Labor & Employment

To keep manufacturing an engine of the economy, we need labor policies that support flexibility and innovation.

Press Releases

Manufacturers Secure Priorities in Year-End Stimulus Legislation

Stoick: “We have been fully engaged with House and Senate leaders to keep this vital work going"

Washington, D.C. – Following passage of Senate amendment to H.R. 133 – United States Mexico Economic Partnership Act [Consolidated Appropriations Act, 2021], National Association of Manufacturers Vice President of Government Relations Jordan Stoick released the following statement:

“Manufacturers secured many of our top priorities in this important legislation, including numerous provisions the NAM first proposed in our ‘American Renewal Action Plan.’ The additional funds for the Paycheck Protection Program will provide a continued lifeline for small manufacturers. Furthermore, the resources for testing and vaccine distribution, as well as tax incentives for manufacturers that keep employees on payroll and invest in safety measures, will ensure America’s dedicated, essential manufacturing workers can continue their mission safely.

“Across the country, manufacturers are providing the vaccines, PPE and supplies needed to defeat COVID-19, so we have been fully engaged with House and Senate leaders to keep this vital work going. We have a difficult winter ahead, and this legislation will help save lives and livelihoods and keep manufacturers operating. As folks continue to roll up their sleeves and receive initial doses of the vaccine, we are also looking to the other priorities facing us in the new year—including historic investments in infrastructure, energy innovation and more—to ensure manufacturers can lead a full economic recovery and American renewal.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.2 million men and women, contributes $2.35 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 62% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Workforce

Workers Without BAs Could Be Earning Much More

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About 30 million American workers without four-year college degrees have the skills necessary for jobs that pay 70% more than their current roles, according to a new study cited by The New York Times (subscription).

The opportunity: “The findings point to the potential of upward mobility for millions of Americans, who might be able to climb from low-wage jobs to middle-income occupations or higher.”

  • “Our research shows the same thing,” said Manufacturing Institute Vice President of Strategic Initiatives Gardner Carrick. “We know that less than half the people that earn a manufacturing certification go to work in manufacturing. Those people have the skills to work in manufacturing, but are not doing so. And we know that is costing them between $10K–$15K in earnings every year.”

The challenge: These workers may not know they have the skills for more lucrative careers, and potential employers may be on the lookout for particular certifications or degrees. Today, two-thirds of jobs require some postsecondary education or training—whether that involves a four-year college degree, or a specialized technical or nontechnical course that prepares a potential employee for their role.

A way forward: The Manufacturing Institute’s FAME program offers students the opportunity to earn a two-year associate degree while working in their sponsor’s manufacturing facility as an Advanced Manufacturing Technician (AMT).

The pitch: “The FAME program enables people to maximize their earnings, because we don’t just build skills—we teach individuals to be world-class manufacturing employees,” said Carrick. “A recent study by Opportunity America and the Brookings Institution showed that FAME students are more than twice as likely to complete school as students in other similar technical programs and will earn almost twice as much as those students in the five years after school.”

Press Releases

H-1B Ruling Win for Hundreds of Thousands of Workers

NAM’s Kelly: “We need high-skilled innovators now more than ever”

Washington, D.C. – National Association of Manufacturers Senior Vice President, General Counsel and Corporate Secretary Linda Kelly released the following statement on the U.S. District Court for the Northern District of California’s order to strike down the Trump administration’s recent changes to the H-1B visa program:

“This ruling is a win for the hundreds of thousands of American-based workers who are essential to the recovery and renewal of our industry and our economy. We need high-skilled innovators now more than ever, and the administration’s attempt to rush these rules forward without properly considering their impact on thousands of people on the front lines of developing vaccines and treatments and making critical supplies, as well as saving lives in our hospitals, could have devastating consequences at a critical moment in our history. We’re pleased that the court’s decision recognizes the critical role the H-1B program plays in our manufacturing economy.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.2 million men and women, contributes $2.35 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 62% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Press Releases

Manufacturers: Yellen Is a Champion of the American Worker

Timmons: “Janet Yellen possesses extraordinary expertise and sterling credentials to serve as U.S. Treasury Secretary”

