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Insight Michigan Manufacturing

A publication of the Michigan Manufacturers Association

2012 Successes 2013 Priorities &

Jan | Feb 2013 Vol. XXVI No. 1


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Insight Contents

6 & 14

Vol. XXVI No. 1 • Jan | Feb 2013

4 MMA Online 5 President’s Message 20 Freedom to Work

An overview of Michigan becoming the 24th Right to Work state

21 Advocacy Spotlight

Implementing the elimination of the industrial Personal Property Tax

Cover Stories

2012 Successes 2013 Priorities &

2011 and 2012 saw a lot of legislative and regulatory successes — changes that will enhance manufacturers’ ability to do business in Michigan — but much still remains to be done to maintain industry’s competitiveness. See page 6 for an outline of MMA’s priorities in 2013 and a look back at the successes of the 96th Legislative Session on page 14.

22 Show Your Pride Help us celebrate Michigan industry by showing that you’re “Proud to Manufacture and Create Jobs in Michigan”

24 Member Spotlight

Interview with Jim Dunstan, founder of Azon International in Kalamazoo

26 HR Q&A 28 Member News

& Investment

30 Member Services

Take advantage of travel discounts for you and your employees

31 Upcoming Events

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MMA Online: www.mma-net.org

Insight

Staff

Proud to Manufacture Campaign Order campaign coasters, posters and more online: > Membership > Proud to Manufacture. Learn about the Proud to Manufacture campaign on page 22. Employee Benefit Programs Take advantage of your MMA membership to get discounts on a variety of valuable services and programs: > Services & Discounts. See page 30 for information on our hotel and car rental discount programs. Seminars & Events The spring seminar season is in the final planning stage. Watch the Seminar & Events area of the MMA website for the latest training and networking opportunities: > Seminars & Events. The Spring 2013 Seminar catalog will be mailed in the beginning of March — watch for topics to help you learn a few new tricks. Services & Discounts Access discounts to save your company — and your employees — money on a variety of services: > Services & Discounts. See page 30 for information on MMA’s hotel and car rental discount programs. E-Newsletters In addition to Insight, MMA publishes a variety of electronic newsletters targeted for the manufacturing industry. Login online and read past issues or subscribe to receive future issues right in your inbox: > News & Info > Insight & E-Publications.

Jan | Feb 2013 Vol. XXVI No. 1

Publisher: Charles E. Hadden Editor: Amy Schirado Assistant Editor: Elyse Kopietz Design: Joy Wolf Advertising

Contact Amy Schirado, at 517-487-8513 or schirado@mma-net.org, or see www.mma-net.org. michigan manufacturers association

MMA Officers Chairman: John G. Smith, Ross Controls Vice Chair: Sharon J. Rothwell, Masco Corporation Treasurer: Daniel R. Lockman, Deloitte & Touche LLP Secretary & General Counsel: Duane L.Tarnacki, Clark Hill, P.L.C. President & CEO: Charles E. Hadden, MMA MMA Directors Darren Cammin, Dow Corning Corp. Brian Cloyd, Steelcase, Inc. Mary Culler, Ford Motor Company Patrick Curry, Fullerton Tool Company, Inc. William Henderson, III, Aircraft Precision Products, Inc. Owen F. Johnston, Bekum America Corporation William D. Kovats, Pfizer, Inc. Harry A. Lomason, II, Douglas & Lomason and Magna Lomason (Ret.) Richard A. Lund, Jedco, Inc. Daniel J. Malone, Consumers Energy James M. Nicholson, PVS Chemicals, Inc. Peter J. Pestillo, Visteon Corporation (Ret.) Sanford Ring, Hino Motors Manufacturing USA Inc. Jill E. Ritchie, United States Steel Corporation Bryan R. Roosa, General Motors Public Policy Center Richard F. Russell, Amerisure Insurance Tanisha Sanders, Kellogg Company Peter S. Walters, Guardian Industries Corp. Rich Wells, Dow Chemical Company MMA SERVICE CORPORATION

In the Next Issue

MMASC Officers Chairman: Owen F. Johnston, Bekum America Corporation Vice Chairman & CEO: Charles E. Hadden, MMA President: Larry A. Janicki, MMASC Secretary & General Counsel: Duane L.Tarnacki, Clark Hill, P.L.C. Treasurer: Daniel R. Lockman, Deloitte & Touche LLP

The March/April 2013 issue of the Michigan Manufacturing Insight magazine will feature the results of the fifth Annual Michigan Manufacturing Survey. This issue will also provide a preview of Michigan Manufacturing Week and the 2013 MMA CEO & Executive Forum.

MMASC Directors William A. Demmer, Demmer Corporation Harry A. Lomason, II, Douglas & Lomason and Magna Lomason (Ret.) Edmund S. Mende, Jr., E J Group, Inc. Michael Wilson, Assem-Tech, Inc. Lead MMA Staff

Advertising Contact Amy Schirado, at 517-487-8513 or schirado@mma-net.org, for information on advertising in Michigan Manufacturing Insight. Each issue reaches at least 6,000 manufacturing and allied industry decision makers.

Michael D. Johnston, VP of government affairs Jacquelyn L. Liebner, VP of finance and HR Amy Schirado, VP of marketing and communications The opinions expressed herein are those of the authors and do not necessarily reflect the policies, positions or opinions of the Michigan Manufacturers Association (MMA) or the MMA Service Corporation (MMASC).

Michigan Manufacturing Insight Vol. XXVI No. 1, January/ February 2013 (ISSN 1936-8860),(USPS 024-973) is published bi-monthly for $18 per year by the MMA Service Corporation (MMASC), 620 S. Capitol Ave., Lansing MI 48933-2308. Periodicals postage paid at Lansing MI and additional offices. POSTMASTER: send address changes to MMASC, Membership Department, P.O. Box 14247, Lansing MI 48901-4247. Contacting Insight and MMA/MMASC

Editor: Amy Schirado, 517-487-8513 or schirado@mma-net.org. MMA/MMASC general contact: phone: 517-372-5900; fax: 517-372-3322; e-mail: ask@mma-net.org; address: 620 S. Capitol Ave., Lansing, Michigan 48933; Web site: www.mma-net.org. Past issues of Insight: www.mma-net.org.

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President’s Message

New Year, New Priorities Welcome to 2013! After the flurry of activity that occurred during the Lame Duck session at the end of the year, it is nice to be able to step back and take a look at all that was accomplished — and 2012 truly was a remarkable year. Our cover story focuses on MMA’s priorities for the coming year, as outlined in our 2013 Legislative & Regulatory Agenda (starting on page 6). This special issue also provides an overview of the new Right to Work law and its implications for manufacturers (see page 20) and a synopsis of all of the legislative and regulatory changes that MMA was able to achieve in the entirety of the 96th Legislative session (starting on page 14). By eliminating hundreds of unnecessary regulatory rules, restructuring the state’s unemployment insurance system, and last year’s top win, elimination of the industrial Personal Property Tax, MMA’s government affairs efforts saved Michigan manufacturers over $4 Billion dollars. Yes, that is $4 with a capitol “B.” Without a doubt, it will be a tall order for MMA to top this long list of significant, even historic, changes that will collectively reshape state government for years to come. As you read through this issue, I’d like you to keep in mind that these successes

would not have been possible without the support of promanufacturing policymakers. We have found Governor Rick Snyder and his Administration to be true friends to manufacturers. I would like to personally thank the Governor and Lt. Governor Brian Calley for their shared vision and commitment to reinventing our state from the top down. If you haven’t already done so, I’d like to encourage you to issue your own words of “thanks” to the Governor, Lt. Governor and your local legislators for the work that they did last year to move Michigan forward. It is their courage and leadership that made our legislative achievements possible. They deserve to be applauded for the tough votes that they were asked to make — votes that will directly benefit your bottom line. Sincerely,

MMA President and CEO

Scan here with your smart phone to access this and past issues of the Michigan Manufacturing Insight.

Insight Jan | Feb 2013

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2012 Successes 2013 Priorities &

From the very beginning of the Snyder Administration, MMA has called for many policy changes in Michigan that would increase competitiveness for the manufacturing sector. In the first two years of his term, Governor Snyder and legislative leaders have made dramatic policy changes that have truly reinvented Michigan.

Our work continues, however, as outlined in the 2013 MMA Legislative & Regulatory Agenda. 6 6 JanJan | Feb | Feb 2013 2013 Insight Insight


2013 MMA Legislative & Regulatory Agenda: Continuing to Push for Pro-Manufacturing Policies The result of the work done by the Snyder Administration and the Legislature in tax and regulatory policy has transformed Michigan into a new state, clearly communicating that Michigan is open for business. In the last two years, changes in policy have helped manufacturers drive the state’s economic recovery creating 65,500 jobs — more than half of the total jobs created in Michigan. As the 96th Legislature’s regular session has officially come to a close, we can report tremendous progress on MMA’s Legislative & Regulatory Reform Agenda (see page 14). The era of the Snyder Administration has met and exceeded expectations in the dramatic reinvention of Michigan. The scope and magnitude of change in Michigan is staggering and the benchmark measures are proving this success. Michigan moved from 49th to 7th nationally in corporate tax burdens, according to the Tax Foundation. MMA’s Policy Committees have identified numerous legislative and regulatory changes that are essential to continuing to drive the economic resurgence of Michigan manufacturers. MMA’s legislative priorities span the scope of issues of greatest importance to manufacturers including clarification on the elimination of the Industrial Personal Property Tax, identifying economic retention and development strategies, limiting everincreasing health insurance costs, tackling the talent crisis, holding Michigan regulations to no stricter than federal requirements and other measures. Michigan is a manufacturing state. The success and vitality of Michigan and our communities depends on manufacturers’ ability to conduct research and development, produce products and generate jobs. The

MMA Agenda lays out a comprehensive plan for manufacturers to continue driving Michigan’s renaissance. This article contains highlights of the MMA Agenda. See the MMA website for the full version: www.mma-net.org > Government Affairs > 2013 Agenda.

