mother has dementia and is undergoing radiation treatment for cancer. "The strain right now with her is horrendous," she says. Ms. Lavelle was so exhausted one morning that she had to take a personal day. When she got to work, people asked her how she was, having cared for their own parents or spouses and knowing the stress. "I am so glad to get back here today," she told them.
For others, the job represents a sense of connection and self-esteem. Most are mothers who are still a part of their grown children's lives but not as integral as they were. "Instead of sitting around, I wanted to do something with my life," says Mrs. Carlton. She wasn't talking about hobbies or volunteering because for better or worse, those pursuits don't seem as important or productive. When the phone rings, she answers with some propriety, "Bonne Bell Seniors."
One recent Christmas, she and others sent a Christmas card to Mr. and Mrs. Bell. It read, "Thanks for allowing us to do something useful." He was struck by the message and the implication that older people would feel so obsolete that they would be grateful for assembly-line work.
Mr. Bell doesn't get involved in the department's day-to-day operations. That is left to Bob Wotsch, 53, a man Mr. Bell tapped as much for his ability as his even temperament. Mr. Wotsch had been working for Bonne Bell for more than 30 years at the manufacturing operations, had 100 people reporting to him, and was involved in the actual production of the cosmetics, which he loved. When Mr. Bell asked him to manage the senior division, he was torn. "I didn't know if it would be enough for me," he says. But out of respect for Mr. Bell, he agreed.
Mr. Bell gave him one instruction. "Treat them like brothers and sisters or mothers and fathers. I don't want you to yell. Just tell people what to do and they will do it," he said. Some workers might take advantage of that. But Mr. Wotsch says he hasn't had that problem and attributes it to their generation's loyalty and work ethic. "They don't want or need anyone to tell them to get going," he says. "Besides I don't think you get the most out of people by yelling at them. You need mutual respect." The contentious issues involve someone not getting a parking space or missing a chair. "I get complaints like 'She took my chair' and then I act as the disciplinarian," he says. But no one has left over a disagreement.
The personal issues are more complex. "You get very involved because it is such a close department," he says. On a recent day, one worker had pneumonia. The week before, someone was off for prostate surgery. The daughter of another called to say her mother's blood pressure was up and she was taking her to the hospital.
He is concerned about them and calls to see how doctor's appointments went. One woman said she had to quit because her daughter lost her babysitter and she needed to stay home to take care of the grandchildren. "I said, 'Don't quit. Just take a leave of absence,' " he says. "Another's husband has Alzheimer's. She might call and say, 'He's not acting right. I can't handle him today.' I say, 'Take the day off.' "
Mr. Bell's son Jess Jr. is now CEO and leads a team of executives in their 40s expanding the reach and scope of Bonne Bell products. "They're a new breed, computer literate and most with MBAs," says the senior Mr. Bell.
His son doesn't see the senior department as a temporary experiment, but rather a part of a company where family has always been important. Mrs. Bell runs a retail shop here. Jess Jr.'s wife, Hilary, handles brand development. In the summer, when children are out of school, their parents bring them to work.
Mr. Bell's younger son James, a senior vice president, is inquiring about space to expand the seniors-only department. The senior Mr. Bell is looking at faster new machinery, convinced the workers can handle it. He's also investigating new pneumatic chairs for those who recently had knee surgery. He asked the 90-year-old Mrs. Cicheri to keep working until she was 100. "I will, if you will," she told him.



TA



To: Tunica Albuginea who wrote (141)2/10/2001 9:12:27 AM
From: Tunica Albuginea  Read Replies (1) | Respond to of 181
 
Barron's:Partial cure II, to Baumol's Disease:

OT/Paying off our debt & saving Social Security


" It would be the end of Social Security as we know it,
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ending the threat posed by the most likely 2lst century financial disaster. "
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TA

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Barron's:Paying All Our Debts
February 12, 2001

Editorial Commentary

Paying All Our Debts
A plan for national debt retirement should include Social Security


By THOMAS G. DONLAN

The Right Stuff

Now that our fiscal statisticians say we have a chance of paying off the national debt,
we should consider what the national debt really is.
It's much bigger than we usually think:

It consists of:
the overt debt, in the form of bonds held by citizens;
the covert debt, in the form of bonds held by government trust funds;
and the unacknowledged debt,
=========================
mostly in the form of the
government's promises to Social Security recipients,
Medicare beneficiaries and its own future pensioners.
The total is way beyond anything that 10 or 12 years of projected
federal surpluses can ever erase.


