November 30, 2011

BOEING-NLRB LAWSUIT COULD END ON NEW AGREEMENT

Today in Manufacturing
If union members vote to approve the agreement, the union would inform the NLRB that it has no further grievances with Boeing ... continue

FEATURE: HOW TO SPOT A FAKE
Today in Manufacturing
The increased prevalence of counterfeit products only heightens the need for suppliers, distributors, and end users to communicate better ... continue

CHAFFETZ ANNOUNCES SOCIAL SECURITY REFORM PROPOSAL
Rep. Jason Chaffetz e-Update

On Sunday, Congressman Chaffetz sat down with Bruce Lindsay on KSL’s Sunday Edition to talk about his recently announced proposal for Social Security Reform.

Under the Chaffetz proposal, Social Security would achieve permanent annual balance by 2051, achieve actuarial balance for the next 75 years, and avoids tax increases and trust fund insolvency. Future retirees, including today’s very young workers, will have increased certainty regarding their retirement.

Social Security is the largest single item in the federal budget. In fiscal year 2011, the federal government spent $730 billion on Social Security, or 20% of the total $3.6 trillion federal budget. Over the next 75 years, Social Security’s unfunded liability is $6.5 trillion. The proposal set out by Congressman Chaffetz will improve Social Security’s balance over the next 75 years by $7.5 trillion in 2011 present value dollars.

“There is no excuse for allowing Social Security to become insolvent,” said Chaffetz. “The program is unsustainable in its current form. However, this problem is completely within our power to resolve – without tax increases, while protecting retirees. This series of simple steps will make the program solvent and allow younger generations to more accurately anticipate their own retirement needs.”

Chaffetz Immigration Reform Passes House of Representatives
Rep. Jason Chaffetz e-Update

Actively pursuing ways to fix America's legal immigration system, yesterday Congressman Jason Chaffetz' Fairness for High-Skilled Immigrants Act (H.R. 3012) passed the House of Representatives by an overwhelming bipartisan vote of 389 to 15.

This bill eliminates the employment-based per-country cap entirely and helps employers focus on creating jobs and growing our economy. It also raises the family-sponsored per-country cap from 7% to 15% without increasing the net number of visas. Under current law, the total number of family-sponsored and employment-based green cards available to natives of any one country cannot exceed 7% of the total number of green cards available each year. Congressman Chaffetz wrote an op-ed on this legislation which ran in the Deseret News.

"I'm thrilled to see this pro-growth, pro-jobs, and pro-family legislation pass the House of Representatives with bipartisan support," said Chaffetz. "I'm committed to fixing legal immigration and this bill is one step in that important process."

INDIAN GROWTH LOWEST IN TWO YEARS
Quick Manufacturing News
Hit by a string of interest rate hikes and the stumbling world economy, India's economic growth slumped to a two-year-low of 6.9% in the second quarter. Click to continue

EUROPEAN MACHINE TOOL BUILDERS WARN OF SLOWDOWN
Quick Manufacturing News
Two reports suggest sales of machine tools are slowing in the EU. The German Machine Tool Builders' Assn. announced its members' face slower growth than the robust levels of demand that have been recorded through much of this year; and the European Association of the Machine Tool Industries, said 'uncertainty in the financial markets is spreading to the industrial sectors and might influence the growth rates in 2012.' Click to continue

JAPAN FACTORY OUTPUT RISES 2.4% IN OCTOBER
Quick Manufacturing News
The rise beat market expectations and reversed a drop in factory output in September. Click to continue

MANUFACTURERS IN THE COURTS
NAM
NAM moves to end greenhouse gas "public trust" litigation. On October 31, the NAM asked a judge in California to throw out a lawsuit brought by various environmental plaintiffs against the federal government. The environmentalists seek to force 6 percent across-the-board reductions in carbon dioxide emissions every year starting in 2013. The NAM's motion to intervene in this case highlights the dramatic and devastating effects that such judicial intervention would have on manufacturing processes and investments, production and transportation costs, global competitiveness, domestic job creation and the U.S. economy. The NAM offered compelling reasons for the court to dismiss the suit: 1) the case presents political questions that courts are not able to resolve; 2) the plaintiffs lack standing because their injuries are too speculative and not likely to be reduced by the relief sought; 3) the public trust doctrine does not exist under federal law and the claims have been displaced by federal regulation in this area; and 4) the doctrine does not apply to the atmosphere or impose a duty to regulate greenhouse gas emissions. A preliminary hearing is scheduled for November 30. Alec L. v. Jackson (N.D. Cal.).