Tax Policy Establish a Consistent and Predictable Regulatory Environment To ensure a consistent and predictable business climate for Michigan taxpayers, MMA is encouraging the Office of Regulatory Reinvention (ORR) to continue developing a consistent and predictable regulatory process as part of the reinvention of Michigan tax policy and for agency guidance and rulemaking to adhere to the Administrative Procedures Act (APA). Benchmark Effective Manufacturing Tax Rates We must continuously benchmark our tax system and tax rates to the lowest effective tax rates on manufacturers in other states and nations to ensure Michigan remains competitive for manufacturers in an ever-changing and globally competitive world. Champion Unique Investments of the Manufacturing Sector To ensure a growing economy, Michigan must focus economic retention and development strategies on the industrial sector. Manufacturing investment brings high value capital and an inherently high economic multiplier effect. The benefits from manufacturing’s investments in R&D, talented workforce, headquarters and

capital projects yield significant returns on communities. Since manufacturing remains the largest sector of Michigan’s economy, we must focus economic retention and development strategies on the manufacturing sector in a way that is nationally competitive. Resolve Technical Vagaries Effective and competitive tax policy requires reasonable and common sense answers to technical questions. The new Corporate Income Tax (CIT) creates a simple, fair and efficient tax policy for the future, but not all technical questions can be captured in the legislative process. Some agency judgment will continue to be required to develop regulations and policies for the CIT and other existing taxes, including the Michigan Business Tax, sales and use taxes and others. We ask the Department of Treasury to work with the business community to address technical uncertainty and the Legislature to enact clean-up legislation where appropriate. Increased certainty in Michigan tax policy improves the state’s business climate and enhances the state’s competitiveness. Implementation of Industrial Personal Property Tax Phase-Out With the passage of the bills eliminating the industrial portion of the Personal Property Tax in 2012, several technical clarifications remain to be addressed. Clarifications such as the definition Insight Jan | Feb 2013

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2013 Legislative & Regulatory Priorities

of “eligible manufacturing personal property” and “new personal property” are needed to provide clear direction to both the state and business community in the implementation of the new law. In addition, since the new law requires support of a statewide vote as a condition of implementation, we must develop plans to ensure the successful passage of the ballot proposal.

Health Care Cost-Shifting of Public Health Plans to the Private Sector Tax or fee increases on employers, directly or indirectly, are not viable remedies to cover the cost of the uninsured and public health plans. To identify a more equitable revenue solution for the Health Care Claims Tax (PA 142 of 2011), MMA will engage the Administration and Medicaid providers in anticipation of the legislation’s 2-year sunset. To ensure the appropriate and efficient use of manufacturer’s tax dollars, MMA will support efforts to fight fraud, waste and abuse Medicaid and implement meaningful cost-saving reforms to the system. Health Care Benefit Mandates MMA consistently voices strong opposition to specific health care coverage mandates not only because of the increased cost that every mandate imposes, but also our strong belief that decisions regarding health insurance coverage should be free of government interference and left between employers and employees to decide what coverage is needed and what they can best afford. MMA will continue to oppose new Michigan-only mandated health care benefits which ultimately drive up the cost of employersponsored health care making us less competitive compared to other states. Promote Cost Savings in EmployerSponsored Health Care Plans Employer-sponsored health plans continue to be the largest source of health insurance coverage for Americans and Michiganians. As the largest payers of health 8

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insurance, 91 percent of manufacturers offer health care benefits to their employees, compared to 71 percent of all other industries. MMA will work to promote the value of employer-sponsored health care plans, work to ensure the continued viability of these plans and preserve manufacturing employer options by advocating for cost-saving measures, including wellness incentives. We will combat policies that increase the cost and complexity of private health care and fight disincentives to employer coverage. Certificate of Need Process Overutilization is a significant cost driver in health care, which can be controlled through Certificate of Need (CON) programs. MMA will continue to support a strong CON process to preserve the savings it contributes to Michigan’s health care delivery system. Implement Federal Health Care Reform On 3/23/10, President Obama signed into law comprehensive health care reform legislation: the Patient Protection and Affordable Care Act (ACA). The law, and subsequent legislation, seeks to expand access to health care through new federal mandates on individuals and businesses. The law dramatically changes the structure of individual and group health insurance markets, as well as publicly provided health benefits, and establishes strict deadlines for compliance. To ensure that manufacturers are not adversely or disproportionately impacted by state efforts to implement federal health care reform, MMA will work closely with the Snyder Administration and legislative leadership on authorizing legislation and regulations.

Manufacturing Talent Workforce Training To continue the manufacturing-driven economic recovery in Michigan, we must address the most immediate barrier to economic growth — the limited availability of skilled workers. MMA will continue to work closely with the Administration

and legislators, community colleges, and other key stakeholders to identify solutions to Michigan’s skills gap and help increase employment and grow the economy. Industrial Arts in the K-12 System Advanced manufacturing relies on an educated and highly skilled workforce. MMA will advocate for educational reform and outreach efforts that will work to ensure that Michigan’s K-12 system is educating and motivating kids toward manufacturing careers.

Employer Issues Government Intrusion in the Workplace Manufacturers must be on guard against legislative and regulatory attempts to erode fundamental employer rights. MMA will fight against government constraints on terms and conditions of employment, in use of property and in any other attempts to attack employer rights in the workplace. Anti-Competitive Federal Rules To preserve balance in employeremployee relations and protect employers’ ability to create and retain jobs, MMA will combat efforts by the National Labor Relations Board and Federal Department of Labor to exceed their authority and advance a politically motivated agenda to the detriment of manufacturers through proposed rules that restrict employer rights. Unemployment Insurance Michigan’s Unemployment Insurance (UI) System is 100 percent employerfinanced through payroll taxes, warranting careful stewardship of its administration. Unemployment benefits are intended to be a temporary safety net for employees who find themselves without a job through no fault of their own. MMA supports cost saving reforms that enhance the integrity of the UI system, such as prevention and identification of overpayments made due to fraud or error. MMA opposes expansion of eligibility requirements, raising benefit levels and extending the period of eligibility — especially during tough economic


2013 Legislative & Regulatory Priorities

times. MMA will fight to maintain the cost-saving reforms secured in 2011 through Public Acts 14 and 269 of 2011 which resulted in hundreds of millions of dollars in employer tax dollar savings. Workers’ Compensation While workers’ compensation provides important protection for workers who are injured on the job, the program also represents a significant cost for Michigan employers and, therefore, must be managed both efficiently and effectively. Workers’ Compensation costs must also be kept competitive compared to other states. MMA will combat efforts to undermine the provisions of Public Act 266 of 2011, which codified favorable Supreme Court rulings to bring stability to the system and modernize outdated areas of the law. MIOSHA and Worker Safety For manufacturers, large or small, employee safety and health is of primary importance. MMA will work proactively with the Michigan Occupational Safety and Health Administration (MIOSHA), the primary agency charged with the regulation of worker safety, health, earned wages and fringe benefits, to be the voice for the manufacturing industry. MMA will work with the Administration through the Offices of Regulatory Reinvention (ORR) to eliminate unnecessarily burdensome rules and extraneous commissions, and improve the efficiency of MIOSHA regulatory processes to allow Michigan job providers to be more competitive and to focus on what it is that they do best.

Environmental Change Michigan’s Current Air Toxics Policy Michigan’s air toxics program has not been revised since it was first adopted in the 1980’s. To make the program more competitive and cost-effective MMA will work with the DEQ to implement recommendations made by the ORR for agency and legislative changes in the state’s Air Toxics program. These changes should include eliminating some rules and consolidating others to avoid duplicative regulations that exceed federal standards The current system is inefficient and results in slower permit application reviews making Michigan less competitive with other states for attracting new investment. Improving Michigan’s air toxics program will make the program better for both the regulated community and the DEQ. Improve and Streamline the Rulemaking Process with Changes to the Administrative Procedures Act The promulgation of rules in the DEQ takes far too long and lacks a consistent process from division to division. The Office of Regulatory Reinvention in the Department of Licensing and Regulatory Affairs (LARA) has created a special Review Committee to look at the present Administrative Procedures Act and recommend changes to Michigan’s Rulemaking Process. These recommendations should improve the efficiency of the process and ensure stakeholder involvement. MMA

supports this effort and looks forward to implementing the changes to improve the regulatory process in 2013. Support Beneficial Use of Industrial By-Products MMA members continue to promote the sensible and safe reuse of our industrial by-products through development of sound policies and growing markets. MMA members are working with the Snyder Administration and the Legislature on beneficial use and reuse legislation. With ideas and recommendations developed through MMA’s workgroup process, by-products such as foundry sand, fly ash, paper mill residuals, crushed concrete and asphalt pavement all could be used for developing new products, if the regulatory programs are changed. We look forward to seeing these memberdriven ideas adopted by the Legislature and signed into law by Governor Snyder. Move UST Program to Fire Marshall and Improve Certification Rules Under the Governor’s Executive Order 3012-14, the regulation of underground and above ground storage tanks was moved from the DEQ to the LARA Fire Services Office. The move was completed in 2012 and will be implemented in 2013. MMA will work with the Fire Marshall to modify the existing rules, which were adopted last year, calling for certification of storage tank operators in the state. The Michigan rules are much stricter than those of other states in the region and must be changed to improve our state’s competitiveness.

Join an MMA Policy Committee Member companies can have direct input into MMA’s public policy positions. Give us your thoughts on issues and industry developments by sitting on an MMA Policy Committee. See the MMA website, www.mma-net.org > Government Affairs > Committees, for more information or contact MMA’s Peggy Kennedy, at 517-487-8552 or kennedy@mma-net.org, to sign up.

