Hardwood Federation – LACEY ACT UPDATE

Given the importance of the Lacey Act issue to the hardwood industry and heightened interest in recent months, Hardwood Federation (HF) will be providing periodic updates on Congressional, agency and other activity focused specifically on this issue.
 
The HF-supported Lacey Act amendments of 2008 addressed the mounting issue of illegal logging and imports of illegally sourced forest products into the US. Following a raid of the Gibson Guitar company last year, Congress was urged by the CEO of Gibson to take action to provide relief from enforcement and by Nashville musicians who believed their musical instruments were in danger of being seized by the federal government. In reaction, U.S. Representatives Blackburn (R-TN) and Cooper (D-TN) introduced H.R. 3210, the so-called RELIEF Act which would, if passed re-write the Lacey Act, remove many wood products from coverage and reduce the effectiveness of enforcement actions. HF immediately began an active campaign to oppose H.R. 3210, joined by a broad coalition of the paper and forest products industry, labor and environmental groups. To date the bill has gained fewer than 20 co-sponsors in the US House and no similar Senate bill has been introduced.
 
HF provided information for a Business Week article that was released last week on the Gibson Guitar case. It is a balanced report and will provide you with additional details on the case and legislative efforts: Read Related Article

HF is working closely with Senators Lamar Alexander (R-TN) and Ron Wyden (D-OR), the original sponsors of the 2008 amendments, who plan to convene meetings to discuss the implementation of the Lacey Act, and identify changes which may be needed. The two Senators have expressed concerns over provisions of H.R. 3210. The meetings are expected to take place next month.  Meanwhile the two Senators as well as HF supporter Rep. G.T. Thompson (R-PA), House Forestry Subcommittee Chairman, have contacted the federal agencies charged with implementing Lacey to ask for a report to Congress on the status of Lacey Act implementation.

The Lacey Act continues to drive down markets for unfair, underpriced illegal hardwood throughout the world and drive up markets for legal US hardwoods. HF opposes legislative actions which would diminish the effectiveness of this important law.

NAW Supports Workforce Democracy and Fairness Act

The National Association of Warehouse-Distributors (NAW) is supporting efforts for the passage of the Workforce Democracy and Fairness Act (HR 3094). The bill amends the National Labor Relations Board (NLRB) decision with respect to union representation hearings and the timing for elections of labor organizations. The NLRB act, also referred to as the “ambush” election proposal, threatens the amount of time employees and employers have to exchange information for union representation elections.  The NLRB act also promotes the formation of micro-unions.  HR 3094 was passed by the House on November 30, 2011, and now goes to a vote in the Senate.

The NLRB proposal would in effect, deny employees’ sufficient time to exchange information about unions and employers’ free speech and due process.  The new procedures by the NLRB could result in union representation elections be held in as few as 10 days after filing a petition, rather than the average 31 days taking place today. HR 3094 provides employers at least 14 days to prepare their case to present before a NLRB election officer and an opportunity to raise additional concerns throughout the pre-election hearing.  The NLRB would shorten employers’ right to prepare their case to seven days.  HR 3094 ensures employees are able to participate in a timely and fair union election process.

HR 3094 also would also reverse the NLRB’s decision regarding micro-unions. “Micro-unions” would essentially allow labor organizers to section-off company employees by specific job descriptions making it easier for unions to take control of workforces, piece by piece.

In summary, HR 3094 would set in law:

• Workers have sufficient time to make an informed choice during unionization elections.
• Employers are not rushed into pre-election hearings and can appeal to the NLRB.
• Ensures workers’ privacy by empowering workers to choose the type of personal contact information that is provided to the union.
• Prevents union bosses from organizing “micro-unions” within an organization.
 
The Workforce Democracy and Fairness Act, “reaffirms workforce protections that have been in place for decades,” said Congressman and sponsor of the bill, John Kline (Minnesota, Dist. 2).    Read NAW's Letter

Final Job Protection Act Letter 
Dear Senators Alexander, Graham and DeMint:On behalf of millions of job creators concerned with increasing threats to the basic tenets of freeenterprise, we write in support of S. 964, the Job Protection Act. Read More

Legislation to Repeal the 1099 Reporting Requirement

February 16, 2011

TO: NAW Direct Members
FROM: Jade West, NAW Senior Vice President-Government Relations

On Thursday, February 17th the House's tax-writing Ways & Means Committee will consider and likely approve legislation to repeal the 1099 reporting requirement that was enacted last year as part of the health care reform bill (Patient Protection and Affordable Care Act).  NAW strongly supports full repeal of the 1099 expansion, directed a letter to Ways & Means Chairman Dave Camp (R-MI) in this regard and, with 160 like-minded organizations, joined in the supportive letter of the Small Business Coalition for Affordable Health Care.

To view NAW’s letter, go to:

http://www.naw.org/files/NAWletter.pdf

Our current expectation is that the full House of Representatives will take up this issue during the week of February 28th and we are optimistic that the House will pass this urgently-needed legislation.  You will also be interested to know that the Senate has adopted an amendment to the pending Federal Aviation Administration Authorization bill that repeals the 1099 provision.

In summary, excellent progress is being made on this issue and a favorable outcome may be in sight.  More as circumstances warrant.

Small Firm Lending, 2009-2010: Harbingers of Growth

February 10, 2011

WASHINGTON, D.C. –Lending to small firms by U.S. financial institutions continued to decline, but began to stabilize in some loan size categories over the 2009-2010 period. This is according to the Office of Advocacy’s latest edition of Small Business Lending in the United States, released today. The study finds that small business lending dropped by 6.2 percent, less than the 8.9 percent drop experienced in large firm lending over the 2009-2010 period. GDP has turned upward, and business lending may follow the pattern of other recessions, in which commercial and industrial lending grew only after recovery was well under way.

