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<h1 align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="6"><b>P
I P </b></font></h1>
<h3 class="MsoTitle" align="center"><span style="font-size: 12.0pt"><font face="Verdana, Arial, Helvetica, sans-serif">Performance
Improvement Program Is A New Name for an Old Practice</font></span></h3>
<p class="MsoNormal"> </p>
<p class="MsoNormal"><span style="font-size: 12.0pt"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">We
often get a question from a client that goes something like this: �I want
to terminate one of my employees. What�s the process to do it legally?�
Usually it�s the wrong question. The right question should be, �I�m having
problems with one of my employees. How can I resolve that problem?�</font></span></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Most
of us are aware of the 3-step process known as �progressive discipline.�
In the minds of most supervisors it means laying the groundwork leading to termination.
It is sometimes referred to as one verbal, two written and out! In practice,
it starts with 1) A verbal warning, 2) A written warning, and 3)
A written probation, followed by termination.</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">There
are many problems with the attitude or motivation behind that approach.
The main problem is that it starts with the presumption of terminating the employee. </font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Today
this process is more generally known as a Performance Improvement Program (PIP).
Although the functions are almost identical, there is a world of difference.
First, a PIP starts with recognizing that a specific employee is having difficulty
performing their job. You, as the supervisor, must start with the approach
that you want to resolve that problem, not terminate the offender. You
have an investment in this employee, a real measurable dollar investment.
This is someone with whom you have chosen to work. If you can help him
or her make the adjustment, it will almost certainly be far more economical
than recruiting and training all over again and/or facing the potential lawsuit.
Now, the 3-step process:</font></p>
<p class="MsoNormal" style="text-indent: -.25in; margin-left: .25in"> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><span style="font-size: 12.0pt">1.<span style="font:7.0pt "Times New Roman"">
</span></span><b><span style="font-size: 12.0pt">Verbal.</span></b> Identify
clearly in your mind: A) What is he/she not doing that they should
be, and/or B) What is he/she doing that they should not be?, C)
What behavior problems must be addressed?</font></p>
<p class="MsoNormal" style="margin-left:.25in"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
Be very clear in your mind and in your words what the problem is. It must
be job related. What needs to be done? Should he/she have known
this? If the employee needs to learn something, when and how can they
find it? Is this something this person can do? If, in this analysis,
it begins to look more like a personality conflict, or that you found someone
you want to bring in to the company and you need that spot, then reexamine the
whole issue. Those are the kinds of actions that can lead to misunderstandings,
bad employee relations and lawsuits. When you get to this point, you will
know what to say to the employee. Tell him/her what they need to do or
stop doing. Help him/her do so, if possible. Write in <u>your personal
notes</u> (not the employee�s personnel file) the date and content of that discussion.
Remember you <u>want</u> the employee to succeed, you <u>want</u> him/her to
do a good job.</font></p>
<p class="MsoNormal" style="text-indent: -.25in; margin-left: .25in"> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><span style="font-size: 12.0pt">2.<span style="font:7.0pt "Times New Roman"">
</span></span><b><span style="font-size: 12.0pt">Written.</span></b> If,
after a reasonable time, you see that the employee is not responding, you then
follow it up with a written notice. This is not intended to be a �strike
two� on the employee. It is a benign action bringing him/her to focus
on the problem. Yes, it increases the pressure but its primary purpose
is to improve the performance. However, you need to state, even if only
as a general disclaimer, that among the options to be considered if the PIP
is unsuccessful is termination of employment.</font></p>
<p class="MsoNormal" style="text-indent: -.25in; margin-left: .25in"> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><span style="font-size: 12.0pt">3.<span style="font:7.0pt "Times New Roman"">
</span></span><b><span style="font-size: 12.0pt">Probation.</span></b>
The last step is a written probation. This occurs in the event that little
or no improvement is evident. You write up a probation letter stating
the issue, indicating the date of the verbal notification, the date of the written
notice and the current indicator of the failure to date. The probation
should normally be for 30 days. It should call for a focused concentration
on the problem. State that, if at any time during this probation it becomes
evident that this process is fruitless, the probation will end and termination
will follow. You still want to encourage success. It�s a fine line,
but if it succeeds, you will have a valuable employee. If it fails, you
can take comfort in the fact that you truly tried to help this individual.
