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Consequence to cuts no one thought would happen

Written By Unknown on Minggu, 03 Maret 2013 | 00.48

WASHINGTON — It's not the first time that government economic engineering has produced a time bomb with a short fuse.

Back in 2011, few lawmakers thought deep and indiscriminate spending cuts, totaling about $85 billion and now starting to kick in, were a smart idea.

The cuts are a reality largely because President Barack Obama and House Speaker John Boehner failed to find a way to stop them.

History shows a long trail of unintended consequences from government actions — or inaction.

President Franklin Roosevelt won re-election in 1936 and believed the Great Depression was winding down.

Roosevelt and Congress thought it was time to cut free-flowing government spending and raise taxes. The Federal Reserve tightened its financial reins. But the fragile economy couldn't withstand the blows and the Depression roared back.


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Bernanke defends Fed's low-interest-rate policies

WASHINGTON — Chairman Ben Bernanke is standing by the Federal Reserve's low-interest-rate policies, cautioning that any move to raise rates prematurely could derail a still-modest economic recovery.

Bernanke also sought to calm fears that super-low rates risk igniting inflation or rattling investors, during a speech late Friday in San Francisco to an economic conference sponsored by the San Francisco Federal Reserve Bank.

The central bank's low-rate policies are intended to encourage borrowing and spending to boost the economy. Higher rates would make borrowing more expensive.

Bernanke said the Fed's policies mirror what other central banks around the world are doing.

"Long-term interest rates in the major industrial countries are low for a good reason: Inflation is low and stable and, given expectations of weak growth, expected real short rates are low," he said.

"Premature rate increases would carry a high risk of short-circuiting the recovery, possibly leading — ironically enough — to an even longer period of low long-term rates," he said.

His comments amplified testimony he gave to Congress this week.

Critics, including some Fed regional bank presidents, have expressed concerns that the Fed may be raising the risk of inflation through its purchases of Treasury bonds and mortgage-backed securities.

As he did in his appearance before House and Senate committees this week, Bernanke sought to provide reassurance that the central bank is closely monitoring developments in financial markets to guard against such risks.

He said 2010 financial regulatory overhaul has forced banks to boost the required capital on hand to cushion against losses. The Fed also conducts annual stress tests to make sure that the nation's largest financial institutions have sufficient resources to survive adverse economic conditions, he said.

"We pay special attention to developments at the largest, most complex financial firms, making use of information gathered in our supervision of the institutions," Bernanke said.

During a question period after his speech, Bernanke was asked what he believed were the most significant lessons learned from the financial crisis. Prior to serving as Fed chairman, Bernanke had been a college professor at Princeton who researched mistakes made by the Federal Reserve during the Great Depression.

Bernanke said there was a need for better oversight of the financial system. And he noted that assets such as housing can quickly become significantly overpriced. But he said in many ways, the 2008 crisis had all the elements of a typical bank run.

"It was analogous to things that happened in the 19th century," said Bernanke. "It is just that it is a much more complex framework" today.

In his speech, Bernanke said current forecasts project long-term interest rates will rise only gradually in the next several years. Rates for 10-year Treasury bonds might rise by between 2 and 3 percentage points between now and 2017, he said. The 10-year Treasury is currently trading around 1.9 percent.

But Bernanke also referenced a time in the past when the Fed began tightening credit and rates rose more rapidly. In 1994, the yield on the 10-year Treasury rose more than 2 percentage points in just 12 months, he noted.

He said this increase reflected an unexpected acceleration in the pace of economic growth and signs of building inflation pressures.

Bernanke said such a big increase in one year was at the "upper end" of what private forecasters are predicting could happen when the Fed begins tightening interest rates this time. And he said the Fed's ability to communicate its future moves to markets have improved considerably since 1994.

By providing greater clarity about the future course of interest rates, Bernanke said the Fed's improved communication efforts should reduce the risk that market misperceptions about the Fed's intention "would lead to unnecessary interest rate volatility."

