Vol. 4, No. 7 – March 28, 2005

 

MLA LINE

Lumber Industry News Express

 

U.S. Labor Secretary Announces New USERRA Notice of Rights and Benefits

 WASHINGTON—U.S. Secretary of Labor Elaine L. Chao today announced that a notice in poster format explaining the rights of employees under the Uniformed Services Employment and Reemployment Rights Act (USERRA) is now available for employers to download from the Department of Labor (DOL) web site.

The Veterans Benefits Improvement Act, enacted by Congress in December 2004, mandates that employers provide the notice to “all persons entitled to rights and benefits under USERRA.” Employers may meet this obligation by posting the notice in a prominent place where employees customarily check for such information. 

USERRA protects the job rights of individuals who voluntarily or involuntarily leave employment positions to undertake military service. The law also prohibits employers from discriminating against past and present members of the uniformed services and applicants to the uniformed services. 

The USERRA poster is now available at www.dol.gov/vets/programs/userra/poster.pdf. Employers can obtain detailed information about USERRA by calling 1-866-4-USA-DOL or by visiting www.dol.gov/vets/programs/userra/. 

This is the latest in a series of compliance-assistance efforts undertaken by the Department of Labor to increase employer awareness of USERRA. Others include:  

·         Providing briefings and technical assistance to more than 220,000 service members and others on USERRA;

·         Distributing public service announcements to increase awareness of USERRA rights, and

·         Publishing proposed USERRA regulations, which explain the law in plain English.  

Source: U.S. Dept. of Labor News Release, March 10, 2005  

PLAN NOW FOR GOLF TOURNAMENTS 

It’s not too early to start planning for the MLA spring golf tournaments. Here are the details: 

Missouri “Swing into Spring” – Osage National Golf Course, Lake Ozark, Mo. – May 6, 2005 – The Missouri Lumber Dealers Activity Committee (MLDAC) has planned their popular golf tournament in conjunction with the Master Angler Bass Tournament on May 5. The headquarter hotel will be the Port Arrowhead Resort (formerly the Holiday Inn Sun Spree Resort).  

Kansas Sunflower Shootout XVII – Rolling Meadows Golf Course, Junction City, Kan. – June 10, 2005 – The Kansas Social Activities Committee has selected the Rolling Meadows Golf Course for their annual tournament. The headquarter hotel is the new Marriott Courtyard Inn, also in Junction City.  

If you need additional information on sponsorship or registration, contact MLA at 800-747-6529.

 DEALER EDUCATION PROGRAMS 

NLBMDA is offering two teleconferences in April: “What Needs to be in Your Written Safety Program” on April 7 and “Bloodborne Pathogens for Building Material Dealers” on April 21. The bloodborne pathogens teleconference is a new addition due to recent news that enforcement of this regulation is increasing in some regions of the country. 

You may contact MLA for registration forms or visit the NLBMDA web site that provides dealers with a complete list of upcoming teleconferences and downloadable registration forms at  http://www.dealer.org/html/education.html.

 The dates for the following teleconferences have been set with registration forms to follow:
May 12, 2005 - Reducing OSHA and Safety Liabilities for Installed Sales
June 9, 2005 - Personal Protective Equipment Requirements

 If you have any questions about the NLBMDA teleconferences, please contact T.J. Cantwell at tj@dealer.org or 800-634-8645.

 Oklahoma Education Program 

Legal Topics Facing the Credit Department – NACM MidAmerica is offering a program by Scott Blakeley, a partner in the California Law Firm of Blakeley & Blakeley, LLP, discussing national laws with local impact, such as the Check 21 law, Sarbanes-Oxley Act, Fair Credit Reporting Act and more. The program is scheduled for April 22, 11:30 a.m. – 2:30 p.m., at the Sportsman’s Country Club, Oklahoma City. Fee to attend is $65 for NACM and MLA members; $130 for nonmembers. For a registration form, contact MLA by email or at 800-747-6529. For more information, contact NACM Mid-America at 405-235-1341 or assn@nacmservices.com. Registration deadline is April 15, 2005.

 Cost of Doing Business Survey

 NLBMDA is preparing the annual "Cost of Doing Business" survey (CODB) for the industry. The survey includes dealers of all sizes. Unquestionably, the results provide great insight into your company and how it compares with other dealers.

This year, NLBMDA plans several exciting changes to the CODB. The scope of the survey has expanded beyond measuring just sales by customer type, product type, and transaction payment method. The new CODB will perform a gross margin analysis for each of the sales classifications, productivity analysis on fleets, and seasonality information. Survey participants receive this report as well as a customized report highlighting their results as compared to others in their region and overall industry. As a bonus, each participant will be provided with an excel spreadsheet that models their company's past performance and allows for cash flow and operating profit projections by entering a few key assumptions.