“Businesses and lenders continued to exercise caution in borrowing and lending through 2009-2010,” said Chief Counsel for Advocacy Winslow Sargeant.  “As the economy improves, this study, through its state-by-state display of lender performance, can help both small business borrowers and lending institutions see where small firms are beginning to find the capital they need.”

The study finds that lending in the smallest business loans under $100,000 began to stabilize in 2009-2010—the total was down by 1 percent, compared with a 5.5 percent drop in 2008-2009, and real estate loans accounted for the entire decline.

Small Business Lending in the United States, 2009-2010, uses data reported by financial institutions to their regulatory agencies to compile state-by-state rankings of these institutions with respect to their small business lending. Two types of reports are used: Consolidated Reports of Condition and Income (Call Reports) and Community Reinvestment Act (CRA) reports. (The rankings are unrelated to banks’ status with respect to Small Business Administration lending programs.)

The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government.  The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policymakers.  For more information, visit www.sba.gov/advo, or call (202) 205-6533.

NAW and Business Coalition Fight New Labor Threat

January 11, 2011

NAW is on the Management Committee of the Coalition for a Democrat Workplace (CDW), the business coalition organized originally to fight the card check legislation.  With the card check bill not currently a legislative option for them, organized labor and the Obama Administration are turning their attention to helping labor build its membership by government regulation.  As a result, CDW has also turned its attention to the regulatory threat from regulatory agencies.

In the most recent fight, the National Labor Relations Board (NLRB) is threatening to issue new rules that would require a business owner to grant access to its property to non-employee union organizers if the company permits other organizations onto the property.  More specifically, the rule would force a company to allow a labor union activist onto its property for the purpose of encouraging a boycott or other action harmful to the business if they allow a charity onto the property – the latter clearly not intending to harm the business.

CDW has filed an amicus brief with the NLRB strongly opposing the new rule.  To view the brief, go to:

http://www.naw.org/files/CDWAmicusBriefNLRB.pdf

To view CDW’s press release about the case and the brief, go to:

http://www.naw.org/files/PR_CDW_Roundys_Jan_7_2011.pdf

NLRB Issues Proposed Rule on Posting Requirement

December 21, 2010

On December 20, the NLRB released a Notice of Proposed Rulemaking (NPRM), which would require employers subject to the National Labor Relations Act (NLRA) to post a notice in the workplace informing employees of their rights under the NLRA. 

Under the NPRM, employers would face various sanctions for failing to post the notice, including (1) being charged with unfair labor practice; (2) having the time limits for filing of other unfair labor practice charges against the employer extended; and (3) having the Board consider the failure to post the notice as evidence of unlawful motive in other unfair labor practice cases.  The NPRM and the NLRB’s fact sheet are available on the Board’s website and will be published in the December 21 Federal Register.  President Obama issued an Executive Order in 2009 that required government contractors display such a poster.  NLRB will use the same language as in the DOL poster, a copy of which is available here. 

Board Member Brian Hayes (R) filed a dissent to the rulemaking, asserting “the Board lacks the statutory authority to promulgate or enforce,” the NPRM.   The Board will take comments on the NPRM for 60 days.

• NLRB Announces Increased Enforcement Initiative On December 20, the NLRB Acting General Counsel issued a memorandum announcing a new enforcement policy against employers accused of unlawful conduct during union organizing campaigns. 

The memorandum instructs regional NLRB attorneys to seek the following remedies in those situations: (1) that a management official from the company read or be present when Board official reads a notice announcing that the company violated the employees right to organize and the will not do so again in the future; and (2) grant the union access to the company bulletin board or electronic equivalent, including email or intranet, and a list of employee names and address to facilitate union communication with employees. 

The memo also states that in cases where the regional attorneys find the employers' conduct had a particularly severe impact, the regional attorney may look to pursue additional remedies, including: "granting a union access to non-work areas during employees’ non-work time; giving a union notice of, and equal time and facilities for the union to respond to, any address made by the company regarding the issue of representation; and affording the union the right to deliver a speech to employees at an appropriate time prior to any Board election." 

The new policy would expand the use of what have been traditionally extraordinary or exceptional remedies and, in some cases, introduces new remedies by stretching existing precedent.  This builds upon the Acting General Counsel's September 30 Memorandum announcing the Board would be pursuing more injunctions in cases where it believes the employer violated the law during an organizing campaign.  CDW will be monitoring the NLRB’s new policy and keep members apprised of further developments.

• CDW Sign on Brief in Roundy’s Next week, we will be circulating a draft and asking for groups to sign on to CDW’s brief in Roundy’s Inc. and Milwaukee Building and Construction Trade Council.  At issue in the case is the extent to which an employer may deny non-employee union organizers access to the workplace, where the employer has allowed access to other non-employee individuals or groups, such as the United Way.  It appears the Board may be looking at both physical access and electronic access via email, intranets, etc.  

As you may remember, several of the "EFCA-lite" proposals, such as the one offered by soon-to-be-former Representative Sestak, would have provided unions with greater access to employer work sites.  CDW argued against these proposals, rightfully claiming they would have violated employer property rights and allowed the non-employees to disrupt the workplace.  

• DOL Releases its Semi-Annual Regulatory Agenda On December 20, DOL released its semi-annual regulatory Agenda, which provides some indication as to when DOL plans to publish proposed and final rules.  

While many of the proposals are concerning, one particularly troubling to CDW members may be the Office of Labor-Management Standards plans to issue a proposed rule in June 2011 revising reporting requirements for costs related to employer communications to employees during organizing drives.  Under current law, employers and consultants are not required to report activities classified as advice.  DOL has said it intends to narrow the advice exemption.