Capital Briefing: April 26, 2012

A Publication of the National Association of Manufacturers

April 26, 2012

Senators Fail to Stop NLRB's Harmful Ambush Elections Rule. Manufacturers were disappointed on Tuesday, April 24, when the Senate rejected (along party lines) Sen. Michael Enzi's (R-WY) resolution to disapprove the National Labor Relations Board’s (NLRB) "ambush elections" rule. S.J. Res. 36 was rejected by a vote of 45-54. Sen. Lisa Murkowski (R-AK) was the only Republican to vote with the Democrats to defeat the measure.

Under current law, the median number of days it takes to hold a union representation election is 38 days. This provides enough time for employees to educate themselves and make informed decisions about whether they wish to join a union or not. The NLRB’s new regulation, finalized in December and scheduled to take effect on Monday, April 30, shortens the time frame for union certification elections to 20 days—constraining employers’ ability to inform their employees about a pending election. It will strip employers of their right to have certain pre-election disputes adjudicated until after the election has taken place.

Ambush elections also are bad news for employees. By shortening the time before a union election, workers will be less likely to get all the facts essential to making such an important decision. The ambush rule is yet another example of NLRB overregulation and places an undue burden on employers and employees alike.

The NAM key voted Sen. Enzi's measure and, along with the National Federation of Independent Business (NFIB), issued online and radio ads in targeted states ahead of the Senate vote. The ads highlight that rather than enforce existing rules, the NLRB is imposing new regulations like ambush elections, overturning decades of labor laws to benefit special interests at the expense of hard working taxpayers. Prior to the vote, NAM Senior Vice President of Policy and Government Relations Aric Newhouse issued a statement in support of S.J. Res. 36.

"On April 30, the NLRB is set to overhaul 75 years of established labor policy with new union election rules that are both unnecessary and misguided. These changes, coupled with additional NLRB proposals that threaten workplace relations, undermine manufacturers’ efforts to create jobs and grow the econonmy," said Newhouse.

It is still possible that the rule—and the April 30 effective date--will be delayed. The NAM, as part of the Coalition for a Democratic Workplace, is awaiting the federal court's decision in a motion for injunction to block the rule from taking effect. Click here to read more.

Details: Amanda Wood, (202) 637-3128 and Joe Trauger, (202) 637-3127.

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NAM Monitors Energy and Pension Provisions in Transportation Bill. The House and Senate took the next steps to initiate a conference committee on the surface transportation authorization this week and appointed 47 conferees. It is not yet clear when the first conference committee will be held. It is anticipated that the chairman of the conference will be named by the Senate. Manufacturers will be closely monitoring key provisions of importanceincluding language that would approve the entire Keystone XL pipeline and provisions that would prevent the Environmental Protection Agency (EPA) from regulating coal ash as a hazardous material. Several Senate Democrats on the conference committee have promised to fight the inclusion of these two provisions in the transportation bill. Also to be considered as part of the conference committee will be a pension funding stabilization provision included in the Senate-passed legislation, which would allow pension funding obligations to be based on a more historically accurate interest rate than the rate used today. This provision was included as a way to help pay for the Senate bill and has the strong support of the business community. The NAM has been working over the past several months to advance this provision and will continue to educate the House on the need for funding stabilization. The NAM will be weighing in with the conference committee in the weeks ahead.

Details: Robyn Boerstling, (202) 637-3178 and Chip Yost, (202) 637-3175.

, (202) 637-3178 and , (202) 637-3175.

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NAM Continues Push for MTB Process. On March 30, Senate Finance Chairman Max Baucus (D-MT) and House Ways and Means Chairman Dave Camp (R-MI) announced that they would commence the miscellaneous tariff bill (MTB) process. The MTB process allows companies to request that members of Congress submit bills to suspend import duties on manufactured goods inputs that are unavailable in the United States and therefore must be imported. The NAM has been leading the lobbying and advocacy on this effort, working with relevant congressional committees and leadership. As there is no domestic production of such goods, the import duties protect no one and are simply a tax on manufacturing. There is no limit to the number of bills members of Congress can submit on behalf of their constituents, and each bill can suspend duties up to $500,000. Duties are suspended for a three-year period. The NAM has been pushing back on recent, inaccurate media accounts of the MTB process and published a letter to the editor in Politico on Thursday, April 26. The letter underscores that MTBs are not earmarks and are not limited tariff benefits because once a duty is suspended, any American importer may benefit from it. There is no limit on the number of businesses or importers who can take advantage of the suspended duty. The NAM continues to emphasize to members of Congress how MTBs allow American manufacturers to keep their costs low, retain jobs and improve competitiveness.

on Thursday, April 26. The letter underscores that MTBs are not earmarks and are not limited tariff benefits because once a duty is suspended, any American importer may benefit from it. There is no limit on the number of businesses or importers who can take advantage of the suspended duty. The NAM continues to emphasize to members of Congress how MTBs allow American manufacturers to keep their costs low, retain jobs and improve competitiveness.

