MLA LINE

Lumber Industry News Express

Vol. 4, No. 1– January 3, 2005

HAPPY NEW YEAR!

BUILDER CONTRACTS

There appears to be growing concern among dealers about trends in contracts between builders and dealers. To address these concerns, volunteers of National Lumber & Building Material Dealers Association’s (NLBMDA) Risk Management Committee will explore current trends in builder contracts such as indemnity provisions and additional insured clauses that are shifting undue liability to the dealers. In the coming year, educational programs and products regarding builder contracts will be developed by NLBMDA for dissemination to the industry.

In the meantime, be sure to review all contracts carefully and understand your responsibilities and liabilities. To help in the effort, contact T.J. Cantwell, Director of Regulatory and Industry Affairs at tj@dealer.org or call at 800-634-8645, if you have a specific concern about builder contracts or to share an example of contracts that you think other dealers should see. Any examples or concerns NLBMDA shares with the industry will, of course, exclude the names of specific companies and people.

MLA EDUCATION PROGRAMS

Early Bird Deadline – January 21!

The Basic Materials Estimating School… This is a two-day school designed to teach participants the basic piece-by-piece estimating of building products usually sold in a full-service lumberyard/home center. Students learn the basics of blueprint reading, how to use the LT1 Guidebook for estimating that contains tables, checklists, construction illustrations and estimating reminders; and finally how to estimate a simple house plan piece-by-piece.

Feb. 14-15 – Wichita, Kan.

Feb. 16-17 – Kansas City, Mo.

March 10-11 – Tulsa, Okla.

Advanced Materials Estimating School… This advanced piece-by-piece estimating seminar is designed to assist the estimator or outside salesperson/estimator who already knows how to estimate but wants some shortcuts and instructions in multi-pitched roofs, including stick framing

and finding wall lengths, floor area, and more complicated house layouts. Students receive the estimating guidebook as part of the class.

Feb. 18 – Kansas City, Mo.

Managing Outside Yard Operations… This course is for yard foremen and key personnel supervising the efficient operation of the “outside yard.” Seminar topics include: protecting profit dollars in the yard, customer service in the yard, pre-emptive management and equipment maintenance.

Feb. 17 – Columbia, Mo.

Feb. 24 – Oklahoma City, Okla.

Member Pricing:

Basic Estimating - $425 per person

Advanced Estimating - $300 per person

Yard Foreman Seminar - $310 per person

Early Bird Discounts available – see registration form for details.

Complete information and registration forms are available upon request from MLA at 800-747-6529. Or, simply reply to this email and we’ll send complete information today!

LUMBER NEWS – QUICK GLIMPSES

Charging more for credit card purchases… It is illegal for a merchant to tack on a fee for customers who make purchases using credit cards. Section 167 of the Truth in Lending Act states: “No seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check, or similar means.” Agreements with the bankcard companies also expressly prohibit businesses from imposing a surcharge on credit card purchases. Businesses found to be in violation of this agreement may be terminated from their bankcard program. The law, however, does allow businesses to offer a discount for purchases made with cash. Check your bankcard agreement to see exactly what it says regarding these transactions.

Source: Northwestern Scene, published by Northwestern Lumber Association, December 2004.

Bush Administration Issues New Initiative on National Forest Management… A new Bush administration initiative to be implemented next week will grant managers of the national forests significantly greater latitude than they currently have and allow them to implement decisions on roads, mining, logging and drilling much more quickly than before.

Source: LBM Daily, December 23, 2004

Softwood Dispute Talks Break Down… Canada's Trade Minister Jim Peterson alerted his American counterpart, U.S. Trade Representative Robert Zoellick, to the fact that perceived attempts by the U.S. to force Canada into a compromise settlement had backfired.

When the U.S. lowered the combined countervailing and anti-dumping duties from 27 to around 21 per cent, it deeply disappointed Canadian hopes for a reduction by half. In a telephone conversation between the two officials, Peterson condemned American intransigence in repealing the so-called Byrd amendment even in the face of a WTO ruling that finds the amendment goes against international trade law.

Source: LBM Daily, December 27, 2004

November Was Record Month For U.S. Home Sales… Low mortgage rates helped spur sales of existing homes in November to a record high. The National Association of Realtors reports that November saw sales rise to a seasonally adjusted rate of 6.94 million units last month, up from October's 6.76 million unit pace.

"Mortgage interest rates dropped a quarter of a percentage point in late summer and then stabilized. Coupled with a growing labor market and a rising economy, this created optimal conditions for the housing sector," said NAR chief economist David Lereah.

Source: LBM Daily, December 30, 2004

Kimberly-Clark, International Paper Give Aid in South Asia… Kimberly-Clark Corporation has ascertained that all of its employees in the region affected by last weekend's tsunamis are safe. The company has more than 9,500 workers in Thailand, Indonesia, and India.

Kimberly-Clark will donate $100,000 to the United Nations Children's Fund for disaster relief, as well as Huggies diapers, Kotex feminine pads, Scott tissue products and Safeskin surgical gloves.

