UMA MEMBER COMPANIES IN THE NEWS:
INTERNATIONAL PAPER TO CONSOLIDATE UB Daily International Paper will consolidate its xpedx®, Western Paper Company™ and Zellerbach® operations in Salt Lake City, under the xpedx brand effective April 4, 2011. Western Paper provides paper, graphic supplies, equipment and services to printers in Utah, Idaho, Colorado, Nevada and Wyoming. It has operated in Salt Lake City for more than 100 years, the last 26 years from its facility at 2700 South 600 West. (Zellerbach is a UMA member company) View Full Article RENOVATION NAMED ONE OF 2010'S BEST CONSTRUCTION PROJECTS UB Daily Big-D Construction’s O.C. Tanner Flagship Store Renovation project was one of the most outstanding construction projects of 2010, the Associated General Contractors of America announced. (Both Big D and O.C. Tanner are UMA member companies) View Full Article
SENATE DEMOCRATS READY TO SUPPORT EPA OVERSIGHT ROLLBACK?
AP Senate Democrats "indicated Tuesday they may be willing to accept Republican-backed curbs on the Environmental Protection Agency...as part of an overall deal on spending cuts, a rare hint of compromise in private negotiations marked by public rancor. ... Any concession by Democrats on non-spending items would mark an attempt to persuade Republicans to accept smaller budget cuts than the $61 billion contained in legislation that passed the House last month." The AP adds that Senate Democrats "were mulling compromise language proposed by Sen. Debbie Stabenow" that "would bar EPA enforcement of greenhouse gas regulations for two years; create a single national standard for motor vehicle emissions; and exempt agriculture from greenhouse gas regulations."
The Hill "Healthwatch" blog reports the Manufacturers is among "a group of more than 250 trade associations" that "are backing a senator's plan to halt healthcare reform implementation until legal challenges are completely settled." The StartOver! Coalition argues that "it is 'prudent' to block implementation efforts as the courts hash out the constitutionality of healthcare reform." Noting the decision by US District Judge Roger Vinson, who earlier this year struck down healthcare reform "but allowed implementation to continue," the group wrote, "If [Vinson's] decision is upheld, state governments which have proceeded with implementation facing considerable risks if they do not do so, will have needlessly expended considerable sums of their taxpayers' money."
SmartBrief on Leadershsip Hackers are having a field day with decentralized workplaces, cloud-based data storage and increased use of mobile devices for enterprise applications, according to a new McAfee report. Cyber-criminals who once targeted individuals are shifting their attention to companies, hacking into company networks to acquire corporate secrets for sale to competitors. Portfolio.com/The Business Blotter blog
COORDINATING UTAH'S ECONOMIC GROWTH
New law creates council to direct GOED's efforts Andrew Kirk, Park Record As states struggle to emerge from the recession, the Governor's Office of Economic Development (GOED) is working hard to attract companies to Utah's business-friendly environment. To better coordinate that effort, Sen. Scott Jenkins, R-Plain City, sponsored Senate Bill 312 to create the GOED Coordinating Council.
"This is something the governor wanted," Jenkins said in an interview. "It helps them get together and discuss what options and opportunities are there."
According to the bill passed by the Utah Legislature earlier this month, the newly-created council will "plan, coordinate, and recommend strategies, goals, and activities related to economic growth and development in the state."
It will also advise on policies and objectives related to economic development and growth in the state. This will "avoid duplication and increase the availability of venture and seed capital for research and development and growth of new and existing businesses."
GOED has always focused on creating key "clusters" to grow the economy. This means attracting a critical mass of a certain type of business in order to make Utah a "hub" for that industry.
For example, Ogden in recent years has been successful in attracting outdoor-recreation equipment manufacturers.
One of the purposes of the new coordinating council is to better invest resources in selecting industries and geographical areas to create clusters.
Lastly, the new council will coordinate "ideas and strategies to increase national and international business activities for both urban and rural areas of the state."
Utah has already been performing well in this area. Governor Gary Herbert recently bragged Utah was the only state to increase its exports business in 2010. It has enjoyed a 71 percent increase over the past four years; Utah leads the nation in growth of export business.
GOED currently performs all the activities designated to the council, Jenkins said, but it is subdivided into departments that could better work together.
"Right now they are all there in their silos and don't consider each other," he said.
Gary Harter, GOED's managing director for business creation, said the council will be made up of representatives from GOED, the World Trade Center, USTAR, the Utah Capital Investment Corporation, the Economic Development Corporation of Utah, the Governor's Rural Partnership Board. For at-large members will also be appointed by the governor.
Harter said much of Utah's success in economic development can be attributed to the partnerships between sectors. This council will make that communication more efficient, he explained.
"We get everyone at the table talking about the issues and moving forward," he said. "It gets to the top levels of everything we do."
The first meeting of the council will likely occur within the next 90 days, he said.
Today in Manufacturing Facing pressure to curb rising gasoline prices, President Barack Obama is calling for the U.S. to reduce its oil imports by one third by 2025 ... continue
Today in Manufacturing Nation's largest dairy company agreed to sell a Wisconsin milk processing plant to settle an antitrust lawsuit filed by the Justice Department and three states ... continue
DOES THE WALMART CASE IMPACT MANUFACTURERS?