MMA’s Policy Committees • Government Affairs Policy Committee

• Energy Policy Committee

• Tax Policy Committee • Air Policy Committee

• Employment & Workforce Policy Committee

• Environmental Policy Committee

• Lawyers Committee

• Health Care Policy Committee

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2013 Legislative & Regulatory Priorities

Support Changes to Hazardous Waste Fees to Ensure an EPAApproved Program The present hazardous waste fees expire next year. Without changes to the fee structure, the program could revert to the federal government and be administered out of the EPA Region 5 Offices in Chicago. MMA supports most of the recommendations made by a stakeholder group to change the fee structure to ensure that we have an adequate, EPA-approved program. MMA will also continue to work with the DEQ to achieve efficiencies in the hazardous waste program. Specifically, the Department should develop an electronic system that eliminates paper manifests, while still properly tracking the disposal or beneficial reuse of these materials. Repeal DEQ’s “Michigan only” Rule on Mercury Reductions To eliminate burdensome and unnecessary mercury regulations that apply only to Michigan-based utilities, MMA continues to advocate for the repeal of the “Michigan only” mercury rule, which creates a clear competitive disadvantage for Michigan energy producers. The rule imposes duplicative and excessive planning and reporting requirements with unreasonable deadlines and requires compliance with state mercury regulations years before EPA is expected to impose similar requirements though different regulations on other states. Current capacity, usage and rates indicate this excessive regulatory burden is costing Michigan electric rate payers about $1 billion. Oppose the Use of Operational Memoranda as Regulatory Tools To increase certainty and predictability in regulatory programs MMA supported legislation to stop the improper use of “guidance documents” by regulatory agencies. Ending this practice permanently has sent a clear signal that Michigan is working to improve its business climate. MMA supported the legislation (now Public Act 270 of 2011) to ensure guidance documents are used for “guidance” of the regulated community and do not have the “force of law.” Now we must work with the 10

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Legislature to eliminate unnecessary rules and consolidate current laws and regulations governing liquid industrial waste while encouraging the proper disposal or beneficial reuse of these by-products.

The full version of MMA’s Legislative & Regulatory Agenda is available on the MMA website: www.mma-net.org > Government Affairs > 2013 Agenda.

Department to eliminate these guidance documents unless absolutely necessary and make sure there is a clear process for adopting these guidance documents that involves stakeholders. Continue to Improve the Part 201 Environmental Remediation Program We have begun the process of moving Michigan’s stalled environmental cleanup program forward with the adoption of significant statutory changes in 2010 and this past year. DEQ must continue this progress with further implementation of the ORR recommendations and adopting the recommendations of the collaborative stakeholders’ process begun last year. These specific implementation measures will remove barriers to site cleanups and encourage more site closures. Michigan’s revised 201 program must clean up contaminated property with a cost-effective program that will increase the number of approved closures while protecting the environment. An effective program will make Michigan businesses more competitive, attract new investment, and put more property into economically productive use. Support Changes to Michigan’s Liquid Industrial Waste Regulations To promote a more cost effective way of handling and paying for the disposal and recycling of Liquid Industrial Waste (LIW), MMA will work with the DEQ and the

Oppose Tax Increases on Manufacturers for Waste Disposal To ensure that all affected parties pay their fair share of waste disposal and recycling costs, MMA is participating in the legislatively organized committee to develop sustainable, long-term funding for waste programs in Michigan. At the present time, waste programs are funded by fees on material that goes into a landfill. Other forms of disposal like recycling and composting do not pay any fees. The bulk of the “tipping fees” on landfill waste are paid by the industrial community. MMA opposes efforts to increase the landfill tipping fee on manufacturers. Support More General Fund Money for Environmental Protection To help address a significant inefficiency in government, we are calling for increased General Fund support of the DEQ. Over the past decade, the Legislature has shifted the costs of environmental protection to fees and away from the General Fund. Currently, the agency receives just 5 percent of its funding from the General Fund. So significant programmatic resources are now wasted on bureaucratic processes associated with fee collection and not dedicated to permit review efforts. MMA advocates for increased General Fund support of the DEQ to reduce inefficiency in government and increase Michigan’s competitiveness. Seek Final Approval of Air Permit Program Rules in the Michigan State Implementation Plan (SIP) MMA will work with the Air Quality Division of the DEQ to gain final EPA approval of all current Michigan air permitting regulations contained in the Michigan rules and awaiting formal EPA approval of the State Implementation Plan (SIP). Michigan manufacturers rely upon the Michigan rules, but the absence of federal approval leaves significant regulatory uncertainty for Michigan


2013 Legislative & Regulatory Priorities

manufacturers. Some rules have not been officially approved by the EPA through this SIP approval process for many years. Michigan’s minor source SIP was last approved by the EPA on 1/27/82. Since that time, the DEQ has made several changes, some dating back to 11/12/93, with no final action by the EPA. Some of the Air Pollution Control (APC) Rules included in those SIP submittals have been in effect since 4/20/89.

Energy Cost of Service Rates To end the subsidization of other customers by industrial customers, MMA calls for continued implementation of the cost of service rates established in Public Act 286 of 2008. Progress is being made but the Act requires this be achieved within 5 years of the effective date, which means the target date is 10/15/13. In addition, The Michigan Public Service Commission (MPSC) should recognize that industrial customers generally use power in a constant, levelized basis. This is different than residential customer usage which tends to peak during the summer months as a result of air conditioning use. Allocating production costs to more accurately reflect summer demands placed on the system by residential customers would provide significant cost savings to industrial customers. Evaluate the Energy Landscape Energy policy development involves a complex and dynamic set of inputs. In the absence of a clear federal energy policy, federal environmental policy is dictating energy policy by default. The federal regulatory assault on coal, known as the “regulatory train wreck” will have a substantially negative impact on Michigan and the whole industrial Midwest, which is heavily dependent on this abundant American fuel source. The 2008 energy legislation in Michigan provided a strong measure of certainty in diversifying our energy portfolio, establishing cost of service rates and increasing reliability in our state’s energy system. Looking forward,

Michigan Gross State Product 2010 By Sector Agriculture, forestry, Other Services, except Government fishing and hunting 1% 3%

Mining 0%

Accomodation and food services 3% Arts, entertainment and recreation 1%

Educational services 1%

Utilities 3% Construction 3%

Health care and social assistance 10%

Administrative and waste services 4%

Manufacturing 19%

Management of companies and enterprises 2% Professional and technical services 8%

Wholesale Trade 7%

Real estate and rental and leasing 13%

Retail trade 7% Finance and insurance 8%

Source: U.S. Department of Commerce, Bureau of Economic Analysis

we must evaluate the many dynamic inputs effecting Michigan’s energy landscape. Michigan may see significant cost impacts as new infrastructure is developed in our state and throughout the Mid-west, ranging from new generation to grid improvements. Increased access to natural gas and the federal constraints on coal will also impact cost. These cost drivers and, many others, deserve a thorough review before we decide next steps. To help us operate from the basis of knowledge, MMA supports Governor Snyder’s call for a process to establish solid information regarding the energy landscape. Eliminate the Utility Energy Optimization “Bonus” Provision In PA 295 Under PA 295 of 2008, a utility that meets or exceeds statutory energy optimization goals receives a financial incentive equal to 25 percent of the net cost reductions experienced by the provider’s customers as a result of implementation of

Information 3%

Transportation and Warehousing 3%

the energy optimization plan, capped at 15 percent of the provider’s actual energy efficiency program expenditures for the year. This financial incentive, or “bonus,” for meeting the regulatory mandate is funded by an additional surcharge authorized by the MPSC and levied on all ratepayers over the ensuing 12 months so, not only do all customers pay a mandatory monthly energy optimization charge to fund the energy optimization program, customers may be subject to an additional surcharge on their monthly electric bills to reward the utilities for exceeding a statutorily mandated goal. The policy of energy optimization must maintain a balance between the cost of the program and the benefits received. The bonus has the net effect of penalizing, rather than rewarding customers, for their hard work in exceeding the statutory energy optimization goals. For years 2009 and 2010, Michigan’s major utilities were authorized by the MPSC to collect $26,691,303 in bonuses, which were funded through Insight Jan | Feb 2013

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2013 Legislative & Regulatory Priorities Manufacturing Job Growth — January 2011 to January 2012 7

6.46%

6 5 4

3.49%

3 2

2.35%

1.75%

2.68%

2.05% 1.24%

1 0

Illinois

Indiana

Michigan

Minnesota

Ohio

Pennsylvania Wisconsin

Source: Bureau of Labor Statistics, U.S. Department of Labor

additional rate increases on customers. We do not believe customers should be required to pay additional rate increases for utilities to earn bonuses on a program already funded by customers. Meeting or exceeding the statutory goals should result in net savings for customers, not increased rates. MMA believes the utility financial incentive provision in PA 295 of 2008 should be removed to reduce rates for Michigan customers. Self Implemented Rates Self implemented electric rates must be accountable, accurate and equitable. We believe some modifications are appropriate. First, overcharges should be returned to primary customers in an equitable manner on a per-customer basis. Second, we call on the MPSC to require utilities who self implement electric rates to follow a cost allocation and rate design in a manner consistent with the proposed final rates.

must be the goal. Increased use of program metrics and efficiency mechanisms will improve government efficiency and customer service. Benchmark State and Local Government MMA calls on the Snyder Administration and the Legislature to keep their sights on improving our systems of measurement and benchmarking to continue to compare Michigan’s performance to competitor states and nations. Efficiency Mechanisms Like any manufacturing operation, efficiency improvements can be found to increase productivity and reduce costs. MMA will work together with Governor Snyder, his Administration and the Legislature to ensure that effective efficiency review programs are implemented in all state government agencies.

Reliability and Affordability MMA will support efforts and policies to strengthen interconnection between the Upper and Lower Peninsulas of Michigan. A stronger connection will lead to better reliability and lower wholesale cost to manufacturers in the entire state.

Local Government Consolidations The cost of government can be reduced by consolidating both local units and school districts. MMA will continue to work to encourage local government consolidation through statutory changes that remove barriers to consolidation.

