Mid-America Lumbermens Association

MLA LINE

Lumber Industry News Express

Mid-America Lumbermens Association

 

MLA LINE

Lumber Industry News Express

Vol. 5, No. 15 – July 17, 2006 

 

INNOCENT SELLERS FAIRNESS ACT

 

Since May, NLBMDA has contacted hundreds of lumber and building material dealers across the country, and support for the Innocent Sellers Fairness Act has been tremendous. The bill – H.R. 5500 – has been introduced in the House and is awaiting committee action. In addition, it has attracted sponsors from both sides of the aisle. This bill protects all our members and passage remains our single most important legislative goal.

 

The cost of doing nothing

 

The high price of liability insurance forces many small businesses to pay over $15 billion a year in out of pocket tort liability costs because they cannot afford insurance. For a typical building material supplier with $1 million a year in revenue, the average tort liability cost is $17,000 per year. These costs drive up the price of building materials, ultimately increasing the cost of a new home.

 

We need to keep the pressure on.

 

NLBMDA has received pledges and donations from many members, however there are more than 10,000 lumber and building material dealers nationwide and we need your support now.  The challenge is obvious – we need to spread the word and build support for the Innocent Sellers Fairness Act. 

 

Click here to download the NLBMDA Innocent Sellers Fairness Act pledge form or go to www.themla.com.

 

 

“Each one reach one” membership campaign

 

The Mid-America Lumbermens Association (MLA) has announced a membership contest to run from July 1 to October 31, 2006. The MLA Board unanimously approved plans to reward current members who recruit new members for the Association.  Complete details were mailed to all current members. The grand prize winner will be awarded a trip to Las Vegas – all expenses paid. Cash prizes also will be awarded to the second and third place winners. Watch your mail and get on board.

 

 

SECOND ANNUAL SAFETY AWARDS

Deadline Extended to July 21
 

NLBMDA invites all dealers to apply for the second annual national safety awards. Two types of awards recognize dealers for their safety records and achievements during the past year. Please contact MLA to obtain applications.


The National Achievement in Safety Award will be given to all dealer applicants that meet a high standard of safety based on specific criteria. Winners will receive a recognition certificate, acknowledgement in national industry publications and customized press releases to announce their achievements to local media.

The National Industry Leader in Safety Award will be presented to two dealers at the annual Industry Summit: One with fewer than 50 employees and one with more than 50 employees. Winners will be selected by an awards committee based on specific safety criteria and how well the company demonstrates their outstanding leadership and commitment to safety by “going above and beyond” basic safety practices. Winners will also be profiled in ProSales magazine and receive customized press releases for use with local media.

Eligibility for both awards is on a per location basis to allow individual lumberyards to be recognized for their excellence in safety. The deadline for applications has been extended to July 21, 2006. 

 

 

 

SAVE THE DATE

 

MLA Fall Fling – November 2-3, 2006

Harrah’s North Kansas City Conference Center and Hotel

 

 

 

LUMBER NEWS – QUICK GLIMPSES

 

The Obesity Problem… There is a strong correlation between the physical health of your employees and the financial health of your company. Obesity leads to lost production, greater absenteeism, higher worker’s compensation costs, higher insurance premiums, and so forth. And here’s a disturbing fact: Americans are getting heavier every day. A recent analysis of our industrial database consisting of over 80,000 workers shows that the “normal weight individual” made up about 33% of the workforce in 2000 and only 24% in 2005. The trend analysis predicts that by 2010, that number will drop to just 16%.

 

The bottom line? You will almost certainly be hiring more overweight associates—men and women with more medical demands and higher costs—in the future. This does not bode well for your economic picture.

 

Source: www.healthybodyweight.com, Dr. Thomas Gilliam, author of “Move It, Lose It, Live Healthy!”