To download the survey and receive this important business tool go to http://www.dealer.org or contact Cortney Riese at cortney@dealer.org for more information. While we have attempted to make the survey information straightforward and self-explanatory, please feel free to contact us if you have any questions about the survey or how to complete it.  For questions regarding the survey, please contact Steve Davis at MGT Strategies:

 By phone:            (864) 322-8874 or

By email:            info@mgtstrategies.com 

Your cost for participating in the survey is $150; make checks payable to NLBMDA. In addition to the benchmark of your performance vs. the other people who submit to the CODB, you will also be provided with a forecasting tool. The tool will be an interactive Excel spreadsheet that will allow you to run forecasted financial statements and cash flow analysis based on your past year’s performance and projections for some key variables such as project sales change, gross margin, AR days, inventory turns, salary and other expense changes. You will also receive a copy of the industry report free of charge for participating.  All information is completely confidential and will not be shared with anyone.  

Completed forms should be mailed or faxed by May 31, 2005 to:

             MGT Strategies

            PO Box 4008

            Greenville, SC 29608

            Fax: 815-550-8512

 Another useful tool – Strategic Analysis Program: For anyone looking for an additional financial tool, MGT Strategies has developed a tool that is easy to use and provides quarterly updates to trends and benchmarking data. Trend analysis reports are provided within 10 business days from data submission and benchmarks are provided within 45 days of every quarter end.  Contact the people at MGT Strategies by phone or email, and they will provide you with more information on how you can participate in this valuable program. 

Thank you for participating in the survey and we encourage you to solicit other dealers to participate so the survey can be even more meaningful to everyone.

 LUMBER NEWS – QUICK GLIMPSES

Canada and the United States Continue to Work on Softwood Issue… Canada and the United States may be on the verge of solving the softwood dispute, at least temporarily. Jim Peterson, the Canadian Trade Minister, has suggested Canada adopt an export tax on Canadian lumber while the four major timber producing provinces – British Columbia, Quebec, Ontario and Alberta – move ahead with their pledges to adopt a U.S.-style market system for selling timber rights. The provinces control about 90 percent of the commercial lumber in Canada.  

Although no time limit or tax level has been put into the four-page proposal, it appears to have a shelf life of about five years with an option to renew. In return, the United States appears to be offering to refund half of the $4 billion in duties collected from Canadian lumber companies.

 Source: LBM Daily, March 15, 2005

Retail News… According to a survey of more than 7,300 consumers by BIGresearch, 75 percent of shoppers regularly or occasionally go online to do their homework about a product before going to a store to buy it. Most retailers have focused on their in-store experience but for many consumers online research is replacing the store as a way of gathering information on products and pricing before purchasing at the store level. The new consumer shopping model fits the needs of today’s shopper who is more knowledgeable and wants to have the option of purchasing goods and services where they want, when they want.  

Source: HCI Business Report, March 17, 2005. 

Improving Hazard Communications… On February 15, NLBMDA attended a meeting held by OSHA with several industries to discuss ways to improve compliance assistance materials for Hazard Communications. The industry associations, with the assistance of OSHA officials, created working groups that focused on small business training, making the case for hazard communication, joint development of Materials Safety Data Sheets (MSDS), and making the case for the globally harmonized system.  

Projects were created by each working group to further the goal of improved hazard communications assistance for regulated businesses. Future meetings will be held to develop information and materials that can be disseminated. NLBMDA will continue its work with this group to create new materials. 

Source: NLBMDA Regulatory News, March 2005

 NLBMDA's Board Approves New Strategic Plan… On March 14, the Board of Directors approved NLBMDA's new strategic plan. The plan, which took more than a year to develop, included input from 300 dealers, the Boards of the state and regional associations and numerous committees. The plan provides for a significant effort to build a strong and aggressive emphasis on government affairs, the creation of a national education program for training dealers' employees, a focus on risk management and safety initiatives, and increased industry communications and outreach.

The new strategic plan provides an avenue for dealers to enhance their value from NLBMDA's activities and also increases the opportunities for dealers to participate in the Association's governance by becoming a direct dealer member. The ultimate goal for NLBMDA is to provide value to all dealers by representing their “National” interests. If you would like a copy of the strategic plan or wish to learn more about NLBMDA's activities, please contact Shawn Conrad at shawn@dealer.org.  