Washington, D.C. – Following President-elect Joe Biden’s announcement of former Federal Reserve Chair Janet Yellen to be his nominee for Secretary of the Treasury, National Association of Manufacturers President and CEO Jay Timmons released this statement:

“Janet Yellen possesses extraordinary expertise and sterling credentials to serve as U.S. Treasury Secretary. Her nomination is, of course, historic as she will be the first woman to serve as Secretary. NAM leadership met twice with Chair Yellen during her time leading the Federal Reserve. We were struck by, and appreciative of, how focused she was on American workers and the success of the manufacturing sector. Our conversations with her were refreshingly never one-way as she listened intently to the perspectives of America’s frontline job creators and asked probative questions on how Federal Reserve policies impacted our ability to invest, hire and strengthen our communities. We look forward to a similar productive relationship in working with the future Secretary as we continue to seek clarity on additional stimulus and economic needs for the sector’s recovery.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.2 million men and women, contributes $2.35 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 62% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Workforce

Manufacturing Job Openings Rise, Total Openings Fall

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August saw a reduction in the number of available jobs for the first time in four months, according to the Labor Department’s Job Openings and Labor Turnover Survey, Reuters reports. However, manufacturing job openings rose that month, NAM Chief Economist Chad Moutray tells us.

Manufacturing: According to Moutray, “Manufacturing job openings in August reached 460,000, up from 430,000 in July and the best reading since July 2019 (477,000). This improvement suggests that firms are once again increasing their interest in adding new workers, even as the sector attempts to rebound from the COVID-19 pandemic and the overall labor market has changed dramatically.”

Overall economy: The picture for the overall economy isn’t as strong:

  • Job openings fell to 6.49 million—a decrease of 204,000.
  • The job openings rate fell to 4.4% from 4.6% in the prior month.
  • The number of people leaving their jobs voluntarily was 2.79 million in August—down 139,000 from the month before.

About half of the jobs lost during the COVID-19 pandemic have not yet been recovered.

Press Releases

Manufacturers Put Forward Bold Actions to Close Opportunity Gap and Transform Industry Workforce

Task Force of Industry Leaders Identify and Offer Next Steps

Washington, D.C. – Following the industry’s June “Pledge for Action,” the National Association of Manufacturers brought industry leaders together to focus on recommending bold next steps manufacturers can take to increase equity and parity for underrepresented communities in America.

The Task Force on Closing the Opportunity Gap has put forth actions that will transform the industry workforce: By 2025, manufacturers commit to taking 50,000 tangible actions to increase equity and parity for underrepresented communities, creating 300,000 pathways to job opportunities for Black people and all people of color. In doing so, manufacturing will reflect the diversity of the overall U.S. workforce by 2030.

The Manufacturing Institute, the NAM’s workforce development and education partner, will collect individual commitments from companies to ensure that the goal of 50,000 actions is met by 2025 and that the industry reaches its diversity goals by 2030. NAM President and CEO Jay Timmons affirmed the commitment on behalf of the industry.

Timmons, Trane Technologies Chairman and CEO and NAM Board Chair Mike Lamach and Manufacturing Institute Executive Director Carolyn Lee made the following statements on this landmark initiative.

“Our industry plays an integral role in lifting up people and communities,” said Lamach, “and now we have a special obligation to stand with and support all people who face injustice. We must play a part in tearing down the persistent and pernicious structural barriers to opportunity in this country.”

“I am proud to make this commitment on behalf of the industry and thank Mike and the task force for their leadership. As manufacturers across America redouble our efforts to build more inclusive and equitable workplaces and communities, we will be the catalyst for even greater change,” said Timmons. “We can spark a chain reaction for equity—that makes our businesses more successful, our communities stronger and our nation one that truly guarantees ‘liberty and justice for all.’”

“Not only are manufacturers making a bold promise, but they are also committing to be held accountable,” said Lee. “The Manufacturing Institute will collect individual commitments from companies, support their efforts with key resources and track the industry’s progress in creating these opportunities and pathways over the coming years to ensure we reach our 2030 target.”

Background on the Task Force: On June 11, the NAM’s Executive Committee unanimously approved the 11-point “Pledge for Action to advance justice, equality and opportunity for Black people and all people of color. The Task Force on Closing the Opportunity Gap’s commitment, announced today, follows through on elements of the “Pledge for Action.”