Federal finance is not actually confusing; it's overwhelmingly simple.
Federal accounting is strictly on a cash basis, using a fiscal system that
would endanger the financial stability of a mom-and-pop candy store.
The only differences between Uncle Sam's candy store and one in the real world
are that Uncle Sam can force his customers to pay any price for his services,
and that if that's not enough he can (so far) borrow as much as he wants, whenever he wants.


Debt held by the public stands at about $3.4 trillion.
Debt held by trust funds and other government accounts add $2.2 trillion.
Estimates of contingent liabilities run about $10 trillion for Social Security,
$5 trillion for Medicare and another $5 trillion for an assortment of government insurance programs
and loan guarantees for housing and other things.

Current policy pays off debt held by the public
while piling up debt to the Social Security trust fund and other similar accounts.
On top of that mistake, the government completely ignores its contingent debts.


If we are going to talk about trying to reduce the national debt,
we should treat all the debts alike.

Securitizing Social Security

To make a start on the contingent debts, we can combine a payoff
with Social Security reform by giving every participant in the government's old-age
benefit program a stack of postdated checks on the U.S. Treasury.
Each would represent the monthly Social Security payment each citizen
would be entitled to after age 62, based on earnings up to a certain date, such as January 1, 2003.

The stack of checks would carry the full faith and credit of the United States,
and their value would be acknowledged as federal debt.
Each check would also have a special peculiarity:
Any check dated after the eventual death of the original recipient would expire worthless.

Since Social Security benefits are indexed to inflation, and since that feature
is one of the most valuable parts of the Social Security promise,
these check-bonds would also be indexed, using the same process
as current inflation-protected Treasury bonds.
But they would not pay any other interest.
Each check would be an inflation-adjusted zero-coupon bond.

Although the check-bonds could not be cashed until the dates specified,
they still would be as tradable as any other Treasury security.
Any Social Security participant could sell his benefits on the open market
at a discounted price that would reflect the time value of money, prevailing interest rates,
the market's estimate of future inflation, and the life expectancy of the original beneficiary.
But the only use to which the participant could put the proceeds would be to make
a deposit into a rollover IRA providing for his personal retirement income.

Mutual fund companies, life insurance companies and banks would find
compelling reasons to invest in such extra-long-term, inflation-protected securities.
They would compete vigorously for participants' business.
Investment bankers would also bundle purchased check-bonds into
multi-million-dollar packages, slice and dice them like mortgages and sell tranches to big investors.

The Treasury itself would enter the markets for check-bonds and for
securitized packages of them, using its spare cash to retire that form of
the national debt in the same way that it currently retires bonds notes and bills held by the public.

Paying Off

Although it would add $10 trillion to the recognized national debt
and more than triple the sum we admit we owe, the benefits of the plan are clear:


Every Social Security pensioner and working participant would receive
a Treasury security bearing the full faith and credit of the United States
in exchange for the much less reliable promise that Congress
will continue the Social Security program indefinitely.

Most participants still do not understand that their benefits are not guaranteed;
===============================================================

this plan would give them the security they imagine they already have.
Many participants would acquire retirement savings accounts that
would be their personal property to replace illusory Social Security accounts.

They would become instant capitalists, responsible for providing for
their retirement and provided the means to do so.
The nation would have a clear accounting of its biggest contingent liability.
It would know the market price of buying back all its debt and
it would know whether projected surpluses are indeed going to be
big enough to see it through the financial stress caused by the retirement
of the Baby Boom generation.
The world financial community would continue to have a tradable supply of
U.S. Treasury bonds, which it currently uses as a proxy for a theoretical "risk-free" security.
We cannot be sure how current plans to retire all bonds, bills and notes
held by the public would affect world markets, but we are reluctant to undertake the experiment.

It would be the end of Social Security as we know it,
========================================
ending the threat posed by the most likely 2lst century financial disaster.
====================================================

Ending Social Security, however, would not end the need
to provide for those incapable of providing for themselves.
Congress would have to enact a new retirement program with
a government minimum benefit, but this time it could be one
based on common-sense capitalism.

For that new program, we also have a suggestion.
Let the government endow every child born in America with an Individual Retirement Account,
funded the first year with a $2,000 gift from Uncle Sam.
Parents with adequate means would be required to fund it each succeeding year
until the child reaches age 18, while the government would continue to make deposits
for those parents below a selected income level.

Even if a child never made another deposit on his own, the tax-deferred compounding of interest,
dividends and capital gains on his $36,000 would grow to a nest egg adequate
to treat him to a better retirement than the Social Security minimum now provides.

As with any plan that attempts to pull the United States out of the financial hole
that two generations of politicians dug for it, this Social Security reform plan will be expensive.
But the expense has already been incurred invisibly by the people who made the promises.
This plan would accrue and acknowledge the Social Security debt so we can deal with it honestly.