Manufacturers and other employers spend nearly $9,000 per employee each year on health care benefits. This unsustainable and escalating cost is driven largely by chronic conditions, but you can change this trend. Learn how at the 2010 Integrated Care Summit, hosted by the NAM, DMAA: The Care Continuum Alliance and the Center for Health Value Innovation, October 13 to 14, in Washington, D.C.
Manufacturers must view health benefits as an investment rather than a cost to manage. The Integrated Care Summit showcases programs by your manufacturing peers – programs that improve productivity and reduce costs and that can be replicated at your workplace. Consider these reasons to attend this year’s Integrated Care Summit:
1. You need to control health care costs to stay competitive. Hourly health benefits cost U.S. manufacturers more than twice the foreign trade weighted average.
2. Your health care costs extend beyond benefits spending. Absenteeism and reduced on-the-job performance from chronic conditions cost $1 trillion annually in lost productivity.
3. You can make a difference with workplace wellness. Wellness programs reduce medical costs by $3.27 and absenteeism costs by $2.73 for every dollar spent (Health Affairs, February 2010).
4. You need to adapt to a changing marketplace. Health care reform means new opportunities and challenges for worksite wellness and prevention.
5. Your investment in the Summit will bring greater returns to your bottom line. Take away practical, how-to lessons from top employers to apply at your company.
The Summit convenes benefits and human resources professionals, consultants, chief medical officers and other manufacturing executives to share best practices, network and learn about the many services and products available for workplace health promotion. You will hear nearly 30 presentations from major manufacturers and employers, such as Yum, Caterpillar, Hess, Exelon and Eastman Chemical. Their experiences will arm you with techniques and tools to improve your employees’ health and productivity.
Join us at the Hilton Washington for the 2010 Integrated Care Summit. Early-bird registration savings are available through September 17. For more information and to register online, please visit IntegratedCareSummit.org or call (202) 737-5476. I look forward to seeing you in October.
CONTROL -THE ISSUE IN EMPLOYEE CLASSIFICATION
August 26, 2010 – Mainstreet Business Journal - Michael Patrick O'Brien, Esq.
Is it employee or sub contractor?
If you have been paying even the slightest of attention to these updates regularly, you know that one of the major risks for employers today is the misclassification of an employee as an independent contractor. A recent decision by the federal appeals court that covers the Pacific coast states has affirmed that a fact intensive analysis of a company’s “right to control the manner and means by which the [work] product is accomplished” is the essential question in distinguishing an employee from an independent contractor.
The court outlined that this question is answered by analyzing factors such as: (1) The skill required; (2) The source of the instrumentalities and tools; (3) The location of the work; (4) The duration of the relationship between the parties; (5) Whether the hiring party has the right to assign additional projects to the hired party; (6) The extent of the hired party's discretion over when and how long to work; (7) The method of payment; (8) The hired party's role in hiring and paying assistants; (9) Whether the work is part of the regular business of the hiring party; (10) Whether the hiring party is in business; (11) The provision of employee benefits; and (12) The tax treatment of the hired party.
From my experience, most employers who are calling workers independent contractors probably should be classifying them as employees. Make sure you carefully review your classifications so you do not have this problem too.
Editor's Note: Michael Patrick O`brien is an employment attorney with Jones Waldo and serves as the director for Utah State SHRM. You may contact him at 801-534-7315 or email him at mobrien@joneswaldo.com
WEDNESDAY, SEPTEMBER 8, 2010
Drug abuse costs US businesses $120 billion annually due to absenteeism, diminished productivity, and injuries. Many employers adopt drug testing policies. However, those charged with administering the policies often use a nonsensical approach and do not receive adequate training -- or may be unaware of Utah’s new drug testing laws.