Environmental challenge to EPA's decision not to reconsider ozone regulation in 2011. Environmental groups are continuing to pressure the EPA to lower existing ozone standards, which are already the subject of an NAM challenge, even further. Earlier this year, President Obama called on the agency to defer reconsideration of the existing rules, which it did. Subsequently, various groups sued. The Ozone NAAQS Litigation Group, of which the NAM is a member, moved to intervene in this litigation to support EPA's decision not to change the existing ozone limits at this time. American Lung Ass'n v. EPA (D.C. Circuit).

Amicus briefs support NAM lawsuit against NLRB. On November 16, House Education and Workforce Committee Chair John Kline (R-MN) and 35 other members of Congress filed an amicus brief in federal court in support of the NAM's lawsuit against the National Labor Relations Board (NLRB). On November 21, the Motor & Equipment Manufacturers Association (MEMA) filed its own brief supporting the litigation. The NAM's suit challenged the NLRB's final rule requiring all employers to post a notice of employees' rights. The congressional brief raises three issues, which support the NAM's contention that the NLRB lacks authority to issue such a rule: 1) Congress has not granted the Board the authority to require a general notice posting by employers; 2) Congress has restricted the Board's authority to hearing facts from parties through a hearing process; and 3) the Board's regulation undermines Congress's efforts to inform workers of rights. In addition, the MEMA brief warns that the NLRB's meddling rule is designed to agitate the existing equilibrium between management and labor. The NAM filed our reply brief on November 22, and a hearing is scheduled for December 19. As a result of the lawsuit, the Board postponed the effective date of the rule to January 31, 2012. A ruling from the judge is expected prior to that date. National Association of Manufacturers v. NLRB (D.D.C.).

LABOR DEPT: SUMMER WORKER PRODUCTIVITY ROSE
Today in Manufacturing
Productivity rose at an annual rate of 2.3 percent in the July-September quarter, less than expected, but labor costs also fell 2.5 percent ... continue

JAPANESE FACTORY OUTPUT RISES
Today in Manufacturing
Japan's factory production rose for the first time in two months as auto and machinery makers expanded output while bracing for global headwinds ... continue

CONTACT YOUR MEMBERS OF CONGRESS AND ASK THEM FOR FEDERAL REGULATORY RELIEF
National Association of Manufacturers
Manufacturers face an extraordinary amount of regulations that have a direct impact on their bottom line. In addition, agencies such as the Environmental Protection Agency (EPA) and the National Labor Relations Board (NLRB) are currently pursuing an aggressive regulatory agenda. These regulatory changes lead to uncertainty and high costs, especially on small businesses.

Congress will soon be considering two important pieces of legislation that will improve the current regulatory system by providing certainty and reducing cost imposed on business. The Regulatory Accountability Act of 2011 (H.R. 3010) would improve federal policies by using sound regulatory principles, ensuring rules are supported by strong and credible evidence and inflicting the least burden possible while still achieving Congressional intent. In addition, the Regulatory Flexibility Improvements Act of 2011 (H.R. 527) would reduce the regulatory cost imposed on small manufacturers by strengthening a 30-year old law, the Regulatory Flexibility Act, that requires agencies to thoughtfully consider the impact of their rules on small entities. Agencies sometimes use loopholes in current law to avoid requirements that they reduce the regulatory cost on small businesses. H.R. 527 closes those loopholes.

Please contact your legislators today and urge them to support H.R. 3010 and H.R. 527. With the current condition of the American economy and continued weakness in job creation, we need legislation that ensures a regulatory system meets its objectives while maintaining the global competitiveness of U.S. manufacturers.

To send a message directly to your member of Congress, click here.