The Fed said at its January meeting that it will not halt its bond buying until it has seen a substantial improvement in the labor market.

In December, it set a goal of keeping its key short-term interest rate near zero until unemployment has fallen below 6.5 percent. Unemployment in January stood at 7.9 percent and many economists believe it will not drop below 6.5 percent until late 2015 at the earliest.

The Fed's low-interest-rate policies were approved on an 11-1 vote at the January meeting, although minutes of those discussions showed that a minority of Fed officials expressed concerns about the current level of the bond purchase program.

However, Bernanke's appearances before Congress this week and in his Friday speech sent a strong signal that he still believes the low-rate policies are needed to provide support for an economy still burdened by high unemployment.


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Bernanke defends Fed's low-interest-rate policies

WASHINGTON — Chairman Ben Bernanke is defending the Federal Reserve's low-interest rate policies and seeking to calm fears that super-low rates risk igniting inflation or rattling investors.

Bernanke says any Fed move to raise rates prematurely could derail what is still a modest U.S. economic recovery. The central bank's low-rate policies are intended to encourage borrowing and spending to boost the economy. Higher rates would make borrowing more expensive.

Bernanke says the Fed's policies mirror what other central banks around the world are doing. His comments, which amplified testimony he gave to Congress this week, were delivered to a Fed conference in San Francisco.

Critics, both inside and outside the Fed, say they fear that the Fed may be raising the risk of financial instability.


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For Fla. citrus crop, it's been a tough year

For Fla. citrus crop, it's been a tough year

ST. PETERSBURG, Fla. — It's been a difficult year for Florida's citrus crop, with a warm, dry winter; citrus greening; and a heavy crop load.

Lots of fruit dropped from the trees this year, which means a chunk of the state's crop is unsellable.

The total impact of citrus in Florida's economy is about $9 billion a year, and bumpy years like this one can set farmers on edge.

The U.S. Department of Agriculture is forecasting declines for this year's crop. At the beginning of the season, officials predicted a total citrus yield of 154 million boxes of fruit, but that forecast was downgraded in February to 141 million boxes.

Most of Florida's biggest crop, Valencia oranges, is used for juice. Because of a surplus last year, consumers shouldn't see a price increase.


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Buffett calls year with 45 pct. profit jump subpar

Buffett calls year with 45 pct. profit jump subpar

OMAHA, Neb. — Most companies would undoubtedly be thrilled with the results Warren Buffett called "subpar" at Berkshire Hathaway because his company's value trailed the overall market.

But the fact that Buffett wasn't satisfied with the 45 percent jump in profit his company reported Friday is part of why he's built such a remarkable record.

Buffett sounded optimistic about both the economy and his company in an annual letter to shareholders that was released Friday. Buffett urged other businesses to either invest in the future or sell their profitable ventures to Berkshire.

"Charlie and I love investing large sums in worthwhile projects, whatever the pundits are saying," Buffett said in reference to Berkshire Vice Chairman Charlie Munger.

So it didn't really matter much that 2012 was only the ninth time in the past 48 years that Berkshire's book value per share failed to outpace the S&P 500's 16 percent growth. Berkshire's value — calculated by subtracting liabilities from assets — still grew by 14.4 percent.

The legendary investor also confessed that the two investment managers he hired over the last few years left Buffett in their dust largely, because he didn't make a big acquisition last year.

Berkshire's chairman and CEO had considerably more good news than bad to offer, and Buffett offered more explanation about the company's recent newspaper purchases and its opposition to paying derivatives.

Berkshire's net income soared in 2012 to $14.8 billion, up from $10.3 billion the previous year, but most of the increase came from paper gains on its investments and derivative contracts.

Without those gains, Berkshire's operating earnings advanced 17 percent to $12.6 billion, up from the previous year's $10.8 billion. Nearly all of its major business groups performed well in 2012, with the insurance units that include Geico and General Reinsurance leading the way because of significantly fewer natural disasters in the year.