Come learn a common-sense, practical approach to drug testing - and fill a critical training gap. Council legal staff and expert guest speaker, Paul Teynor, MD, MPH, a certified Medical Review Officer (MRO) at Intermountain MRO Services, will cover topics including:
- The importance of identifying and responding to drug abuse in the workplace
- The legal parameters of drug testing, including Utah’s new legal requirements
- The collection, testing, and confirmation processes
- The signs and symptoms of drug use in the workplace
- The options available to employers when an employee tests positive
- The elements of an effective drug testing program & policy
When: Wednesday, September 8, 2010
Time: 8:00 a.m. - 12:00 Noon (check-in and breakfast buffet from 7:30 - 8:00 AM)
Where: Radisson Hotel, 215 W South Temple, Salt Lake City, UT
Cost: $115 per Council Member; $195 per non-member (includes materials, full breakfast, and parking)
Call the Council office or reply to this email with registration information or with any questions. You can download the registration form at http://ecutah.org/drugtesting.pdf. Full refund will be given if cancellation is received one week prior to event. Enrollment is limited to available space.
Certification: This program is approved for 3.5 general recertification hours toward PHR, SPHR, and GPHR recertification through the HR Certification Institute.
DURABLE GOODS ORDERS RISE 0.3 PERCENT
August 26, 2010 – Today in Manufacturing.net
Commerce Department says companies cut back on their investments in equipment and machines last month as the economic recovery lost momentum ... continue
FEDERAL APPEALS COURT ACCEPTS NAM ARGUMENTS AGAINST MEDICAL MONITORING CLAIMS
August 26, 2010 – NAM Capital Briefing
Plaintiffs are continuing their efforts to convince state judges to create new rights to demand that manufacturers pay for long-term medical monitoring expenses relating to exposure to hazardous materials or manufactured products. The U.S. Court of Appeals for the Third Circuit is the latest court to reject such claims, doing so on August 24 in a case involving an implanted stent. The court, agreeing with arguments made by the NAM in March, ruled that it would not extend medical monitoring requirements beyond situations where there is exposure to a toxic or hazardous substance with a significantly increased risk of contracting a serious latent disease. The NAM argued, among other things, that changes in the law should be made by the legislature, not the courts.
GERMAN BUSINESS CONFIDENCE HITS 3-YEAR HIGH
August 26, 2010 – Today in Manufacturing.net
Confidence is at highest level in three years, suggesting German economy continues to grow as companies plan to hire more and manufacturers enjoy improved demand ... continue
JOBLESS CLAIMS SEE FIRST DROP IN 4 WEEKS
August 26, 2010 – Today in Manufacturing.net
New claims for jobless aid dropped by 31,000 to seasonally adjusted 473,000, but claims still remain much higher than they would be in a healthy economy ... continue
LEAN TOOLBOX WORKSHOP - SEPTEMBER 27, 2010 - LOGAN, UT
August 26, 2010 – USU Partners in Business
Want to jump start your Lean journey? Begin by learning the basic tools of Operational Excellence on September 27, 2010 when The Shingo Prize and Partners in Business introduce the first "Lean Toolbox" workshop.
Topics include:
• Introduction to Lean
• Assessment
• Value Stream Mapping
• Standardized Work
• Problem Solving: Plan, Do, Check, Act (PDCA) Cycle
These workshops will be the foundation to the principles taught at the Shingo Prize Conference in March 2011.
Register and view the detailed schedule at www.partners.usu.edu
MFG `U` HOLDS FIRST GRADUATION
August 26, 2010 – Mainstreet Business Journal - Kelle Stephens, DXATC
ST. GEORGE, UTAH - Four College Presidents were front and center last Thursday evening to honor the first graduating class of Manufacturing U, a groundbreaking model for education in the state of Utah: UCAT President Robert O. Brems, DXATC President Richard VanAusdal, DSC President Stephen Nadauld, and SWATC President Dana Miller.
