Posts for April 30, 2010

CONSUMER SPENDING BOOSTS ECONOMIC GROWTH IN 1Q

April 30, 2010 – Today in Manufacturing.net
Economy grew at a solid 3.2 percent pace during the first quarter of this year as consumers boosted their spending by the most in three years... continue

Environmental Law (Pending Cases)

April 30, 2010 – NAM Manufacturing Law Center

Challenge to EPA’s endangerment finding. Leading a broad coalition of business groups, the NAM on February 16 filed a petition in federal court challenging the Environmental Protection Agency's (EPA) process by which it found that greenhouse gas emissions justify an endangerment finding under the Clean Air Act. We oppose this step in the EPA’s efforts to regulate stationary sources of greenhouse gases, including everything from industrial facilities to farms. EPA’s action further complicates a permitting process that it is not equipped to handle, while increasing costs to the manufacturing sector. On April 15, the NAM and other petitioners filed a list of the legal issues to be litigated. At the same time, EPA asked the court to hold the case in abeyance until August 16 or until EPA can respond to various petitions for reconsideration that were filed with the agency, whichever comes first. NAM v. EPA (D.C. Cir.).

Validity of permit for exploratory oil and gas drilling in Alaska. The NAM has asked a federal appeals court to reject an effort that would delay exploratory drilling for oil and gas in the Beaufort Sea north of Alaska. The Department of the Interior has conducted an extensive evaluation of the process and concluded that exploration would cause no significant impact on the environment. The NAM filed an amicus brief on April 7 arguing that exploratory drilling is an important step in the process of utilizing the Outer Continental Shelf to improve energy self-sufficiency, national security, balance of payments and job creation. Native Village of Hope Point v. Salazar (9th Cir.).

Whether carbon dioxide must be considered in EPA PSD permits. On April 2, EPA completed its reconsideration of the Johnson memo and published a new “Subject to Regulation” notice that makes January 2, 2011 the date on which greenhouse gas emissions are regulated. The Sierra Club had challenged the earlier version of the EPA memo that had refused to require PSD permits for facilities that emit greenhouse gases. This case is being held in abeyance until EPA further considers its rules on GHGs. Sierra Club v. EPA (D.C. Cir.).

ERISA

April 30, 2010 - NAM

Deference to decisions by benefit plan administrators. On April 21, the U.S. Supreme Court overturned an appeals court decision that interfered with administrative decisions by those who run company pension plans. The case involves how a company’s plan administrator should account for lump-sum retirement payments made to employees who retired but later returned to work for the company. The NAM had filed an amicus brief arguing – and the Supreme Court agreed – that courts should defer to the reasonable decisions by plan administrators trying to interpret benefit plan language under the Employee Retirement Income Security Act (ERISA). The Supreme Court’s ruling in this case encourages certainty and predictability, tempers litigation expenses and administrative costs, and minimizes exposure to unanticipated benefits obligations. Conkright v. Frommert (S. Ct.).

INTERNATIONAL ARMORING CORPORATION COMPLETES ARMORING CONTRACT

April 30, 2010 – Utah Business

International Armoring Corporation (IAC), announced they have completed, in association with Armormax South Africa (an IAC affiliate company), the armoring of more than 700 passenger vehicles in the country of South Africa. The armoring of these rapid response vehicles were contracted by a leading international security company for the purpose of protecting their reaction officers in the country of South Africa. With an average of 13,000 armored car-jackings every quarter in Johannesburg alone, the risk to their reaction officers has remained unacceptably high.

(Note: IAC is a UMA member company and UMA congratulates them on landing this contract)
View Full Article

PRODUCT LIABILITY

April 30, 2010 - NAM

Duty to warn about hazards of third party products. The NAM filed a brief in January arguing that manufacturers should not have a new legal duty to warn customers about risks that might arise from products made by other manufacturers that are used in conjunction with their products. This new duty is inconsistent with California law and with most courts around the country. On April 22, 2010 the California court overturned a $5.6 million jury award, agreeing that a manufacturer does not have such a duty. William Powell Co. v. Walton (Cal. Ct. App.).

Posts for April 29, 2010

YESCO - 90 YEARS YOUNG!

April 29, 2010 –Utah Business
It was 1910. A ship sailed from Liverpool, England to North America. On the ship, headed for a new life, were the Young family, including Thomas, age 15. View Full Article

NEW GROUPS TO BE INCLUDED IN UTAH HEALTH EXCHANGE'S LARGE GROUP PILOT PROJECT

April 29, 2010 – Utah Business
The Utah Health Exchange (UHE) announced that four additional companies will participate in the pilot program designed to admit large-employer groups into the Exchange, earlier than originally anticipated. When established last year, the plan was opened for early testing to small employers, 2-50 individuals. The Utah Health Exchange was not scheduled to admit large employer groups for beta testing until Fall 2011.
View Full Article

Patient Protection and Affordable Care Act

April 29, 2010 – NAM - Engler
President Obama’s health care reform laws will keep employers busy for years to come, first trying to understand and then responding to the complicated new regulations, mandates and taxes.

The President signed H.R. 3590, the Patient Protection and Affordable Care Act, on March 23, 2010 and H.R. 4872, the Health Care and Education Reconciliation Act, on March 30. Taken together, the two laws represent the most sweeping government restructuring of the U.S. health care system since the 1960s.

The National Association of Manufacturers (NAM) was active throughout the legislative process, working to defeat the most damaging proposals – such as the public option – and maintaining important protections for employers, such as continuation of the Employee Retirement Income Security Act (ERISA).

Despite these successes, the laws represent major new burdens that make it more difficult for manufacturers in the United States to compete in the global economy. The laws’ profound impact on manufacturers of all sizes starts immediately and will grow as additional provisions take effect through 2018.

The most prominent change occurs in 2014, when individuals are required by federal law to purchase health insurance. This “individual mandate” is matched by a requirement that employers with 50 or more workers either provide appropriate insurance coverage or pay a fee for certain employees.

Employers should also expect the unexpected. Although the NAM warned Congress of the consequences of removing the tax deduction for Medicare prescription drug subsidies, many lawmakers expressed surprise when companies announced multi-million-dollar accounting charges after the law’s enactment.

Ultimately, the greatest impact may lie in what the legislation fails to do – control costs. Employers can expect premiums to continue increasing each year as the statute’s many mandates and programs enter into effect.

The summary below provides year-by-year highlights of the most significant provisions for which manufacturers should prepare. Much remains to be determined as Executive Branch agencies write the regulations.

The NAM remains actively engaged in all these issues, the regulatory process and potential legislative fixes. To help us, we ask for your input and experience. Please let us know how the new health care laws are affecting your company, your employees and your ability to compete.

For a printable version of this information, please visit www.nam.org/healthcaresummary

Health Care Reform: A Year-by-Year Summary of Major Provisions
2010
Medicare Part D Prescription Drug Subsidy
What: Elimination of the exclusion from gross income for company subsidies of prescription drug plans for Medicare Part D eligible retirees.
Who is Affected: Companies that receive subsidies for Medicare Part D eligible retirees. Although this provision goes into effect in 2013, manufacturers have already had to report the impact of this change on their earnings.

Small Business Tax Credits
What: Federal tax credits available to employers who provide coverage, have no more than 25 employees and whose annual wages average less than $50,000.
Who is Affected: Different credits are available depending on the size of the company. The credits will start in 2010 and rise in 2014 to a maximum of 50 percent of the cost of premiums offered by the smallest businesses – those with 10 or fewer workers.

Temporary Reinsurance Program
What: A temporary reinsurance program for retirees over age 55 who are not yet eligible for Medicare. The program reimburses up to 80 percent of health care expenses between $15,000 and $90,000 per retiree. Although the statute language provides some flexibility, the Administration expects employers to use the reimbursements to reduce the cost of providing medical coverage.
Who is Affected: Employers who provide retiree health benefits. The program ends in January 2014 or when funding runs out, whichever is earlier.

Benefit Mandates
What: No lifetime limits on coverage; restricts annual limits and no rescissions. Also, prior to 2014, effective September 23, 2010, the law provides for dependent care covered up to age 26 for adult children without an offer of employer-sponsored coverage.
Who is Affected: Employers with current/grandfathered plans, including ERISA plans.

2011
Grants for Small-Employer Wellness Programs
What: Grants for up to 5 years to small employers to establish wellness programs.
Who is Affected: Businesses with fewer than 100 workers that institute wellness programs (as defined by HHS) are eligible for government grants, with total funding of $200 million available through 2014.