Details: Jessica Lemos, (202) 637-3078.

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Tax Technology and Domestic Economic Policy

House Turns Its Attention to NAM-Supported Cybersecurity Bills. As part of what is being called "Cyber Week" by House leadership, the House is scheduled to vote on four cybersecurity bills on Thursday, April 26 and Friday, April 27. The NAM sent a letter to Capitol Hill on Wednesday, April 25, in support of all four bills. The NAM has been advocating for common-sense legislation that removes the barriers between the public and private sector that prevent them from sharing cyberthreat information. We have also called for improving how the federal government coordinates its cybersecurity research and development (R&D) efforts as well as the importance of a highly-skilled federal cyber-workforce. These bills address these critical issues for manufacturers.

to Capitol Hill on Wednesday, April 25, in support of all four bills. The NAM has been advocating for common-sense legislation that removes the barriers between the public and private sector that prevent them from sharing cyberthreat information. We have also called for improving how the federal government coordinates its cybersecurity research and development (R&D) efforts as well as the importance of a highly-skilled federal cyber-workforce. These bills address these critical issues for manufacturers.

Details: Brian Raymond, (202) 637-3072.

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NAM Challenges NLRB’s Dangerous Micro-Union Policy. The NAM and other business groups joined in a brief on Monday, April 23, urging the Sixth Circuit to overturn a new National Labor Relations Board (NLRB) policy that makes it easy for an exceedingly small group of employees to form a collective bargaining unit in the workplace. The NAM argues that the NLRB ruling, which puts an extremely difficult burden of proof on manufacturers to show that a larger unit is more appropriate, violates federal law and ignores the responsibility of the Board to include workers with similar interests in single units. We also argue that the Board improperly delegated its obligations to workers who want to unionize, undermining the rights of other workers to fully exercise their rights. The result of the Board's policy, announced in the Specialty Healthcare case last August, is piece-meal unionization, very inefficient collective bargaining and conflicting workforce demands. This kind of fundamental policy change should be subject to the rigors of notice-of-comment rulemaking, not merely announcing the change through a case decision. See Kindred Nursing Centers East, LLC v. NLRB (6th Cir.).

(6th Cir.).

Details: Quentin Riegel, (202) 637-3058.

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NAM Board Chair and Vermeer Corporation President and CEO Mary Andringa gave the opening keynote address, "Let Us Lead: Overcoming the Challenges of Manufacturing in the U.S." at the 2012 IndustryWeek Best Plants Conference in Indianapolis, Ind., this week. Andringa discussed the best practices that have transformed her company into a global powerhouse and the need for policies that make the United States more competitive; such as the policies outlined in the NAM "A Manufacturing Renaissance: Four Goals for Economic Growth."

Photo by Robert Banayote.

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Design Your Get Out the Vote Plan with the NAM Election Center. The 2012 general election is 193 days away. Have you mapped out a Get Out the Vote plan for your company yet? Visit the NAM Election Center for tips on ways to engage your employees in the electoral process.

for tips on ways to engage your employees in the electoral process.

Details: Erik Rosedahl, (202) 637-3054 and Leann Paradise, (202) 637-3049.

This Is Manufacturing's Moment;Meet with Lawmakers in Washington at the NAM Manufacturing Summit. Members of Congress need to know how their decisions impact manufacturing, come tell your story June 6-7 in Washington, D.C., at the NAM's Manufacturing Summit. The most powerful way to influence members of Congress is for them to hear personal stories of how their legislation impacts their constituents. Your participation could make all the difference in how Congress decides to act on issues of importance to the manufacturing community. This annual fly-in event will focus on energy and regulations, tax policy and workforce issues. It is critical for manufacturer from front office executives to plant managers and workers on the front line to visit congressional offices and emphasize the need for policies that will spur vigorous economic growth and reduce the cost of doing business. For details and to register, visit www.nam.org/summit. Click here to follow the NAM's Twitter feed and look for the hashtag #namsummit for up-to-the-minute details.

Details: Meredith Nethercutt, (202) 637-3121.

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NAM Continues Industry Partnership with International Manufacturing Technology Show IMTS 2012. The NAM-IMTS partnership brings the organizations together in support of the premier manufacturing technology show in the Americas. IMTS 2012 will be held September 10-15, 2012, at McCormick Place in Chicago, Ill. NAM members receive a special discounted rate of $20 per attendee, regardless of whether you are sending one person or a group. More than 1,000 of the world's leading manufacturing technology providers will demonstrate their latest machines, tools, software, instruments and more, and 82 percent of attendees find specific products or solutions on the trade show floor. Click here to register or here for more about IMTS. Dominate the competition. Be there.

to register or for more about IMTS. Dominate the competition. Be there.

Details: Wendy McIntyre, (202) 637-3197.

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Questions or comments? Please contact Clare James Johnson at cjohnson@nam.org.

President and CEO: Jay Timmons
Senior Vice President, Policy and Government Relations: Aric Newhouse
Senior Vice President, Communications: Erin Streeter