Further, if this leads to a discrimination charge or a court case, you can demonstrate
that the job was not being performed adequately and that the individual was
unable or unwilling to do so after documented opportunities. The key to
this is your motivation, your goal behind the actions. It should not be
3 steps to termination (progressive discipline) but success through communication
(Performance Improvement Program). </font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">(For
examples of the notices, see �Terminating Employment, Part I.� under �<b>Personnel
Notebooks</b>� on this HR University site.) )</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><span style="font-size: 12.0pt"> </span></font><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><span style="font-size: 12.0pt"> </span></font></p>
<p class="MsoNormal" style="text-indent: -.25in; margin-left: .25in"> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Q.<span style="font:7.0pt "Times New Roman"">
</span>One of my employees had an emergency injury and she and the company were
told by the emergency room doctor that she was okay to return to work.
The employee says it still hurts and wanted to go to her own doctor. After
three days she still has not been to her doctor. We have directed her
to return to work. Can�t we just terminate her?</font></p>
<p class="MsoNormal" style="text-indent: -.25in; margin-left: .25in"> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1">A.<span style="font:7.0pt "Times New Roman"">
</span>Yes. It would be best if your employee handbook (policy manual)
had a statement covering unexcused absences. If it does, follow it.
Otherwise she is on an extended absence and cannot produce an acceptable reason.
You can terminate her, but you should inform her immediately.</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><span style="font-size: 12.0pt"> </span></font></p>
<blockquote>
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<blockquote>
<p> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Bill
Cook<br>
</font><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Human
Resource Associates</font></p>
</blockquote>
</blockquote>
</blockquote>
</blockquote>
</blockquote>
</blockquote>
</blockquote>
</blockquote>
</blockquote>
</blockquote>
</blockquote>
</blockquote>
</blockquote>
<hr>
<h2 style="margin-left:.75in" align="center">
<font face="Verdana" color="#008000">Have an employment question?</font></h2>
<h3 style="margin-left:.75in" align="center"><font face="Verdana">Send it to
<a href="mailto:[email protected]?subject=From HR On The Job">
[email protected]</a></font></h3>
<p style="margin-left:.75in" align="center"><b><font face="Verdana" size="2">
Please include Company Name and Association in your e-mail. Company
identification will be kept confidential.</font></b></p>
<hr>
<h2 align="left"><b><u><font
face="Verdana, Arial, Helvetica, sans-serif">Hitchhiking on the Information
Highway</font></u></b></h2>
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"><b><font
size="4" color="#FF0000">Dateline: January 2005</font></b></font></p>
<p class="MsoNormal"><i><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">Note. Although we attempt to provide the HRU update on the first
of each month, we are normally delayed awaiting the release of several
monthly government statistical reports. We will hereafter update the information
as each report becomes available without waiting for all of them to be
released.</font></i></p>
<p> </p>
<table border="0" width="100%" height="67">
<tr>
<td width="100%" height="370"> <span style="text-decoration: none"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"></font></span>
<h3 class="MsoNormal"><b><u><span style="font-size: 16.0pt"><font face="Verdana, Arial, Helvetica, sans-serif">I.D.
Theft In The Workplace.</font></span></u></b></h3>
<p class="MsoNormal"><span style="font-size: 14.0pt"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Identity
theft is one of the fastest growing crimes in the U.S. Each year
millions of people learn only too late that their personal information
has been stolen and their lives will be in economic chaos for years.</font></span></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">New
studies now show that some of that information is being stolen in the
workplace.</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">A
San Diego company was sued after an employee found a box of old personnel
records from a company they had just acquired. The employee used
those records to create 25 credit cards and purchased over $100,000 in
goods.</font></p>
<p class="MsoBodyText2"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Here
are 6 key questions a company should ask itself in order to minimize this
risk:</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u><b>1.
Gathering Information</b></u></font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Do
you have a good need for this information? Are people seeing it
who should not?</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u><b>2.
Storage</b></u></font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">What
computer security has been placed around the system that is storing the
information? Is it handled as highly classified or does it have
common access? </font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u><b>3.
Access</b></u></font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Are
passwords and general access available only to limited staff? Are
files with personal information secure with key access only to specific
people?</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u><b>4.
Disposal</b></u></font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Is
your dumpster a treasure chest for thieves? Are electronic/paper
documents and databases rendered unreadable prior to disposal?</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u><b>5.
Distribution</b></u></font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Do
you publicly display, use or exchange personal information in your workplace?
