Vol. 8, No. 13 – June 22, 2009

After months of behind-the-scenes work, House and Senate Democrat leaders began to reveal an outline of their health care overhaul plans last week. The issue falls under three committees’ jurisdictions in the Senate so they are working together to assemble a bill. The preliminary outlines include provisions such as:

Mandating that every health insurer that offers coverage in a state must accept every employer and every individual in the state regardless of illness or preexisting conditions;
Placing new requirements on the cost of plans, such as requiring insurers to supply reports on how premiums are spent;
Expanding Medicaid by 150%;
Creating a government-run “Affordable Access Plan” that will compete with private plans;
Providing a tax credit for small businesses that provide health care based on a complicated formula to determine the cost and impact; and
Mandates on individuals to purchase health insurance and on employers to provide coverage.

Additionally, new discussions on potentially taxing employer-provided heath insurance for some or all employees is also on the table for discussion as a way to pay for health care reform. Hearings in the Senate will begin the week of June 22 and leaders hope to complete markups in the Senate Finance, Energy and Commerce and Health Education, Labor and Pensions Committees and marry the bills before the July 4th recess. This seems to be overly ambitious at this point, but that is their goal. Democratic leaders have yet to solicit feedback from the small business community, and NLBMDA and fellow members of the Small Business Health Care Coalition continue to oppose any employer mandate or plan that puts an overwhelming cost on small business owners.

Source: NLBMDA E-Update, June 15, 2009

UPDATE FROM COALITION FOR A DEMOCRATIC WORKPLACE (CDW)

Just when I started to complain to people that things were “too quiet” on the EFCA front, Roll Call runs a story yesterday that quotes Senator Tom Harkin’s (D-IA) speculation that he’ll be able to bring EFCA to the floor next month. While short on any new facts, the story does note that Senator Harkin has been meeting regularly with Senators Arlen Specter (D-PA), Chuck Schumer (D-NY), and Mark Pryor (D-AR) to craft an alternative to EFCA that can secure the 60 votes.

The “Principles” of EFCA

As Senator Harkin and others search for a version of EFCA that they hope will attract 60 votes in the Senate, it’s worth noting Big Labor’s opinion on this. In a recent interview with People’s Weekly World, the AFL-CIO’s legislative director, Bill Samuels, noted that any so-called compromise might include minor changes to EFCA, “but not changes that would undermine the basic thrust of the bill.” You can read the PWW interview here.

Of course, the “basic thrust” of EFCA is to strip employees of their privacy when making a decision about joining a union and also to allow government bureaucrats to take over American businesses through mandatory binding arbitration.

This quote is even more noteworthy when you consider that the Roll Call story linked above notes that the AFL-CIO’s Mr. Samuels has now been invited to join the EFCA meetings with Senators Specter, Schumer, Pryor, and Harkin.

So, a so-called compromise to EFCA is being crafted by Senator Harkin, who is the Senate’s lead EFCA proponent at this point, and Mr. Samuels, who wants to ensure that any alternative to EFCA doesn’t “undermine the basic thrust of the bill.”

This is exactly the reason that CDW has consistently stated that there can be no compromise on EFCA or any sort of “labor law reform” as long as EFCA and its proponents preclude any kind of legitimate debate on the subject.

CDW will keep you updated on any and all so-called compromise proposals, and I encourage you to check www.myprivateballot.com for talking points and other information on proposals such as “quickie” elections, mail-in cards, workplace access, and others.

Grassroots

The Roll Call story is a good reminder that we cannot throttle back on our efforts. Keep up the Hill contacts, as well as the very crucial outside-the-Beltway contacts……No on EFCA; No on Cloture.

Source: Brian Worth, CDW, June 11, 2009

SOCIAL NETWORK SLEUTHING BEFORE HIRING

Here’s a tip that could really help in hiring the right people. As more young people put personal information about themselves on social networks, more and more firms are checking to see what facts or pictures they have listed about themselves before hiring them. Spokeo.com has the ability to search all the social-networking sites (43 at last count) and feed you the information about where people have listed themselves in cyberspace. It was originally created for young people to keep track of where their friends are listed in Cyberspace, but obviously can be used to great advantage by employers.

A recent survey by CareerBuilder.com found 22% of hiring managers are using social networking sites such as MySpace and Facebook to help them screen candidates. That’s double the amount just three years ago, and it is expected to double again within a couple of years. One-third of the hiring managers that used it found information or pictures that disqualified the candidate. Many social networkers boast about their drug and alcohol use, as well as sexual experiences. Others put down their previous employers in ugly ways. Some actually brag about their involvements in crimes. On the other hand, some hiring managers found positives that enable them to make the decision to hire. These include good communication skills, professional image and discussions about how people spend their free time, such as volunteer work in the community.

Source: Bob Losyk, MEd., M.B.A., C.S.P. is a Certified Speaking Professional, master trainer, author, and President & CEO of Innovative Training Solutions, a Greensboro, NC consulting firm. For more information on Bob’s keynotes, seminars, best practices facilitation, panel discussion leader, and products, please visit his websites at www.boblosyk.com and www.getagriponstress.com or call 1-800-995-0344.