 

Merchant Fraud Alert… Identity theft continues to make headlines as one of the biggest contributors to increases in fraud.  This criminal activity continues to grow as crooks easily gain access to consumer data and personal information.  Be alert to individuals who contact your business via phone or Internet attempting to make large purchases for overseas shipment, direct or through a freight forwarder.  These individuals may utilize one or more credit cards in their “urgent” request.  Fraudulent purchase trends are most prevalent in shipments to Nigeria, Ghana, Indonesia, and the U.K.  If you receive such a request we encourage you to contact voice authorization and notify them of a Code 10 request, specifically identifying the transaction as a large foreign shipment transaction.  Fraudulent transactions, even when authorized, are subject to chargebacks and final payment is not guaranteed. 

 

Source: NOVA Association Newsletter, July 2006

 

Softwood Lumber Dispute Not Over Yet… As reported on July 3, the Softwood Agreement was inked by U.S. and Canadian representatives on

July 1. The agreement still faces approval by the Canadian parliament, and it is a subject of great debate with our neighbors to the north. Those in favor tout the agreement as the best they can hope for, while opponents believe their countrymen sold out.

 

According to one Canadian newspaper, Penticton Western News, “The biggest obstacle to the deal appears to be its own complexity. Forest industry analysts say the 70-page agreement carries different meanings for different companies and even different regions of the country. The deal is so complex it even confused its architects, as Harper initially promised it would bring peace for seven years, before learning U.S. trade actions could return as soon as three years down the road.”

 

The agreement is currently scheduled to take effect on October 1, 2006.

 

Immigration Reform Legislation… No matter which side you take in the immigration debate, one thing is sure: The federal legislation being proposed focuses on enforcement – and that enforcement will be directed squarely at employers. The majority of employers check worker documentation to be sure workers are legal – but it’s widely known that a driver’s license and social security card can be obtained on the black market, and if you ask questions to discern whether the documentation is legal, you’re flirting with equal opportunity regulations that prohibit delving into national origin. This “Catch-22” can put you in a difficult position, with new legislation proposing stiff fines. According to a G. Neil Corp. press release, “Homeland Security Secretary Michael Chertoff recently said the federal government planned to ‘break the back’ of businesses that hire undocumented aliens. Legislation pending in the House would fine employers up to $40,000 for such hirings, and a Senate proposal would impose fines of up to $20,000 and up to three years in prison for a violation.” Keep an eye on the legislation and urge your congressmen and women to take your concerns into account when legislation is being passed.

 

Home Sales Expected To Stabilize In The Months Ahead… Home sales are projected to ease modestly but should stay within a relatively narrow range over the balance of the year, according to the National Association of Realtors.

David Lereah, NAR’s chief economist, said the market is showing signs of stabilizing. “The major housing indicators have been moving up and down within a reasonable range, which means the market should even-out just below present levels,” he said. “At the same time, housing inventory levels are balanced in much of the country, so overall price appreciation will be at a normal rate. We should see home sales rise and fall month to month, but don’t look for any big shifts one way or the other.”

 

Source: National Association of Realtors, July 11, 2006

 

NAR To Congress: Fix Loophole That Permits Commercial Firms To Own Banks… In written testimony submitted to the House Subcommittee on Financial Institutions and Consumer Credit, the National Association of Realtors urged Congress to consider tightening the loophole that permits commercial firms to control federally insured banks.

NAR explained that recent applications for federal deposit insurance by Wal-Mart and Home Depot for industrial loan companies have again raised deep concerns about the dangers of mixing banking and commerce. NAR’s testimony emphasizes that the FDIC would set a dangerous precedent if it approves Wal-Mart’s and Home Depot’s applications.

“When commercial firms are allowed to engage in banking, the bank’s commercial parent runs the risk of using the bank to further the corporate objectives of the company, creating an inherent and irreconcilable conflict of interest,” said Tom Stevens, president of NAR. (Click here to read the entire text of their testimony.)

 

Source: National Association of Realtors, July 12, 2006

 

Asbestos… Senate Judiciary Committee Chairman Arlen Specter (R-PA) and Ranking Member Patrick Leahy (D-VT) have introduced an updated version of the FAIR Act (S. 852). Much like the original version of the FAIR Act, the updated S. 3274 would create a trust fund for asbestos claimants, but would tighten the requirements for petitioners seeking compensation from this $140 billion fund. At this juncture there is still a strong Democratic voting bloc against this bill, and it seems unlikely that Specter will be able to muster the 60 votes necessary to bypass the Senate’s procedural hurdles.