Community Living Assistance Services and Supports (CLASS) Act
What: An entitlement program to provide long-term care services funded through employee premiums.
Who is Affected: Program is voluntary for employees. The extent of employer responsibility with regard to employee enrollment responsibilities is uncertain and likely to be clarified in regulations.

Pharmaceutical Tax
What: Pharmaceutical manufacturers will collectively pay a new excise tax, starting at $2.5 billion in 2011 and rising to $4.1 billion in 2018.
Who is Affected: The excise tax is part of $84.8 billion in new fees, rebates and discounts for which the pharmaceutical industry is responsible over the next decade.

2012
Medical Device Tax
What: A 2.3-percent excise tax on the sale of any taxable medical devices.
Who is Affected: Tax applies to medical devices from bedpans to surgical instruments, but not to items sold widely in retail outlets, such as canes and reading glasses purchased by consumers.

2013
Medicare Tax on Wage Income
What: A 0.9-percent surtax on wage income more than $200,000 for individuals and $250,000 for couples. Not deductible, not indexed to inflation.
Who is Affected: Individual and joint taxpayers with income above those amounts, shareholders and small business owners that file as pass-through entities. The tax is not indexed for inflation, so the number who will pay the tax will grow each year.

Medicare Tax on Investment Income
What: An additional 3.8-percent Medicare tax on income derived from capital gains, interest, dividends, annuities, royalties and rent for individuals with income above $200,000 and couples above $250,000.
Who is Affected: Upper income individuals and couples, shareholders and small businesses filing as pass-through entities. The tax is not indexed for inflation, so the number of those affected will grow.

Flexible Spending Accounts and Health Savings Accounts
What: Limits tax deductions for contributions to health Flexible Savings Accounts (FSAs) to $2,500. Beginning in 2011, over-the-counter drugs will no longer qualify as medical expenses for FSAs and Health Savings Accounts (HSAs).
Who is Affected: Individual contributors to FSAs and HSAs. Business plans that include contribution programs may require modifications.

2014
Employer Mandate for companies with over 50 Full-Time Equivalent Employees
Companies that do not provide health coverage:
Fees: What: A $2,000 per full-time employee fee, if one employee receives a credit via a new state insurance exchange. (The exchanges are state-based systems offering access to compare and purchase private coverage.)
Who is Affected: Employers who have at least one full-time employee who receives a premium tax credit must pay a fee of $2,000 per full-time employee – excluding the first 30 full-time employees from the assessment. (Tax credit is based on affordability as defined by statute and applies to household incomes below 400 percent of the federal poverty level.)

Companies that do provide health care coverage:
Fees: What: The lesser of a fee of $2,000 for each full-time employee or $3,000 for each employee receiving a credit in the exchange.
Who is Affected: Employers who offer coverage but have at least one full-time employee receiving a premium tax credit. (Tax credit is based on affordability as defined by statute and applies to household incomes below 400 percent of the federal poverty level.)

Free Choice Vouchers: What: Vouchers in the amount equal to the highest percentage employer contribution to any of its own insurance plans. Employee may use the voucher to purchase insurance from the exchange in lieu of company offered benefits.
Who is Affected: Employers who have full-time employees whose household income is below 400 percent of the federal poverty level and whose individual coverage contribution falls between 8- 9.8 percent of their adjusted gross income.

Auto Enrollment: What: Auto enrollment in health plan
Who is Affected: Employers with more than 200 employees who offer health coverage must automatically enroll their employees in a health care plan. Employees can opt out. The effective date is not yet certain and regulations could push this earlier.

Fees on Health Insurance Providers
What: Health insurance providers will collectively pay a new tax, starting at $8 billion in 2014 and rising to $14.3 billion in 2018.
Who is Affected: Any entity engaged in the business of providing health insurance.

Wellness Incentives
What: Permit employers to offer employees rewards of up to 30 percent of the cost of employer-paidcoverage (with authority for HHS to increase up to 50 percent) for employees who participate in wellness programs and meet certain health-related goals.
Who is Affected: Employers who offer wellness programs.

2018
Tax on High-Cost Insurance Plans
What: Impose a 40-percent excise tax on insurers of employer-sponsored health plans with aggregate values that exceed $10,200 for individual coverage and $27,500 for family coverage.
Who is Affected: This tax on high-value health plans will have an adverse impact on companies with plans that cost more, such as small self-insured plans and those with older workforces. The tax will either increase costs or, more likely, cause employers to eliminate benefits to fall below the threshold, limiting options for employers and employees alike.

Copyright © 2010 National Association of Manufacturers

COBRA PREMIUM SUBSIDY NOW EXTENDED THROUGH MAY 31, 2010

April 29, 2010 – Holmes Robert and Owen HRO

It is time to revise COBRA premium subsidy notices - again! The COBRA 65 percent premium subsidy has been extended through May 31, 2010. The subsidy was enacted in 2009 to help workers who lost their jobs as a result of the economy maintain their employer-sponsored health insurance. The subsidy previously expired on March 31, 2010.
Click here to read the full alert.

TAX INCREASES

April 29, 2010 – NAM Capital Briefing
Finally, as the tax cuts enacted in 2001 and 2003 approach their expiration date, small and medium-sized manufacturers face looming tax rate increases for individuals, capital gains, dividends and estate taxes. Following the tax cuts of 2003, the U.S. economy grew at double the pace of the previous three years and faster than the average pace during the previous three decades. If these tax cuts are permitted to expire, manufacturers will face additional burdens that will prevent them from adding jobs in the future.

A report recently released by the independent Milken Institute and commissioned by the NAM, Jobs for America: Investment and policies for economic growth and competitiveness, outlines the jobs that could be created by taking pragmatic steps to address the problems above.

Instead of proposing to eliminate the corporate tax altogether – a move unlikely to garner widespread support in Congress – the Milken Institute analyzed the impact of reducing the corporate tax rate from its current 35 percent to the OECD average of 22 percent. The results: 350,000 new manufacturing jobs in the next decade.

Restoring the R&D tax credit, strengthening it by 25 percent and making it permanent would create more than 300,000 new manufacturing jobs within 10 years. This would enable businesses to plan for increases in their R&D spending to create new products and services.

In addition to the Milken report’s recommendations, extending the 2001 and 2003 tax rate cuts that were so valuable to small and medium manufacturers will not only prevent the job losses that would come with the expiration, but also create a more certain and stable environment that will allow small businesses to begin hiring and expanding.

Manufacturing has always been vital to the health of our nation’s economy and will play a key role in our recovery. But in order to do what they do best, manufacturers need the right policies in place. The NAM will continue to draw attention to the impact our nation’s tax policy has on manufacturers and work with Congress to create a tax environment more conducive to job creation.

R&D TAX CREDIT

April 29, 2010 – NAM Capital Briefing
In December, the research and development (R&D) tax credit – which is a proven incentive for stimulating private sector investment in R&D – expired for the 14th time since it was first enacted in 1981. Last year, the U.S. ranked 17th out of 21 major industrialized countries in offering R&D tax incentives. The credit’s expiration, however, has now left us dead last.
The R&D tax credit has been a key to growth in the manufacturing economy. It fuels innovation, which translates into new product development and increased productivity. However, many manufacturers performing R&D in the United States have been courted by other countries offering more generous and permanent R&D tax incentives in an effort to attract U.S. based R&D. The uncertainty of America’s R&D tax credit mitigates its incentive value.

OSHA UNVEILS NEW PENALTY PROGRAMS

April 29, 2010 – NAM Capital Briefing
OSHA released details on two new proposals this week that aggressively increase safety enforcement efforts. One new program significantly increases existing penalty structures with higher fines. The new penalty scheme for OSHA inspectors will triple the average penalties levied on employers for certain violations. Additionally, OSHA announced its “Severe Violator Enforcement Program” that expands the frequency of OSHA inspections and increases the agency’s scrutiny on many categories of employers using an overly broad definition of a “severe” violator. Details: Keith Smith, (202) 637-3045.

CORPORATE TAX RATE

April 29, 2010 – NAM Capital Briefing
Many American companies have substantial operations overseas and seek to sell their goods abroad – where 95 percent of the world’s consumers are located. Yet they are facing a tax climate that makes it increasingly difficult to compete with their foreign counterparts. The U.S. tax system, including high corporate tax rates, highly taxed exports and the "double tax" impact of a worldwide tax system, increases the cost of doing business for U.S. companies.
Manufacturers in America face the second highest statutory corporate tax rate among developed nations, trailing only Japan. The Administration’s budget proposal for the coming fiscal year would impose a $122 billion tax increase on worldwide American companies. The stifling corporate tax rate already puts manufacturers in a difficult position when trying to compete. The additional proposed tax hike would compound the problem by making the United States the only major country to impose immediate high taxes on foreign earnings.

