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NLRB Archives - Shopfloor

House Moves to Fix Joint-Employer Standard

By | Human Resources, Regulations, Shopfloor Policy | No Comments

Today, we applaud the House Education and Workforce Subcommittee Chairman Bradley Byrne (R-AL), along with Chairwoman Virginia Foxx (R-NC) and Congressmen Henry Cuellar (D-TX) and Luis Correa (D-CA) for introducing the Save Local Business Act, which undoes the National Labor Relations Board’s (NLRB) 2015 unfavorable case decision in Browning-Ferris Industries (BFI). The Board, in BFI, overturned decades of case precedent on what constitutes a joint employer and significantly expanded the joint-employer standard to employers who exercise “indirect, potential or unexercised control” over another entity, overturning the old standard of “direct control.” The repercussion of this new standard has resulted in nearly two years of uncertainty among manufacturers as to whether or not their business relationships were at risk to new liabilities. The Save Local Business Act restores the 1984 standard and codifies it into the National Labor Relations Act and the Fair Labor Standards Act to prevent any future reversals.

The BFI case is just another example of uncertainty, which is unfortunately commonplace within today’s labor policy. Not only have stable and well-established policies been upset by new regulations, but the NLRB has also taken it upon itself to overturn decades of labor law precedent without any provocation or change that would necessitate it. Manufacturers are left, once again, in a state of the unknown, and rather than running their businesses and creating more jobs, employers are left with having to shift resources to deciphering the impact of these new policies.

As evidenced by the bipartisan bill introduced today, this is not a Republican or Democrat issue, but rather an employer issue that spans across the country to all industry sectors and impacts companies of all sizes. We thank Chairman Byrne and Chairwoman Foxx for their leadership on this and other labor issues and for their continued commitment to U.S. business owners to fix the problems created by misguided labor policies of the past eight years.

Unequal Justice Under Law: NAM Files Brief Challenging NLRB’s Permissive Discrimination

By | Manufacturers’ Center for Legal Action, Shopfloor Legal | No Comments

On September 2, the Manufacturers’ Center for Legal Action filed an amicus brief in the U.S. Court of Appeals for the Eight Circuit challenging a National Labor Relations Board (NLRB) decision forcing Cooper Tire & Rubber Company (Cooper) to reinstate an employee who used racial epithets toward a replacement worker while the employee was on the picket line. The NLRB’s decision overturned an arbitration decision finding that Cooper dismissed its employee for good cause. This decision does not align with existing federal law, forces manufacturers to execute a policy that leaves them open to civil liability and requires businesses to tolerate behavior antithetical to American values.

The NLRB’s decision to reinstate an employee who used racist speech does not follow federal law by violating Title VII of the Civil Rights Act of 1964 and 42 U.S.C. § 1981. These laws prohibit discrimination and harassment on grounds such as race and allow for an employer to fire an employee in violation. The work environment should encourage openness and understanding of all employee backgrounds. Forcing a company to condone racist behavior violates other workers’ rights to a hostile-free workplace. Ultimately, this decision by the NLRB significantly diminishes an employer’s ability to cultivate an inclusive work environment, which hurts workers, productivity and profit.

Not only does this decision negatively impact the working environment, but it also forces manufacturers to accept conduct, which leaves them open to liability. Under federal law, when a racial statement is made directly to an employee, an employer can be liable if it knows about the statement and fails to take proper action. If the NLRB’s erroneous decision is upheld, employers in many instances will be forced to allow discrimination to continue, instead of firing employees for racial harassment. This would, therefore, require employers to follow a pro-discriminatory policy, exposing them to possible litigation and allegations of cultivating a hostile workplace environment.

This NLRB decision challenges American progress on issues of race and diversity in both business and culture. Employers should not be required to condone racism in the workplace. We are hopeful that the Eighth Circuit will understand the importance of overturning this discriminatory NLRB decision, which not only negatively impacts the way we conduct business but also the way we conduct ourselves.

Will You Stand with Us to Reform Regulation?

By | Presidents Blog, Shopfloor Main | No Comments

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.

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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.

Through Rethink Red Tape, we’re working to change that, but we need your help to make this work. We need you to stand with us.

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.

Join us at www.RethinkRedTape.com and on Facebook and Twitter.