INNOCENT SELLERS FAIRNESS ACT REINTRODUCED IN CONGRESS

The National Lumber and Building Material Dealers Association (NLBMDA) commended Reps. Dan Boren (D-OK) and Jim Jordan (R-OH) for their reintroduction of the NLBMDA-promoted “Innocent Sellers Fairness Act” (H.R. 2518), which would provide product liability protection to those businesses that only sell products but did not manufacture them. The bill has been already cosponsored by eight additional members of Congress.

Unfounded and unfair lawsuits are increasingly having a negative effect on the ability of building material dealers and distributors to run their businesses and contribute to their communities. A winter 2008 survey of building material dealers found that more than one in four has been the subject of product liability lawsuits within the past five years; 65 percent of those have been involved in more than one. The high costs of defending such lawsuits ($50,000 - $100,000 according to the Small Business Administration) typically force building materials dealers to settle, regardless of the merits of the case. Current law imposes liability without wrongdoing on sellers, and exposes them to all of the damages allegedly suffered by a plaintiff, even though other defendants may have played the critical role in causing the damages. The “mistake” may have been in the manufacture or design of the product, or in a customer’s improper use of the product, however the seller is often faced with some or all of the liability.

"No amount of care can free a seller from disproportionate product liability, and plaintiffs' lawyers know this -- they routinely sue anyone in the chain of distribution of a product, often forcing settlements out of otherwise innocent merchants. These abusive product liability cases are part of a growing litigation burden on our nation's small businesses and our economy," said NLBMDA President and CEO Michael O'Brien. "This legislation will bring some sanity back to our legal system and we urge Congress to act swiftly on it."

SAVE THE DATE

October 4-8 - 2009 Mill Tour - Idaho & Washington

October 7-9 - NLBMDA ProDealer Industry Summit, Phoenix, Ariz.

Nov. 5-6 – MLA Fall Fling – Kansas City, Mo.

Call the MLA Office – 800-747-6529 – for additional information or email: mail@themla.com

LUMBER NEWS – QUICK GLIMPSES

A Nascent Recovery: Overlooked Signs the U.S. Housing Market Is Turning… In the Sacramento Delta suburbs east of San Francisco — where home prices soared and fell as viciously as anywhere in the country — a housing market rebound is feverishly under way. A 1,600-square-foot ranch in Antioch listed for $179,000 — after last selling for $425,000 in 2004 — drew multiple offers last month with a high of $210,000 in cash. The property was a “short sale” whose owner needs lender approval to sell for less than the mortgage owed — and which buyers wouldn’t touch just three months ago.

“Everyone was waiting for the bottom, and the problem is they waited too long, because the bottom has already come and gone,” said Christy Howard, a Coldwell Banker Coon and McCreary agent who listed the house.

Spurred by markdowns up to 80% from market highs, first-time buyers and investors both American and foreign descended en masse in the last three months on San Francisco’s hardest-hit hinterlands as Wall Street and the economic climate improved. They’re picking clean the Delta region’s bank-owned inventory as soon as properties hit the market and are engaged in unprecedented bidding wars even on short sales. The panicked buying — fueled by buyers fearing they will miss out on fire-sale prices — belies the doom-and-gloom evoked by recent reports of rising mortgage delinquency rates and foreclosure activity. After spending most of the 1990s in the $250,000 range, the median-priced home that was sold in the seven-county San Francisco area rose to a staggering $850,000 by its May 2007 peak. It since fell to a low of $399,000 in February — a 53% drop in just 21 months — before posting its first monthly gain in March, a 1% uptick. (www.marketwatch.com)

Source: Nation’s Building News, NAHB, June 8, 2009

Plum Creek to Close Montana Sawmill… Despite Plum Creek’s efforts to keep its Evergreen facilities operational, a lack of demand for products made at the Evergreen stud sawmill and Evergreen stud remanufacturing plant has led to indefinite closures. Sixty-three employees will lose their jobs.

A slight improvement in prices for pine boards manufactured at the company’s Columbia Falls sawmill is expected to provide enough revenue to continue to operate the mill as long as operating costs are reduced. The work force of 130 will decrease by 23 employees, effective June 26.

Source: ProDealer Digest, Home Channel News, June 8, 2009

U.S. Lumber Production Falls 28% in 1Q09… Lumber production across the United States in the first quarter fell 28.3% from the year-earlier period to total 5.47 billion board feet, the Western Wood Products Association reported. Meanwhile, production in Canada slid 24.9% in the same period to total 4.64 billion board feet. Read More

Source: ProSales Business Update, June 10, 2009

Domtar Announces Reopening of Maine Mill… On Wednesday, timber giant Domtar revealed its plans to reopen its pulp mill in Baileyville, Maine. The Baileyville mill, which employs approximately 300 workers, was idled in May because of weak demand for pulp. When operating, the mill produces around 398,000 air dry metric tons of hardwood pulp.

