Living and Working in Burlington Vermont

I recently returned from a trip to Dubai, having spent the last week meeting with business leaders and government officials in an attempt to learn about opportunities for Vermont businesses to take advantage of the growing markets in this region of the world. Despite some recent financial setbacks, Dubai and the United Arab Emirates hold great potential for select aspects of our business community. I will expand upon that at a later date but want to talk now about the people and culture.

For me and others on this trip, Dubai and this part of the world is a bit of an enigma. I knew little and most of that of what I did know was formed by our press and their interpretation of current geo-political occurrences. From day one, I have been impressed by the genuine warmth of its people and their openness—to talk about business but also to talk freely about their views of the United States and our interactions with the Muslim world. Most were young business professionals in their mid-thirties and many had had received some education in the west. They deeply love their country and are proud of their heritage, culture and religion. At the same time, they hold our country in high regard even if they don’t always understand our political system. To a person, they divorce our people from our political theatre in Washington. They watch CNN and Fox News and the Daily Show. From the Vice-President and Sheikh of Dubai to the women business leaders we ate our meals with, they express a hatred for terrorism and find it an affront to Islam. One spoke of living in the United States during 9/11 and his sadness at what happened was palpable. Likewise they are infuriated that their country was used to stage the assassination of a Hamas leader. The UAE and Dubai in particular is a melting pot of ethic and religious groups living harmoniously among each other. Integrated education is held out as the single best hope of eradicating intolerance and achieving world stability.

It is often noted that diplomacy is best practiced on a person to person level. I have no idea what business will come from the visit of twenty three leaders of Chambers of Commerce across America. What I do know is that each of us takes home a deeper understanding of a people and culture seen often as caricature and an understanding of the similarities that bind us.

The Vermont Senate voted overwhelmingly to move towards a 2012 closure of Vermont Yankee, the state’s nuclear power plant. A vote of 26-4 is about as strong a repudiation of the plant as is possible. Four senators voted to keep the process alive (not to re-license the plant, per se).Two were Democrats and two were Republicans. So why would these four stand against the tide? Knowing each fairly well, it is clear that none are ‘in the pocket’ of VY. Each of them has a successful career outside the State House; they are all in politics not for self aggrandizement but to serve in the truest sense of citizen legislator. None need to serve other than for the calling of service itself. I could recount the history of each and attempt to divine why they stood against the tide. It might prove to be an interesting exercise but the most interesting story is that of Senator Phil Scott of Washington County.

Senator Scott is a Republican hailing from Washington County, certainly not the epicenter of conservative thought. He voted for same sex marriage and withstood a barrage of criticism. He is now running in the Republican primary for Lt. Governor in a state that is decidedly ‘blue’ and running against the son of one of Vermont’s most revered political families.

In recent polls, it appears that nearly 50% of Vermonters want VY shut down. Let’s face it. The operation and public relations efforts of VY over the past year could have been made into a Three Stooges movie. It left even their most ardent supporters scratching their heads.

Senator Scott, speaking in the quiet voice that is characteristic of his Vermont roots, explained that his vote was about ‘process’ and not a vote in favor of the power plant. He firmly believes that the legislature should be a deliberative body; one that assembles facts, debates them openly and only after that open debate, makes a decision. He felt that this vote was pushed through to appease the current popular sentiments towards Yankee and lacked the thoughtful review that the Vermont Senate has been noted for. If law and policy are made, he reasoned, based on populist sentiments much of the progressive law and policy that we have today would not exist.

Whether one agrees with his vote or not, it is an interesting perspective into one of our candidates for higher office. Process matters; dialog matters; facts matter.

As many folks know, the Chamber is celebrating its centennial year. While there are many unifying links between then and now, there is one that I think rises above all others. It is powerful and speaks volumes about what we value most. At the core of what we believe is the view that the employees of our member companies are the most valuable asset that a company possesses. The LCRCC member businesses employ roughly 60,000 staff. Every president, CEO or business owner that I speak is quick to attribute their success to the skill, dedication and commitment of their employees. Their view is a predictable as the sun rising in the east. Industries may change names of companies change, ownership can change, physical plants get altered but the constant in any business remains the people. It’s for this reason that the Chamber focuses so intently on training, leadership development and the dissemination of information. We are committed to doing whatever it takes to increase the value that an employee can make to a business. It is our critical point of differentiation and is one point that makes membership in the chamber so important.