"Berkshire really did pretty well," said Jeff Matthews, who wrote "Warren Buffett's Successor: Who It Is and Why It Matters."

Buffett said Berkshire's acquisition luck turned last month when he agreed to work with the 3G Capital investment fund to buy the H.J. Heinz Co. for $23.3 billion.

Berkshire will own half the company, receive 9 percent dividends on $8 billion, and get warrants to buy another 5 percent of Heinz. But Buffett and Munger won't be satisfied by the ketchup deal.

"We still have plenty of cash and are generating more at a good clip," Buffett wrote. "So it's back to work; Charlie and I have again donned our safari outfits and resumed our search for elephants."

Andy Kilpatrick, who wrote "Of Permanent Value: The Story of Warren Buffett," said the warrants make it likely that Heinz will one day be entirely owned by Berkshire.

And Buffett said Berkshire finished 2012 with nearly $47 billion on hand, so he does have plenty to work with even if he insists on keeping about $20 billion around in case of emergencies.

Many of the companies Berkshire owns outright — including MidAmerican Energy, Lubrizol chemicals and HomeServices of America — together made 26 smaller acquisitions for $2.3 billion last year.

Kilpatrick said he was impressed with the report because for the first time in several years, it looks like all parts of Berkshire are performing well, and it looks like the 82-year-old Buffett is doing well after a prostate cancer scare last year.

"He looks to be in terrific health, and the company looks to be in terrific health," Kilpatrick said.

Buffett did not offer any new details in the letter on the plan to eventually replace him. He has said Berkshire's board plans to split Buffett's job into three roles: CEO, chairman and investment management. The board knows who it would choose immediately to succeed him as CEO.

The investment piece seems set with the recent hiring of hedge fund managers, Todd Combs and Ted Weschler. They manage portfolios worth about $5 billion while Buffett continues to make most of Berkshire's investment decisions. Buffett praised both on Friday.

"Todd Combs and Ted Weschler, our new investment managers, have proved to be smart, models of integrity, helpful to Berkshire in many ways beyond portfolio management, and a perfect cultural fit. We hit the jackpot with these two," Buffett said.

In his letter, Buffett defended the newspaper investments he made last year. But mostly his comments just elaborated on what he's said previously about newspapers that are the primary source of information about their communities will continue delivering decent returns.

Berkshire will own 28 daily newspapers in small and mid-sized cities once its acquisition of the Tulsa World is complete. Berkshire bought 63 Media General newspapers last year for $142 million.

"Wherever there is a pervasive sense of community, a paper that serves the special informational needs of that community will remain indispensable to a significant portion of its residents," Buffett said.

Berkshire owns roughly 80 subsidiaries, including railroad, clothing, furniture and jewelry firms, but its insurance and utility businesses typically account for more than half of the company's net income. The Omaha, Neb., company employs more than 288,000 and holds major investments in such companies as Coca-Cola Co., IBM and Wells Fargo & Co.

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Follow Josh Funk online at www.twitter.com/funkwrite

___

Online:

Berkshire Hathaway Inc.: www.berkshirehathaway.com


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Jump in factory growth lifts hopes for US economy

WASHINGTON — Busier factories and growing optimism among consumers could help the U.S. economy withstand the drag from government spending cuts and tax increases this year.

Manufacturing grew in February at the fastest pace in 20 months, according to a report Friday from the Institute for Supply Management. And a survey from the University of Michigan showed that consumer sentiment rose last month to its highest level since November.

The two reports follow other data that show strength in job growth and the housing market. Americans even spent a bit more in January compared with December, despite a sharp drop in income that partly reflected higher taxes.

"Consumers are spending, confidence is rising and manufacturing activity is accelerating," Joel Naroff, president of Naroff Economic Advisors, said in a note to clients. "Just about all of today's reports point to an economy on the rise."