BILL TO OVERHAUL OSHA ENFORCEMENT RECEIVES ATTENTION ON CAPITOL HILL

April 29, 2010 NAM Capital Briefing
This week both Congressional labor committees held hearings to further examine the Protecting America’s Workers Act (PAWA.) This misguided legislation changes the dynamics of the health and safety system in our nation’s workplaces by targeting employers with higher monetary and expanded criminal penalties for alleged compliance deficiencies. This approach is sure to impact the current collaborative relationship between employers and the Occupational Safety and Health Administration (OSHA). In response, the NAM submitted a statement to the Senate Health, Education, Labor and Pensions (HELP) Committee, available here.

UNVEILING OF SENATE CLIMATE LEGISLATION HITS PROCEDURAL ROADBLOCK

April 29, 2010 – NAM Capital Briefing
Plans for Sens. John Kerry (D-MA), Lindsey Graham (R-SC) and Joseph Lieberman (I-CT) to unveil draft climate and energy legislation this week hit a roadblock after Sen. Graham announced his intention to withdraw support for the legislation, which the coauthors have been drafting for the past six months. Late last week, Sen. Graham, the legislation's only Republican co-sponsor, objected to plans by Senate Majority Leader Reid (D-NV) to place controversial immigration reform legislation ahead of energy and climate legislation on the Senate agenda, which would diminish the bill's prospects for gaining 60 votes. The bill will need to reach a 60-vote threshold to move to the Senate floor for debate. Although discussions among Sen. Graham's office, the legislation's other coauthors and Senate leadership continue, it is unclear when the bill will be released. Although the NAM has participated in discussions with the legislation's authors, manufacturers have not yet reviewed actual text in order to assess the bill's impact on the manufacturing agenda. Details: Keith McCoy, (202) 637-3175.

JOBLESS CLAIMS DROP TO LOWEST LEVEL IN 4 WEEKS

April 29, 2010 – Today in Manufacturing.net
Initial applications for jobless benefits fell by 11,000 to 448,000, the lowest level in four weeks, further evidence the job market is slowly improving... continue

CHINA PLEDGES FAIRNESS TO FOREIGN COMPANIES

April 29, 2010 – Today in Manufacturing.net
Beijing promised foreign companies equal treatment with Chinese rivals in its most high-profile effort yet to quell complaints it's trying to squeeze foreign competitors out of its markets... continue

BILL TO OVERHAUL OSHA ENFORCEMENT RECEIVES ATTENTION ON CAPITOL HILL

April 29, 2010 NAM Capital Briefing
This week both Congressional labor committees held hearings to further examine the Protecting America’s Workers Act (PAWA.) This misguided legislation changes the dynamics of the health and safety system in our nation’s workplaces by targeting employers with higher monetary and expanded criminal penalties for alleged compliance deficiencies. This approach is sure to impact the current collaborative relationship between employers and the Occupational Safety and Health Administration (OSHA). In response, the NAM submitted a statement to the Senate Health, Education, Labor and Pensions (HELP) Committee, available here.

Posts for April 28, 2010

FED TO KEEP RATES LOW; UPBEAT ON ECONOMY

April 28, 2010 – Late Wire Manufacturing.net

The Federal Reserve sounded a more confident note Wednesday that the economy is strengthening but pledged to hold rates at record lows to make sure it gains traction ... continue

MAPI: GLOBAL OUTLOOK UP, MODEST RECOVERY EXPECTED

April 28, 2010 – Late Wire Manufacturing.net
Doubts about reality and sustainability of the global economic and financial crisis are subsiding, according to a recent Manufacturers Alliance/MAPI Global Report ... continue

NAM CHIEF ECONOMIST QUESTIONS FACTORY JOBS RECOVERY ESTIMATE

According to NAM chief economist David Huether, "US manufacturers will fill fewer than 30 percent of 2 million lost factory jobs as the economy recovers over the next six years and most of the hiring will come in 2011 and 2012." Furthermore, "

Huether's estimate for a return of 540,000 manufacturing jobs by 2015 fell from his previous prediction of 800,000. He said he pared the number this month based on his projections that consumers will use more imports than US-made goods.

SALESPEOPLE NEED TO BECOME PARTNERS WITH THE DECISION MAKERS

April 28, 2010 – Business Performance Group - By Tim Huffaker, President

I've come to the conclusion that most sales people are lazy. I'm not so sure they intend to be lazy; I just think it is all they know. In fact, many sales people may truly believe they are doing all they can possibly do in their efforts to persuade people to purchase their products and services. There is so much more they could be doing if they only knew what to do. Becoming a partner with your customer is one of the most significant things a sales person can do to increase their effectiveness.

Think of the partner relationship as you would the relationship you have with your very best friend, relative or even a spouse. This kind of interaction doesn't happen over night and generally matures over time and events. Years ago when I was a rookie sales person in the steel industry...
Click Here to read the rest of the article.

Register for the 2010 Utah Taxes Now Conference!

Your Taxpayers Association will be hosting its 32nd annual Utah Taxes Now Conference on Tuesday, May 11, 2010 at the Little America Hotel from 8:00 am to 2:30 pm.

CLICK HERE TO REGISTER ONLINE

Leaders from the Utah House of Representatives and Senate, the Governor’s office, policy experts and community leaders will cover a broad range of tax issues, including

Will the 2012 budget be as tough as 2011?
Utah’s response to federal healthcare mandates
Is the Salt Lake police fee legal?
Solving Utah’s 6.5 billion pension deficit
Where is Utah going with charter school reform?

The cost to attend is $100 for Utah Taxpayers Association members and $125 for non-members. Space is limited to 300 attendees so sign up quickly. To view clips from the 2009 Taxes Now Conference, CLICK HERE.

CLICK HERE TO REGISTER ONLINE

Utah Taxpayers Association 2010 Taxes Now Conference
May 11, 2010
Little America Hotel

500 South Main Street, Salt Lake City, Utah

8:00 am – 2:30 pm

CLICK HERE TO REGISTER ONLINE

Utah Taxpayers Association
1578 West 1700 South, Suite 201
Salt Lake City, Utah 84101

UMA Member in the News

First Wind Welcomes Interior Secretary Salazar

by PR or News Wire
28 April 2010-

First Wind, an independent U.S.-based wind energy company, hosted U.S. Secretary of the Interior Ken Salazar at the company's Utah-based 204 MW Milford Wind Corridor project.

Secretary Salazar and members of the Department of Interior were given an in-depth tour and insight into the inner workings of Utah's largest wind project.

Located in Millard and Beaver counties, the Milford Wind Corridor project had the significance of being the first wind energy facility permitted under the U.S. Department of Interior's Bureau of Land Management (BLM) Wind Energy Programmatic Environmental Impact Statement (EIS) for Western US states. Featuring 97 wind turbines, the 204 MW first phase of the project began commercial operation in November 2009, only a year after breaking ground. To date, the project has created more than 250 development and construction jobs, and resulted in more than $85 million in economic benefits to Utah.

"We are honored to have Secretary Salazar visit our Milford Wind project, which is not only the largest wind project in the state of Utah, but also the largest project that First Wind has undertaken to date," said Paul Gaynor, CEO of First Wind. "This project was made possible through the tremendous support from numerous parties including the Department of the Interior and the BLM along with state and local officials and the people of Millard and Beaver counties. It is for this reason that it is very gratifying to provide the Secretary and his staff a first-hand look at this very successful renewable energy project."

The first phase of the Milford Wind Corridor has the capacity to generate clean, renewable energy to power about 45,000 homes per year. Power from the project is being purchased by the Southern California Public Power Authority (SCPPA), on behalf of the Los Angeles Department of Water and Power (LADWP) and the cities of Burbank and Pasadena.

Posts for April 27, 2010

CATO INSTITUTE JOINS 2010 UTAH TAXES NOW CONFERENCE

April 27, 2010 – Utah

Taxpayers Association

Register Now!

Don’t miss Ilya Shapiro, Senior Fellow in Constitutional Studies and Editor-in-Chief, Cato Supreme Court Review as he discusses the constitutionality of federal healthcare mandates.

Mr. Shapiro has thrown down the gauntlet and challenged “anyone, anytime, anywhere” to a public debate on the constitutionality of Obamacare. To view his challenge, CLICK HERE.

Mr. Shapiro has contributed to the Harvard Journal of Law & Public Policy, L.A. Times, Washington Times, Legal Times, Weekly Standard, Roll Call, and National Review Online. He also regularly provides commentary on CNN, Fox News, ABC, CBS and NBC.

