Coming on the heels of Thanksgiving and “Black Friday”, Small Business Saturday is a perfect opportunity for Americans to pause and contemplate the critical role small businesses play in our nation’s economy. Many small businesses are family-owned and are responsible for 62 percent of the country’s employment and $5.9 trillion of the nation’s GDP. Often with deep roots, these family-owned businesses play critical roles in the philanthropic and the economic heart of local communities. Read More
National Association of Manufacturers (NAM) Senior Vice President and General Counsel Linda Kelly issued the following statement after a federal judge temporarily halted the Obama administration’s final overtime regulation:
“The Manufacturers’ Center for Legal Action is the last line of defense from unreasonable regulations that harm not just job growth but also manufacturers’ ability to stay in business. Today’s decision is an important win for all manufacturers in America—halting what would have been a dramatic and devastating change in labor law that manufacturers could not afford. The rule would have vastly expanded the number of employees that would be eligible for overtime. The decision brings us a step closer to curbing regulations that have resulted in $80 billion in compliance costs and more than 25 million hours of paperwork.
“In the days and weeks ahead, the NAM looks forward to working with the Trump administration and the 115th Congress to right a regulatory and legal system that has pummeled the manufacturing industry in America. The fights are not yet over—and our work is just beginning.”
The Manufacturers’ Center for Legal Action (MCLA) serves as the leading voice of manufacturers in the courts, representing the more than 12 million men and women who make things in the United States. The MCLA strategically engages in litigation as a direct party, intervenes in litigation important to manufacturers and weighs in as amicus curiae on important cases.
Manufacturers and their employees share a mutual goal of a safe, communicative and productive workplace, and good policy from Washington is part of the solution. To learn more, visit our website.
On May 2, 2016, the NAM joined with the American Foundry Society to challenge the Occupational and Health Administration’s (OSHA) new crystalline silica rule, which cuts the current permissible exposure limit in half and requires employers to implement costly engineering controls. The rule attempts to limit exposure to silica-containing materials such as concrete and stone in industries such as brick manufacturing, foundries and hydraulic fracturing. We are fighting this rule on all fronts by both petitioning for review of the final rule and intervening to address the union filings directly. Last week, on November 11, 2016, we filed our joint industry opening brief to oppose this rule, which will severely stunt the economy and burden manufacturers. Read More
President Obama has relied on, and expanded, the power of the administrative state by making substantial use of both executive orders and presidential memoranda to achieve policy objectives. Executive orders are appealing to any president because they can be quietly and quickly implemented without hearings, votes or substantive public feedback. President Obama has been direct in favoring this approach, stating, “We’re not just going to be waiting for legislation in order to make sure that we’re providing Americans the kind of help they need. I’ve got a pen and I’ve got a phone.”
The National Association of Manufacturers (NAM) ramped up its litigation in response to the tsunami of regulations coming out of the White House. In this final year of the president’s term, the regulatory spigot has only been turned up. The NAM is currently suing the federal government in 16 cases for overregulation.
The Manufacturers’ Center for Legal Action has argued in the courts that the president overstepped his constitutional power in issuing many memoranda and executive orders affecting labor and environmental law. However, a presidential legacy implemented by the pen can be destroyed by the pen. First, an executive order can be revoked by another executive order, and it is common for presidents to revoke some of their predecessors’ executive orders. Second, Congress can revoke an executive order through legislation. Third, an executive order can be revoked by a federal appeals court or the Supreme Court.
This year’s election will have a profound impact on future NAM litigation efforts to limit executive overregulation through the courts. President-elect Trump will fill the Supreme Court vacancy created by Justice Antonin Scalia’s death and potentially two or more additional seats as justices retire. If multiple vacancies occur, the Court will shift from its previous makeup of five conservative and four liberal justices that shaped some of the nation’s most significant issues on social norms, individual rights, the balance of government powers and business and workplace matters. Several if not all of the cases in which the NAM is suing the government for executive overreach may end up in a newly configured Supreme Court, and the outcome of President Obama’s regulatory legacy will largely rest on the Supreme Court nominees of President-elect Trump.
The Court has not had a liberal majority since the retirement of Chief Justice Earl Warren in 1969, and during the past 48-year period, the Court has made a modest shift to curtail executive overreach. Without a majority conservative Court, many pro-business decisions on labor and environmental issues would likely not have been rendered. It is generally thought that President-elect Trump will support Supreme Court nominees who believe the Founders’ words in the Constitution mean what they say, not that the Constitution should be seen as a living document. Justices in this mold will likely not support broad deference to executive authority and agency actions. The issues at stake range from the ability of citizens to challenge regulations by administrative fiat to the ability of workers to unionize.