Government Reform

Ensure Regulations Do Not Exceed Federal Standards Without Specific Legislative Approval When Michigan companies are faced with state-specific regulations that are more restrictive than their counterparts in other states, the cost of operating in

Michigan must continue to reduce the cost of government at all levels to increase the state’s competitiveness. While significant gains have been made during the last legislative session, continuous improvement 12

Michigan becomes uncompetitive. To improve our competitiveness with other states, MMA will continue its efforts to eliminate state-specific regulatory standards that exceed federal law. MMA will continue to advocate for statutory changes that limit administrative rule authority that exceed federal standards without specific legislative approval.

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Administrative Procedures Act Reform MMA supports and will continue to participate in efforts by the Office of Regulatory Reinvention in the Department of Licensing and Regulatory Affairs to review the Administrative Procedures Act to seek improvement to the state’s rulemaking processes.

Transportation Infrastructure Support the New International Trade Crossing The Snyder Administration is moving forward with the New International Trade Crossing to create an expressway-toexpressway connection to global markets for Michigan’s economy. However, several steps need to be accomplished before the bridge can be built. We will continue to support the efforts of the Snyder Administration to build an international trade crossing that moves at the speed of the global economy. Support Infrastructure Funding High quality roads and bridges are essential to a competitive manufacturing economy. Since manufacturing is the largest sector of the Michigan economy, an improved transportation system is especially important to the growth and prosperity of this state. Whether funding comes through the current gas tax mechanism or through a longer-term vision that accommodates the increasing electrification of the automotive fleet, MMA supports finding solutions that increase our competitiveness by moving Michigan’s manufactured products efficiently to domestic and global markets.


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2011-2012 Legislative & Regulatory Accomplishments Reflect Manufacturers’ Priorities Tax Policy Accomplishments MMA Eliminates $400 Million Industrial Personal Property Tax

The MMA Government Affairs team achieved several, historic, accomplishments on behalf of Michigan manufacturers in the last two years. Great strides were made in modifying Michigan’s business climate to improve manufacturers’ ability to compete globally and attract new business investment. MMA was successful at not only achieving positive legislative and regulatory change, but also blocking efforts to pass measures that posed a threat to Michigan industry. Reforms effecting manufacturers span the full spectrum of manufacturing issues — including elimination of the Michigan Business Tax, which resulted in a $1.7 billion cut in business taxes, and elimination of the $400 million industrial Personal Property Tax. Among other key wins, sweeping changes to the unemployment insurance system and the Workers’ Compensation Act represent historic reforms that will yield benefits and cost savings for job providers for many years to come. MMA’s push for regulatory reform yielded the elimination of over 100 unnecessary and redundant regulations with hundreds more targeted for elimination in the near future. The reinvention of Michigan has been truly dramatic under the leadership of Governor Rick Snyder and legislative leaders Senate Majority Leader Randy Richardville and Speaker of the House Jase Bolger. MMA made tremendous progress on our agenda through their leadership and our shared goals to increase Michigan’s competitiveness for jobs and investment. 14

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With the passage of the bills on the last day of session in 2012 eliminating the industrial Personal Property Tax (PPT), MMA met its top legislative priority of the 96th Legislature. This uncompetitive tax will be phased out over the next 10 years to ensure the elimination is funded at the state and local level. Under the plan, new equipment installed between 2013 and 2015 will be exempt from the tax starting in 2016. Existing equipment will be phased out over seven years, starting in 2016, with equipment that is 10 years old, or older, each year becoming exempt until it is all fully exempt in 2022. The Anderson Economic Group estimates that elimination of this tax, in combination with the new Corporate Income Tax, will create between 20,000 and 45,000 new jobs in Michigan. The elimination of the PPT removes a primary barrier to competitiveness with the other Great Lakes States and other states across the country that have eliminated this tax. With this remarkable change in our business climate, Michigan is open for manufacturing jobs and investment. (SB 1065-1071, HB 6022, HB 6024-6026)

New Tax Structure The new Corporate Income Tax (CIT) ended Michigan’s long-standing practice of having a different business tax structure than other states. The new tax moves to a simple 6 percent profits tax that is more in line with the rest of the nation. The CIT reduced the business tax burden by $1.7 billion. (HB 4361/PA 38, HB 4362/PA 39 and HB 4479/PA 40)

Elimination of the Gross Receipts Tax The CIT eliminated the gross receipts tax, ridding the state of a tax that

disproportionately burdened manufacturers which, as a sector, tend to have large gross receipts but low profit margins. (HB 4361/PA 38, HB 4362/PA 39 and HB 4479/PA 40)

Elimination of the MBT Surcharge The CIT ended the job-killing Michigan Business Tax (MBT) surcharge, which was a $500 million burden that fell heavily on the manufacturing sector. (HB 4361/PA 38, HB 4362/PA 39 and HB 4479/PA 40)

Technical Fixes to the Michigan Business Tax Several technical issues related to MBT were resolved under the leadership of the Michigan Association of Certified Public Accountants. The issues of greatest importance to manufacturers have significant revenue implications and the Snyder Administration is planning to clarify the recapture of investment tax credits and the treatment of Renaissance Zone Credits in 2013.

Mining Severance Tax Achieved, List of Taxable Materials Limited MMA supported the Snyder Administration and is appreciative of the two years Representative Matt Huuki (R-Atlantic Mine) spent crafting a severance tax for mining operations in the Upper Peninsula (UP). The legislation established a tax on the value of non-ferrous materials removed from a mine and dedicates a portion of the tax to local government units. MMA’s work on the legislation ensured language to exclude taxation on other materials, like gypsum, lime, gravel and, particularly, salt — which is a “nonferrous metal” on the periodic table — from the new tax system.


2011-2012 Legislative Accomplishments

Tax Regulatory Environment Improved The passage of legislation clarifying that Michigan companies treated as disregarded entities under the federal tax code would be treated the same way in Michigan put an end to the Michigan Department of Treasury’s 2009 “Notice to Taxpayers” that required companies to re-file all MBT returns for all disregarded entities. It also eliminated a multi-year compliance burden for Michigan companies and puts Michigan in line with the rest of the nation. (SB 369/PA 305)

Energy Policy Accomplishments Cost of Service Rates The 2008 energy legislation changed the rate policy to cost of service rates. Utilities are on schedule to meet the goal of full rate de-skewing by the required date, 10/15/13. Progress is being made and, as we approach this deadline, manufacturers will no longer subsidize energy costs to other customer classes, particularly residential customers. Manufacturers are high volume steady state loads of service, making the actual cost to serve manufacturers compared to residential customers significantly lower.

Employment, Health and Workforce Policy Reform Accomplishments Reduction in UI Benefit Weeks MMA took the lead in crafting an alternative to potentially adverse legislation that would continue to provide up to 99 weeks of federally extended unemployment insurance (UI) benefits. The legislation will save Michigan employers over $300 million per year through a reduction in the state portion of benefits from 26 to 20 weeks. The final legislation also incorporated key fraud-fighting measures that will help identify and prevent $50 to $80 million in fraudulent costs to the unemployment system. (HB 4408/PA 14 of 2011)

Fixing the UI Trust Fund Despite the enactment of strong UI reforms, manufacturers still faced escalating tax penalties, solvency taxes and interest related to Michigan’s $3.2 billion indebtedness to the federal government for loans taken out to pay UI benefits. Left unchecked, the federal debt, plus interest, would have triggered substantially higher, across-the-board, state and federal UI tax increases on job providers. Together with other business groups, the Snyder Administration and legislative leaders, MMA worked to support the passage of bills which provide a balanced, comprehensive solution to this crisis. Collectively, the legislation utilized capital market solutions and the restoration of a reasonable taxable wage base to restore solvency to the state’s UI Trust Fund and incorporated cost-saving reforms to strengthen the integrity of the system and modernize many of its processes, thereby saving Michigan employers over $1 billion in taxes, penalties and interest. (SB 483/PA 267 of 2011, SB 484/PA 268 of 2011 and SB 806/PA 269 of 2011)

Reducing Workers’ Compensation Costs by Updating the Act MMA led the charge for the most significant change made in the last 30 years to the Workers’ Compensation Disability Insurance Act through legislation which updated, reformed and modernized key areas of the workers’ compensation law. This effort will provide increased certainty for employees and employers, keep premiums affordable for job providers and create a more efficient and competitive system. For too long, workers’ compensation law has hung in the balance of judicial elections and employers have had to fret that any change in court composition would result in dramatic shifts in interpretation of law. The passage of this historic legislation put an end to this perpetual cycle of indecision, saving employers money on frivolous lawsuits. These dramatic reforms will also reduce employer workers’ compensation costs by closing costly loopholes that previously required job-providers to pay

for unfair and exorbitant awards. As a result, Michigan’s pure premium advisory rates for workers’ compensation insurance dropped by an average of 7.2 percent in 2012. (HB 5002/PA 266 of 2011)

Developed Manufacturing Middle-Skills Talent Alliance During the 2012 Manufacturing Talent Summit on 10/30/12, an important alliance was announced between MMA and the Michigan Community College Association (MCCA), the primary advocate for Michigan’s 28 public community colleges. The historic coalition — the Manufacturing Middle-Skill Talent Alliance — was formed to address the increasingly problematic shortage of middle-skill workers. The coalition of these two organizations is the first of its kind and scope in the state of Michigan. The Manufacturing Middle-Skill Talent Alliance is working to develop proactive, measurable and well-defined projects that will bring together educators, employers and economic developers to meet the middle-skill needs of Michigan’s manufacturing sector.