So as we begin to celebrate our centennial year, we cannot ever lose sight of the fact that the people who constitute the membership create not only our success but the success of their companies.

Lake Champlain and those who advocate for its water quality and sustainable habitat recently won a major battle on the state and federal level.

In December 2009, environmental groups from around the country came together to launch the national "Great Waters Coalition", namely to collectively lobby for more federal funding to clean up polluted bodies of water including the Great Lakes, the Gulf of Maine, and Chesapeake Bay. There was one glaring exception from the list – Lake Champlain. Vermont groups such as Business Alliance for a Clean Lake (of which your Chamber is a founding member) and the Lake Champlain Committee were immediately galvanized into action and swiftly applied to join the Great Waters Coalition. Their entreatment was accepted – which brings Lake Champlain into a national alliance whose watersheds are home to over half of the entire country’s population.

Lake Champlain is arguably the lifeblood of the Champlain Valley if not the entire state of Vermont. However, many have not yet adequately attributed the proper importance to this essential ecosystem that shapes our daily lives and that fuels our economy in countless seen and unseen ways. As a result, the warnings of algae blooms, invasive species, and harmful climate change have often fallen on deaf ears – those who need to hear the message the loudest.

The Business Alliance for a Clean Lake (BACL) has a simple, clear mission: we support efforts to clean the lake, to prevent further man-made impacts that would reduce its safe and enjoyable use, and to protect the Lake for the future of our economy and for future generations. Restoration efforts have been slow and are hampered by lack of funding, limited interest on the part of residents and businesses, or perhaps simple ignorance that the smallest acts can make the biggest impact.

BACL has come together to make the cleanup of our state treasure a reality. Only by raising awareness and implementing educational programs, backed by state and national support, can we change the status quo. Lake Champlain joining the list of other prized bodies of water in the Great Waters Coalition will not only elevate Vermont’s efforts, but also bring us into the national movement to preserve and restore all the Great Waters in America.

As predictable as the January snows and annual thaw, the Vermont legislature begins its annual session. This year it, and all of Vermont, faces the most difficult financial choices in our history. Throughout the twentieth century, there are milestones that reflect the point in time when either the change that was nascent emerged or when a unique event altered the way the state viewed itself. The infamous flood of 1927 is most the commonly used example of this and even today politicians scurry to be the first to remind all who would listen that Vermont turned down federal relief aid because of the strings attached to it. From a slightly more contemporary perspective, Vermont historians note that our Republic was rocked and forever changed by the debate over reapportionment in the 1960’s. Small towns traditionally given a vote and voice in Montpelier were in many observers’ minds quieted by that loss. Others note that a similar seismic shift occurred during the debates concerning school funding and civil unions. In many ways the results left in the wake of legislative action this year could be just as significant although certainly more understated. A sampling of issues is illustrative of this fact.

Foremost are the budget decisions that must be made. Excising 158 million dollars from a slightly more than 1 billion dollar budget following two years of other reductions will require cuts in services across the board. Understanding that the lion’s share of state spending is in human services and education, it is clear that the pain of these cuts will be felt by some of the most troubled and disadvantaged among us.

Vermont has guarded and prided itself on its environmental and ‘green’ image. We have every right to be proud of our legacy. The legislature must decide this year whether or not to approve the process that would set in place the review to relicense Vermont Yankee Nuclear Power Plant, known today as Entergy. Without an affirmative vote, the plant will begin the long process of shut-down in 2012. There are those who extol the virtues of nuclear power as inexpensive, clean and non-polluting while other equally ardent opponents remind us not to forget the waste stream left behind or the spectacles of Three Mile Island or Chernobyl. I can find no one, politician or private citizen, who does not have an opinion on the matter.

Vermont is perennially noted as a tough place to do business. Permit costs, taxes, utility rates, our inclusive public processes all add to the financial costs. Those who decide to locate and remain here fit the mold of rock-hard savvy business people. The legislature has an opportunity this year to mitigate some of those costs while at the same time creating incentives that will attract clean and green businesses to Vermont. To the casual observer this seems fairly intuitive. To some, incentives equate to corporate welfare; lower tax burdens to fatting the rich and transparent permit process to serving up Vermont’s environment to exploiters.