Don’t miss Ilya Shapiro from the CATO Institute at the 2010 Utah Taxes Now Conference.

Tuesday, May 11, 2010
8:00 am to 2:30 pm
Little America Hotel

CLICK HERE TO REGISTER ONLINE

The cost to attend is $100 for Utah Taxpayers Association members and $125 for non-members. Space is limited to 300 attendees so sign up quickly. To view clips from the 2009 Taxes Now Conference, CLICK HERE.

FINANCIAL REGULATORY BILL, THE TRAPS

April 27, 2010 – FLAG Weekly Communications (NAM)

NAM has worked industriously on the federal financial regulation bill (prevented in a cloture vote Monday from moving forward in the Senate). While NAM’s activities on derivatives language have received the most attention, other provisions are also troublesome. For example, S. 3217, the Restoring American Financial Stability Act, contains language that would allow the Securities and Exchange Commission to ban arbitration clauses in contracts – long a priority of the litigation lobby. (SEC. 921. Authority to Issue Rules Related to Mandatory Predispute Arbitration.) The bill also empowers the newly created Consumer Financial Protection Bureau to limit pre-dispute arbitration proceedings. (SEC. 1028. Authority to Restrict Mandatory Pre-Dispute Arbitration.) The NAM and other trade associations joined in a letter to the Senate on April 22, writing as the Coalition to Preserve Arbitration. Excerpt:

Despite arbitration’s proven benefits, opponents continue to fall back on long-discredited claims that arbitration is unfair or even biased against consumers. What they fail to mention is empirical studies show the opposite; and furthermore existing law protects consumers against potential abuses. For example, the Federal Arbitration Act (9 U.S.C. § 2) authorizes courts to police arbitration agreements to ensure that they are fair to consumers and courts do not hesitate to strike down unfair provisions…Arbitration serves an essential role for investors and consumers of financial products. By including these anti-arbitration provisions in S. 3217, the bill will harm the interests of the consumers and small investors that it is meant to protect.

SEMINAR: KEY UTAH EMPLOYMENT RULES - WHAT EMPLOYERS NEED TO KNOW

Ogden & Salt Lake City
April 27, 2010 – Employers Council
Is your company complying with all the NEW Utah Employment laws? Over the past 2 years, the Utah Legislature has been very active in passing new laws that employers must comply with! Get up to date by attending the Council's seminar entitled Key Utah Rules: What Employers Need to Know. Council legal staff will lead attendees through a lively presentation covering these new laws, as well as existing - yet often overlooked - Utah employment laws (including E-verify requirements, Drug & alcohol testing, Weapons at work, Payment of wages, Anti-discrimination, and so much more).

For your convenience, this seminar will be offered on two dates in two locations:
Salt Lake City - Thursday, May 6 -- Red Lion Hotel -- 161 W 600 S, Salt Lake City
Ogden - Wednesday, May 12 -- Comfort Suites -- 2250 S 1200 W, Ogden
Time -- Seminar: 8:00 a.m. - 12:00 noon (registration & breakfast buffet: 7:15 to 8:00 a.m.)
Cost -- $115 per Council member; $195 per non-member (includes full breakfast buffet and materials)

To register, call the Council or simply reply to this email. For more information, you may also call the Council, reply to this e-mail, or refer to the registration form at http://ecutah.org/utahrules.pdf.

CHINA SEEKS FOREIGN FIRMS, BRANDS

April 27, 2010 – Today in Manufacturing.net
Recognizing that big money is in owning the brand, not just making it for foreign companies, Chinese firms are speeding up foreign investment to increase global presence... continue

GLOBAL WARMING LITIGATION A REAL COMER

April 27, 2010 – FLAG Weekly Communication
Briefs are due May 7th in the U.S. Fifth Circuit’s en banc rehearing of Comer v. Murphy Oil, litigation by 14 Mississippians against energy companies and manufacturers for contributing to global warming, which supposedly made Hurricane Katrina more powerful and therefore caused property damage. News coverage should pick up this week on the case. Already the online publication Slate has published an article arguing for judicial activism in global warming litigation, at least until Congress legislates or the EPA extends its regulatory authority. We found this paragraph of note, that is, appalling. From “Attractive Nuisance”:

Judge Peter Hall, the author of the 2nd Circuit's opinion [Connecticut v. EPA], conceded the same point in a recent speech at Georgetown Law School. The courts would happily get out of the business of hearing nuisance suits about climate change, he said, if the EPA does its job in restricting these emissions -- or better yet, if Congress passes a comprehensive climate bill. In the meantime, however, Judge Hall added that judges have the responsibility to take seriously nuisance lawsuits brought by property owners facing strengthening hurricanes and rising sea levels. These lawsuits, he said, probably provide a backstop and "some small impetus" to stonewalling lawmakers. It's a trade-off: Polluters can either get out of the way of Congress or face the, well, nuisance of lawsuits for decades to come.

CONSUMER CONFIDENCE IMPROVES IN APRIL

April 27, 2010 – Late Wire from Manufacturing.net
Americans' confidence in the economy rose in April to its highest level since September 2008, but is still far from what's considered healthy ... continue

ISM: MANUFACTURING WILL CONTINUE GROWTH IN 2010

April 27, 2010 – Late Wire for Manufacturing.net
Manufacturing sector is expected to grow 6.3 percent this year as investment increases slightly, according to a survey from the Institute for Supply Management ... continue

OBAMA TOUTS CLEAN ENERGY INDUSTRY AS JOB CREATOR

April 27, 2010 – Late Wire for Manufacturing.net
After touring an Iowa plant that makes wind turbines, President Obama said the U.S. must lead the world in clean energy production and cited the industry as a job creator ... continue

Posts for April 26, 2010

April 26, 2010

Caused in part by temporary factors, last week's economic news was generally positive, with four of the five major economic reports growing. (To read all of last week's indicators, see the Latest Economic Reports section below.)

Inflation at the producer level of activity rose significantly in March. Due to severe weather conditions in Florida earlier in the first quarter which wiped out much of the Sunshine State's winter tomato crop, vegetables prices soured 49 percent in March. Vegetable prices will likely moderate in coming months when tomato harvests from California and Mexico ramp up domestic supply.

On the housing front new and existing home sales rose significantly in March as the April 30th expiration of the homebuyer tax credit comes into view.

Finally, because of a sharp decline in volatile aircraft orders in March after huge gains earlier in the first quarter, new orders for durable manufacturing goods fell by 1.3 percent last month. However, excluding aircraft, new orders for nondefense capital goods -- a good proxy for both domestic and foreign demand for products like machinery and computers and electronics -- rose for the fourth time in the past five months in March.

As both the blue bars and green line in the chart above show, new orders for nondefense capital goods have been on a general upward trend since last May, with orders rising at an annual rate of 6.2 percent in the three months ending in March. It is important to note that the pace of orders has been on a decelerating path over the past few months. This suggests that the dual robust upturns in both domestic and foreign demand for business equipment in the fourth quarter are not being repeated in the first quarter of this year. On April 30, the Commerce Department's advance report on first quarter GDP will provide an initial estimate if foreign or domestic demand is driving the recent increases in capital goods production.

Dave Huether

Chief Economist

National Association of Manufacturers

ECONOMISTS OPTIMISTIC ABOUT GROWTH, JOB CREATION

April 26, 2010 – Today in Manufacturing.net
As industries report better profits and add new jobs, economists are more optimistic about prospects for growth this year, though they still expect recovery to remain slow... continue

COMING OUT OF THE RECESSION

April 26, 2010 – Employers Council

Over the last several months, many companies slashed expenses, froze pay increases, and cut staffing to the core. But, many survived the downturn and are coming out of the recession. How do you now retain your staff?

Recognize that your top talent always has options. There are organizations right now looking for your strongest people. Review the reasons you made the tough business decisions you had to make. Then work to restore employees' faith and trust in the company. Communicate honestly, often, and directly to and through your managers. Know that engaged employees have a positive economic impact. Reengage employees by recognizing their value. Now is a great time to strengthen your incentive programs, develop career paths, and focus on succession planning. As you look ahead to economic recovery, focus on your best employees, create transparency in communications, and build future career opportunities.

UTAH PAY CARD RULE FINALIZED

April 26, 2010 – Employers Council

The new Utah Labor Commission rule (R610-3-22) permitting the use of pay cards as an alternative method of paying wages to employees became effective March 24, 2010. This can provide efficiency and flexibility employers did not have before.