Health Care Claims Tax Limited by MMA Efforts Legislation signed into law in September 2011 repealed the Use Tax applied to Medicaid HMOs and created the new Health Insurance Claims Assessment Act (HICA), a new 1 percent tax on all paid health care insurance claims, which is used to fund Michigan’s Medicaid program. MMA opposed the legislation because the impact of the bill fell disproportionately on manufacturers. Through vigorous efforts to educate legislators and the Administration about our serious concerns with the legislation, MMA successfully obtained several specific changes to the legislation that helped constrain the size and scope of the tax, increased accountability, provided greater certainty for businesses and ultimately limited manufacturers’ liability. (SB 347/PA 141 of 2011 and SB 348/PA 142 of 2011)

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2011-2012 Legislative Accomplishments

Get Advocacy Updates: www.mma-net.org > Government Affairs

Blocked Expansion for HICA Tax Financial Shortfall In 2012, MMA responded strongly through direct lobbying and grassroots contacts when Senator Roger Kahn (R-Saginaw) introduced SB 1359 to generate more revenue to cover an expected shortfall of $122 million for FY 2011/2012 for the previously passed HICA tax. SB 1359 would have vastly expanded the tax by imposing a yet-to-be-determined variable rate tax. SB 1359 also would have repealed the proportional credit/ refund that allows health care consumers to recoup their tax dollars if the tax over-collects. MMA was successful in blocking action on SB 1359 in the Lame Duck session. We are now engaged with legislative leaders and the Administration to find alternative funding that will not increase the burden on manufacturers.

Blocked Ergonomics Rule In March 2011, Governor Snyder signed into law the final death knell to the costly and unnecessary ergonomic standard championed by the Granholm Administration. The specter of the proposed rules had been a lingering threat to Michigan’s business climate and MMA was pleased to see the issue finally put to rest after a long-fought battle. The legislation prohibits any state agency from promulgating a state-specific ergonomic standard. (SB 20/PA 10 of 2011)

MMA Drives Regulatory Reform through Workplace Safety Advisory Rules Committee The Office of Regulatory Reinvention’s (ORR) Workplace Safety Advisory Rules Committee, which MMA was appointed to, met throughout 2011 to review every rule enforced by MIOSHA to identify duplicative, obsolete, unnecessary or unduly restrictive workplace safety rules. The Workplace Safety Advisory Rules Committee issued its recommendations to the ORR and Governor Snyder in March 2012. The Committee’s recommendations include 624 proposed revisions to improve Michigan’s workplace safety regulations. Of the recommendations submitted, 334 call for elimination of MIOSHA workplace safety rules that exceed federal standards.

Elimination of Unnecessary Workplace Safety Rules MMA led the effort to pass four bills that would incorporate the legislative recommendations of the Workplace Safety Advisory Rules Committee. SB 1335 (Senator Tonya Schuitmaker, R-Lawton) better defined the “Clear and Convincing” standard for Michigan-only regulations which established greater accountability for state-specific regulations and ensures Michigan companies are not forced to comply with a more stringent standard than surrounding states.

SB 1336 (Senator Patrick Colbeck, R-Canton), HB 5917 (Representative Joe Graves, R-Linden) and HB 5922 (Representative Jon Bumstead, R-Newaygo) ensures that only the director of an agency has jurisdiction to promulgate rules. The bills eliminate the three statutory commissions that have not had authority to approve Administrative Rules since 1996. Some of the proposed changes to the Workplace Safety Regulations are following the expedited rule promulgation process allowed under Section 44 of the Administrative Procedures Act.

Closed Costly Workers’ Comp Loophole MMA successfully supported Workers’ Compensation Health Care Services Rules that will close a loophole that currently allows some physicians to gouge workers’ compensation payers for costs associated with in-office dispensing of pharmaceutical drugs. The proposed rule changes under 2012-012 LR require physicians dispensing medications to abide by the Workers’ Compensation Fee Schedule and to use standardized billing codes. The rules will now be filed with the Office of the Great Seal and will become effective immediately upon filing.

Meet the MMA Government Affairs Team Mike Johnston serves as MMA vice president of government affairs with focus on tax, energy and general government affairs policy issues. Mike began his government service in 1984 and has worked as environmental ombudsman for the Michigan Department of Commerce, policy advisor to the Business and Finance Committee and the Environmental Affairs Committee for the House Republicans and Director of Republican Policy Office in the Michigan House of Representatives. Mike may be reached at johnston@mma-net.org or 517-487-8554. 16

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Delaney McKinley serves as MMA director of human resources policy with focus on health and employer policy issues. Delaney previously worked in the Michigan Legislature for four years and then served as Manager of Government & Public Relations for Jackson National Life where she lobbied on behalf of the company on state and federal efforts. More recently, she was Senior Vice President of the Grant Consulting Group, an advocacy firm specializing in government and public relations consulting for clients at the international, federal, state and local levels. Contact Delaney at mckinley@mma-net.org or 517-487-8530.

Andy Such serves as MMA director of regulatory affairs with focus on environmental policy issues. Andy began his legislative and communications career serving as a reporter covering the State Capitol. Such’s previous experience includes serving as Executive Director of the Michigan Chemistry Council, President of EnviroPolicy Consultants, News Director at WLNS-TV and, early in his career, Communications Director for the House Democratic staff. He is a member several state environmental groups. Andy may be reached at such@mma-net.org or 517-487-8543.


2011-2012 Legislative Accomplishments

Clarified Workers’ Comp Coverage of Medical Marihuana

While the Legislature passed legislation mandating insurance coverage of Autism diagnosis and treatment (SB 414/PA 99 of 2012 and SB 415/PA 100 of 2012) despite MMA’s vigorous opposition, the Government Affairs team was successful in stopping a number of additional health insurance mandates that would have increased the cost of health care for manufacturers. SB 540 and SB 541 (Senator Roger Kahn, R-Saginaw) and HB 5132 and HB 5133 (Representative Gail Haines, R-Waterford) would have mandated equal cost-sharing requirements for oral and intravenous chemotherapy drugs. The legislation passed the Senate unanimously but was blocked in the House Health Policy committee. HB 5643 (Representative Matt Lori, R-Constantine) would require a pharmacist to obtain the written, signed consent from the prescriber before dispensing a costsaving generic for any opioid analgesic that doesn’t utilize certain tamper-resistant technologies. MMA action kept this legislation pent up in the House Health Policy Committee. MMA was also successful in preventing a hearing in the Senate Health Policy Committee on SB 479 (Senator John Gleason, D-Flushing), which would require a pharmacist to obtain the consent of both the physician and the patient before dispensing a less-expensive generic for any anticonvulsant drug.

MMA was instrumental in the crafting of legislation, SB 933 (Senator Rick Jones, R-Grand Ledge), to specifically exclude medical marihuana expenses from the medical treatment requirements of workers’ comp. The bill was sent to the Governor’s desk on the last voting day of the 2011-2012 legislative session.

Stopped Certificate of Need End-Run MMA was successful in blocking a costly legislative end-run around the Certificate of Need (CON) process. As introduced, SB 1269 would have created a CON carve-out for the construction of a costly hospital that the CON Commission had determined as unnecessary. As a result of MMA legislative intervention, together with coalition partners, SB 1269 was successfully modified by the Senate Economic Development Committee to eliminate this legislative end-run.

Blocked Trial Lawyer Bounties MMA successfully combated legislation, HB 5430 (Representative Kurt Heise, R- Plymouth), which would expand the state’s False Claims Act and allow a personal injury attorney to seek bounties to pursue cases against companies for alleged fraud against the state.

Halted Guns in the Trunk Bill For two consecutive legislative sessions, MMA has kept legislation at bay that would erode the traditional property rights of employers and other private property owners by prohibiting them from barring weapons on their property, including vehicles and parking lots. HB 5064 (Representative Paul Opsommer, R-Dewitt) died in the House Judiciary Committee.

Actively Negotiated BCBSM Mutualization to Ensure Competitiveness Legislation was sent to Governor Snyder allowing for the conversion of Blue Cross Blue Shield of Michigan (BCBSM) from a uniquely regulated health care company with tax-exempt status to a nonprofit mutual corporation regulated under the Insurance Code, as with all other insurers in the state. Many of the concerns expressed by MMA were addressed in the House-passed versions of SB 1293 and SB 1294, sponsored by Senator Joe Hune (R-Hamburg). While MMA did not have an official position on the legislation, our Government Affairs staff was active in negotiations to ensure enhanced competition in Michigan’s health insurance market and to ensure the appropriate use of BCBSM value, which has arguably been built by MMA member premium dollars.

Governor Snyder vetoed these bills because of his opposition to unrelated amendments that were added to the bills late in the Lame Duck session. The Legislature is expected to reconsider the legislation as soon as they assemble this month. As with the 2012 legislation, MMA will continue to work to ensure enhanced competition in Michigan’s health insurance market and to ensure the appropriate use of BCBSM value.

Regulatory Policy Accomplishments Legislative Regulatory Reforms, Efficiency and Benchmarking MMA has been successful in convincing the Legislature and the Governor to pass significant reforms relating to the regulatory process. The following bills passed the House and Senate in late 2011 and mean significant changes to the regulatory process including: • Requiring a “small business impact statement” and “cost benefit analysis” of a proposed rule or regulation. A comparison of Michigan’s proposed rules with other Great Lakes States is also required, (SB 271, sponsored by

Join an MMA Policy Committee: www.mma-net.org > Government Affairs > Committees

Stopped Additional Health Insurance Mandates

Senator Jack Brandenberg, R-Harrison Twp.)

along with impact statements as they affect “small business.” (SB 272, Sub (S-1), sponsored by Senator Mike Kowall, R-White Lake)

• Immunity protection in a contested case is clarified for a legislator while performing their legislative duties. (SB 273, sponsored by Senator Dave Robertson, R-Grand Blanc)

• The Joint Committee on Administrative Rules (JCAR) is also to hold a hearing on any rule previously filed or any other matter or rule JCAR considers appropriate. (SB 274, sponsored by Senator John Pappageorge, R-Troy)

• Requiring any advisory committee to keep minutes of their meetings and record any votes the committee may conduct regarding a rulemaking request. Also, the State Office of Administrative hearings and rules is required to post the regulatory impact Insight Jan | Feb 2013

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2011-2012 Legislative Accomplishments

statement of the proposed rule. (SB 276, sponsored by Senator Dave Robertson, R-Grand Blanc)

• The DEQ is required to continue process improvements for its major programs and complete the process within one year. (SB 277, sponsored by Senator David Hildebrand, R-Grand Rapids)

• Requiring the DEQ to provide scientific reasons for denying a permit. (HB 4042, sponsored by Representative Greg McMaster, R-Kewadin)

• Requiring the DEQ to contact a potential violator and meet with them prior to any enforcement action. (HB 4043, sponsored by Representative Greg McMaster, R-Kewadin)

• Clarifying that departmental guidance documents are not binding on the permit applicant and are only to provide DEQ staff with guidance. (HB 4240, sponsored by Representative Ken Goike, R-Ray Twp.)