Specifically designed for incumbent workers, Manufacturing U includes five 180 hour modules of training: Manufacturing Processes, Industrial Maintenance, Quality Systems, OSHA Safety and Compliance, and Leadership. Upon completion of all five certificates, a student receives a Capstone Certificate from Dixie Applied Technology College in Manufacturing Operations which then transfers to Dixie State College where it is articulated for 30 credit hours. The pathway at Dixie State continues with benchmarks of an Associate of Applied Science Degree in Operations Management, then an Associate of Science Degree as a bridge to a Bachelor’s Degree in Integrated Studies.
Fifteen students pioneered this program through to completion with the support of corporate partners, their employers who participated in various ways from allowing students to attend class during work hours, or even paying for tuition costs. Viracon, Blue Bunny, Stampin Up, and SKF Polyseal realized benefits that far outweighed the minimal costs of sponsoring students into the programs as students were required to apply the knowledge and skills they received back at their workplaces. Tens of thousands of dollars were saved in these companies as students honed their new skills in manufacturing operations.
Speaking at the graduation event, Kreg Kolb reviewed highlights from his 18 months in the program. Besides all the technical skills he gained, he and his fellow students became polished public speakers and vey handy with powerpoint presentations. He committed to earn his AAS degree before he turns 50! Rachel Ward followed, expressing her profound gratitude for being given an opportunity to get back to school and for being able to do so with a group of strangers who became like a second family. Jerico Donovan dropped a challenge to the group by announcing that he intends to be the first student to earn his AAS Degree at Dixie State on his way to earning his Bachelors. Jerico joked with DSC President, Stephen Nadauld that while History 1570 might make him a better human being overall, the classes he’s taken at Manufacturing U helped him to be better every day at work. Sharing what he’s learned in class at the Blue Bunny Plant, his new found knowledge has trickled down, helping those who report to him, and it’s filtered up, even impacting his boss at times.
Manufacturing U is education made real. Going back to school when you have a job, a family, and a full adult life isn’t easy. Trying to move up into middle management or finding a new job when yours get’s downsized isn’t easy either, and oft times, it’s next to impossible. Because the MFG U classes are so relevant, they break the barrier for student stepping back into education.
The 15 students well on their way to their Bachelor Degree’s are: Darren Chase, Trevor Erler, Todd Fisher, Mike Harris, Kreg Kolb, Jennifer Nusser, RonJai Staton, and Paul Larson from Viracon, Jerico Donovan, Que Gallegos, Richard Streker, and Rachel Ward of Blue Bunny, Larry Sayles of Riverwoods Mill, Kevin Grymes of Stampin Up, and Lee Devine of the DXATC.
Editor's note: The next class, Manufacturing Processes, starts on September 7th at the Dixie Applied Technology College. Anyone interested in becoming a student in Manufacturing U can call Kelle Stephens, Vice President of Instruction at 435-674-8402.
NAM CAUTIONS AGAINST EXPANSION OF FLSA ANTI-RETALIATION PROVISION
August 26, 2010 – NAM Capital Briefing
The Supreme Court hears arguments this fall in a case that will decide whether employees who are terminated or otherwise disciplined can sue their employer for retaliation by reason of oral complaints the employees made on the job. The Fair Labor Standards Act (FLSA) provides protection for employees who have “filed any complaint” under the Act, and most courts agree this covers only written complaints. The NAM and other business groups filed an amicus brief on August 23 arguing that the Act is clear and narrower than similar provisions in other civil rights laws. Requiring written complaints facilitates the swift resolution of disputes and discourages wasting time and resources on false or frivolous complaints. When poor performance and disciplinary problems exist, protected status for oral complaints would make management much more difficult.
NEW BOILER MACT RULES WILL RAISE COSTS AND HURT JOBS
August 26, 2010 – NAM Capital Briefing
In June 2010, the Environmental Protection Agency (EPA) published new air emissions standards for industrial boilers, commercial boilers and process heaters, including “Maximum Achievable Control Technology” (boiler MACT standards) to reduce mercury emissions, among other pollutants. An industrial boiler is a closed vessel found in a factory, refinery, or large institution – such as a hospital – that is fired to generate steam and usually used to expedite a manufacturing process. Industrial boilers are found in all industrial sectors, including the paper, chemical and refining sectors. Most operators fire their boilers using natural gas, coal, or biomass.