South Carolina Governor Highlights Manufacturing

By | America's Business, General, Presidents Blog | No Comments

NAM President and CEO Jay Timmons is blogging from the Republican National Convention in Tampa this week.

The Republican National Convention kicked off in earnest last night.  The atmosphere in the Tampa Bay Times Forum was electric.

For me, the highlight of the evening was the speech of Nikki Haley, the governor of South Carolina.  The Palmetto State is a great place to manufacture, and the industry has had a significant, positive impact on the state’s economy.  As Governor Haley said, “We build things in the Palmetto State. We build planes. We build cars.”

But it’s not always easy. As the Governor pointed out in no uncertain terms, in recent years, the federal government has put up obstacles to growth in the state.

When the Boeing Company expanded into South Carolina, it was a great opportunity.  Boeing’s billion-dollar investment meant 1,000 new jobs, and it meant that the state would be at the forefront of aerospace innovation, building the new 787 Dreamliner aircraft.

The National Labor Relations Board, however, stepped in and said the investment violated our labor laws, an action that threatened to wipe out Boeing’s investment and the new jobs.  Ultimately, Boeing prevailed, and today the South Carolina facility is up and running.

Governor Haley told this story well last night and offered an incisive perspective about the consequences of government overreach and its impact on a state and its citizens

I’m looking forward to hearing more about manufacturing from the speakers tonight.  In the meantime, the NAM continues to ensure manufacturing remains on everyone’s radar in Tampa.

This morning, I had a conversation with Sen. Ron Johnson of Wisconsin, who was a manufacturer before coming to the Senate in 2011.  We talked about the devastating impact the fiscal abyss would have on the economy and about the need for Congress to act quickly to avert this threat.

The fiscal abyss is a common theme in Tampa. The issue has come up repeatedly in my conversations with members of the press and media, and given the dire predictions that inaction by Congress could plunge the nation back into a recession, it’s no surprise why.

The Year of Living Dangerously

By | Labor Unions, Regulations | No Comments

At the end of 2011 it’s apparent that our economic recovery has been modest at best. A robust economy can be difficult to achieve under even the best circumstances, but it is made even more difficult when faced with a hostile environment for private enterprise. Manufacturers should be freed from unnecessarily burdensome regulations if they are to lead the economy. Efforts to foster economic growth and job creation have been stymied by an avalanche of overregulation from government agencies. A year-end review of the regulatory action taken by government agencies tells a sad story – one that manufacturers hope will reverse itself in the coming year.

This year alone we saw the National Labor Relations Board (NLRB), the Environmental Protection Agency (EPA), the Department of Transportation (DOT), and other agencies place more obstacles in the way of job creation and insert themselves further into the day to day decisions of manufacturers. Here are just a few examples:

2011 was a banner year for overreach for the NLRB, including the ambush elections rule, the decision in the Specialty Healthcare case, and the now-resolved complaint against the Boeing Company. These actions from the board have the potential to create disruptive and adversarial relationships between employers and employees – a result that simply isn’t conducive to growth. The NAM is currently suing the NLRB to prevent the implementation of the poster rule, a rule that has been delayed repeatedly after requests by the judge to allow time for a decision in the case. An NAM survey about the NLRB’s agenda revealed that nearly 70 percent of respondents said the NLRB’s actions will hurt job creation.

The EPA has put forth new rules and regulations that come with high price tags and puts hundreds of thousands of jobs at risk.  The costly and harmful Boiler MACT regulations checks in at $14.5 billion and threatens approximately 230,000 jobs. Sadly, it seems that the EPA may have outdone themselves with the Utility MACT rule – one of the most expensive regulations in EPA history –would have a draconian effect on power plants across the nation. According to the EPA’s own analysis, the Utility MACT regulation could cost more than $100 billion in the coming years and destroy an average of 183,000 jobs per year for the next decade.

The DOT pulled the rug out from under manufacturers that built their logistical operations based on the current trucking hours of service rule and have invested heavily in compliance since their implementation. Released just last week, the revised final rule will have a negative impact on manufacturers’ supply chains, distribution operations and productivity. To change these rules and limit the flexibility of manufacturers without sufficient reasoning is a mistake and will impede the ability of manufacturers to invest, grow and create jobs.

For manufacturers, a year living under the yoke of this overregulation is a year of living dangerously – hopefully Washington will come to its senses before it’s too late.

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