NEW E-VERIFY RESOURCES FROM DHS

April 26, 2010 – Employers Council

The Department of Homeland Security (DHS) recently announced the following new E-Verify resources:
1. Two new training videos, explaining E-Verify procedures and policies, employee rights, and employer responsibilities. They are available, in both English and Spanish, at ww.youtube.com/ushomelandsecurity and www.dhs.gov/e-verify.
2. A telephone hotline for employees seeking information about the E-Verify process and assistance in completing Form I-9. The hotline number (888-897-7781) became active on April 5. [It can also be used to file complaints about possible discrimination or employer misuse of E-Verify.]

In addition, DHS has a new agreement with the Department of Justice that streamlines the adjudication process in cases alleging E-Verify misuse and discrimination.

Posts for April 25, 2010

2009-2010 Utah Manufacturing Association, Associated Builders and Contractors, and Home Builders Association of Utah Labor Commission Program

As of 4-12-2010

UMA:

Total Number of Individuals Trained: 32
Total Number of Supervisory/owners Trained: 42
Total Number of Companies Trained: 35
Total Number of People Potentially Impacted: 2,007

The above numbers are only for the Utah Manufacturing program and do NOT include the numbers through the Home Builders Association of Utah or the Associated Builders and Contractors.

The UMA training program has not been quite as successful as we had hoped. Although we trained a lot of people, it was pretty limited on the total individuals trained. While it will ultimately impact many workers, we hope to do more in the future.

We have learned that marketing the program more will help our results greater. We hope to market more through the Utah Manufacturing Association Regional Directors. They are the feet on the street marketing folks for the association, and have communication with the membership and potential membership at a greater level than we. There are three Regional Directors of the UMA cover the entire State of Utah. We will also look to post more events in the UMA calendar (have not used this resource) & posting a member-to-member offering on the UMA website.

ABC:

Total Number of Individuals Trained: 171
Total Number of Supervisory/owners Trained: Included
Total Number of Companies Trained: 108
Total Number of People Potentially Impacted: 8,428

The program with the ABC incorporated one site Mock OSHA inspections, on-site safety training, supervisor training – Train the Trainer, classroom training, OSHA 10 and 30 hour class room training, and Lead Based paint training. This program has been hugely successful in getting support to employers to help train their employees, as well as actually providing the training to the employees.

We utilized the ABC office for training, as well as conducting training in Southern Utah. We were able to market to contractors using both the ABC list, as well as Summit’s list of contractors. The amount of companies and individuals has been incredible.

HBA:

Total Number of Individuals Trained: 239
Total Number of Supervisory/owners Trained: Included
Total Number of Companies Trained: 210
Total Number of People Potentially Impacted: 7,647

The program with the HBA incorporated one site Mock OSHA inspections, on-site safety training, supervisor training – Train the Trainer, classroom training, OSHA 10 and 30 hour class room training, and Lead Based paint training. This program has been hugely successful in getting support to employers to help train their employees, as well as actually providing the training to the employees.

We utilized the HBA offices along the Wasatch Front as well as conducting training in Southern Utah. We were able to market to contractors using both the HBA list, as well as Summit’s list of contractors. The amount of companies and individuals has been incredible.


The other area that we have had some questions on is the cross over between the Utah Manufacturing Association, the Home Builders Association of Utah, and the Associated Builders and Contractors. We do have companies who manufacture windows, steel fabrication, HVAC manufacturing/installation, door manufacturing and installation, and others who are both manufacturing companies and construction companies. These companies seem to attend the construction trainings more frequently then they do the manufacturing trainings. We have also noticed that there seems to be a bigger need for our services in the construction industry. Therefore we would like to propose this next year the same amount of money in total through the grant program, but divided amongst the three associations as a pool of funds to tap into. This way Summit can manage the funds as the needs arise, and apply the grant money to the programs that demand the greater need. The other alternative request would be to divide the total $100,000 equally between the UMA, HBA, and ABC for this next year.

On a positive note, we have started to get some significant momentum with the program. Here are some comments from our main trainer, Jeff Nelson:

“One thing that we have been doing with some success is showing and discussing the Utah Labor Commission’s DVD, Por el Bien de los Suyos (For the Sake of your Loved Ones). We show this in every OSHA 10 hour class and have shown it in other settings. After viewing, we have a discussion with the Spanish speaking workers about their culture, language barriers and the fact that it is OK to ask questions if a person does not understand what they are being asked to do. Every time it has been shown we have discussed and the Latin workers agree that they do not always understand fully what they are being asked to do. When asked why, we hear responses such as, I don’t want to look stupid or I am scared to question the supervisor, which makes him think that I am not a good worker.

Another thing that we discuss is the fact that everyone working in the United States has a right to a safe and healthful workplace and that all workers have a responsibility to report potential hazards on the jobsite. We stress that they should not do something that they don’t feel safe and comfortable doing. Also, that it is OK to ask questions if they don’t understand something that they have been asked to do. We stress that it is not OK to merely nod their heads in the affirmative when asked if they understand something. They need to ask questions or repeat back what they were asked to do.

As the DVD is in Spanish with English Subtitles, we have been showing it in the English 30 hour OSHA training (for supervisors) with a lot of success. When we start the discussion, I hear comments such as, “They understand more than you think they do”. We then explain that they do not always understand based on the discussions we have had with them in the Spanish 10 hour classes. After the DVD is shown we discuss more about the Latin or Hispanic culture. We have asked if it was worth watching and they all agree that it was worth their time.

Not only is this a good DVD to understand the cultures and communication issues, but it is also a good basic overview of construction and manufacturing safety.

I have really enjoyed teaching the Hispanic workers in basic safety. I try to make it fun and enjoyable for them and we all seem to have a good time while learning the various 10 hour topics. For me, it is satisfying to know that I am doing something that may save a worker from getting seriously injured or killed.”

I would like to share one example of how this program actually saved a human life. While this is on the construction side, I am sure that a similar story could be told on the manufacturing side.

One of our clients was doing some excavating work in the Midvale area. They were digging a trench about 10 feet deep, and there was a pile of tailings about 4 feet high too close to the trench. There was a worker down in the trench with no trench box protection (the box was about 20 feet away, but not being used). Not only was the trench unprotected, but the excavating machine was operating while the employee was in the hole…coming within inches of the worker. We observed the worker and took some pictures. We contacted the owner of the company because we knew that had he known about this condition, he would have been concerned. The owner drove down to the job site immediately, yelled at the worker to get out of the trench. The worker made the comment to his boss “you know I would not do anything that was unsafe”. They put the trench box in the trench, and the worker went back down in. Within minutes, the pipe that they were working on broke, and the trench proceeded to fill up with water. As you are probably aware, wet dir collapses, and this is what happened to this trench. The trench filled with water so fast that the worker would have been trapped, and crushed with the soil. As it turned out, he was able to climb out of the trench box until they were able to shut off the water main. There is no doubt in my mind that had Summit not been there that day at that time, and had the owner not acted on our advice, that worker would be dead.

In summary, the program is definitely having an impact on Utah employers, and their employee’s. We have trained so many people, and look forward to training more in the future. This will have impact for years because of the communication that we are able to provide to the workers’, supervisors, and owners. No job (other than military) is worth dying for, and if there are some adjustments that can be made to help ensure the worker goes home to their family, that is what the Summit training program is all about. We have included a couple of testimonial letters, and we hope to continue this program through the 2010-2011 Labor Commission program term.

EPA ANNOUNCES REGIONAL ADMINISTRATOR FOR REGION 8

April 25, 2010 – Holland and Hart

(DENVER, CO – April 21, 2010) Today, U.S. Environmental Protection Agency Administrator Lisa P. Jackson announced President Barack Obama’s selection of James B. Martin to be the Agency’s Regional Administrator for EPA’s Region 8. This region encompasses Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming and 27 Tribal Nations.


"I look forward to working closely with James Martin on the range of urgent environmental issues we face, in Region 8 and across the nation," said EPA Administrator Lisa P. Jackson. "At this moment of great challenge and even greater opportunity, I'm thrilled that James will be part of our leadership team at EPA. He will certainly play an instrumental role in our Agency's mission to protect our health and the environment."


Regional Administrators are responsible for managing the Agency’s regional activities under the direction of the EPA Administrator. They promote state and local environmental protection efforts and serve as a liaison to state and local government officials. Regional Administrators are tasked with ensuring EPA's efforts to address the environmental crises of today are rooted in three fundamental values: science-based policies and programs, adherence to the rule of law, and transparency.