This includes employee membership cards, work schedules, time cards, special
permits, licenses or computer access codes? Are personnel trained
in the proper procedures regarding information disclosure?</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u><b>6.
Personnel</b></u></font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Have
you conducted background checks an all employees who have access to identifying
information? This might include mailroom staff, cleaning crews,
temp workers and computer repair people,</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">This
issue is growing to the point where it is expected that there may be more
law suits and government regulations on the horizon.</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"></font></p>
<h3 class="MsoNormal"><b><u><span style="font-size: 16.0pt"><font face="Verdana, Arial, Helvetica, sans-serif">California
Determines �Extra Hour Of Pay� Is Not Taxable.</font></span></u></b></h3>
<p class="MsoNormal"><span style="font-size: 14.0pt"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">In
2004 California offered a reward to employees who reported wage and hour
violations to the state. The reward was an extra hour of pay (to
be paid by the employer). As this extra hour was added to the paycheck
as wages, employers applied deductible taxes to that amount. On
December 20, 2004 the regulations were amended to classify that extra
hour, not as �wages�, but as a �penalty� against the employer. As
a result taxes will no longer be deducted from that �penalty�.</font></span></p>
<p class="MsoNormal"><b><u> </u></b></p>
<h3 class="MsoNormal"><b><u><span style="font-size: 16.0pt"><font face="Verdana, Arial, Helvetica, sans-serif">Health
Benefit News</font></span></u></b></h3>
<p class="MsoNormal"><span style="font-size: 14.0pt"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Do
you sometimes wonder just which benefits employees want? When employees
were asked in a nationwide poll, how they want their company to spend
their compensation/benefit dollars, the overwhelming response was �wages�.
However, when a list of benefits (including wages) was presented in surveys,
employees nationwide chose �paid time off� over wages. That�s why
so much new legislation is aimed at paid time off the job.</font></span></p>
<p class="MsoBodyText2"> </p>
<h3 class="MsoBodyText2"><b><u><span style="font-size: 16.0pt"><font face="Verdana, Arial, Helvetica, sans-serif">Where�s
My Paycheck?</font></span></u></b></h3>
<p class="MsoBodyText2"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">A
recent survey by CCH Inc, a compensation consulting company, measured
the use of Direct Deposit as a means of issuing paychecks. </font></p>
<p class="MsoBodyText2"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">The
participants reported that in over 75% of all the companies that responded,
at least 50% of their employees used Direct Deposit.</font></p>
<p class="MsoBodyText2"> </p>
<h2><font face="Verdana, Arial, Helvetica, sans-serif"><b><u>Quotations
Of The Month</u></b></font></h2>
<p class="MsoNormal"><span style="font-size: 14.0pt"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">�Very
few people in the world can be relied upon to work without praise or recognition�</font></span></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
<i>
Varindra Vitachi</i></font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">�I
have never let my schooling interfere with my education�</font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
<i>
Mark Twain</i></font></p>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">�Time
is the stuff that life is made of�</font></p>
<blockquote>
<blockquote>
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"> <i>
Benjamin Frankiln</i></font></p>
</blockquote>
</blockquote>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">�Work
expands to fill the time available for its completion�</font></p>
<blockquote>
<blockquote>
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"> <i> C.
