Mary Wanger 
Oct. 23, 1992 
Mary E. Wagner, 92, Of Overbrook Road, Dallas, Formerly Of Dushore, Died 
Friday In The Leader Nursing Home, Kingston.

Edward Marconi 
Oct. 21, 1992 
Edward J. Marconi, 70, Of South Hancock Street, Wilkes-barre, Died Wednesday 
Afternoon At Geisinger Wyoming Valley Medical Center, Plains Township.

By CLARA G. HERRERA; Times Leader Staff Writer
 Friday, October 23, 1992 &nbsp;&nbsp;&nbsp;&nbsp;Page: 8C QUICK WORDS: SOLANO 





WILKES-BARRE -- Some area employers expressed displeasure at the recent 24
percent increase in workers' compensation insurance rates and some said it's
just another example of how the government is trying to run small businesses
out of business. &nbsp;&nbsp;&nbsp; 
 "It's a ridiculous increase," said Joe Solano, president of A Pickett
Construction Inc., in Forty Fort. "We have a combination of bad politicians
and bad insurance people. Pennsylvania's not a business-oriented state." &nbsp;&nbsp;&nbsp; Acting Insurance Commissioner Cynthia Maleski approved the hike Wednesday
in Harrisburg. The $700 million increase will take effect Dec. 1. &nbsp;&nbsp;&nbsp; 
 Solano says it's easier for the legislators to increase costs for small
businesses than it is for them to tax consumers because they don't want to
ruin their political careers. &nbsp;&nbsp;&nbsp; 
 "If you can put a tax or a levy on small businesses they're going to pay it
because that's their livelihood. I'm one vote. If you tax 50 people, that's 50
votes," Solano said. &nbsp;&nbsp;&nbsp; 
 For Solano, that means higher costs for his nine-year-old company, which
employs about 48 people. It also means the higher costs will be passed on to
the consumer and fiercer competition from out-of-state contractors who can
charge less for the same work since their rates are lower. &nbsp;&nbsp;&nbsp; 
 To David Schuler, vice president of Automobile City Nissan Fred Schuler,
which has locations in Wilkes-Barre and Hanover Township, the new increase
means a lot. &nbsp;&nbsp;&nbsp; 
 Annually, he said, it will cost $6,000 to $7,000 more the 30 employees'
insurance. &nbsp;&nbsp;&nbsp; 
 "The bottom line is that the customer is going to have to pay for it,"
Schuler said. "The cost of doing business is going to go up." &nbsp;&nbsp;&nbsp; 
 Increased expenses passed on to customers could cost contracts to Valley
Manufacturing Corp. in Wilkes-Barre, said financial controller Joseph Niemiec. &nbsp;&nbsp;&nbsp; 
 Since the cost of the part depends on the length of time to make it, they
will have to charge higher hourly rates to their customers so they can cover
the insurance cost, he said. &nbsp;&nbsp;&nbsp; 
 Some 300 different parts for jet aircraft engines -- where a contract is
required for each part -- could cost customers $10 more per hour to make the
part, Niemiec said. &nbsp;&nbsp;&nbsp; 
 "The price competition in this particular market is intense," Niemiec said.
The increase "does make it much more difficult to compete." &nbsp;&nbsp;&nbsp; 
 Paying an additional 24 percent for 105 employees makes it harder for
Valley Manufacturing Corp. to hold on to contracts because other states don't
have to worry about the additional cost to produce the same items, Niemiec
said. &nbsp;&nbsp;&nbsp; 
 Small businesses aren't the only ones hit by the increase. &nbsp;&nbsp;&nbsp; 
 Mountaintop's Harris Semiconductor, an employer of 600 workers,
manufactures electronic components used in items ranging from Walkmans to turn
signals for vehicles. Its competition is international. &nbsp;&nbsp;&nbsp; 
 "It can have dramatic effects on our business," said Roger Bishop, the
human resources manager. "It makes it very difficult to be competitive when
you have these additional costs. &nbsp;&nbsp;&nbsp; 
 "For every penny we add to our cost and they don't -- the work goes to
them."

State Hikes Workers' Comp Rates 
Local Firms Say Consumers Will Pay 
Tough Times Made 
Tougher After By 24 Percent 
Insurance Hike, Area 
Businessmen Say

State Hikes Workers' Comp Rates Local Firms Say Consumers Will Pay Tough Times Made Tougher After By 24 Percent Insurance Hike, Area Businessmen Say