James B. Martin has worked in the environmental field for more than 20 years, most of them spent in Colorado. He most recently was the Executive Director of the Colorado Department of Natural Resources, managing and administering a department of more than 2,000 employees that oversee the state’s environmental protection policies. He was also the Executive Director of the Colorado Department of Public Health and Environment. There he managed an organization of 1,225 employees with a budget of $470 million, with responsibility over both state environmental and public health programs. From 2005 to 2007, he managed a non-profit organization that focuses on energy, public lands, and water issues. In 2004, he headed the Natural Resources Law Center at the University of Colorado School of Law where he managed an interdisciplinary public policy think tank with a staff of lawyers, economists and scientists. He also taught advanced seminars on energy law and policy and land use planning. Martin spent a decade as the senior attorney for the Environmental Defense Fund in Boulder, Colorado and Oakland, California. Earlier in his career, he was State Director for then U.S. Senator Tim Wirth. He earned his bachelor’s degree from Knox College and his J.D. from Northwestern Law School, Lewis and Clark College.

EPA GREENHOUSE GAS LITIGATION AND REGULATORY UPDATE

April 25, 2010 – NAM Capital Briefing
A recent issue of Capital Briefing summarized the NAM’s litigation against the Environmental Protection Agency (EPA) over the “endangerment finding,” the first step toward greenhouse gas permit requirements for manufacturing facilities. Last week, the NAM and other groups filed documents with the U.S. Court of Appeals for the D.C. Circuit outlining the legal arguments expected to be raised in the litigation. Our statement of these legal issues is here. Also last week, the EPA filed a motion to hold its litigation in abeyance while the agency addresses 10 administrative petitions that other groups have filed asking the EPA to reconsider the endangerment finding. It expects to conclude its consideration of these petitions by July 30.

On the regulatory front, the EPA on April 2 published its final notice establishing the dates on which greenhouse gases will become regulated pollutants with respect to the so-called “Subject to Regulation” memorandum. This notice and other EPA regulations about to become final comprise the agency’s comprehensive strategy to regulate greenhouse gases, which manufacturers are currently reviewing.
Details: Quentin Riegel, (202) 637-3058; Keith McCoy, (202) 637-3175.

CHINA ANNOUNCES CHANGES TO INDIGENOUS INNOVATION POLICIES

April 25, 2010 – NAM Capital Briefing
China’s Ministry of Science and Technology (MOST) has published new guidelines for participation in China’s huge government procurement market through the Indigenous Innovation Initiative. The revised rules require that intellectual property be licensed for use in China and applicants have the right to use their trademarks in China, a significant change to earlier guidelines that would discriminate against foreign-owned companies by requiring that intellectual property be developed and trademarks be originally registered in China. This has been one of the NAM’s top priorities in U.S.-China trade policy.


Questions of clarity remain on how the rules will be applied to government procurement policies and their use by provincial and local governments. The NAM will be providing comments to MOST by the May 10 deadline and is encouraging NAM member companies to provide information on their concerns. To ensure inclusion in the NAM’s comments, please submit your information by April 30. Details: Pat Mears, (202) 637-3141.

IMMIGRATION REFORM NEGOTIATIONS CONTINUE

April 25, 2010 – NAM Capital Briefing
Senators Charles Schumer (D-NY) and Lindsey Graham (R-SC) have been negotiating with all parties interested in immigration reform with the goal of creating an immigration package with a broad base of support. However, those negotiations have continually stalled due to the limited time on the legislative calendar. Last week, Senate Majority Leader Harry Reid (D-NV) announced his intention to push comprehensive immigration reform. He is becoming increasingly involved in pursuing the issue and has stated his goal of completing a bill this year. Details: Jeri G. Kubicki, (202) 637-3127.

GATES CALLS FOR EXPORT REFORM; NAM RELEASES EXPORT CONTROL RECOMMENDATIONS

April 25, 2010 – NAM Capital Briefing

This past week Secretary of Defense Robert Gates unveiled the most sweeping changes to the U.S. export control system since its creation during the Cold War. Speaking on behalf of the Administration, Sec. Gates announced the creation of a single-tiered control list, a single agency to administer controls, a single enforcement agency and a uniform IT structure. The changes will be implemented in three phases; however, many details remain unknown and much work lies ahead as the Administration and Congress work together to move from the status quo to a single export control agency. The Administration would like to see all three phases completed and new legislation passed before the end of the year.

The NAM is pleased the Administration is moving forward with changes to modernize the export control system and to keep America secure and globally competitive but also believes the Administration must act on near- and medium-term reforms along the way to creating a single agency. Last week, the NAM submitted its Blueprint for a 21st Century Export Control Regime to the Administration to augment the near- and medium-term recommendations the NAM previously submitted. We will continue to urge implementation of near- and medium-term reforms while also working toward a fundamental makeover of the system. Both are needed to enhance U.S. national security, support the industrial base and reach the President’s goal of doubling exports within five years.

Details: Catherine Robinson, (202) 637-3403.

LIST OF POTENTIAL REVENUE OFFSETS FOR TAX EXTENDERS BILL, HR 4213

April 25, 2010 - NAM Tax & Budget Policy Subcommittee
NAM just obtained the list of potential revenue offsets for pending tax extenders bill, HR 4213, which includes a 1 year extension of NAM tax priorities: R&D tax credit, deferral for active financing, and the CFC look through rules. To view the document, please click here.

Latest reports this week are that Congress wants to complete final action by sending a bill for the President to sign into law by Memorial Day. The House and Senate earlier passed HR 4213, but differences in the bill versions and a revenue hole of $27 billion must be resolved by Congress.

EDITORIAL: MANUFACTURING’S OLD AGE PROBLEM

April 25, 2010 – Today in Manufacturing.net

Baby boomers are nearing end of their working years, leaving many manufacturers clamoring for ideas of how to fill this impending knowledge gap while young people increasingly turn up their noses at the industry ... continue

OTC DERIVATIVES BENEFIT THOUSANDS OF SMALL BUSINESSES

April 25, 2010 – NAM Capital Briefing

Manufacturing companies have been intensely engaged in the debate over legislation to expand federal regulation of the financial industry to make sure Congress does not restrict their access to an important risk management tool – over-the-counter (OTC) derivatives. Additional regulations and requirements could impose added costs and inefficiencies to many small and medium-sized manufactures.

Manufacturers of all sizes use OTC derivatives to manage the cost of borrowing or other risks of operating their businesses: fluctuating currencies, interest rates and commodity prices. Half of America’s medium-sized businesses and thousands of small U.S. companies benefit from these risk management tools.

The NAM is pressing Congress to include in any financial service reform legislation provisions that would allow end-users, like manufacturers, to continue to access customized OTC derivatives used to manage risk, and to avoid imposing new regulations that would cost companies millions of dollars – money that could be used to generate much-needed jobs and business investment.

OTC derivatives reform legislation is currently under consideration in Congress. Now is the time to contact your senators and representatives and urge them to protect small and medium manufacturers’ access to customized OTC derivatives used to manage risk.
For more information on taking action, please contact NAM Vice President of Tax and Domestic Economic Policy Dorothy Coleman, (202) 637-3077.

SUPREME COURT REVERSES PENSION PLAN ADMINISTRATION DECISION

April 25, 2010 – NAM Capital Briefing

On March 21, the U.S. Supreme Court overturned an appeals court decision in Conkright v. Frommert that interfered with administrative decisions by those who run company pension plans. The case involves how a company’s plan administrator should account for lump-sum retirement payments made to employees who retired but later returned to work for the company.

The NAM filed an amicus brief arguing – and the Supreme Court agreed -- that courts should defer to the reasonable decisions by plan administrators trying to interpret benefit plan language under the Employee Retirement Income Security Act (ERISA). The Supreme Court’s ruling in this case encourages certainty and predictability, tempers litigation expenses and administrative costs, and minimizes exposure to unanticipated benefits obligations.

Click here to view a summary of the case and a link to the NAM’s amicus brief. Details: Quentin Riegel, (202) 637-3058.

WHOLESALE PRICES RISE IN MARCH

April 25, 2010 – Today in Manufacturing.net
Labor Department said the Producer Price Index rose more than expected by 0.7 percent in March, compared to analysts' forecasts of a 0.4 percent rise ... continue

Posts for April 24, 2010

Red Flags of Injured Worker Fraud

By Greg Summerhays

• Injured employee is seldom available at home.
  
• Injured employee has a history of multiple workers' compensation claims.
  
• Injured employee's account of cause of injury is vague or contradictory.
  
• Injured employee delays return to work after maximum medical improvement.
  
• Injured employee refuses light duty opportunities.
  
• Subjective complaints of injury are not medically diagnosed.
  
• Injured employee's employment status was in jeopardy prior to injury.
  