Businesses and consumers appear to be shrugging off changes in federal policy that will likely slow the still-weak economy.

In January, Congress and the White House struck a deal that allowed Social Security taxes to rise on most Americans. The deal also raised income taxes for the nation's top earners.

And across-the-board spending cuts are set to begin Friday. The cuts could reduce government purchases and lead to temporary layoffs of government employees and contractors. They're expected to shave about a half-percentage point from economic growth this year.

"Many Americans are tired of the political wrangling and bickering," Chris Christopher, an economist at IHS Global Insight, said. "A certain level of political crisis fatigue has set in."

The economic data Friday was mostly positive:

— The Institute for Supply Management said its index of factory activity rose last month to 54.2, the highest since June 2011. Any reading above 50 indicates growth. The report showed a jump in new orders, higher production and more hiring at factories. Manufacturing has grown for three straight months, indicating that factories could help the economy after slumping through most of 2012.

— The University of Michigan measure of consumer sentiment rose to 77.6, the second straight monthly increase. The rebound in consumer confidence, seen in both the Michigan survey and another survey from Conference Board, suggests that some consumers have begun to adjust to smaller paychecks.

— Consumers increased spending 0.2 percent in January from December but cut back on major purchases such as autos and appliances. Income plunged 3.6 percent, though it followed a jump in December driven by dividends and bonuses paid early to avoid higher income taxes. The increase in Social Security taxes also lowered after-tax income.

— Spending on U.S. construction projects fell in January by the largest amount in 18 months, the Commerce Department said. Still, that the decline followed a nearly 10 percent increase in construction spending in 2012, the first annual gain after five years of declines.

Investors seemed to focus Friday on the gains in manufacturing. Stocks rebounded after the ISM survey was released. The Dow Jones industrial average closed up 35 points, overcoming an early loss of 116 points.

One reason for optimism is that the job market is looking better.

Employers have added an average of 200,000 jobs a month from November through January. That was up from about 150,000 in the previous three months. And a drop in weekly applications for unemployment benefits suggests that employers have stepped up hiring further in February.

Some employers are even willing to pay more: After stagnating since the recession ended, hourly pay has been rising faster than inflation for the past three months. If such pay increases continue, they will help blunt the impact of the higher Social Security taxes.

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Follow Chris Rugaber on Twitter at https://Twitter.com/ChrisRugaber


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AP: NY fracking held as Cuomo, RFK Jr. talk health

AP: NY fracking held as Cuomo, RFK Jr. talk health

ALBANY, N.Y. — New York Gov. Andrew Cuomo came as close as he ever has to approving fracking last month, laying out a limited drilling plan for as many as 40 gas wells before changing course to await the findings of a new study after discussions with environmentalist and former brother-in-law Robert F. Kennedy Jr., several people familiar with his thinking told The Associated Press.

The turning point, which could delay a decision for up to a year or longer, came in a series of phone calls with Kennedy. The two discussed a new health study on the hydraulic fracturing drilling method that could be thorough enough to trump all others in a debate that has split New York for five years.

"I think the issue suddenly got simple for him," Kennedy told the AP, then went on to paraphrase Cuomo in their discussions: "'If it's causing health problems, I really don't want it in New York state. And if it's not causing health problems, we should figure out a way we can do it.'"

Kennedy and two other people close to Cuomo, who spoke to the AP only on condition of anonymity because Cuomo is carefully guarding his discussions on the issue, confirmed the outlines of the plan the governor was considering to allow 10 to 40 test wells in economically depressed southern New York towns that want drilling and the jobs it promises. The plan would allow the wells to operate under intense monitoring by the state to see if fracking should continue or expand.

They all said it was the closest Cuomo has come in his two years in office to making a decision on whether to green-light drilling.