The EPA’s proposal follows the Agency’s trend toward aggressive regulatory overreach that will raise costs for the nation’s manufacturers. The compliance costs associated with these harsh and inflexible regulations will lead to U.S. manufacturing job losses, hurt manufacturers’ ability to compete and damage the U.S. economy.
After examining the EPA’s proposed regulations and the likely impact on manufacturers, the National Association of Manufacturers (NAM) filed formal comments with the EPA on August 23 to outline manufacturers’ concerns. Although the NAM supports certain aspects of the proposed rules, manufacturers remain fundamentally concerned that the EPA has proposed standards that are not actually “achievable” or “achieved in practice” by existing or new “sources,” as expressly required by the Clean Air Act.
The NAM’s comments emphasize three key points:
- While manufacturers support the EPA’s decision to establish work practice standards in lieu of emission limits for certain gas-fired boilers, the NAM believes those work practice standards should include all gas-fired and biomass units. The EPA has overreached in crafting the proposed work practices and “beyond the floor” requirements. The energy assessment and management work practice requirements are too broad, too intrusive, and exceed the scope of the EPA’s authority for MACT rules under the Clean Air Act. The EPA should more narrowly tailor these requirements.
- The EPA’s fundamental approach to setting the MACT floor violates the Clean Air Act. The EPA has proposed MACT standards for industrial boilers and process heaters that are based on individual pollutant-by-pollutant – rather than source-by-source – analyses in clear violation of the Clean Air Act. The Agency has calculated its proposed MACT floors solely on the basis of emission data and ignored the plain mandate of the Clean Air Act by neglecting to determine whether emission control equipment in use in each subcategory could actually achieve its strict emission limits. This is a critical and necessary analysis required by the Clean Air Act.
- The NAM believes the data the EPA gathered to support the new rules is biased, incomplete and fundamentally flawed. The EPA’s data collection efforts to support these rules were biased toward so-called “top performing facilities,” as it directed its information requests to units it had reason to believe were the better performing units in each subcategory. In addition, the Agency based the standards on a relatively minute pool of relevant data.
The new rule also has caught the attention of lawmakers. In a recent letter to EPA Administrator Lisa Jackson, more than 100 members of Congress expressed their opposition to the new boiler MACT standards. They note that the new regulations “could impose tens of billions of dollars in capital costs at thousands of facilities across the country.”
The EPA is once again misusing the Clean Air Act to the detriment of manufacturers in the United States. The NAM opposes a significant portion of the rules as currently proposed by the EPA and is calling on the Agency to make major adjustments to the proposed rules before finalizing any of them. As they stand, the new boiler MACT regulations will raise costs for manufacturers and limit their ability to create jobs and compete in the global marketplace.
The NAM’s full comments are available here. For more information, contact NAM Vice President of Energy and Resources Policy Keith McCoy at kmccoy@nam.org or (202) 637-3175.
STIMULUS PRICE TAG RISES TO $814B
August 26, 2010 – Today in Manufacturing.net
Massive stimulus measure has created or saved as many as 3.3 million jobs and continues to boost economic growth, but the price tag is higher than originally billed ... continue
TAXPAYERS ASSOCIATION'S TOBACCO TAX PREDICTIONS COME TRUE
August 26, 2010 – Utah Taxpayers – Taxing Times
The Utah Taxpayers Association warned the 2010 Utah Legislature that an increased tobacco tax would lead to decreased revenue for the state and local businesses. Tobacco users would reduce their purchases or make their purchases out of state and Utah businesses would suffer. Less than two months after the increased tobacco tax went into effect, Taxpayer Association predictions are coming true.
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