Mid-America Lumbermens Association

MLA LINE

Lumber Industry News Express

Mid-America Lumbermens Association

 

MLA LINE

Lumber Industry News Express

Vol. 4, No. 24– November 21, 2005 

 

AREA MEETINGS STILL AVAILABLE

The first week of MLA area meetings was held last week in Kansas and Oklahoma, but you can still attend, if you’re in Missouri, Arkansas or eastern Kansas. Online HR compliance management and PostFrame Manager will be discussed, in addition to offering a forum for the discussion of current industry news and issues.

Interested in attending?  We hope so.  A continental breakfast will be served at the morning meetings and hors d’oeuvres will be served at the evening meetings. They will be provided at no charge. To help us guarantee an accurate meal count, please fax your reply no later than one week prior to the meeting you plan to attend.

We are offering these meetings at 16 locations throughout the MLA territory. Call the MLA office at 800-747-6529 for a registration form or visit www.themla.com and click on Area Meetings. Select the time and place that works best for you and return your form today!

NEED FORKLIFT RETRAINING?

NLBMDA is continuing their popular teleconference series with a forklift review in December:

  • "Forklift Training and Triennial Review" on Thursday, December 15 at 1 p.m. EST

You may go to their website that provides dealers with a complete list of upcoming teleconferences and downloadable registration forms http://www.dealer.org/

The dates for the 2006 teleconferences will be available soon. Call MLA at 800-747-6529 with questions.

 

 

NACM's 2005 Teleconference Series

DOING BUSINESS WITH A TROUBLED COMPANY: WHAT SHOULD I DO?

Every credit executive dreads hearing that its customer just filed for bankruptcy. This program will provide the credit executive useful tools to enhance the likelihood of payment of pre and post petition claims, including information on the following:

  • Use of standby letters of credit

  • Selling on a consignment or purchase money security interest basis

  • Setoff and recoupment rights (hidden gold) where a trade creditor and its customer have claims against each other

  • Cashing out claims through sales and puts of claims

  • Stoppage of delivery rights

  • Expanded reclamation rights and a new administrative claim in favor of sellers of goods under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

  • Critical vendor issues

  • Rights under supply contracts and other types of executory contracts. 

Audience participation enlivens the session. To register now, go to http://www.nacm.org/education/teleconfs/schedule05.shtml.  Registration fee: $59.95 per line.

LUMBER NEWS – QUICK GLIMPSES

Construction Spending At All-Time High… The Commerce Department reports construction activity rose 0.5 percent to an all-time high of $1.12 trillion, at a seasonally adjusted annual rate in September, as builders took advantage of interest rates that are historically low. The 0.5 percent increase in construction spending in September followed strong growth of 0.6 percent in both July and August. Construction activity will in all probability show future growth, from the vast rebuilding efforts called for by the devastation left from several hurricanes this fall. However, economists believe that is likely to slow in coming months, as that growth will be offset by the Federal Reserve pushing higher interest rates in order to combat inflation stemming from the high cost of energy related to hurricanes and their aftermath.


Source: Baltimore Sun, quoted in NACM E-News Weekly Update, November 8, 2005

 

House Counters Eminent Domain [by Jim Abrams – Washington] Conservative defenders of private property and liberal protectors of the poor joined in an overwhelming House vote to prevent local and state governments from seizing homes and businesses for use in economic development projects.

 

The House legislation, passed 376-38, was in response to a widely criticized 5-4 ruling by the Supreme Court last June that allowed eminent domain authority to be used to obtain land for tax revenue-generating commercial purposes.

 

Source: Cincinnati Post (Publication date: 2005-11-04) quoted in BUILDER Business Update - November 8, 2005

 

Buying Trends… Customer profile data released from Renovation Experts.com, a network of more than 3,000 home improvement contractors, showed that more than 46 percent of its customers are women. That means women are just as likely to be in charge of a remodeling project as men. In addition, Renovation Experts.com contacted a sampling of its customers to determine what kind of projects they were tackling. Projects ranged from kitchen and small bathroom remodeling to full-scale remodels and additions. That customer profile data lines up with recent research by the Home Improvement Research Institute, which found women account for more than $70 billion worth of purchases in the home improvement industry, up from $55 billion in 1995. The survey also indicates women take the lead in initiating bath and kitchen remodeling projects. They are also buying more power tools, and that is expected to be a trend for Christmas shopping this season.