Northcote Parkinson</i></font></p>
</blockquote>
</blockquote>
<p class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">�I
think a man who wears an earring could be a good husband. He�s bought
jewelry and experienced pain�</font></p>
<blockquote>
<blockquote>
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><i> Rita
Rudner</i></font><![if !mso]><![endif]> <![if !mso]><![endif]> <span style="text-decoration: none"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
<hr width="75%">
</font></span></p>
</blockquote>
</blockquote>
<span style="text-decoration: none"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
<table border="0" width="33%">
<tr>
<td width="64%" valign="top">
<div style="border-style: solid; border-width: 1; padding-left: 4; padding-right: 4; padding-top: 1; padding-bottom: 1">
<p align="left"><font size="-1"
face="Verdana, Arial, Helvetica, sans-serif"><b>Minimum Wage:</b></font></p>
</div>
</td>
<center>
<td width="100%" valign="top"><font size="-1"
face="Verdana, Arial, Helvetica, sans-serif">$5.15/hr.</font></td>
</center>
</tr>
</table>
<table border="0" width="99%">
<tr>
<td width="13%" valign="middle" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>Average
Income:</b></font></td>
<td width="67%" style="border-left-style: solid; border-left-width: 1">
<table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber4" height="76">
<tr>
<td width="100%" height="76">
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber5">
<tr>
<td width="50%" align="center"><b><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Hourly</font></b></td>
<td width="50%" align="center"><b><font size="-1" face="Verdana, Arial, Helvetica, sans-serif">Weekly</font></b></td>
</tr>
</table>
<table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber6" height="50">
<tr>
<td width="25%" height="50">
<p align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u>
December 2003</u><br>
$15.48</font>
</td>
<td width="25%" height="50">
<p align="center"><u> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
December</font></u><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u>
2004<br>
</u>$15.89</font>
</td>
<td width="25%" height="50">
<p align="center"> <span style="text-decoration: none"><u>
<font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
December</font></u><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u>
2003</u><br>
</font></span> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
$520.13</font>
</td>
<td width="25%" height="50">
<p align="center"><u> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
December 2004</font></u><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u><br>
</u>$535.39</font>
</td>
</tr>
</table>
</td>
</tr>
</table>
</td>
<td width="20%" bgcolor="#C0C0C0">
<table border="0" width="99%" height="96">
<tr>
<td width="100%" height="40" colspan="2">
<h3 align="center"><span style="text-decoration: none"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>Federal<br>
Poverty Level:</b></font></span></h3>
</td>
</tr>
<tr>
<td width="50%" height="48">
<p align="center"><b><u><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">One
(1) Person<br>
</font></u></b><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">$8,980</font>
</td>
<td width="50%" height="48">
<p align="center"><u><b><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Family
of Four</font></b></u><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><br>
$18,400</font>
</td>
</tr>
</table>
</td>
</tr>
</table>
<hr noshade color="#000000">
<hr noshade color="#000000">
<b>
<table border="0" width="100%">
<tr>
<td width="37%" style="border-style: solid; border-width: 1">
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b>IRS Mileage Allowance :</b></font></p>
</td>
<center>
<td width="63%" style="border-left-style: solid; border-left-width: 1">
<div align="left"><font size="-1"><b>37.5</b> </font><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">cents per mile<br>
</font></div>
</td>
</center>
</tr>
</table>
<table border="0" width="100%" bgcolor="#C0C0C0">
<tr>
<td width="32%" style="border-style: solid; border-width: 1">
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b>Postage:</b></font></p>
</td>
<center>
<td width="68%" style="border-left-style: solid; border-left-width: 1"> </td>
</center>
</tr>
<tr>
<td width="32%" style="border-top-style: solid; border-top-width: 1"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">1 oz.</font></td>
<td width="68%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">.37</font></td>
</tr>
<tr>
<td width="32%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">Each additional ounce</font></td>
<td width="68%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">.23</font></td>
</tr>
<tr>
<td width="32%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><i>Postcards</i></font></td>
<td width="68%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">.23</font></td>
</tr>
</table>
</b>
<hr noshade color="#000000">
<b>
<p>
<table border="0" width="38%" bgcolor="#FFFFFF" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" cellspacing="0">
<tr> </tr>
</table>
<table border="0" width="98%">
<tr>
<td width="34%" style="border-style: solid; border-width: 1">
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b><u>Population:</u></b></font></p>
</td>
<center>
<td width="82%" style="border-left-style: solid; border-left-width: 1"> </td>
</center>
</tr>
<tr>
<td width="34%" style="border-top-style: solid; border-top-width: 1"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b>World</b></font></td>
<td width="82%">
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">6.3 Billion</font>
</td>
</tr>
<tr>
<td width="34%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b>U.S.</b></font></td>
<td width="82%">
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">292.3 Million</font>
</td>
</tr>
</table>
</b>
<hr noshade color="#000000">
<table border="1" width="99%" bgcolor="#C0C0C0">
<tr> <b>
<td width="48%" style="border-style: solid; border-width: 1">
<p align="left"><b> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1">U.S.
