Phila. risks missing the boat on recovery

We welcome the news that America's economy is showing signs of improving and jobs are growing. In Pennsylvania, November's unemployment rate fell to 5.1 percent, and the good employment news was shared by most of Southeastern Pennsylvania. Philadelphia, however, still had the highest unemployment rate in the region.

As leaders of chambers of commerce representing more than 7,000 businesses, our mission is to attract, retain, and grow jobs throughout the city. Being competitive with cities around the world is key to attracting and retaining new businesses and talent.

We have much to boast about. Our city has world-class academic institutions, superb infrastructure, a strategic Northeast location, and growing manufacturing and entrepreneurial communities. In addition, with the development of the Marcellus Shale, Philadelphia is well-positioned to be a leader in energy production and resources, providing good, family-sustaining jobs for its residents.

Offsetting the assets is Philadelphia's consistent rating as having one of the highest tax burdens in the nation. Businesses and workers in Philadelphia not only pay high taxes, they are subject to numerous regulatory burdens as well, which are particularly onerous for start-ups and emerging entrepreneurs.

City Council will consider a bill this month requiring all businesses and nonprofits in the city with 10 or more employees to provide paid sick leave for their workers. While we strongly support healthy families and workplaces, the last thing city businesses need is another mandatory cost imposed by city government. This would place an unfair burden on Philadelphia employers, one not borne by businesses in neighboring jurisdictions.

In most cases, small businesses that don't provide paid sick leave have made that choice because they can't afford it. If forced to do so, many employers would have to eliminate other benefits, such as reducing hours for employees, freezing wages, and eliminating bonuses. Worse, some employers may decide that they cannot expand or have to lay off employees to meet this new mandate.

We urge the following amendments to the legislation:

Raise the employer threshold to 50 or more employees - to allow emerging businesses the chance to grow and to align the legislation with the federal Affordable Care Act's definition of a small business.

Exempt employers that currently provide this benefit if they meet or exceed the sick-leave requirements specified in the legislation.

Though a large majority of chamber members already provide paid sick leave, we are concerned about a mandate because we believe it is inherently unfair to small businesses that cannot afford it. We believe that it is important for Philadelphia to remain competitive with its neighbors if it is to create jobs and grow opportunities for residents. Mandating benefits in a vacuum hurts the city's competitiveness.

As the labor market recovers, policymakers should focus on promoting job growth, improving the city's business tax structure, and removing disincentives for locating businesses in the city.

Officials say they want Philadelphia to be considered business-friendly, but actions speak louder than words. Instead of enacting mandates that drive up costs and create barriers for entry-level employment, help businesses come here and keep current businesses from packing up and moving to neighboring counties.