The state has had a moratorium on the process since 2008 while other states in the gas-rich Marcellus Shale formation, such as Pennsylvania, have seen local economies boom as drilling rigs have sprouted up.

Cuomo continues to refuse to talk about his internal process and wouldn't comment for this story. He has been repeating the phrase he's used for two years, that "science, not politics" will rule.

Kennedy, brother of Cuomo's ex-wife, Kerry, described a governor who is intensely involved in the emotion-charged issue, which Cuomo privately likened to taking on the National Rifle Association over gun control laws. Kennedy said Cuomo reached out personally to many others as well in his evaluation.

Kennedy believes Cuomo held off in large part because of the prospect of a new $1 million study by the Geisinger Health System of Pennsylvania, billed by property owners seeking safe fracking and environmentalists as a "large-scale, scientifically rigorous assessment" of drilling in Pennsylvania.

The study will look at detailed health histories of hundreds of thousands of patients who live near wells and other facilities that are producing natural gas from the same Marcellus Shale formation that New York would tap.

Unlike most studies funded by advocates or opponents of hydrofracking, this study would be funded by the Sunbury, Pa.-based Degenstein Foundation, which is not seen as having an ideological bent.

"I think it will be pivotal," Kennedy said. Preliminary results are expected within the year, but there is no specific timetable and final results could be years off. Kennedy is opposed to fracking unless it can be proven to be safe for the environment and public. He said he's unsure what the Geisinger report will conclude.

The Independent Oil and Gas Association of New York, a trade group, didn't immediately respond to a request for comment on Saturday.

Shortly after the conversations with Kennedy in early February, Cuomo's health commissioner, Dr. Nirav Shah, mentioned the Geisinger study among three health reviews still pending and which could enter into Cuomo's decision. Shah, a nationally respected public health figure, was an associate investigator at the Geisinger Center for Health Research before going to work for Cuomo.

Cuomo, a popular Democrat who supporters say may run for president in 2016, is getting criticism from both sides over his delayed decision and calls for more studies. Landowners and industry say they're missing out on an economic boom while environmentalists say the administration should have ordered a full health study and has been too opaque about the regulatory process.

Some pundits have questioned whether Cuomo was "becoming Hamlet on the Shale," echoing a reference to criticism of his father, former Gov. Mario Cuomo, who spent politically damaging months as "Hamlet on the Hudson" publicly debating whether to run for president. It's a characterization Kennedy rejects.

Many federal and state regulators say hydraulic fracturing, which injects a mix of water and chemicals thousands of feet underground to crack open shale and release natural gas, is safe when done properly and thousands of sites have few complaints of pollution. But environmental groups and some doctors say regulations still aren't stringent enough and the practice can pollute ground water. The Marcellus Shale lies under parts of New York, Pennsylvania, Ohio and West Virginia.

"What's interesting is Andrew is trying to figure this out," Kennedy said. "It's interesting to see this ... that usually doesn't happen. (Most governors) take a poll, or they take industry money and just do it ... but I think this is the harder route."


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China targets 15 pct of satellite launch market

BEIJING — China is looking to increase its share of the global commercial satellite launching business, targeting a 15 percent share by 2020, a leading space program official said Saturday.

China hopes to increase its market share by establishing strategic alliances with major launch services providers and satellite manufacturers, along with developing its own technology, the deputy head of the China Academy of Launch Vehicle Technology, Liang Xiaohong, told the official Xinhua News Agency.

China has just 3 percent of the market now, but the goal laid out by Liang points to its ambitions to become a major player in space, just one decade after becoming only the third country after the U.S. and Russia to launch a man into space.

Elsewhere in the Xinhua interview, Liang said China's first solid-fuel rocket that could be launched on short notice would be ready to make its first flight by 2016.

China has a well-developed range of Long March rockets for use in commercial launches, all of which now mainly burn liquid fuel that must be pumped in just prior to launch. Solid fuel rockets can be kept in storage, then fired when needed, making them ideal for military use in launching ballistic missiles.

