A recent high point for me was being appointed to serve on the U.S. Chamber of Commerce Task Force on Climate Actions.  The Goals of this initiative are to:

• Gain an understanding of the implications and issues associated with carbon pricing and other potential climate actions
• Learn how carbon pricing policies outside of the U.S. are impacting companies and the competitiveness of the economies in which they operate
• Explore the extent to which and how businesses weigh potential risks and opportunities of climate change
• Assess the impacts of explicit (e.g., carbon tax or cap and trade) and implicit (e.g., regulation) carbon price mechanisms
• Promote a solutions-focused dialogue among companies and sectors

A GIG economy is a labor market characterized by the prevalence of short-term, independent contractors or freelance workers as opposed to workers who receive a salary or an hourly wage. 
Some wins for gig workers are they can choose assignments that make the most of their talents and passions and allow for flexibility of work hours and locations. Millennials in pursuit of greater work-life balance or baby boomers in pursuit of extra income to off-set limited retirement funds and still allow time for travel, etc. are two segments most enthralled with gig work.  Others are low-income families looking to earn additional income above their full-time jobs in order to make ends meet.

The development of new technologies has paved the way for a quantum leap in the growth of gig opportunities, allowing transactions between providers and consumers such as Uber, Lyft, DoorDash and Airbnb.  In 2017, the Bureau of Labor Statistics reported that 55 million people in the U.S. are “gig workers,” which is more than 35% of the U.S. workforce. That number is projected to jump to 43% by 2020. (Forbes 7/29/18)
 
Wins for the employer are possible saving on brick and mortar office space, costly health insurance and other required benefits of full-time employers.  They are able to maintain an on-call contingent workforce for temporary expertise, for higher volume times, etc.  on an as-needed basis, saving significant dollars in costly full-time employees. 

However, recently the gig economy has been viewed as exploitative for these same reasons for the lowest paying gigs which are most often held by the more disadvantaged groups. Livable incomes (hourly minimum wage), overtime compensation, job security, unemployment and workers compensation, on-the-job expenses, paid sick-leave, ability to form unions, etc. are not available to lower-income gig workers. Fair Labor Standards Act, American with Disabilities Act or the Civil Rights Act protections are not available to gig workers.

Last week, California’s Legislature passed a “groundbreaking legislation” preventing many companies from claiming workers are independent contractors.  AB 5 passed has passed the House and Senate and now is awaiting Governor Gavin Newsom to sign it into law.  Under their “ABC” test, a worker are employees if:

1. they perform tasks under a company’s control
2. their work is integral to the company’s business and
3.  they do not have independent enterprises in that trade

Click here for more details on the bill and implications.
 
This will have a tremendous impact on Uber and Lyft who expect to have an 20%-30% increase in their costs should the bill become law.  Interesting to note, Uber just signed a 10-year lease for a 450,000 square feet office space in the Old Post Office in downtown Chicago making it their second largest office behind its headquarters in San Francisco.  Uber also has their Uber Freight trucking business headquarters in Chicago.  Click Here for more details on Uber’s expansion in Chicago.

More states are expected to follow suit in addressing issues of California’s AB 5.  Stay tuned as we follow this potentially groundbreaking shift in our workforce.
 

After very controversial debates over three very lengthy city council meetings, the Naperville City Council has voted to prohibit the adult use cannabis business establishments in Naperville, i.e. opting out of cannabis retail sales.  One caveat to the motion, is to explore the possibility of offering a referendum on the ballot of an upcoming election to allow resident weigh-in.  Whether that will be the March 2020 primary election, the November 2020 U.S. election or the April 2021 municipal election, will be discussed at upcoming city council meetings. 

This is one of the most complex issues facing the City of Naperville in a while. Proponents of opting out voiced concerns over messages given to our area youth, drawing correlation between availability and increased use.  Proponents of opting in sighted use of the additional tax revenues from cannabis retail sales tax for drug education programs for our youth and more control of location, zoning, etc.  Hats off to our city council members for closely examining all the complexities of this issue prior to casting their vote.

The Naperville Area Chamber of Commerce maintained a neutral position throughout the debates, only requesting City Council to pump the brakes and take time for staff to conduct needed research and analysis of what a potential opt-in regulatory structure would look like, so that an educated decision could be made.

The Chamber plans to host a forum soon, comprised on national and international researchers to speak to the impact of cannabis retail outlets on the business community.  Public safety, control and enforcement of adult-use products, economic development opportunities and realistic tax revenues projections are also issues to be explored in the forum.

NACC will keep you “In the Know” as we as a community moved into this new era as recreational cannabis use becomes legal January 1, 2020.

The mission statement for the City of Naperville is: “To provide services that ensure a high quality of life for our residents and a dynamic environment for our business community through collaboration, innovation, and sound fiscal management.”  One of the four “ends policies” the Naperville City Council and City staff identified in 2015 to realize this mission is economic development-Naperville will be the location of choice for businesses.

Evidence abounds that this “end policy” is being operationalized. We have highlighted Naperville’s successes in this area including our city being ranked top in retail sales in the Chicago Metropolitan suburbs.  New businesses continue to choose Naperville as their place of operation.   Most recently, at their August 20th meeting this week, our council members adopted a resolution with their intent to consider a “business district” designation to support investment in blight areas of the city such as the long- vacated Sam’s Club and Walmart on Route 59.  This along with other efforts, support future economic growth in our area.

The success of our business community contributes significantly to the tax revenues generated.  But, how will these revenues be invested to ensure our business community continues to flourish?  Will Naperville continue to be the location of choice for businesses?

On September 10th at 7:30 a.m., our members will have the opportunity to hear from city officials about how they are proposing to allocate tax revenues. In addition, members will have the opportunity for meaningful dialogue to discuss their priorities and concerns.      
     
Click here to register.  Contact me anytime with questions (630) 544-3387 or rosborne@naperville.net.

Reading a recent U. S. Chamber article about the impact of local businesses on the big comeback of Detroit, host city of the national Democratic Debate last week, I was reminded once again how business success means major wins for their local communities.  From General Motors compost collection program to cultivate urban gardens throughout the city to the Ford Motor Foundation’s pledge of $125 million to combat Detroit’s bankruptcy challenges, the business community played a key role in Detroit’s recovery from bankruptcy a decade ago.  Click Here for to the full article.  In fact, according to Charity Navigator, corporate giving reached in $20.77 billion in overall giving in 2017 alone.

The same generosity can be seen in our local community as well.  I am inspired by our local business members who give back to our local non-profits.   Go to any non-profit agency’s website or review list of donors at their fundraising events and you will invariably find many our local businesses listed.  Corporate social responsibility has become a core value of many companies. In addition to sponsorships, many businesses match employee giving to their favorite charity and engage in business-wide volunteerism to help charities complete major projects.

Whether through corporate sponsorship or through a corporation’s foundation, the business community provides the underpinning to strengthen our community. NACC actively advocates on behalf of our businesses to ensure they can thrive in the best climate possible.  When businesses thrive, the local community thrives.