Source: NLBMDA Industry News, March 2005 

Leahy Seeks $140b Asbestos Victim Fund (Boston Globe 03/14/05; Kranish, Michael)… Sen. Patrick J. Leahy (D-VT) will fight to pass the $140 billion asbestos victims fund in honor of his deceased relatives who also contracted respiratory illnesses related to asbestos and other particulates. While environmentalists and trial lawyers have supported Leahy's fight to end asbestos suffering, many are against his support of the trust fund, which would pull cases out of court and provide victims with compensation from the trust fund while absolving companies of liabilities. Leahy counters that these victims are in need of support now because they will soon lose their fight with the respiratory illnesses they have contracted, and the quickest way to garner compensation for the victims is through a trust fund. Trial lawyers and environmentalists are also concerned that the bill in its current form favors insurance companies and asbestos producers more than it does the victims of the diseases. The bill is still under debate, particularly since some of the alleged asbestos victims have also been smokers, which could have contributed more to their respiratory illnesses than the particulates. Leahy admits that there is still a rough congressional road ahead for the legislation even before it hits the second chamber. 

Source: NLBMDA Industry News, March 2005 

G8 Countries Agree to Control Illegal Logging… The G8 countries have agreed to control illegal logging by buying timber only from legal sources. The U.S. had initially resisted the agreement, but eventually acceded on the condition that the curbs on timber purchases not interfere with free trade. 

Hilary Benn, the UK development secretary, hailed the agreement as a breakthrough. He said that a second part of the process was to help developing countries to police their logging industries, to introduce proper certification and labeling schemes, and to stamp out corruption. “We have to work at this problem from both ends if we are to succeed,” he said, “but this is a tremendous start.”

Source: LBM Daily, March 22, 2005 

US, Canadian & Mexican Leaders Meet in Texas… Despite signing the Security and Prosperity Partnership of North America yesterday at President Bush's Texas ranch, no further resolution was reached on the softwood lumber trade dispute between the U.S. and Canada. Discussion of the trade disagreements had been one of Prime Minister Martin's key goals. 

During the post-meeting press conference, appearing frustrated according to some reports, President Bush commented, “You know, a lot is made about softwood lumber, and it's clearly a sensitive issue. I know it firsthand. I've heard it ever since I became elected President. People are frustrated that we haven't got it solved. I understand that.”  

Source: LBM Daily, March 24, 2005 

Canada, U.S. Wrap Up This Round of Softwood Talks… Softwood lumber talks between Canada and the United States wrapped up in Toronto on Thursday and may continue as early as next week, but both sides appeared far from a deal.

 During the second day of talks, Canada named two “big guns” to its negotiating team: Former Bombardier chief Paul Tellier and Gordon Ritchie, one of the principal architects of the Canada-U.S. Free Trade Agreement, will join the team as senior advisers to the trade minister, Jim Peterson.  

There's no quick deal in sight, but Canada's negotiators in the softwood lumber dispute appear to be cautiously optimistic after two days of talks with American officials. “I believe there are going to be talks scheduled maybe for next week, but certainly in April in Chicago,” Peterson told reporters after a cabinet meeting.  

Source: LBM Daily, March 25, 2005

 New Study Focuses on Timber Industry in Maine… The Maine Future Forest Economy Report examines the progress of the timber industry in the state over the last 30 years. Sawmill business saw strong growth during that period, though employment didn't grow as rapidly, due to improvements in automation.

 The study credits the recent housing boom with near record levels of production, despite two mill closings in 2000. Softwood production has increased in the state by 250 percent since 1975, while hardwood production grew by 400 percent over the same period. 

Source: LBM Daily, March 28, 2005 

CELL PHONES – BLESSING OR CURSE? 

Americans love the convenience and the sense of security cell phones give us. But, a growing number of people believe this useful device has become a curse in the hands of inconsiderate users and distracted drivers.

 Nearly every state has debated or is currently considering laws regulating the use of cell phones while driving. So far, only New Jersey, New York and the District of Columbia have actually enacted legislation “partially” limiting cell phone use to allow headsets or other hands-free devices only.

Critics say that “heads” not “hands” are the problem. The mental process of carrying on a conversation is more distracting than the physical use of the phone. Safety experts fear that partial bans such as these may give drivers the green light to use hands-free devices and actually encourage more use. Research conducted in Norway and Sweden showed that drivers using headsets tended to make more calls and drive faster. A recent study indicates that headset voice dialing is almost twice as slow as finger dialing, prolonging time on the phone.

 Some large corporations have established bans on use of cell phones while driving on company business, both as a safety precaution for their employees and to possibly avoid liability. We urge you to consider this or other safety measures to encourage sensible use of cell phones in vehicles.

 Claims data compiled by Federated show that “driver distractions and inattentive driver” are listed as cause-of-loss factors in 63 percent of vehicle accidents. 

Safety tips for cell phone in use in vehicles:

• Don’t “hunt” for a ringing phone that’s out of reach.

·         If you must talk, keep it short.

• Pull over and stop to carry on a conversation.
• Have a passenger take the call and relay the high points.
• Don’t address emotional or distressing issues while driving.
• Use voice-mail instead of answering calls.

 Source: Mike Russell, field manager for Federated Mutual Insurance Company; mdrussell@fedins.com