Liquid-fueled rockets are generally considered best-suited for launching large payloads, while solid rockets are used for placing smaller satellites weighing less than 2 tons into low Earth orbit.

"The development of the Long March 11 will greatly improve China's capabilities to rapidly enter space and meet the emergency launching demand in case of disasters and emergencies," Liang was quoted by Xinhua as saying.

On Friday, China's space program said it would send three astronauts to its orbiting space station this summer as part of preparations to establish an even larger permanent presence above Earth.

The Shenzhou 10 spacecraft, which will likely include one female astronaut, will spend two weeks aboard the Tiangong 1, where the trio will spend two weeks conducting tests of the station's docking system and its systems for supporting life and carrying out scientific work.

Two Chinese spacecraft, one of them manned, have docked already with Tiangong 1 since it was launched in September 2011.

The station is to be replaced in around 2020 with a permanent space station that will weigh about 60 tons, slightly smaller than NASA's Skylab of the 1970s and about one-sixth the size of the 16-nation International Space Station.


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NY Gov. Cuomo's comments on fracking over time

NY Gov. Cuomo's comments on fracking over time

Key statements and moments in Gov. Andrew Cuomo's thinking about the natural gas drilling method known as hydraulic fracturing, or fracking:

— May 2011: Orders an expanded environmental review of fracking after an accident in Pennsylvania caused a well to gush salty, chemically tainted water for two days.

— Sept. 24, 2011: In an online chat, repeats what has become his standard position: "My point all along is to make the decision on hydrofracking based on the facts and on the science. This is not an issue to be decided by politics or emotion. DEC's process is fair, intelligent and open and I am letting the process proceed."

— June 2012: After a New York Times report that he plans to allow limited drilling in the area near the Pennsylvania border, Cuomo spokesman Josh Vlasto says: "No final decision has been made and no decision will be made until the scientific review is complete and we have all the facts."

— October 2012: Orders a public health study, further slowing the regulatory process. "There is no step back," Cuomo says. "I think it will be a more thorough review and it will be a stronger review to withstand a legal challenge. ... Our lawyers say it will be more defensible in the event we're challenged."

— Nov. 27, 2012: Administration says it needs another 90 days to complete environmental review.

— Jan. 9: Makes no mention of fracking in annual State of the State address.

— Early February: Is close to allowing drilling at 10 to 40 wells for a limited time in the southern New York communities that welcome the process. But after conversations with environmental lawyer Robert F. Kennedy Jr., Cuomo's former brother-in-law, he decides to wait until after the results of a nationwide health study. Preliminary results of that study may not be ready for months, and final results could take years.

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Source: AP reporting


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Growing push to halt workplace bullying

WASHINGTON — Margaret Fiester is no shrinking violet, but she says working for her former boss was a nightmare.

"One day I didn't do something right and she actually laid her hands on me and got up in my face and started yelling, 'Why did you do that?'" said Fiester, who worked as a legal assistant for an attorney.

Fiester doesn't have to worry about those tirades anymore, but she hears lots of similar stories in her current role as operations manager at the Society for Human Resource Management, where she often fields questions about the growing issue of workplace bullying.

On-the-job bullying can take many forms, from a supervisor's verbal abuse and threats to cruel comments or relentless teasing by a co-worker. And it could become the next major battleground in employment law as a growing number of states consider legislation that would let workers sue for harassment that causes physical or emotional harm.

"I believe this is the new claim that employers will deal with. This will replace sexual harassment," said Sharon Parella, a management-side employment lawyer in New York. "People who oppose it say these laws will force people to be polite at work. But you can no longer go to work and act like a beast and get away with it."

Many companies already recognize workplace bullying as a problem that can sap morale, lead to increased employee turnover and even affect the bottom line. Half the employers in a 2011 survey by the management association reported incidents of bullying in their workplace, and about a fourth of human resource professionals themselves said they had been bullied.