Source: LBM Daily, June 11, 2009

Ace to Switch to Plastic Paint Cans… Ace Hardware has announced plans to switch over to plastic paint cans for its latex paints, all of which are made at two Illinois factories.

Ace hopes the switch will save them money because the new plastic containers will resist denting, according to a Sun-Times News article. Jack Wickham, director of Ace’s paint division, says, “Anytime you go into a store and see a dented can, that's the last one you pick up. Part of it [the switch] is aesthetics.” The plastic cans have started arriving at Ace’s Chicago Heights plant and will arrive in the Matteson plant in early July, adds Wickham. The company’s oil-based paints will continue to be packaged in steel cans.

He adds that the company had looked into switching to plastic cans for years, but the plastic is not as stackable as the steel cans. So, Ace will also install new shelving in its warehouse to accommodate the new containers and will also modify production lines, according to the article.

Source: NRHA eNewsletter, June 14, 2009

Lumber Red Book Turns Blue… The industry was caught off guard when the “Red Book” closed their doors and disappeared almost two years ago. Another service has picked up the service and will soon be serving the lumber industry. For introductory details about Blue Book Services, Pro dealers are encouraged to visit the initial website: http://www.lumberbluebook.com .

Members may submit their company listing data by simply clicking on the “submit your company data” tab. For a glimpse of what Blue Book Online for lumber will look like, you can visit: http://www.producebluebook.com . They are currently beta-testing phase I of the application.

As we learn more about the Lumber Blue Book, MLA will keep you advised.

Housing Starts Jump Sharply in May… Residential construction activity rose significantly in May as housing starts overall jumped 17.2% from April to a seasonally adjusted annual rate of 532,000, the Commerce Department reported yesterday. The number eclipsed Wall Street estimates for a rate of 485,000 and was the third consecutive month of increase. Read More

Source: ProSales Business Update, June 17, 2009

Boise Engineered Wood Products Facilities Achieve SFI Certification… As part of an ongoing long-term commitment to sustainability, Boise Cascade, LLC, announced it has achieved full certification to the independent Sustainable Forestry Initiative ® (SFI®) chain-of-custody standard for all Boise Engineered Wood Products plants across North America.

Source: SFI, June 17, 2009

Employers’ Health-Care Costs to Rise 9% in 2010… Employers who offer health insurance coverage could see a 9% cost increase next year, and their workers may face an even bigger hit, according to a report from consulting firm PricewaterhouseCoopers.

Costs will rise in part because workers worried about losing their jobs are using their health care more while they still have it, the firm said in the report released to the Associated Press. The report also said rising unemployment is driving up medical costs.

Health care reform legislation currently being hashed out in Congress likely will have little impact on next year’s costs, said PWC principal Michael Thompson. But he noted that the intense focus on health care may slow price increases.

Source: U.S. Chamber of Commerce, SmartBrief on Workforce, June 19, 2009

Ace Dealers Selling Wind Turbine… Ace Hardware dealers are now offering a wind turbine that can be installed onto a house’s roof. The Web site EarthGeek.com reports that the Honeywell Wind Turbine, supplied by EarthTronics, can produce power from winds that range in speed from two miles per hour to 45 miles per hour. EarthTronics claims the turbine, which is 6 feet in length and weighs 95 pounds, can produce 2,000 kilowatt hours of electricity per year, or 18% of an average household’s energy needs. The product is pricey: $4,500 plus as much as $1,500 more for installation. However, the federal stimulus bill allows homeowners to claim a 30% tax investment credit.

Source: Hardware Retailing Newsletter, NRHA, June 21, 2009

A Vision for the Next Generation

Develop talent now for a successful future

While incentives such as bonuses and profit sharing are important, recognizing achievements and building self-esteem are priceless.

Some business owners procrastinate or avoid communicating their succession plans because they fear how family members and employees might react. However, their silence may actually create more stress and cause harm to the business. Most employees – including family members – will feel more secure about the future if they know what to expect and how they will fit in.

It’s never too late to develop a business succession plan. But the earlier you start the better. Estate planning experts agree that long-term plans to transfer businesses are generally much more successful than those “patched together” following the unexpected death or disability of an owner.

Business succession actually begins with each employee’s first day on the job.

Think about it, whether he or she is one of your children or a high school student working part-time, that young person could someday be the head of the company.

Experts agree: Succession planning includes creating an environment that motivates employees to use their talents and skills to reach their full potential and contribute to the success of the business. Sounds simple, but how do you accomplish it?

Perhaps a mentor program or an apprenticeship is a good start. Talented young people are more likely to stay with the company if they feel involved in something bigger than their own job. It is wise to provide opportunities by matching experienced workers with newer employees to guide them as they grow in their jobs.

As employees gain experience, they become assets to your business and their value increases. Providing key employees opportunities to gain well-rounded business experience through cross-functional training and experience is admirable. This no doubt helps them become dependable managers who can make good decisions and take initiatives to improve operations.

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