Lumber Industry News Express

Canada and the United States formally signed their softwood lumber agreement on Tuesday, September 12, in Ottawa. Under the deal, the US. would return about $4-billion of almost $5.3-billion in punitive duties that it has collected from Canadian companies since May 2002. The deal would also restrict Canadian exports if prices fall too far, and would remain in effect for seven years, with a possibility of extending it for another two years.

At the signing, Susan C. Schwab, U.S. Trade Representative, commented, "With this agreement, we will have a formal channel -outside the super-heated environment of litigation - to discuss ways to resolve our differences once and for all. Under the terms of the agreement, we will establish a bi-national working group to discuss policies that could eventually result in the elimination of border measures."

Since unfounded and unfair lawsuits are increasingly having a negative effect on the ability of lumber and building material dealers to run their businesses, NLBMDA was able to get bi-partisan legislation introduced in Congress seeking relief for this problem. H.R. 5500, the Innocent Sellers Fairness Act (ISFA), is a bill, which provides targeted liability protection for innocent product sellers and retailers who are victimized by predatory lawsuits.

Since the introduction of ISFA, the legislation continues to build momentum, but your help is still needed. With Congress coming back into session after the August break, it is important to continue to contact your representative and ask them to cosponsor H.R. 5500. Invite them to visit your yard when they are home over the weekend or schedule them to visit your yard in October when they are in their districts.

Go to www.buildthevote.org to see if your Member of Congress is already a cosponsor and, if not, how to contact them and urge them to become a cosponsor of H.R. 5500.900.

Source: NLBMDA, September 2006

ATTEND THE FALL FLING

The “Fall Fling” is the Annual meeting of MLA members and is set for Thursday and Friday, November 2-3, 2006. Thanks to members’ enthusiastic response, we are again offering this outstanding event. Again this year, we’ll have a casual yet highly informative and educational event that will be well worth your time. We’ve also brought back the dine-around, so you can enjoy dinner on Thursday evening at one of the exciting Plaza restaurants, compliments of one of our sponsoring suppliers.

The educational focus will be “Business Succession Planning – Where will your company be in five or ten years?” Without a roadmap, you could end up anywhere. It’s never too early to plan the future of your business. Will you grow, expand, become agile and merge with a larger dealer? All these options can be good ones if it’s the future you’ve planned and want for you and your business. MLA has brought together a team of experts so you can examine your options.

There’s no cost to register, but we do need to hear from you by October 13. Contact the MLA Office for a registration form or go to the web site at www.theMLA.com.

Have you talked to anyone about MLA membership lately? The Mid-America Lumbermens Association (MLA) is sponsoring a membership contest to run until October 31, 2006. The MLA Board unanimously approved plans to reward current members who recruit new members for the Association.

All you have to do is talk with someone who isn't currently a member and recommend they join. We'll follow up and do the rest. The grand-prize winner will be awarded a trip to Las Vegas – all expenses paid – for recruiting the most new members for MLA. Cash prizes also will be awarded to the second and third place winners. Complete details are available from MLA at 800-747-6529.

SAVE THE DATE

MLA Fall Fling – November 2-3, 2006

Harrah’s North Kansas City Conference Center and Hotel

LUMBER NEWS – QUICK GLIMPSES

Last Week in Washington… Congress is back at work, but it is still questionable whether there will be action on legislation of particular interest to retailers. The “trifecta” bill (minimum wage, estate tax exemption and extended tax reduction) is not on this week’s agenda. Appropriations bills for the Department of Defense and Homeland Security are a top priority where there are efforts in both houses to finish them before Congress recesses at the end of the month to campaign. Other appropriations bills, none of which is expected to be complete by the beginning of the next fiscal year on Oct. 1, could be wrapped into an omnibus bill when Congress returns after the election.

Source: North American Retail Hardware Association (NRHA), September 19, 2006

Menard’s on the Move… Home Channel News did a feature story in their September 4 issue about Menard’s, the third-largest U.S. home center chain. Their operations have been focused in 10 states in the upper Midwest, but they are now moving into Missouri with a store scheduled to open in St. Joseph in the near future. This giant bears watching.

Contracts Program Manual… NLBMDA has recently introduced a new contracts program manual and CD entitled, Risk Management Best Practices: Six Principles to Minimize Legal Liability. This educational program will provide dealers with easy-to-understand risk management information to help reduce risk by identifying common language, clauses and risk transfer practices to be aware of when writing or signing contracts with customers.

To get a preview of the new Risk Management Best Practices Contracts Program or to order your copy today, visit the NLBMDA web site at www.dealer.org or call 800-634-8645.

Source: NLBMDA, Your National Perspective, Summer 2006

2006 Cost of Doing Business Report… Did you know that, in 2005, the gross profit per employee was $84,166? Or, that the typical dealer grew sales by approximately 7.37 percent in 2005? To learn more and stay ahead of the game, order NLBMDA’s 2006 Cost of Doing Business Report. Call 800-634-8645.

Have You Gotten a Poster Notice? Be advised. You may receive a phone call or a letter from an official looking agency or company stating that you must update your federal and state posters or you will face fines or even an investigation. This is a scare tactic to get you to buy their posters.

You can get all your federal and state posters FREE through a link on the MLA web site at www.themla.com. The link will take you to Regulatory Consultants, Inc. (RCI). Once there, click on State Employment Posting Requirements at the bottom of the far left column. Click on your state. Each state web site allows you to print state required posters and also includes the required federal posters. Save time – save money – get ‘em free.

A “bad” hire can infect a business like a virus and disrupt the whole operation.

A business owner hired a friend’s daughter who recently graduated from college. Her application looked great and the job interview went well. Background checks were waived and she was hired as a sales associate.

A few months later, other people in the department began complaining about the young woman, claiming she was moody, demanding and rude to the clerical staff. She also expected other salespeople to handle service calls when she wasn’t in the office, which was often. One long-time employee became frustrated with the working conditions and left the company.

In this example, reference checks could have revealed that the employee had been fired from a prior part-time job for the same type of behavior. In addition, a drug test would have uncovered a substance abuse problem.

Business owners can purchase employment related practices liability insurance to protect themselves from lawsuits alleging discrimination and harassment or wrongful termination. However, insurance coverage can’t compensate for the lost productivity, worry, and embarrassment that can result from a regretful hiring decision.

Hiring the wrong person can lead to employee injuries, employment related lawsuits, and higher employee turnover. Federated’s employment practices resources can help you minimize the costs associated with hiring mistakes. Information and sample materials are also available on proper procedures and documentation needed for terminating employees who don’t work out.

"The only thing necessary for the triumph of evil is for good men to do nothing." - Edmund Burke

The opinions, views, and interpretations expressed in this publication do not constitute legal advice. Questions and concerns regarding your company’s compliance with Federal or State regulations should be directed to the appropriate Federal or State agency.

MLA LINE