Manufacturers in the Courts (NAM) The Wal-Mart case argued this week in the Supreme Court could significantly alter the course of class-action litigation against manufacturers. Even though the company has an explicit nondiscrimination policy, the suit involves allegations that the company-wide management style allowed individual managers at Wal-Mart stores to engage in acts of discrimination. Of course, this claim could be made against virtually any company whose employment decisions are not centralized. The Court's ruling will be critical in determining whether such large discrimination suits, which typically involve individual behavior, can be certified as class actions. If they can, statistical pay disparities can lead to liability, and manufacturers will have tremendous difficulty defending against individual claims.
Manufacturers continue to press the courts for sensible interpretations of class-action rules, state and federal statutes, and constitutional provisions.
GOVERNMENT DISCLOSURE OF BUSINESS INFORMATION
Supreme Court rejects corporate privacy under FOIA. Manufacturers in the Courts (NAM) The Supreme Court decided March 1 that a provision in the Freedom of Information Act (FOIA) that protects against unwarranted invasions of personal privacy does not protect corporations from government disclosure of private information to competitors, trial lawyers or others. Although "person" is defined by FOIA to include corporations, the Act does not define "personal," and the Court ruled that the ordinary meaning covers only individuals. The NAM filed a brief urging broader protections, but the decision eliminates all protections except those found in Exemption 4 of FOIA, relating to trade secrets and privileged or confidential commercial or financial information. FCC v. AT&T, Inc. (S. Ct.).
LABOR LAW
Complaining employees gain new rights to sue. Manufacturers in the Courts (NAM) Grumbling or complaints from employees are nothing new, but until a Supreme Court decision this week, such actions were not always considered "filing a complaint" that gave the employees the right under the Fair Labor Standards Act to claim retaliation after an adverse employment action. On March 22, the Court interpreted that Act to grant full anti-retaliation protections to employees for verbal complaints about the workplace. The NAM had filed a brief warning that this interpretation would undermine the ability of employers to effectively manage their workforces, but the Court limited the protections to an employee with a complaint that is "sufficiently clear and detailed for a reasonable employer to understand it . . . as an assertion of rights protected by the statute and a call for their protection." Kasten v. Saint-Gobain Performance Plastics Corp. (S. Ct.).
PRODUCT LIABILITY
Who decides whether a manufacturing design is defective? Manufacturers in the Courts (NAM) That question under Nevada law remains unanswered in a case that recently settled. The trial court ruled that, under strict liability principles, a product is designed unreasonably if it poses a risk of injury beyond what would be expected by the product user's own subjective expectations. The NAM and other groups argued that the test must be objective: a design is unreasonable only if it poses a risk of injury beyond what would be expected by "the ordinary user having the ordinary knowledge available in the community." Uncertainty in this area of the law could lead to expanded claims against manufacturers. LeMans Corp. v. Provenza (Nev.).
ENVIRONMENTAL
NAM files reply brief in challenge to EPA's denial of Texas Flexible Permit program. Manufacturers in the Courts (NAM) On March 17, the NAM and others filed a reply brief arguing that states have substantial discretion under federal law to adopt flexible requirements that apply to minor changes in plant operations as long as air quality is protected. We argued that EPA improperly speculated that the Texas program allows major New Source Review requirements to be circumvented, and that EPA's assertion that the state program is deficient on enforcement is factually and legally unsupported. This litigation is intended to eliminate the ambiguity of EPA's latest actions and to restore predictable air pollution control regulation in Texas. Texas v. EPA (5th Cir.).
GOVERNMENT REGULATION
Right to EPA hearing prior to revoking pesticide tolerances. Manufacturers in the Courts (NAM) The NAM and other groups filed a brief urging the Supreme Court to review a case where the EPA unilaterally revoked a pesticide tolerance under the Federal Food, Drug and Cosmetic Act (FFDCA). The action effectively banned the pesticide, violating the right of pesticide manufacturers to an adjudicatory hearing. Whether such a right will be enforced has ramifications for pharmaceuticals, medical devices, food and beverages and certain consumer products as well. National Corn Growers Ass'n. v. EPA (S. Ct.).
LABOR LAW
Defining the scope of bargaining units. Manufacturers in the Courts (NAM) The NLRB is considering whether to allow very small bargaining units during union organizing efforts. The Coalition for a Democratic Workplace, of which the NAM is a member, filed an amicus brief on March 8 opposing the idea that employees performing the "same job at a single facility is presumptively appropriate" as the bargaining unit. The Board's ruling could reverse 50 years of case law by radically changing the standard for determining an appropriate bargaining unit, subjecting employers to increasingly complex labor-management compliance issues. In re Specialty Healthcare and Rehabilitation Center (NLRB).
PRODUCT LIABILITY
Product-alteration defense. Manufacturers in the Courts (NAM) The North Carolina Supreme Court has accepted for review a case challenging a ruling that removed a standard product alteration defense in a product liability case. The defense protects manufacturers against liability when their products are altered by someone else, but the lower court said the defense is not available unless the alteration was done by a party to the litigation. The NAM argued that the "party" can be any party, not just one involved in the lawsuit, and that manufacturers should not be liable for harms caused by product misuse. Stark v. Ford Motor Co. (N.C.).
TAXATION
NAM fights to eliminate export taxes. Manufacturers in the Courts (NAM) In an amicus brief filed on March 16, the NAM supported Supreme Court review of a decision that undermines the Constitution's protection against export taxes. The decision allows taxes based on a product's weight to avoid the export tax ban, even though the tax is imposed on goods in export transit. Unless reversed, the decision will encourage administrative agencies and Congress to impose more excise taxes on exports, threatening the recovery and small and medium-sized businesses. Consolidation Coal Co. v. United States (U.S. Supreme Court).
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