• Requiring a state agency to submit a regulatory plan to the Legislature listing all rules they plan to write or amend in the coming year. (HB 4500, sponsored by Representative Eileen Kowall, R-White Lake)

• Requiring that all advisory committees formed to promulgate rules keep minutes and records of votes taken. Also changes some of the requirements of the Office of Regulatory Reinvention in processing rules for further action. (HB 4573, sponsored by Representative Gail Haines, R-Waterford)

• Preventing state rules from exceeding federal standards. (HB 4326, sponsored by Representative Jeff Farrington, R-Utica — VETOED By Governor Snyder)

Participating on ORR Panels to Eliminate Onerous Regulations MMA continues to work with the Governor and the Legislature to ensure Michigan companies are not required to meet regulatory standards that exceed federal law, unless there has been specific approval by the Michigan Legislature. Both Delaney McKinley and Andy Such from MMA’s Government Affairs team have served on ORR review panels 18

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looking at workplace and environmental rules and the state rulemaking procedures. Two key agencies for manufacturers, MIOSHA and DEQ, have implemented over 100 recommendations of the ORR review panels and, in 2012, the Legislature enacted a number of bills to change the regulatory processes at these agencies. These are significant changes representing millions of dollars in avoided costs for industry. We expect that most of the remaining recommendations will be implemented in 2013. MMA continues to eliminate specific existing rules that exceed federal standards and to block the creation of new uncompetitive rules. By the end of 2012, over 100 sets of rules in the DEQ had been eliminated and many others reviewed and modified.

SB 1090 (Public Act 190 of 2012) significantly changes the groundwater/ surface water interface regulations as well as changes to relevant pathways and approval for response activities. The second bill in the package, Senate Bill 1328, makes significant changes as it rescinds all rules promulgated under Part 201, except a portion of the Part 7 rule related to establishing generic cleanup criteria and screening levels, and extends the deadline to revise the cleanup criteria until the end of 2013. These two bills contain the bulk of the changes to the state cleanup program. There are still some additional Part 201 changes needed and we are working with the DEQ, the Governor’s office and the Legislature to enact them.

Air Fee Reform

Environmental Policy Accomplishments Part 201 Rewrite and Implementation of Cleanup Changes Over the past five years, MMA has been part of a larger coalition addressing the concerns and flaws relating to Michigan’s Remediation Program (Part 201). Some reforms passed the Legislature in late 2010, and helped make the program more efficient and effective with the ultimate goal of achieving more site closures. DEQ Director Dan Wyant has indicated to MMA that he is determined to make the Part 201 Program, with the changes made by the Legislature, fully operational in 2013. Wyant hired Anne Couture for the role of special assistant and assigned her the task of implementing real changes to the state cleanup program as soon as possible. Significant changes in the Part 201 cleanup program were accomplished during the last legislative session. SB 1090, passed last year, and SB 1328, passed on the last day of session, made significant changes to the Part 201 and Part 213 cleanup laws. Both bills were sponsored by Senator Tom Casperson (R-Escanaba).

MMA led the effort during 2011 to implement the federally mandated air fees to continue the program here in Michigan. In September, legislation was passed to establish an air fee to meet the requirements of the federally mandated Renewable Operating Permit (ROP) program and freeze the fee in statute for four years. While the overall federal minimum increased somewhat, changes in the new formula protected most members from significant increases or any increase at all. The law, approved by the Legislature with little or no opposition, establishes a steady per ton rate through 2015. It also includes reforms to the program, such as benchmarking and efficiency reviews, while expanding the limits or caps for some specific emissions.

Beneficial Use and Reuse MMA’s Environmental Policy Committee formed an internal workgroup in January 2012 to develop specific law and rule changes to create a comprehensive beneficial reuse law. MMA wants to encourage companies to reuse materials that presently are treated as waste and sent to landfills. The reuse of these products would be a positive change and place Michigan on the same playing field as other states which allow similar reuse of by-products, such as fly ash and foundry sand.


2011-2012 Legislative Accomplishments

MMA also asked the DEQ to drop its efforts to rewrite the Part 115 (solid waste) rules that covered the same issue areas. In September, the Department agreed and is working with the industry to create a beneficial reuse program in Michigan. The legislation slowed as the DEQ and the Governor’s office raised concerns about some of our recommendations. We have worked out most of the concerns with the Governor’s office, but the DEQ continues to oppose our efforts to change the way Michigan handles these useful by-products. This issue will be a top priority in the next legislative session.

Move Underground and Above Ground Storage Tank Programs from DEQ to LARA With the support of MMA members, ORR recommended moving the underground and above ground storage tank activities from the DEQ to the Fire Marshall’s office in the Department of Licensing and Regulatory Affairs (LARA). This reverses the move to the DEQ from the Fire Marshall 15 years ago. MMA members feel strongly that there will be clearer compliance and enforcement when this regulatory program and the Underground Storage Tank (UST) and Above Ground Storage Tank (AST) programs are transferred back to the Office of Fire Services under the supervision of the State Fire Marshall. In October, Governor Snyder issued Executive Order 2012-14, ordering the move of the tank programs from the DEQ to the Bureau of Fire Services in LARA. The Executive Order went into effect on 12/3/12 and MMA is working with Fire Marshall Rick Miller and his staff to make a smooth transition to the new division within LARA.

Construction Code Cycle Exempts Industrial Facilities In 2011, the Michigan Association of Homebuilders proposed a bill that would put Michigan out of sync with the threeyear national building code approval cycle as practiced in most other states.

They proposed reviewing proposed changes to the code from between every three and six years, at the director’s discretion. MMA opposed the bills for two reasons. First, it complicates construction of new facilities in Michigan. As Michigan manufacturers build and expand new plants, they want to use the most costeffective construction materials and techniques and they want quick local approvals. If local building inspectors are not familiar with recent national code changes, the local approval process will be increasingly disruptive to progress. Secondly, as Michigan manufacturers develop innovative new products through R&D efforts, particularly products that achieve energy efficiency improvements, they would like to be able to sell them in their home state. By delaying adoption of the national code, Michigan communicates nationally that we do not support innovation from our own manufacturers. We were successful in amending HB 4561 (Representative Haveman, R-Holland) to exempt industrial facilities from the delayed cycle, and to include the latest 2012 international energy code changes in the Michigan code.

Efficiency Improvement Mechanisms in Regulatory Programs The Legislature passed legislation requiring the DEQ to engage in a program of continuing process improvement for its major regulatory and permitting programs. The Governor signed the bill into law in December. (SB 277/PA 248)

Rigorous Cost-Benefit Analysis for All New Regulations The Legislature passed, and the Governor signed, legislation requiring a more detailed cost-benefit analysis for any new proposed rules. New rules must also be compared to other Great Lakes states to ensure that Michigan’s rules are competitive. (SB 271/PA 242)

Benchmarking of State Regulatory Programs

regulatory plan to the Legislature. The regulatory plan prescribed by the legislation, which was adopted, must list all the rules and regulations the department plans to write or amend in the coming year. An annual report must also be given to the Legislature on rules that have been promulgated or amended. (HB 4500/PA 238)

Environmental, Health and Safety Standards Based on Sound Science Legislation was passed, and approved by the Governor, requiring the DEQ to provide specific, detailed reasons (including applicable scientific reasons) for denying a permit. This ensures government decisions are rooted in sound science. (HB 4042/PA 236)

No More Use of Operational Memoranda as Regulatory Tools Legislation was passed clarifying that guidance documents developed by state agencies are not binding on the applicant and only provide guidance to the regulated community. The new law also requires that guidance documents be properly labeled as such. This will help prevent agencies from regulating without proper statutory or rule-based authority. (HB 4240/PA 270)

Exceeding Federal Climate Change Requirements MMA opposed efforts by the DEQ and the U.S. Environmental Protection Agency (EPA) to promulgate climate change rules that go far beyond state and federal laws. We applaud the efforts of Attorney General Schutte in joining with other states to stop the federal government from imposing these standards on manufacturers without specific Congressional approval. On 12/31/11, the U.S. Court of Appeals, DC Circuit, issued a stay on the Federal Implementation Plans for the Interstate Transport of Fine Particulate Matter and Ozone and Correction of SIP Approvals. (Final Rule, 76 Federal Register 48,208, 8/8/11)

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From the President

See the MMA website for “What is the New Freedom to Work?” seminar details: www.mma-net.org > Seminars & Events

Historic Change for Michigan as Newest Right to Work State

Chuck Hadden serves as MMA’s President and CEO. He can be reached at 517-487-8550 or mma_executiveoffice@mma-net.org.

Lame Duck sessions are always unpredictable but the flurry of legislative activity rose above the norm at the end of 2012 with the introduction and lightning-quick passage of legislation that made Michigan the newest Right to Work State. On 12/11/12, the Workplace Fairness and Equity Act bills were approved by both Chambers and signed into law less than an hour after they reached the Governor’s desk. The speed with which the legislation was adopted was remarkable. What really captured headlines, however, wasn’t the fast-track process itself but the fact that Michigan, with one of the highest rates of unionization in the country, joined 23 other states in prohibiting workers from being forced to contribute mandatory dues to labor unions. MMA lent our support for passage of the legislation as a long-term business climate issue that enhances our ability to compete with other states and other countries for jobs and investment. The historic change will yield positive results for Michigan businesses, workers and families and is an important continuation of the dramatic reinvention of our state.

freedom of choice to participate in unions. Police and fire workers, covered under Public Act 312, are not included in this legislation. Existing collective bargaining agreements will remain in place until they expire. Right to Work legislation cannot override the federal National Labor Relations Act, which requires that no new laws affect current bargaining agreements.