The list of issues could go on for pages. Regardless of our political affiliation, our non-profit memberships, our personal belief systems or any other factor that influences us, we have to remember that Vermont is one community and that the strength we have exhibited throughout adversity and challenges has been derived from the understanding that we are truly just one.

The holiday season is supposed to be a festive one filled with family and friends. Regardless of one’s religious beliefs there seems to be an omnipresent sense of goodwill in the air. That’s why it is particularly tough to lose friends and associates at this time.

Late last week, we mourned the loss of Ira Trombley, a state representative from Grand Isle County. Ira was a quiet and steady legislator that could always be counted on to keep the best interests of his constituents first and foremost in his political deliberations. A couple of years back, Ira was instrumental in ensuring that new boating regulations did not work against the growing lake-based economy in our region. He talked to local business leaders, researched the subject and offered excellent amendments to a pending bill. More recently, he approached Chamber staff and simply asked how he could be of help in moving some key economic development initiatives forward. He didn’t need the limelight; he just simply wanted to be of service to Vermont. He was true citizen-legislator in the best sense. Ira, we will miss you.

Last night, we were informed that Rick Hube, the state representative from the southern Vermont region of Londonderry, had passed away while visiting his sister in Florida. Rick was one of those rare breeds of legislators that made it look simple to be bi-partisan. He would argue tenaciously for his position and, win-lose-or draw, would socialize with those with whom he just fought. Battles were not personal and politics never trumped relationships. Much will be said about Rick and his penchant for good natured practical jokes and sense of humor, much of which lampooned himself. Those of us in the Chamber will remember his work to make Vermont’s tax and fiscal system one which made responsible development a centerpiece economic growth. We will remember that whenever he gave his word, we could take it to the bank. We will remember that he was the master of assuring the fair deal. For some of us who knew him before he became a legislator, we will remember Stratton Mountain, the Jamaica House and the Red Fox. Rick, the memories will be with us until the day we join you.

Vermont has lost two treasures and our political landscape is diminished because of it. So, in keeping with their spirit, let our advocacy and legislative work be guided this year by their legacies.

Happy Holidays.

When an ambulance crew arrives on the scene of an accident, and the victim is in a bad way, the general expectation is that the crew will know how to stabilize the victim and start the person on the long road to recovery. So why is it that when our health care system is in a bad way, the ambulance crew that arrives on the scene can do nothing more than argue, posture and dither?

American businesses are hemorrhaging from the cost of health care and their employees are offered less care for a higher cost. Bottom lines are being squeezed and business is doing what it can to hold up its end of the social compact. Don’t we have a right to expect that our elected officials will do more than pontificate and stamp their feet demanding ‘their way or the highway’? Vermont can and should be proud that our entire delegation has carried themselves with dignity and with our best interests at heart. Surely there are provisions in the many bills floating around that they like and other provisions that they don’t. Each one has compromised and collaborated in the hopes of getting a bill passed that will stabilize the situation and offer hope for the future. If the rest of the Congress followed this lead and demonstrated those same Vermont values of common sense and working for the common good, we might actually move towards affordable health care for all.

Just this morning former Vermont State Senator Jim Leddy dropped by the Chamber office to discuss some ideas that he and others have to level out the costs of health care in Vermont. Sure, there are parts to it that left me scratching my head and others that were very intriguing. For his part, Jim acknowledged that some ideas might have to change. What made me happy and proud to be a Vermonter was that he was still out there trying to find a solution, coming up with ideas and willing to engage in a constructive dialogue to find common ground. We agreed to keep talking, to looking for points of agreement and to keep the conversation civil. No pouting, no shouting, no histrionic diatribes ranted before a television crew ---- just dialogue.

There’s always hope when people agree to keep talking.

Winter has finally arrived and the ski areas are open for business. We often forget about these economic engines that do as much for our economy as any other industry in the state. In years gone by it was easy to dismiss ski areas as playgrounds for the rich and famous with the Hollywood stars of the day showing up at Stowe and the political stars going to Sugarbush. While our ski areas still attract the rich and sometimes infamous, they are much more geared to families and groups as anything else. Smuggler’s Notch has secured its position as the most family friendly resort in the east, Bolton Valley caters to the local audience with varied terrain for skiers and boarders alike, and Jay Peak boasts natural snow like none other combined with fantastic snow making. The two big resorts anchoring different ends of the “valley” Sugarbush and Stowe annually refine their world-class offerings of everything from all mountain experiences to fine dining, lodging and general ambience. In the south, Killington offers a diversity of terrains across its mountain peaks that can usually be found only in the West.