Workforce</font></b></p>
</td>
</b>
<center>
<td width="12%" align="center"><font face="Verdana, Arial, Helvetica, sans-serif"><b><u><font size="-1">
December 2003</font></u></b></font></td>
<b>
<td width="12%" align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u><b>
December 2004 </b></u></font></td>
</b>
</center>
</tr>
<tr>
<td width="48%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">U.S. Civilian Workforce</font></td>
<td width="12%" align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">146,808,000</font></td>
<td width="12%" align="center"><font size="-1" face="Verdana, Arial, Helvetica, sans-serif">148,203,000</font></td>
</tr>
<tr>
<td width="48%"><font size="-1">Number Employed</font></td>
<td width="12%" align="center"> <font size="-1" face="Verdana, Arial, Helvetica, sans-serif">138,409,000</font></td>
<td width="12%" align="center"> <font size="-1" face="Verdana, Arial, Helvetica, sans-serif">
140,156,000</font></td>
</tr>
<tr>
<td width="48%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">Number Unemployed</font></td>
<td width="12%" align="center"> <font size="-1">8,399,000</font></td>
<td width="12%" align="center"> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
8,047,000</font></td>
</tr>
<tr>
<td width="48%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">Unemployment Rate</font></td>
<td width="12%" align="center">
<p><font size="-1">5.7</font><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">%</font></p>
</td>
<td width="12%" align="center">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">5.4%</font></p>
</td>
</tr>
</table>
<hr noshade color="#000000">
<table border="0" width="98%" bgcolor="#FFFFFF" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" cellspacing="0" height="96">
<tr>
<td width="25%" style="border-style: solid; border-width: 1" height="48">
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b>Absentee Rates (annualized)</b></font></p>
</td>
<center>
<td width="10%" align="center" valign="top" style="border-left-style: solid; border-left-width: 1" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>1997</u></b></font></td>
<td width="10%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>1998</u></b></font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>1999</u></b></font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>2000</u></b></font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>2001</u></b></font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>2002</u></b></font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>3rd Quarter<br>
2003</u></b></font></td>
</center>
</tr>
<tr>
<td width="25%" style="border-top-style: solid; border-top-width: 1" height="48">
<font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Men equal
approximately 1/3 of all absenteeism<br>
Women approximately 2/3</font></td>
<td width="10%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.0%</font></td>
<td width="10%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.6%</font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.4%</font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.9%</font></td>
<td width="11%" align="center" valign="top" height="48">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.1%</font></p>
</td>
<td width="11%" align="center" valign="top" height="48">
<p><font size="-1">3.6</font><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">%</font></p>
</td>
<td width="11%" align="center" valign="top" height="48">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">1.9%</font></p>
</td>
</tr>
</table>
<hr noshade color="#000000">
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber3" bgcolor="#C0C0C0">
<tr>
<td width="100%">
<h4><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif">PRODUCTIVITY
OF THE AMERICAN WORKFORCE</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
(The amount of goods produced, divided by the number of work hours
it took to produce it)</font></h4>
</td>
</tr>
</table>
<p>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber2" bgcolor="#C0C0C0">
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1992</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">3.7%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1993</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">0.5%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1994</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">1.3%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1995</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">0.9%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1996</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.5%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1997</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.0%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1998</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.6%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1999</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.4%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>2000</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.9%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>2001</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">1.1%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>2002</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">4.7%</font></p>
</td>
</tr>
<tr>
<td width="32%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>2003</b></font></td>
<td width="68%"><font size="-1" face="Verdana, Arial, Helvetica, sans-serif">4.5%</font></td>
</tr>
<tr>
<td width="32%"><font size="-1" face="Verdana, Arial, Helvetica, sans-serif"><b>1st
Quarter 2004</b></font></td>
<td width="68%"><font size="-1" face="Verdana, Arial, Helvetica, sans-serif">UP
3.8% Increase</font></td>
</tr>
<tr>
<td width="32%"><font size="-1" face="Verdana, Arial, Helvetica, sans-serif"><b>
2nd Quarter 2004</b></font></td>
<td width="68%"><font size="-1" face="Verdana, Arial, Helvetica, sans-serif">UP
2.5% Increase</font></td>
</tr>
<tr>
<td width="32%"><font size="-1"><b>3r</b></font><font size="-1" face="Verdana, Arial, Helvetica, sans-serif"><b>d
Quarter 2004</b></font></td>
<td width="68%"><font size="-1" face="Verdana, Arial, Helvetica, sans-serif">UP
1.9% Increase</font></td>
</tr>
<tr>
<td width="32%"> </td>
<td width="68%"> </td>
</tr>
</table>
</font></span>
<h3 align="center"> </h3>
</td>
</tr>
<tr>
<td width="100%" height="61"> </td>
</tr>
</table>
<p><font face="Verdana" size="2">� 2004 William J. Cook</font></p>
</body>
</html>