• Injured employee "shops" for caregivers and/or is noncompliant.
  
• Injured employee did not report the injury with timeliness.
  
• Evidence exists of the injured employee's covert employment.
  
• Evidence of activity contradictory to reported physical limitations.
  
• Injured employee conceals pre-existing medical information relevant to claim.
  
• No witness of injury occurrence or resulting symptoms

Greg Summerhays is Director of Public Relations at Workers Compensation Fund. WCF offers ongoing safety training and UMA members are eligible for a 5% premium discount through a partnership with WCF. Visit www.wcfgroup.com for more information.

COSTLY NEW RESTRICTIONS ON TRUCKING YOUR FREIGHT

April 24, 2010 – NAM

As part of a legal settlement reached between the U.S. Department of Transportation and a coalition including Public Citizen and the International Brotherhood of Teamsters last year, the current Hours of Service (HOS) trucking rules implemented in 2004 and relatively unchanged since then, are being scrutinized by the Department’s Federal Motor Carrier Safety Administration (FMCSA) and have been the subject of several public outreach sessions during the month of January.

In anticipation of the issuance of the new Notice of Proposed Rulemaking (NPRM) as part of the previously referenced settlement, the FMSCA has reopened its Hours of Service docket and has requested comments regarding the current rules on

· rest and on-duty time
· overnight driving
· restart provisions
· sleeper berth provisions
· loading and unloading time driving “windows”

We encourage NAM members to talk with their trucking service providers as well as supply chain and logistics professionals and begin to have an important conversation about what a change to the HOS trucking rule could mean in terms of compliance, maintaining competitive pricing and costs, distribution patterns, just-in-time standards, and the overall trucking capacity that serves your company.

We are anticipating the following concerns in the NPRM:

· Mandatory breaks that borrow from future workdays or do not extend driving duty times to reflect the break taken.
· Limits to night-time driving between the hours of midnight and 6:00 a.m.
· Reductions in 11 hour or 14 hour driving times that provide critical “windows” for weather, traffic, loading, unloading and other unforeseen events.

Because this docket is open for an undetermined period of time as the FMCSA prepares its NPRM, we encourage you to file comments as soon as possible. To send a comment to the FMCSA, please visit www.nam.org/p2.

DURABLE GOODS ORDERS FALL IN MARCH

April 24, 2010 – Today in Manufacturing.net
New orders for large manufactured goods dropped 1.3 percent in March, but excluding the volatile transportation sector, orders rose by the most since recession began... continue

GOING GREEN PROVES GOOD FOR BUSINESS

April 24, 2010 – Late Wire at Manufacturing.net
Big companies have been taking significant steps towards sustainability and seeing the economic value of going green ... continue

GREEN INDUSTRY COULD DEPEND ON CONGLOMERATES

April 24, 2010 – CBS News

CBS News posted yesterday on the Green Eye blog, that "While start-ups have played a crucial role in getting the green industry off the ground, the future will likely be dominated by large, sprawling conglomerates." The is because "green technology essentially involves revamping the physical infrastructure of the modern world: replacing coal-fired power plants with wind turbines, building homes from materials concocted in chemistry laboratories, and swapping out engines for electric motors." Furthermore, "established companies simply are in a far better position to muster the capital, technological depth, managerial expertise and factory capacity needed." The list of "green giants" includes China, General Electric, Siemens, Nissan, and Dow Chemical.

IMMIGRATION REFORM NEGOTIATIONS CONTINUE

April 24, 2010 – NAM Capital Briefing

Senators Charles Schumer (D-NY) and Lindsey Graham (R-SC) have been negotiating with all parties interested in immigration reform with the goal of creating an immigration package with a broad base of support. However, those negotiations have continually stalled due to the limited time on the legislative calendar. Last week, Senate Majority Leader Harry Reid (D-NV) announced his intention to push comprehensive immigration reform. He is becoming increasingly involved in pursuing the issue and has stated his goal of completing a bill this year.

KERRY: SENATE FACING 'LAST AND BEST SHOT' TO PASS CLIMATE CHANGE BILL

April 24, 2010 - By Kathleen Hart

Sen. John Kerry, D-Mass., who is expected to unveil on April 26 the much-anticipated bipartisan climate change legislation he has been crafting with Sens. Lindsey Graham, R-S.C., and Joseph Lieberman, I-Conn., sees this year as the best — and perhaps last — chance to pass a comprehensive energy and climate change bill in the Senate.

"[T]his can be the year — our last and best shot — to find the 60 votes needed to reduce carbon pollution, and build a new energy economy that makes good on President Obama's Copenhagen pledge to cut U.S. greenhouse gas emissions by 17 percent by 2020," Kerry said in an April 22 message commemorating the 40th anniversary of the first Earth Day.

"Washington conventional wisdom may argue that big change is impossible and politicians will always take the path of least resistance, but I was there for Earth Day 1970 and I saw average Americans prove all those assumptions dead wrong long before I was a Senator. It's why I still believe that Earth Day 2010 must be a reflection point that helps make this the year the Senate passes comprehensive climate and energy legislation," Kerry said. "We can't afford to wait and we'll never have as clear a shot to reach this goal we first set out twenty years ago."

Kerry, Graham and Lieberman have been considering a variety of tools to achieve the 17% reduction in carbon dioxide emissions sought by the Obama administration. While they favor an economywide cap-and-trade program, their legislation may call for slightly different approaches to reducing emissions in different sectors of the economy.

Senate Environment and Public Works Committee Chairman Barbara Boxer, D-Calif., has been working with Kerry, Graham and Lieberman in their effort to forge a bill that can garner the 60 votes needed for passage in the Senate. "When we move forward to address the challenge of climate change, we will create millions of jobs and protect our children from dangerous carbon pollution," she said April 22.

One major issue still under discussion is the extent to which the climate change legislation being developed by Kerry, Graham and Lieberman should bar states, regional governmental entities, and the U.S. Environmental Protection Agency and other federal agencies from separately regulating carbon dioxide emissions. Sen. George Voinovich, R-Ohio, has been drafting stringent pre-emption language that he wants to see incorporated in the Senate bill.

"Because climate change is a global issue, I believe that addressing climate change effectively must be done through a single, national program that replaces the existing, conflicting patchwork of rules, regulations, and lawsuits," Voinovich argued in an April 21 news release. "To get my support on any climate change legislation, it must include a comprehensive preemption provision that goes well beyond language included in previous climate bills."

Voinovich said: "[T]he only workable solution to climate change should occur at the federal level, considering we are not dealing with pollution that has localized effects. When it comes to climate change, letting 'a thousand flowers bloom' will frustrate our ability to address this problem in a manner that protects jobs, consumers, small businesses and the environment."

Many senators have voiced concerns about efforts by the administration and advocacy groups to use provisions of the Clean Air Act, the Clean Water Act and other laws to regulate emissions of carbon dioxide and other greenhouse gases.

Sen. James Inhofe, R-Okla., ranking Republican on the Senate Environment and Public Works Committee, and six other Republicans introduced legislation April 20 aimed at preventing federal agencies from using the National Environmental Policy Act to make determinations about the global warming impact of new power plants and other projects.

The legislation came in response to draft guidance the White House Council on Environmental Quality issued in February on how federal agencies should consider CO2 emissions in conducting environmental impact reviews under NEPA.

CBO REPORT: WAXMAN-MARKEY BILL WILL COST HOUSEHOLDS $930 A YEAR BY 2050

April 24, 2010 -- By Amanda Luhavalja

The U.S. Congressional Budget Office has concluded that the House of Representatives-passed Waxman-Markey climate bill would cost the average household $90 a year in 2012, $550 a year in 2030 and $930 a year by 2050.

The cost would average about $460 per year over the 2012-2050 period, according to the new report, requested by Rep. Christopher Smith, R-N.J., and issued by the CBO on April 20.
CBO estimated the loss in households' purchasing power would result from the primary cap-and-trade program that would be established by HR 2454.

The loss would be modest as a share of gross domestic product in all years between 2012 and 2050, but it would rise over that period as the cap became more stringent and more resources were dedicated to cutting emissions. The loss would equal about 0.1% of GDP in 2012, about 0.5% in 2030, and about 0.8% in 2050. CBO estimates the average loss per year over the entire 2012-2050 period would be about 0.4%.

In a previous analysis issued June 19, 2009, the budget office said a cap-and-trade system under the House-passed legislation would cost $22 billion a year by 2020, or $175 for each household.