 

Source: HCI Business Report, published by Home Center Institute, November 10, 2005

 

Debate Over Harvesting of Salvage Timber Fueled by Diverging Points of View… Spurred by the introduction of recent legislation that would more quickly allow the Forestry Service to harvest salvage timber, representatives of the timber industry and environmental groups have entered a new phase of debate.

 

“Common sense says we need to restore habitats and watersheds for future generations,” said Chris West, vice president of the American Forest Resources Council, a timber industry group.

 

“If we don't choose to harvest dead trees and restore ecosystems for future generations, we are going to be forced to cut live green trees, in many cases on foreign soils, to meet consumer demand.”

 

Source: LBM Daily, November 14, 2005

 

New UN Report Shows World Deforestation Slowing, But Still Alarming… On Monday, the United Nations released The Global Forest Resources Assessment 2005 (FRA 2005), which covers 229 countries and territories between 1990 and 2005.

 

According to the report, forests now cover 4 billion hectares (or 30%) of the world's land area, and the deforestation rate is 13 million hectares a year. South Africa has suffered the largest net loss of forests between 2000 and 2005, while Europe and Asia saw forest areas grow.

 

Source: LBM Daily, November 15, 2005 

 

Lowe’s 3Q Profit Soars, Shares Leap… Lowe’s Cos., the nation’s second-largest home-improvement retailer, said Monday its third-quarter earnings rose nearly 26 percent, beating Wall Street’s expectations, as homeowners continued to spend money on their homes despite rising heating and gasoline costs. Shares of Lowe’s soared more than 5 percent.

 

Source: Builder Online, Business Update, November 15, 2005

 

WTO Panel Concludes That U.S. Is Now In Compliance for Softwood Tariffs; Canada to Appeal… On Tuesday, the World Trade Organization ruled that the U.S. is now in compliance with its WTO obligations in the softwood lumber case, and that the U.S. will not have to pay back $4.25 billion to Canada.

 

However, Canada has said that it plans to appeal the ruling.

 

“The WTO panel’s findings do not change the fact that the NAFTA process” which is enforceable under U.S. domestic law “has already concluded that the U.S. was wrong to impose duties on Canadian softwood lumber in the first place,” International Trade Minister Jim Peterson said in a release.

 

Source: LBM Daily, November 16, 2005

 

NAFTA Makes Deadline for U.S. Compliance… NAFTA has instituted a November 23rd deadline for the U.S. to cut its duties on Canadian softwood lumber imports.

 

“The [U.S. Commerce] department is closely reviewing the [NAFTA] panel’s response and will respond by the date set by the panel,” Franklin Lavin, undersecretary for international trade at the Commerce Department, said in a statement.

 

However, the Coalition for Fair Lumber Imports does not think that the U.S. should comply. Chairman Steve Swanson said today “the Commerce Department should not take action in response to the [NAFTA] panel order that contradicts U.S. law.”

 

Source: LBM Daily, November 17, 2005

 

October Housing Starts Slow… The National Association of Home Builders (NAHB) indicated on Thursday that, based on Commerce Department figures, the pace of new-home construction and the issuance of building permits both declined in October.

 

“Builders continue to operate at a very healthy pace, but we are well aware that some slowing of demand is inevitable following the record-breaking sales activity that has prevailed recently,” said Dave Wilson, NAHB president and a custom homebuilder from Ketchum, Idaho. “NAHB’s November survey of single-family builders showed a significant slowdown of sales activity.”

 

Source: LBM Daily, November 18, 2005

 

US House & Senate at Odds on Byrd Amendment… The U.S. House of Representatives, with a 217-215 margin, voted Friday to kill the Byrd amendment, as part of a larger package of budget cuts. However, the Senate’s budget cut package leaves the law intact, where 70 of 100 senators once endorsed it.

 

The controversial Byrd amendment would allow approximately $5 billion of duties on Canadian softwood lumber, currently held in the U.S. Treasury, to be distributed to U.S. lumber companies.