International Paper will also contribute to the relief effort, with the company and its employees donating $200,000 and the company matching additional contributions made by employees to its Employee Relief Fund.

Source: LBM Daily, December 31, 2004

Protecting Your Business and Employees from Workplace Discrimination

During 2003, the Federal Equal Employment Opportunities Commission (EEOC) received 81,293 charges of discrimination. For each charge, a business much like yours faced legal proceedings, as well as possible loss of productivity and business reputation. Examples:

· A former employee alleges discrimination and firing due to religious conviction. Cost: $30,000 in damages and $60,000 in defense costs.

· A former employee alleges sexual harassment by manager. Cost: $42,500 in damages and $91,500 in defense costs.

· An employee alleges sexual discrimination. Cost: $2,500 in damages and $26,000 in defense costs.

It is not uncommon for defense costs to reach $100,000 in these types of claims even when there is no actual liability on the part of the business. Most liability policies, however, exclude coverage for liability due to employment related practices such as:

· Refusal to hire

· Termination of employment

· Employment practices such as coercion, demotion, evaluation, reassignment, dismissal, harassment, humiliation or discrimination.

An Employment Related Practices Liability (ERPL) policy to fill this gap is available from Federated Insurance, your association recommended carrier. Federated also provides risk management assistance to their ERPL policyholders to prevent losses before they happen. This includes access to web-based training for employees and supervisors, training bulletins, HR assessments, workplace scenarios and more.

Need to talk to someone? As a Federated ERPL policyholder the “Best Practices Risk Management” line provides easy access to a risk consultant by a toll-free number. All telephone consultants are attorneys and full-time employees of AGOSNET®, a national research and development firm focused on preventing loss and litigation from workplace wrongdoing.

Contact your Federated Marketing Representative for more information.

MLA is proud to endorse….

The Home Depot and AARP: "Shaping Homes. Shaping Lives."

ATLANTA, Dec. 2 /PRNewswire-FirstCall/ -- Following the successful launch of a national hiring partnership earlier this year, The Home Depot®, the world's largest home improvement retailer, and AARP® today announced an exclusive multi-year, multi-faceted agreement expanding their relationship to include a number of educational, merchandising and marketing initiatives designed for AARP members and all customers of The Home Depot.

In addition to the special values and activities planned for AARP members, the strategic alliance is designed to provide products and information to older Americans who wish to remain in their homes and “age in place.” AARP and The Home Depot will focus on ways for older customers to achieve their goals for home modification as well as modernization.

“Our expanded relationship with AARP will empower millions of Americans to improve their homes and communities,” said Bob Nardelli, chairman, president & CEO, The Home Depot. “By 2020 about 35 percent of the American population will be over age 50. We want to develop meaningful and relevant relationships with a population that will soon grow to more than 118 million.”

“This expanded alliance with The Home Depot is a significant step in our ongoing commitment to enhance the AARP member experience with products, services, information and benefits of value,” said William Novelli, CEO, AARP. “In addition to the employment opportunities available through the hiring partnership, The Home Depot will be providing educational materials, special programs and other benefits for our members.”

Among the key elements of the expanded alliance, The Home Depot will pilot an in-store information resource center in 2005 for age 50+ adults and all individuals who are looking for ways to live independently in their homes. The special information center may include brochures and materials on such topics as universal design and home modification. The Home Depot will offer a national home modification workshop and an annual grandparents/kids workshop, both debuting in 2005.

The Home Depot will offer AARP members a number of exclusive values and savings opportunities at http://www.aarp.org .

The Home Depot will distribute future home improvement products that will eventually carry the AARP Seal of Approval. These products will meet high standards set by AARP and are designed to help older adults maintain an independent lifestyle. The products for consideration may include bath and electrical fixtures, as well as certain types of hardware that will assist individuals to remain in their homes and live more independently. Products under consideration and additional details on the AARP Seal of Approval will be announced at a later date.

In February 2004, The Home Depot announced the formation of a national hiring partnership with the AARP Foundation. Through that agreement, The Home Depot works with the AARP Foundation Senior Community Service Employment Program (SCSEP) to attract, motivate and retain eligible older workers as full- and part-time associates in new and existing stores across the country.

Source: The Home Depot, Thursday December 2, 2004

Learn More Than You Thought Possible Over the Phone!

NLBMDA Training Without Travel Teleconferences

Don't miss out on the most cost-effective training available to dealers on OSHA compliance. The next NLBMDA teleconference is scheduled for January 13, 2005 at 1 p.m. EST on “OSHA Recordkeeping.” The conference is conducted by a renowned expert on OSHA requirements for the building material industry and provides participants with a one-hour briefing, written materials, and a 30-minute Q&A session. All of this without leaving your facility.

The registration form for the January 13 teleconference is attached for your convenience or can be downloaded by going to http://www.dealer.org/html/education.html

For more information on the Training Without Travel Teleconference series and a listing of the monthly teleconferences scheduled in 2005 visit NLBMDA's new website at www.dealer.org or call 800-634-8645.

THOUGHT FOR THE DAY

“Go confidently in the direction of your dreams. Live the life you have imagined.” – Henry David Thoreau