Right to Work At-A-Glance

The bills will take effect 3/31/13. We anticipate a legal challenge to this legislation. We also anticipate, as in other states, recall efforts will begin shortly.

What is Right to Work?

Right to Work, Workplace Fairness and Equity and Freedom to Work are all synonymous terms for the legislation adopted by Michigan which establishes that an employee cannot be required, as a condition of employment, to join or pay dues to a union. Is Right to Work anti-union?

Right to Work legislation is not anti-union; it is about individual and employer freedom to choose. We believe MMA members will continue their positive and productive relationships with their union partners. Who Will be Affected by the Right to Work?

The package of legislation provides workers, both public and private, the 20

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Which States Already Have Right to Work?

Last fall, Indiana became the 23rd State to have Right to Work legislation in place. The other right to work states are Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Nevada, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia and Wyoming. With Michigan adopting Right to Work legislation, the playing field is made more level for Michigan manufacturers to compete in the national and global economy. The message has been sent that Michigan is open for business and eager to accept new investment. What Happens Next?

MMA Seminar Answers Right to Work Questions

To help members understand what Right to Work means for them, MMA will host a seminar to provide a comprehensive overview of the new law and its effect on the Michigan workplace. “What is the New Freedom to Work?” will be held on Wednesday, 2/20/13, from 9:00 a.m. to noon at the MMA headquarters in Lansing. See the MMA website, www.mma-net.org > Seminars & Events, or contact MMA’s LeAnn Hicks, at hicks@mma-net.org or 517-487-8557, for details or to register.


Advocacy Spotlight

MMA Eliminates the Industrial Personal Property Tax The end of the 96th Legislature brought great news for manufacturers when MMA achieved its top legislative priority, eliminating the industrial Personal Property Tax (PPT) — a $400 million barrier to manufacturing growth. By eliminating the PPT, the Snyder Administration showed their dedication to moving Michigan forward and creating a brighter economic future.

MMA Extends Appreciation & Thanks

The Plan

The plan to eliminate the PPT is comprised of two parts: phasing out the PPT and reimbursement of local units of government. Phase-Out

The plan will phase out the PPT starting in 2016 with total elimination by 2022. When fully phased out, manufacturers will save about $500 million annually. New equipment, installed between 2013 and 2015, will be taxable until 2016 and become permanently exempt from that point forward. Starting in 2016, equipment 10 years old and older (purchased in 2005 or before) will fall off the tax rolls until 2022 when all equipment is fully exempt. Industrial and commercial property, less than $40,000 in taxable value, will become exempt starting in 2014. Reimbursement for Locals

Local municipalities receive a portion of the funds collected from the PPT. For elimination of the tax to be successful, a replacement funding for locals was necessary. Local units of government

Manufacturers’ Efforts Must Continue To allow the State Use Tax to be converted to a local tax, support of a statewide ballot will be required. The vote will likely take place during the 2014 General Election. The success of the plan is dependent on passage of the ballot proposal. A provision is in place to end the PPT elimination plan if the ballot proposal fails. The manufacturing community will have to be actively engaged in support of the ballot proposal when the time comes. Elimination of the industrial PPT has put Michigan on the right path to competitiveness for job-creating capital investment. The Anderson Economic Group predicts elimination of the PPT, combined with changes to the Corporate Income Tax (CIT), will create between 20,000 and 45,000 new jobs. We must all work together to ensure the ballot proposal passes in 2014 to truly reinvent Michigan’s competitiveness.

See the MMA website for more: www.mma-net.org > Government Affairs > Hot Issues

MMA truly appreciates the tireless efforts of Governor Rick Snyder, Lt. Governor Brian Calley, Senate Majority Leader Randy Richardville (R- Monroe) and Speaker of the House Jase Bolger (R-Marshall) in identifying and encouraging growth and addressing concerns of local units of government. MMA also wants to recognize the policy champions in the Legislature who made this historic policy change happen: Senate Finance Chairman Jack Brandenburg (R-Harrison Twp.), Senator Mike Nofs (R-Battle Creek), Senator David Robertson (R-Grand Blanc), Tax Policy Chair Jud Gilbert (R-Algonac), Representative Jeff Farrington (R-Utica) and Representative Mike Shirkey (R-Clark Lake).

rejected the original Senate plan that would have required the Legislature to appropriate reimbursement funds annually. Instead, Lt. Governor Calley crafted a plan that guarantees local reimbursement. Locals will be allowed to charge an assessment to industrial properties to cover 100 percent reimbursement for police, fire and ambulance services, referred to as “essential services.” This fee will be dramatically lower than the amount of PPT currently paid. About 1.2 cents of the existing 6 cent State Use Tax collections will be converted to a local tax and distributed by a new Metropolitan Authority created in statute. By making a portion of the Use Tax a local tax, the Legislature will not have to appropriate the funds to local governments. Use Tax funds will reimburse locals for 80 percent of lost revenue for non-essential services. Schools (intermediate school districts), tax increment finance (TIFs) and other local indebtedness would be covered at 100 percent. The combination of 100 percent essential services and 80 percent non-essential services will result in most costs being reimbursed to local units. Local units of government that lost less than 2.3 percent of their budget would not be eligible for reimbursement under the plan.

Mike Johnston serves as MMA’s Vice President of Government Affairs and is the lead contact for all tax, energy and other advocacy issues. He can be reached at 517-487-8554 or johnston@mma-net.org.

Visit the MMA website to download a copy of the 2013 MMA Legislative & Regulatory Agenda: www.mma-net.org.

Insight Insight Jul Jan| Aug | Feb2012 2013

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Manufacturing is Driving Michigan’s Recovery • Manufacturing created 32,400

jobs in Michigan this past year.

• More than half of the total

• One in ten manufacturing jobs

new jobs in Michigan are manufacturing-related.

created in the U.S. last year were in Michigan.

Show Your Pride!

See the MMA website for more information: www.mma-net.org > Membership

Order posters, coasters or mittens for employees and friends and help promote pride in Michigan manufacturing.

Proud to

Manufacture and CreateJobs in Michigan!

Posters: $2.00

www.mma-net.org

Coasters: $5.00 (set of 4)

Proud to

Manufacture and CreateJobs in Michigan! www.mma-net.org

Mittens: $17.00 Proud to

Manufacture and CreateJobs in Michigan!

Order your posters, coasters and mittens online, www.mma-net.org > Membership, or copy this page and fax to 517-853-3355.

www.mma-net.org

Proud to

Manufacture and CreateJobs in Michigan! www.mma-net.org

Payment Information

Quantity �� Set(s) of Coasters ($5.00 per set)

$ _______

�� Poster(s) ($2.00 each)

$ _______

�� Mittens ($17.00 per pair)

$ _______

Shipping and Handling

$

qCheck

qVisa

qMasterCard

-

-

Name on Card

5.95

qAmerican Express -

Card Number Exp. Date

Signature of Person Authorizing Card Use $ Amount Authorized

Total

qDiscover

Date of Authorization

$ _______ Company Name

Make a copy of this page and fax this form to 517-853-3355. For assistance, call 517-487-8555.

Mailing Address Phone

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E-mail

City

State

Zip


MMA strategic partner and member Heritage-Crystal Clean, a long-time parts cleaning and industrial waste disposal services company, now offers both Oil and Vacuum truck services throughout the state of Michigan.

• Oil & Vacuum Truck Services • Parts Cleaning-Aqueous & Solvent • Drum Waste Management • Water Filtration Services & Management • Crystal Cat™ Absorbent Products & Services • Environmental Audits

Through the MMA/Heritage-Crystal Clean partnership, all members are eligible to receive products and services at a 25% discount, no charge waste profiles and all installation of equipment is done at no cost. For more information please contact HCC's Jim Skelton @ 630-333-5901, jim.skelton@crystal-clean.com or visit the website www.crystal-clean.com


Member Spotlight Interview with Jim Dunstan Azon International, Kalamazoo MMA Member since 1986

Foreign Markets Aren’t Just Competition; Foreign Markets are Opportunities for Growth

See the MMA website for more spotlights: www.mma-net.org > News & Information

It wasn’t luck and timing that made Azon such a success story. It was good business planning and an emphasis on global operations that led the Michigan-based company to be the exemplary manufacturer and job provider it is today. The days of working in a minuscule back-alley office are long gone for the company, co-founded by the husband and wife team Jim and Ruth Dunstan. Since 1977, Azon has focused on supplying energy-saving thermal barrier technologies for manufacturers of aluminum windows, doors and curtain walls — and fabricators of insulating glass. The Azon thermal barrier products play a key role in the energy efficiency of commercial fenestration used in modern buildings throughout the world. Today, Azon is headquartered in Kalamazoo with a 69,500 square-foot facility with around 50 employees in the U.S. and another 50 at their international operations. Like many entrepreneurial companies, Azon began with very little. “We really did start our company in an alley garage where my first desk was a piece of particle board supported by a couple of drums,” said Dunstan. “One of us would have to leave the office so the other could turn around!” Azon was fortunate because they were emerging in a new technology with a definite edge over others in the industry. Azon was in a perfect position at the right time. As the need for increased energy efficiency grew and the technology expanded, so did the Dunstan’s business.

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“We really did start our company in an alley garage...my first desk was a piece of particle board supported by a couple of drums.”