The morning after the election brought with it discussion of whether Democrats will filibuster the Trump administration’s Supreme Court nominees. The Senate confirmation process will offer a critical view into the Supreme Court’s future and the legacy of President Obama’s executive orders.
Earlier today, the National Association of Manufacturers (NAM) released the results of its second quarter 2016 Manufacturers’ Outlook Survey, showing an uptick in overall sentiment. In this survey, 61.7 percent of manufacturers expressed positivity about their own company’s outlook, up from 56.6 percent in March. This marks the most optimistic manufacturers have been since December 2015.
However, NAM Chief Economist Chad Moutray said, “While this survey offers a bit of optimism for manufacturers, there is still a dramatic need for improvement before our sector can regain its footing. This survey, coupled with the latest jobs report, should serve as a stark reminder to Congress that policy priorities, including market-opening trade agreements and comprehensive tax reform as well as addressing regulatory barriers, are top of manufacturers’ minds. If lawmakers in Washington take action on these and other items, they could help reverse the pain manufacturers are experiencing, expanding job opportunities and strengthening the broader economy as a result.” Read More
35,000. That’s the cost of federal regulations endured by a small manufacturer with fewer than 50 employees—per year, per employee!
I think we can all agree: this isn’t the way our regulatory system should work. It is time for real reform.
That’s why the National Association of Manufacturers, in partnership with the Small Business & Entrepreneurship Council, is launching a project called Rethink Red Tape to bring the regulatory issue to life for lawmakers in Washington and provide real momentum for reform.
Regulations are important, but the constant churn of new and misguided rules leads to regulations that are counterproductive, contradictory and next to impossible to understand. That’s especially hard for small business owners who don’t have the resources to keep pace with new regulations and absorb their higher costs.
Layers of excessive regulations hurt manufacturers’ ability to invest in new innovations, and our entire economy suffers as a result.
To correct this and enable American manufacturers and small businesses to grow and create jobs, regulatory reform has to be a bipartisan priority. Transparency, accountability and honest evaluations of small business costs need to be part of our government’s regulatory calculus. Too often, this is the exception and not the rule.
Rethink Red Tape will bring personal viewpoints and real-life stories to the conversation to explain the impact regulations have on small firms and the hours and opportunities manufacturers lose because of them.
As our program grows, we’ll identify and advance bipartisan solutions that will change the way regulations are written and give small businesses a stronger voice in the process.
This morning, NAM President and CEO Jay Timmons provided a read on U.S. manufacturing on CNBC’s “Squawk Box” and discussed what manufacturers need to hear from presidential candidates.
A new International Maritime Organization (IMO) rule requiring shippers to physically weigh containers and their contents before being loaded at the port of origin is expected to come into effect on July 1, 2016. This amendment to the long-standing International Convention for the Safety of Life at Sea (SOLAS) treaty places an additional burden on shippers (both exporters and importers) to obtain and certify the Verified Gross Mass (VGM), or combined weight of cargo and the container. The United States Coast Guard (USCG) is the responsible agency for overseeing and enforcing this new requirement, and it will be implemented around the world by the other 161 signatories to the treaty.
The National Federation of Independent Business (NFIB) said that optimism was unchanged in October. The Small Business Optimism Index remained at 96.1 in October, representing some progress since the 94.1 reading observed in June. Coincidently, the index was 96.1 in October 2014, as well. Overall, it is also clear that small business owners remain anxious about the economy, with index values under 100 typically coinciding with softer economic growth. With that said, there were also positive developments for the month. For instance, the percentage of respondents saying that the next three months were a “good time to expand” increased from 12 percent to 13 percent, its highest level since February. This figure has trended higher over the past year, averaging 9.8 for all of 2014 and 11.6 year-to-date for 2015. Meanwhile, the percent planning capital expenditures over the next three to six months rose from 25 percent to 26 percent. Read More
On July 6, the Department of Labor proposed a new income threshold to determine who would be eligible to receive overtime pay. The current threshold of $23,660 a year, or $455 per week, has been in place since 2004 and we have to go back to 1975 in order to look at the time before that. In total, the income threshold for overtime has been increased seven times since it was first implemented in 1938. It has never been indexed to inflation, wage rates, or any measure. The threshold being proposed would increase to $50,440 a year, or $970 per week, and then indexed to either the 40th percentile of all salaried employees, or to the Consumer Price Index (CPI-U). If the $50,440 figure strikes you as a bit high and wide of the strike-zone, you would be right. In the chart below, you can see why. Read More