If you are thinking about a winter getaway, give Vermont’s ski areas a hard look. Each has its own personality; each has amenities that please singles, families and elders; each welcomes the visitor with Vermont’s own charm and hospitality and, for those in the East, each is just a drive away. It’s much easier and cheaper to drive to Vermont with than to lug all that clothing and gear through an airport on to a plane and back out to the rental car.

Vermont is truly the East’s winter playground.

Image courtesy of Stowe Mountain Resort

As we all gather with friends and family to celebrate Thanksgiving Day, we should take time to reflect on how truly lucky we are to live in this state and, in particular, the Lake Champlain region. No matter where I walked on the day before Thanksgiving, Vermonters were out on the streets engaged in conversations with friends and acquaintances. They all seemed genuinely pleased to see acquaintances and to be genuinely interested in their plans for the holiday weekend. Here at the Chamber, the Council on World Affairs is hosting a delegation from the Ukraine who is interested in learning about Vermont’s tourism industry. They asked to experience some Vermont traditions while they were with us. Families of staff have opened their homes to share with our guests the traditions of a traditional Thanksgiving. I know of many others that are volunteering at food shelves; shelters and crisis centers so that those less fortunate can share in the fellowship and bounty of this day. It is easy to take these simple outreaches for granted. After all, it is the Vermont way. We tend to accept people for whom and what they are and we tend not to judge those that are different from us. The motto ‘freedom and unity’ about sums it up. We want to be able to conduct our lives in the manner we see fit but we come together to celebrate community.

I guess it is the concept of community that makes us a bit unique. On a daily basis we experience the seamless transition from the world of business to the world of community engagement and volunteerism. Vermonters seem to understand that we are stronger when we work together and share our skills and strengths to shore up areas needing improvement in other. Likewise each of us if better off for the strength and talent we absorb from others.

Sure, there are always things that can be done better and issues that make us want to pull out our hair. But, when all is said and done, most of us choose to remain firmly rooted in the solid soil of Vermont.

Back in June, I commended Congressman Peter Welch for joining sixty-five members of the House of Representatives in signing on to a letter condemning Russell Athletics for "severe violations of internationally recognized labor rights" based on "troubling reports from credible labor rights monitors [that] detail numerous violations of workers' associational rights at Jerzees de Honduras", one of Russell's plants. Russell Athletics, the owner of the contract to produce NBA and NCAA basketball apparel, is alleged to have routinely threatened to close its factory if the workers pressed for better wages and working conditions.

These comments earned me the ire and condemnation of one of Vermont’s premier economists for allegedly preaching protectionism. His point was that if the workers pressed for improved working conditions and wage increases above the $13 dollars a day that they are paid, then the company would probably close.

To quote his letter posted on the Vermont Tiger website: “What is more important is that the workers in the Russell plant earn more than they could earn elsewhere in Honduras, and if Russell was forced to pay higher wages, it might decide to close the plant and move it to a lower wage Asian country.”

It is heartening to see that sometimes corporations act in a manner that respects the dignity and rights of its workers while protecting its own long term interests. It was reported in the November 18th edition of the New York Times (http://www.nytimes.com/2009/11/18/business/18labor.html?_r=1) that Russell had agreed to rehire 1,200 workers in Honduras who lost their jobs when Russell closed their factory soon after the workers had unionized. I am sure that concerns for the workers wellbeing in part drove this decision. However, it is just as likely that the cacophony of protests from a newly awakened student protest movement that boycotted campus bookstores selling Russell made collegiate wear; NBA teams that were rethinking the lucrative contracts they had signed with Russell; and the on-site protests at stores like Target had a profound effect as well. Whatever the reason, we should all applaud corporate social responsibility.

Speaking of which, it is easy in this day and age to take a factory from one country to another in search of cheaper labor, reduced work site protections and lower environmental standards. We have seen the flight of manufacturing from our country and our own state. Those who remain, especially businesses in Vermont, struggle to be competitive in the face of the ever-risings costs of doing businesses. Let’s all take time out to thank those business owners and CEOs that have decided not to move out of state or to off-shore its manufacturing and who have committed to trying to make it work in Vermont.