 

Source: LBM Daily, November 21, 2005

 

MEMBER NEWS

 

Holly A. Theobald, a 2005 graduate of the University of Kansas School of Law, has become an Associate of Alderson, Alderson, Weiler, Conklin, Burghart & Crow, LLC, the Topeka law firm that provides lobbying services to Mid-America Lumbermens Association.

 

INTERESTING FACTS

  • A “jiffy” is an actual unit of time for 1/100th of a second.

  • The White House had a telephone before it had an indoor bathroom.

Source: The Older Nebraskan’s Voice

Do you have a “No Tolerance” policy?

 

In 2003, the Equal Employment Opportunity Commission (EEOC) received 81,293 charges alleging discrimination and/or harassment related to employment. While the number of filed charges has leveled off, the costs have increased. Approximately 60 percent of filed charges are found to have “no reasonable cause.” Nonetheless, monetary benefits paid for claims resolved through the EEOC totaled nearly $1.2 billion from 1999 through 2003. This amount does not include settlements obtained through litigation in other courts nor the considerable legal expenses and other hidden costs paid by employers. Nor does it reflect the harm caused by an accusation of discrimination or harassment, whether the charges are just or unfounded.[1]

 

Think about how a discrimination or sexual harassment claim would be viewed in your community. It can be devastating to your reputation and your bottom line. Even if no damages are awarded, defense costs can often reach $100,000.

 

Employment Related Practices liability insurance can provide assistance with your defense, but how can you prevent a claim in the first place? To help assess your company’s situation, consider these important questions:

 

Does your company have a written “no tolerance” policy for discrimination/ harassment? Your employees need to under­stand the types of behavior that will not be permitted in your workplace and the consequences for anyone who commits such acts.

 

Is your “no tolerance” policy active or buried in a file? An active discrimination/ harassment policy is crucial. Just responding to incidents as they are reported will not be a defense. Your policy should be written—acknowledged by each employee—promoted by upper management, and communicated frequently. It should be part of your daily operations.

 

Do your supervisors and employees understand the grievance procedure? Make sure your grievance procedure is appropriate for your company and that it is communicated effectively. Include posters or signs, up-to-date bulletins, and notification forms for new hires to sign. If possible, provide a 24-hour hotline service and hold safety meetings on discrimination/harassment topics annually.

 

Employees should have options for reporting grievances. A policy requiring that an employee only report to an immediate supervisor is not much help if the supervisor is the problem. Provide at least two names and titles of persons to whom grievances may be reported.

 

How well will your written documentation protect your company if a claim occurs? Are you requiring and keeping good written records that accurately reflect incidents that may lead to disciplinary action? If you terminate or discipline an employee, make sure your documentation is adequate to support your decision. Performance evaluations and hiring practices should be focused on work-related standards, and  employees should get timely notice of performance issues. Lack of documentation can be a major problem and could increase the cost of employment practices claims.

 

Are you satisfied that employees will adhere to your “no tolerance” policy? Are you confident that your managers and supervisors have received proper training and will keep good written records for you? It is important to remember that an employer can be held responsible for a supervisor’s conduct even if the employer is not notified of the incident. If one of your supervisors fires or demotes an employee who refuses the supervisor’s sexual advance or discriminates against the employee, your business can be held liable without any defense. Owners or top managers may not be excused simply because they had no knowledge of the supervisor’s actions or even if they have tried to prevent such harassment.

 

Reviewing your company discrimination/harassment policy, training and procedures is a good start. You also may want to consult a qualified legal professional with your questions, as this is an area of law that is rapidly changing.

 

Reprinted with permission of Federated Mutual Insurance Company, Copyright 2005, All Rights Reserved.


[1] Figures represent the total number of charge receipts filed and resolved under all statutes enforced by the EEOC (Title VII, ADA, ADEA, and EPA). Source: www.eeoc.gov/stats/all.html

 

MLA is proud to endorse….

THOUGHT FOR THE DAY 

“Plan for the future, because that’s where you’re going to spend the rest of your life.” – Mark Twain

We're here to help. Until next time....

Happy Thanksgiving!                     

MLA Staff     

816-561-5323

800-747-6529

 

 

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.