Most Companies Expected to Disregard King Holiday

Four out of five companies nationwide are expected to ignore Monday’s Martin Luther King holiday, with social services the most likely business sector to respect the day commemorating the black civil rights activist.

Financial trading exchanges are mostly snubbing the holiday, fearing that investors would simply switch to overseas markets rather than miss a day’s earnings.

The Bureau of National Affairs Inc., a Washington-based information service, surveyed hundreds of companies and of the 317 firms that responded, 18% said they will grant a paid holiday.

Last year, 17% gave a day off, against the 14% that observed the holiday when it began in 1986.

“It’s barely a rise at all over the years. The primary reason is probably simply that it does cost employers money to give an extra paid holiday,” said the bureau’s Mike Reidy.

He noted that unionized organizations and government agencies are most likely to respect the holiday.

Among non-business organizations--such as hospitals, schools and government agencies--37% will grant a day off, against 18% of non-manufacturing and 9% of manufacturing companies that replied.

“And although the difference is borderline, it has shown up for the past two years that the holiday is least prevalent in the West and most prevalent in the Northeast,” Reidy added.

The King Federal Holiday Commission, set up by Congress to encourage the event, also saw regional differences.

“Southerners are most sensitive to it, and in the Northwest frontier, people are unaware. But one in five businesses nationally--that would be wonderful, a big step,” said the commission’s Charles Sadler.

He said there is a racial overtone behind some companies’ decision to ignore the day. “In part, it’s also money. And a lack of popular support among the personnel too.”

Sadler said businesses are reticent to lose money while some of their staff are uninformed, or uninterested, in King.

“The private sector has given donations but has not given real support by institutionalizing the holiday,” Sadler said.

Most trading exchanges will operate as usual during the federal holiday. The New York Stock Exchange will hold a two-minute moment of silence on the trading floor at 11 a.m. This is an adequate sign of respect for a U.S. holiday in the era of global trading, said NYSE spokeswoman Sharon Gamsin.

“Our market doesn’t just serve New York, or the United States, it’s an international exchange and should be available for investors around the world,” said Gamsin.