At St. Anthony North Hospital outside of Denver, human resources director Robert Archibold says most of the bullying incidents he sees are peer-to-peer. In a recent case, one worker got offended by a co-worker's remark and suggested they "take it out to the parking lot." The offending worker was suspended under the hospital's anti-bullying policy, which has been in place for more than a decade.

"Hostile work environments, threats, bullying can come from anywhere," he said. "You can't tell by looking at someone who it will be."

One reason the issue has attracted more attention in recent years is that parents who deal with school bullying realize it can happen in the workplace, too.

Some employers have put into place anti-bullying policies, but advocacy groups want to go even further. They have been urging states to give legal rights to workers who do not already fit into a protected class based on race, gender or national origin.

More than a dozen states — including New York and Massachusetts — have considered anti-bullying laws in the past year that would allow litigants to pursue lost wages, benefits and medical expenses and compel employers to prevent an "abusive work environment."

Gary Namie, a social psychologist who co-founded the Bellingham, Wash.-based Workplace Bullying Institute in 1997, is among those leading the charge, along with labor unions and civil rights groups. He says the economic downturn has made bullying even worse and argues that passage of the laws would give employers more incentive to crack down on bad behavior in the workplace.

"People are trapped; they don't have the same alternative jobs to jump to," Namie said. "They are staying longer in these pressured, stress-filled, toxic work environments."

Business groups have strongly opposed the measures, arguing they would open the floodgates to frivolous lawsuits.

"We would look at a bill like this as overreaching," said Marc Freedman, executive director of labor law policy for the U.S. Chamber of Commerce. He said the bill would punish an employer for acts of its employees that it may not be able to anticipate.

But Parella, the employment lawyer, thinks it's only a matter of time before states begin passing these laws and bullying issues become a major factor in workplace litigation.

"Once it passes in a few states, there will be a chain reaction," she said, noting that other countries such as England, Ireland and Sweden already have laws addressing workplace harassment.

In Massachusetts, the National Association of Government Employees Local 282 has been one the first unions in the country to include an anti-bullying clause in collective bargaining agreements.

"From a labor perspective, we want there to be remedies in place for corrections to be made, not to yell, scream, threaten or treat the person basically like a slave," said Greg Sorozan, president of NAGE, which represents about 12,000 public employees.

In 2008, Sorozan succeeded in placing "mutual respect" provisions in labor contracts with the state that say harassment, abusive language and bullying behavior will not be tolerated in the workplace. It allows workers to raise concerns with managers and file a grievance if not satisfied.

Sorozan said the provision recently helped workers in a state office who complained about a manager who acted bizarrely, leering at employees over cubicles and randomly punishing those who questioned him by reassigning them or refusing to let them take vacations. After the union complained, the manager was eventually forced out.

The management association survey found that 56 percent of companies have some kind of anti-bullying policy, usually contained in an employee handbook or code of conduct. Most said their response to bullying allegations depends on the circumstances but could include suspension, termination, reassignment or mandatory anger management training.

Employers say the vast majority of bullying incidents are verbal abuse, such as shouting, swearing and name-calling, along with malicious gossip, rumors and lies. Bullying through technology, such as Facebook or other social media, accounted for about 1 in 5 incidents, the survey found.

"It's usually the manager or senior executive who's just a complete out-of-control jerk," Fiester said. "Everyone's going to be walking around on eggshells around somebody like that. You're afraid to make mistakes, you're afraid to speak up, you're afraid to challenge."

If the bully is a senior manager or CEO, resolving a complaint can be tricky for a low-level human resources employee.

"It might be a little bit difficult to discipline the CEO," said Fiester, the human resources adviser. "You are really walking a tightrope."

She suggests approaching someone else in senior management who might be in a better position to approach the boss.

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Follow Sam Hananel on Twitter: http://twitter.com/SamHananelAP


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