Members of the task force include the following:

  • Task Force Chair: Mike Lamach, chairman and CEO, Trane Technologies and NAM Board chair
  • Dev Ahuja, SVP and CFO, Novelis Inc.
  • Alejandro Alvarez, SVP, chief production officer and sustainability officer, Brown-Forman Corporation
  • Neil Chapman, senior vice president, Exxon Mobil Corporation
  • Julie Copeland, CEO, Arbill
  • Mark Cordova, president, Centennial Bolt, Inc.
  • Chris Edwards, Co-CEO, Edward Marc Brands, Inc.
  • Jim Fitterling, chairman and CEO, Dow Inc. and NAM Board vice chair
  • Vicki Holt, president and CEO, Protolabs and NAM Small and Medium Manufacturers Group vice chair
  • Frederick Humphries, corporate VP, U.S. government affairs, Microsoft Corporation
  • Vimal Kapur, president and CEO, Honeywell Building Technologies
  • Lawrence Kurzius, chairman, president and CEO, McCormick & Company, Inc.
  • Mike McDermott, president, Pfizer global supply, Pfizer, Inc.
  • Aneesa Muthana, president and CEO, Pioneer Service Inc.
  • Chris Nielsen, EVP – product support and chief quality officer, Toyota Motor North America
  • Quentin Roach, SVP – global supply chain and chief procurement officer, Mondelez International
  • Kathy Wengel, EVP, chief global supply chain officer, Johnson & Johnson
  • Chris Womack, president, external affairs, Southern Company

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.1 million men and women, contributes $2.36 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org

Policy and Legal

Labor Department Announces Contractor Rule

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The U.S. Department of Labor announced a rule that would classify gig workers as contractors rather than employees, according to The New York Times (subscription).

The rule: The new rule identifies two main factors as determinants of whether a person should be classified as a contractor or an employee.

  • The first is how much a company controls the way a worker performs his or her job.
  • The second is how much a worker can profit based on initiative, as opposed to earning a steady salary regardless of performance.

The upshot: The rule could likely shift the employment status of millions of Americans, including many in manufacturing. If they use contractors, companies do not have to pay the minimum wage, overtime, a portion of social security taxes, or unemployment insurance and workers’ compensation insurance.

A word from the NAM: “When finalized, the rule could solidify the use of independent contractors, including in manufacturing. Independent contractor arrangements benefit companies and workers by increasing flexibility and streamlining the human resources processes,” explains NAM Director of Labor and Employment Policy Drew Schneider. He adds:

  • “Manufacturers are currently operating under a confusing patchwork of state and federal laws that have defined independent contractors in numerous ways, causing legal uncertainty and unnecessary compliance costs.”
  • “Manufacturers and their business partners will benefit from a clear and updated independent contractor standard that protects this important business practice and allows NAM members to focus on producing America’s essential goods and services.”
Press Releases

Manufacturers Survey Finds Broad Usage of PPP, Main Street Lending Programs

As Challenges Remain, Optimism Begins to Rebound

Washington, D.C. – The National Association of Manufacturers has released its third quarter Manufacturers’ Outlook Survey, which shows strong use of liquidity programs like the Paycheck Protection Program and Main Street Lending Program.

Of the 82.7% of respondents who say COVID-19 had or will have a negative impact on their cash flow, 72.1% noted they had obtained funds through the Paycheck Protection Program, Main Street Lending Program or other liquidity programs—especially small manufacturers. More importantly, of those firms taking advantage of such programs, 91.6% reported that those funds helped keep their business afloat, retain their workforce or meet other necessary expenses. Knowing how critical this was for the industry, the NAM called for these programs and subsequent expansions in its “COVID-19 Policy Action Plan Recommendations” and “American Renewal Action Plan.”

Manufacturing optimism has also rebounded to 66% since the second quarter of 2020, when it had the worst reading since the Great Recession. Still, the outlook remains below the historical average of 74.4%, and 62% of manufacturers expect their firm’s revenues will not get back to pre-COVID-19 levels until 2021 or later.