"A strong consensus has developed in the expert community that if the accumulation of greenhouse gases in the atmosphere is allowed to continue unabated, it will have extensive, highly uncertain, but potentially serious and costly impacts on regional climates throughout the world. Reducing greenhouse gas emissions in the United States and around the globe would moderate those impacts, but policies to achieve a reduction in emissions would also impose costs on U.S. households," the report said.

Compliance costs would tend to increase faster than GDP over time. In contrast, compensation to households would rise faster than GDP during the next decade, level off as a share of GDP for the following several decades, and then decline relative to GDP in the 2040s. As a result, more than 85% of compliance costs would be offset by compensation in 2012, but only 35% would be offset by compensation in 2050.

Posts for April 19, 2010

April 19, 2010

Last week's economic news continued to show the economic recovery gaining steam, with nine of the 11 major economic reports improving. (To see all of last week's indicators, see the Latest Economic Reports section below.)

The report contained a number of important indicators on manufacturing, consumer spending, the global economy and the housing market. Improvements took place across the board. For the manufacturing sector, not only did overall production rise for a ninth consecutive month in March, but several regional surveys for April showed conditions continuing on an upward path.

As seen in the chart above, manufacturing production increased at an average annual rate of 7.4 percent over the past three quarters, with production in durable industries outpacing nondurable industries. While this upturn is faster than the 4 percent pace in the initial quarters following the most recent two recessions (2001, 1990-1991), it is far below the average 13 percent pace during the first few quarters of growth following both the 1982 and 1974-1975 recessions. Also, the level of output remains 11.5 percent below its 2007 peak.

While temporary factors such as an early Easter and an unseasonably cold February likely played significant roles, housing and consumer spending both ended the first quarter on a positive note.

On a cautionary note, the volcanic explosion under one of Iceland's glaciers last week could have a short term, though possibly significant, impact on U.S. trade in the second quarter.

Due to high levels of volcanic ash in the atmosphere, which can cause engine failure in airplanes, airports have been shutting down across northern Europe. Experts predict that the ash plume could last for days. If days turn into a week or more, the impact on U.S. trade could be noticeable, since 13 percent of U.S. merchandise exports are transported by air to Europe. The April trade figures will come out June 10th, so we'll have to wait until then to see the impact.

Dave Huether
Chief Economist
National Association of Manufacturers

LEADING ECONOMIC INDICATORS UP 1.4 PERCENT

April 19, 2010 – Today in Manufacturing.net
Conference Board says its gauge of future activity jumped 1.4 percent in March, the fastest pace of growth in at least seven months... continue

SOME AMERICANS DOUBTFUL RECESSION IS ENDING

April 19, 2010 – Today in Manufacturing.net
From Wall Street to Washington, the message comes: America, the worst is over, let the spending begin; but many people aren't buying the rhetoric... continue

EMPLOYMENT GAINS REPORTED IN MARCH

April 19, 2010 - AP

The AP reported today that, thirty three states recorded gains in employment in March, some sizable. In its monthly look at state job trends; the Labor Department said Friday that Maryland led the country with a gain of 35,800 payroll jobs last month. ... By contrast, Michigan continued to have the nation's highest unemployment rate and also led the country in job losses in March with a decline of 9,500.

TAX INCENTIVES TO HIRE THE UNEMPLOYED

April 19, 2010 – Employers Council

Title I of the federal Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, 2010, gives employers two new tax benefits for hiring certain previously unemployed workers (“qualified employees”).

1. A "payroll tax exemption" exempts an employer from the employer's 6.2% share of social security tax on wages paid to qualifying employees, for wages paid from 3/19/10 through 12/31/10.
2. In addition, a "new hire retention" business tax credit applies for each qualified employee retained for at least 52 consecutive weeks. The credit is 6.2% of wages paid to the qualified employee over the 52- week period, up to a maximum credit of $1,000.

The IRS "HIRE Act: Q&As for Employers" Website is at www.irs.gov/businesses/small/article/0,,id=220745,00.html. The site includes links to the new Form W-11 (Employee Affidavit) and draft revised Form 941. Click here for the HIRE Act text (Title I is on pages 2 through 6).

KEY UTAH EMPLOYMENT RULES: What Employers Need to Know -- Seminar

April 19, 2010 – Utah Employers Council

Salt Lake City - Thursday, May 6
Ogden - Wednesday, May 12

Join the Council’s legal staff as they address key Utah rules that every employer needs to know and comply with, including:

• Rules to focus on at the beginning of the employment relationship, such as Utah’s NEW Employment Selection Procedures Act, and NEW Private Employer E-Verify Law
  



• Rules to focus on throughout the employment relationship, such as NEW Drug & Alcohol Testing Amendment, and NEW Weapons in the Parking Lot Law
  



• Rules to focus on near the end of the employment relationship, such as Utah’s At-will Employment Rules and Final Paycheck Law
  



• Rules to care about all the time, such as Utah’s Antidiscrimination Act, Right to Work Law, and NEW Protection of Personal Information Law
  

Dates and Locations
Salt Lake City - Thursday, May 6 -- Red Lion Hotel -- 161 W 600 S, Salt Lake City
Ogden - Wednesday, May 12 -- Comfort Suites -- 2250 S 1200 W, Ogden

Time -- Seminar: 8:00 a.m. - 12:00 noon (registration & breakfast buffet: 7:15 to 8:00 a.m.)

Cost -- $115 per Council member; $195 per non-member (includes full breakfast buffet and materials)

Call the Council or reply to this email with registration information or questions. You can download the registration form at http://ecutah.org/utahrules.pdf. Full refund or credit will be given if cancellation is received one week prior to meeting.

Certification: This program is approved for 3.5 general recertification hours toward PHR, SPHR, and GPHR recertification through the Human Resource Certification Institute.

TIPS FOR AVOIDING TROUBLE WITH UTAH OSHA

April 19, 2010 – Marty Banks – Stoel Rives

The federal Occupational Safety and Health Administration has essentially delegated its responsibilities in Utah to the Utah Labor Commission. Within the Labor Commission, the Division of Occupational Safety and Health (“UOSH”) has broad authority to oversee, inspect, and when warranted, issue citations for violations of the Utah Occupational Safety and Health Act, and its associated Rules. The following tips are offered as suggestions to avoid or minimize such inspections and citations, and the resulting significant penalties.

I. Listen and Respond to the Concerns Expressed by Employees
A. Never reprimand an employee for having voiced safety concerns.
B. Never ignores the safety concerns raised by an employee.

II. Prepare and Manage Inspections
A. Conduct your own parallel internal investigation under the protection of theattorney-client privilege.
B. Control and manage the flow of information (both documentary and oral) during the inspection.
C. Maintain your safety records in a complete, orderly and accessible manner.
D. Be firm, but not antagonistic and never misleading with inspectors.
E. Anticipate the most commonly cited violations, such as hazard communication, machine guarding, trenching, lockout/tagout, electrical hazards, etc, and address them proactively.

III. Make Safety and Health a Priority
A. Be proactive about identifying and addressing industrial hygiene and exposures.
B. Train, publish and enforce safety rules.
C. Implement a systematic, rather than piece-meal, safety program.
D. Focus on making your workplace safe by using engineering controls, rather than on just making your employees safe by using personal protective equipment.
E. Use safety audits to identify hazards, and then address the hazards.

Prepared by Marty Banks, with the law firm of Stoel Rives. Mr. Banks practices in the area of environmental, safety and health. He chairs the UMA Environment Committee.
He can be reached at (801) 578-6975, or mkbanks@stoel.com.

SEXUAL HARASSMENT

April 19, 2010 – Employers Council

Sexual harassment is destructive and illegal in the workplace, but still happens. Why? Are you uncertain about the definition of sexual harassment and its underlying behaviors? The EEOC defines sexual harassment as: unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when submission to such conduct is made either explicitly or implicitly a term or condition of employment; submission to or rejection of such conduct is used as the basis for an employment decision; or such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment.

Whether certain behaviors constitute sexual harassment depends on the facts, severity, and context. Behavior is judged by its impact, not the intent. Examples may include demeaning sexual comments, crude gestures, off-color jokes or stories, sexually suggestive visual displays, and inappropriate touching. Even casual sexual joking may be offensive. It is best to keep sexual overtones out of the workplace. Make professionalism and mutual respect a top priority.

Supervisors should model appropriate behavior. Your actions and words are scrutinized by others constantly. Being a positive influence is critical. Supervisors should be vigilant in preventing behaviors that may cause a problem down the road. And, when employee complaints are made, they must be addressed promptly. Proactive policies and procedures can help resolve issues before they blow up.

Your entire workforce needs to understand and be committed to ensuring a professional and respectful working environment.