 

Source: NLBMDA Advocate, July 2006

 

 

NEW PROCESSING RATES

 

Visa and MasterCard recently announced new requirements that will affect tax-exempt transactions.  Tax-exempt transactions will no longer be processed at the qualified rate*. This change will have an effect on anyone who processes commercial credit cards.

 

Effective April 1, 2006, commercial credit card transactions processed with a tax amount of zero will be processed as a non-qualified transaction. To qualify these sales, the merchant should enter the correct sales tax amount based on your local government sales tax structure. Visa and MasterCard also require that a sales tax amount and a customer accounting code be entered on all purchasing card transactions. Non-compliance will mean higher processing fees.  Commercial card transactions processed in those states that do not charge sales tax will automatically fall to non-qualified rates.  

 

How to comply with new requirements

Processing terminals and software are designed to identify commercial cards and will prompt merchants to enter the required Customer Accounting Code and Sales Tax information.

 

Customer Accounting Code – This code can be up to 17 digits. If a customer does not have this information, enter “1111.”

Sales Tax – To comply, use your local government sales tax schedule.

AVS – Reminder: Address Verification Service (AVS) should be performed on all hand-keyed consumer transactions.  By entering the zip code information these transactions will be eligible for a better hand-keyed rate than if no AVS was done.

 

*If you would like to verify that your current equipment or software is up to date, call NOVA at 800/725-1243.

 

New Web Site Unveils Career Opportunities

 

(Tacoma) APA - The Engineered Wood Association recently launched the APA Career Center - a new web site that allows users to discover career opportunities in the wood industry in the U.S. and parts of Canada. The site is located at www.apawood.org/jobs.

 

APA teamed with its member companies to create the searchable career site. Employment opportunities are broad and include a range of positions: mill machinery operators, business management team members, engineers, scientists, marketing experts, support staff and many others.

 

“The Career Center was created to provide a simple tool for users to search for job opportunities in the wood industry, as well as for employers to post job listings and expand their pool of talented candidates,” said LaDauna Wilson, APA Web Coordinator.

 

For students and others interested in the wood industry, the web site also provides links to colleges and universities in North America that offer programs related to forestry, science, technology and business practices for wood products.

 

A 30-day job posting costs $95. Member companies of APA and the Engineered Wood Technology Association can post openings for a reduced $45 rate.

 

Avoid the “Tort Tax”

 

Former Treasury Secretary John Snow said that the current tort system costs Americans well over $200 billion a year. Calling it a “tort tax,” Snow said it is “…Paid in the form of lower wages, higher product prices and reduced investments – of $809 for every individual and more than $3,200 for a family of four.”*

 

You can take steps to protect your business from becoming a target of a frivolous lawsuit.

Implement a program of effective hiring practices to identify the best candidates for employment. Adopt standardized hiring procedures to help protect against employment related discrimination lawsuits. Hire only qualified, responsible employees and provide quality training to help prevent lawsuits by customers alleging mistreatment or discrimination. Check driving records (Motor Vehicle Reports) before hiring new employees and periodically for current employees.

 

Scrutinize every business contract before agreeing to it to ensure that you do not unintentionally take on the liability of others. Many contracts include provisions that compel you to “hold harmless” other parties, or that require you to name others as “additional insureds” on your insurance policies.

 

Are you carrying more liability insurance than necessary?  Often the person with the “deepest pockets” is the one who becomes the target of frivolous lawsuits.  To determine the right amount of liability insurance for your business, ask yourself these questions:

 

·         How would an uninsured loss affect my company’s operations?

·         If a third party, or a third party’s property, were hurt or damaged as the result of my business operations, what is a likely amount for which a business of my size would be sued?

·         How competent and well trained are my employees?

·         Has my industry historically been the target of lawsuits, or do I operate in a geographical area that is overly litigious?

·         How is my business structured?  (Typically, only the assets of the company may be seized if a judgment is filed against a corporation; however, a sole proprietor or partnership may be held personally responsible.)

 

No matter how future tort reform is shaped, risk management is still the best defense against the possibility of a dreaded liability suit.