“Congress and the administration have acted on more than five dozen of the policy provisions that the NAM made in our ‘American Renewal Action Plan’ and other recommendations,” said NAM President and CEO Jay Timmons. “Without the bipartisan relief legislation signed into law earlier this year, this rise in optimism would not have been possible. But for our industry to truly recover and to keep our economy growing, further bipartisan congressional action is needed.”

Read the full survey results here.

Background: In March, the NAM released its “COVID-19 Policy Action Plan Recommendations,” which guided earlier relief legislation. In April, the NAM released its “American Renewal Action Plan,” and Congress and the administration have acted on many of its provisions. To date, 60 provisions from the NAM’s plans have been adopted.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.1 million men and women, contributes $2.36 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Press Releases

Manufacturers Seek to Immediately Halt Administration’s Unlawful Visa Restrictions with Injunction

Washington, D.C. – The National Association of Manufacturers released this statement after filing a motion for preliminary injunction in federal court today. The motion would call for an immediate hold on a series of damaging visa restrictions that prevent manufacturers from filling crucial, hard-to-fill jobs to support economic recovery, growth and innovation when we most need it.

“These unlawful visa restrictions hurt manufacturers and their workers at a time when we need driven, high-skilled innovators more than ever,” said NAM Senior Vice President and General Counsel Linda Kelly. “Destroying the investments we have made to find and grow talent will only stifle American innovation while serving up crucial talent and a competitive advantage to other nations on a silver platter. We are asking the court to put an immediate stop to this bad policy. We know our case is strong, and we must prevent irreparable harm to American manufacturing while we await our day in court.”

To read the motion for preliminary injunction, click here.

NOTE: Last week, the NAM was joined by industry associations representing much of the American economy in filing a lawsuit in federal court opposing the Trump administration’s proclamation suspending new nonimmigrant visas.

Read the NAM’s plan for comprehensive immigration reform, “A Way Forward.” To learn more about the Manufacturers’ Center for Legal Action, click here.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 11.7 million men and women, contributes $2.37 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

News

Masks Equal Money: The NAM Asks Americans to Wear Face Coverings in Public

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Wearing a face covering in public spaces isn’t just about protecting other people—it’s also about protecting America’s reopening, jobs and manufacturing industry.

That’s the message of the NAM’s recent series of public service videos calling for the widespread use of face coverings in public—something manufacturers have been encouraging for months.

On social media, the videos have reached more than 1.4 million people and have been amplified by high-profile figures, including the U.S. surgeon general, U.S. senators and members of the media.

NAM leads the way: NAM President and CEO Jay Timmons was among the first in the business community to call for social distancing and promote the use of face coverings as essential to reopening the U.S. economy.

  • “The one thing that we know right now that you shouldn’t be doing is you shouldn’t be coming in contact with other human beings, outside of your immediate family, your nuclear family. That’s it. That’s all the people are asking,” Timmons said to The New York Times in April.
  • “It’s really that simple. If you want to be a patriotic American, put on a face covering,” Timmons said on Fox Business in May, putting on a face covering himself.

Innovation amid crisis: “Our members are innovating at a rapid pace to meet the needs posed by the pandemic, and our team is responding in kind by addressing one of the most critical challenges we face in keeping our workers safe and the industry and country open,” said Erin Streeter, senior vice president of communications and brand strategy at the NAM. “We’re doubling down on creativity to see us through this crisis, so you’re seeing new tactics like deploying social media influencers to help, illustrations and designs to break through and a total guerrilla-style campaign that leverages all of our communications assets—NAM leadership, owned media, earned media and social media—to get the job done.”

#MasksEqualMoney: This week, the NAM unveiled a series of illustrations on Instagram that show how essential masks are to keeping the American economy open and protecting frontline workers.

TikTok stars join in: To reach young people, social media stars Granny Coy Bundy and Grandpa Charles Mallet lent their platforms to the NAM.

Ripple effect: “We didn’t just dip our toes into this challenge; we dove in given the urgency of the public health and economic crisis,” said Streeter. “We’ve relied on the strength of our creativity to press this forward—and we’re seeing our member companies, partner associations and other business and public health entities helping to amplify our messages. We’re also seeing others follow our lead to collectively create a force multiplier effect that is making a difference.”

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