Not all of that growth was in Michigan. In 1986, Dunstan traveled to China with a sample of an aluminum window and the plan to identify new business partners and customers. He knew that if he didn’t explore business opportunities in China at that time that Azon wouldn’t be around in 15-20 years. The company’s factory in China is now the fastest growing of its locations, which also includes Korea and the UK. The original goal for the Azon chemical distribution business in 1977 was to sell 50 drums of chemicals a month in the U.S. market. Last month alone, Azon sold nearly 1,000 drums of chemicals for the Chinese domestic market, much of it produced and exported from the factory in Kalamazoo. Obviously there is challenging competition from other suppliers within the Asian markets, but good ongoing relationships, technology, quality and service trump price. A focus on exporting has helped Azon weather multiple economic downturns. Dunstan urges his fellow manufacturers to look to China — not as a competitor, but as a customer. “If your product is labor intensive, then it’s most likely not a good move to export it at this time,” he advised. “However, if your product has some technical advantage or you are producing something that is consumer-driven or calls for materials that are not readily available in other markets, then exporting could greatly benefit your company.”

It has been predicted that China will take over being the leading world economy around the middle of the century. This means that it is not only going to be a competitor for our materials, both raw and manufactured, but China is also going to be a good customer, according to Dunstan. “The message that I want to portray for Michigan manufacturers is that there is a huge opportunity for exporting into global markets. We just have to look for it.” For more information, visit the Azon website: www.azonintl.com. Elyse Kopietz is the marketing and communications coordinator for the Michigan Manufacturers Association. She may be reached at kopietz@mma-net.org or 517-487-8553.


Member Spotlight

Learn about other MMA services: www.mma-net.org > Services & Discounts

Azon founders Jim and Ruth Dunstan

Insight Jan | Feb 2013

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HR Q&A Hot Issues For Employers: ObamaCare and Agency Regulatory & Enforcement Actions

Access more HR resources: www.mma-net.org > Services & Discounts > HR Services

Q:

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William A. Moore is part of Clark Hill PLC’s Labor and Employment Practice Group. If you have additional questions, please e-mail the firm at mma@clarkhill.com or call the toll free MMA H.R. Help Line at 800-676-9077. MMA members have exclusive access to the toll-free MMA H.R. Help Line to receive expert help for human resource challenges. The H.R. Help Line links MMA members with attorneys and professionals from Clark Hill PLC and, with one call, immediate access to attorneys dedicated to quality service and the answers they need. Contact MMA at 517-487-8532 for more information on this and other valuable member services.

What will be the anticipated impact of the 2012 election on the Patient Protection and Affordable Care Act of 2010 (PPACA)? A: The election will result in the preservation of health care reform. The law may be tweaked, but will not be repealed. The re-election of the President has actually created more stability in the area of health care than in other areas. There will now be serious discussion regarding health insurance exchanges which would allow individuals and small employers (100 or fewer employees) to comparison shop among private insurance plans through a web-based portal. Health care reform will also require employers with 50 or more full-time eligible employees to provide basic health insurance coverage by 1/1/14. A “full-time” employee is one who works 30 or more hours per week over a 60 day period. The failure to provide required coverage will subject employers to fines of $2,000 per employee (excluding the first 30 employees). For example, an employer with 50 employees would pay the penalty for 20 employees. Consultation with your health care plan administrator (and perhaps your attorney) will be in order in the next 12 months to plan for the necessary changes.

Q: What are some of the hot button

employment issues I can expect to see action on following the election? A: In general, the aggressive regulatory and enforcement actions initiated by various governmental departments in the last four years will continue and, in some cases, increase. The EEOC looks to limit the use of credit reports by employers in conjunction with the review of applicants for hire. Similarly, the EEOC wants to limit the use of arrest and criminal records in the hiring process. The Commission has opined that such activities

Jan | Feb 2013

Insight

unfairly focus on minorities. Enforcement of such hiring practices effectively weeds out minorities and creates an illegal disparate impact on individuals in various protected classifications. The EEOC is also looking to increase the pursuit of class action cases against employers for age and disability discrimination. The Department of Labor (DOL) is also anticipated to be very active in the next four years. It is fully anticipated the DOL will continue to prosecute claims against employers regarding the independent contractor status of individuals the Department feels should be employees. Utilizing more stringent rules in these cases will result in the recovery of millions of dollars in tax payments on individuals “improperly classified” as independent contractors. The DOL is also aggressively enforcing the white collar exemptions under the Fair Labor Standards Act. This will result in a substantial increase in overtime payments to employees otherwise classified as exempt salary employees. The National Labor Relations Board (NLRB) is expected to continue its current policies making it easier for unions to organize the workforce. There is a push for smaller union units, which will result in more union contracts. The NLRB is liberally interpreting Section 7 rights of employees, which is impacting more and more non-union employers in areas of social media, at-will employment and others. Changes in NLRB election procedures and new interpretations of who is a “persuader” will make it harder for companies to fight union organizing drives and to win union representation elections. It is strongly suggested that employers stay abreast of all regulatory and enforcement changes as they occur. Strategic planning in advance of investigations, lawsuits or audits by the EEOC, DOL or the NLRB is strongly suggested.


Good insurance coverage is protective. Great coverage is proactive. We see what you may not. Providing manufacturing businesses with superior Workers’ Compensation programs that reduce hazards and the resulting costs is what Amerisure does best. Our Loss Control experts rank among the finest in the industry and understand one of the most effective ways to minimize or eliminate losses is through prevention. This begins with a thorough evaluation of the workplace, followed by the development of guidelines and programs designed to help create and maintain an accident-free environment.

Proactive solutions to protect your business. Another reason Amerisure Insurance is a leader in Workers’ Compensation coverage.

For more information on Amerisure coverages, contact Michigan Manufacturers Association at www.mma-net.org

SM

www.amerisure.com Insight

Nov | Dec 2012

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Member News Industry Week Names Dick Dauch to Hall of Fame

Get more member news: www.mma-net.org > News & Info

Industry Week has named American Axle founder Dick Dauch to the 2012 Manufacturer Hall of Fame. Nominated by readers, Industry Dauch Week (IW) honored nine CEOs for their commitment to advancing the industry. IW recognizes national leaders for their efforts to significantly improve manufacturing efficiency and productivity, establishing widely accepted best practices, creating manufacturing companies — and even entire industries—from the ground up, setting new standards for manufacturers

in areas such as sustainability and corporate responsibility, revitalizing organizations, and operations and influencing, supporting and advocating for U.S. manufacturing.

GM Unveils Electric Mini-Car

At the Los Angeles Auto Show, General Motors unveiled an all-electric version of the Spark EV mini-car. In the summer of 2013, the vehicle will first be available for sale where it is manufactured: California, Oregon, Canada and South Korea.

Imported from Detroit Clothing Line

Two metro Detroit manufacturers are combining their brands for a limited edition line of clothing and accessories for men and women. Carhartt and Chrysler launched their “Imported from Detroit” clothing line at the 2012 L.A. Auto Show. The clothing is only available for purchase online, www.carhartt.com/chryslerifd, and at Carhartt’s Sullivan Center location in Chicago. “The pairing of the Chrysler brand and Carhartt is another example of how we are continuing to champion the energy created from the ‘Imported from Detroit’ campaign,” commented Saad Chehab, president and CEO of

Investment in Michigan Chrysler to Invest $238 Million and Add 1,250 Jobs in Michigan

Since Chrysler Group LLC was formed a little over three years ago, the company has invested nearly $4.75 billion in facilities and added nearly 6,000 hourly jobs in the U.S., including new investments of $238 million in Michigan announced 11/15/12 by Chrysler Group CEO Sergio Marchionne. The investments include: • $198 million to produce the Pentastar V-6 engine at the Mack I Engine Plant in Detroit. • Adding up to 250 new jobs at the Mack I Engine Plant. • $40 million to add a flexible production line at the Trenton North Engine Plant to run both the Pentastar engine and the Tigershark I-4 engine.

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• Adding 1,000 new jobs on a third crew in March 2013 to produce the 2013 Ram 1500 at the Warren Truck Assembly Plant. “This is another important milestone in living up to the commitment we made, first and foremost, to all the Chrysler employees, and also to the City of Detroit, southeastern Michigan, and to this country,” Marchionne said during the announcement at the Mack I Engine Plant, accompanied by Detroit Mayor Dave Bing, UAW Vice President General Holiefield and Mack Engine Complex Manager Bob Hollingsworth.

Dart to Invest $47M and Create 325 Jobs

Dart Container Corporation received a $3 million Michigan Business Development Program performance-based grant from the Michigan Economic Development Corporation (MEDC) to expand operations in Mason. The expansion will generate up to $47 million in new

private investment and add an estimated 325 new jobs. In May 2012, Dart acquired Solo Cup Company, based out of Illinois, bringing their total employment to approximately 15,000. The company has more than 45 production facilities, distribution centers and offices in eight countries. Dart Container is planning to build a new corporate headquarters and warehouse in Mason and expand existing buildings within its Mason campus. The construction and expansion will allow the company to integrate Solo Cup’s corporate and administrative operations into Dart’s location in Mason. Some Solo Cup Company staff will be relocated from Chicago to Mason.

Haworth Wins $40 Million Annual Government Contract

Through a stringent and competitive selection process, Holland-based furniture manufacturer Haworth Industries has been awarded a


Ford Pledges $1 Million to Red Cross

Ford Motor Company Fund has pledged $1 million to the American Red Cross. The donation is for workplace development training for veterans, military members and their

government contract worth an estimated $40 million per year through December 2016, with four one-year renewal options through December 2020.

Construction Helicopters Awarded Defense Contract

Howell-based Construction Helicopters Inc. is one of six companies to be awarded part of a $602 million contract from the U.S. Transportation Command Directorate of Acquisition for helicopter transport services in Afghanistan.

families. The two year commitment from Ford will create an additional 200 Blue Oval Scholarships for nurse assistant training in the Red Cross Service to the Armed Forces program.

Six Decades of

Manufacturing Service. From meeting demanding delivery schedules without sacrificing quality, to helping you meet cost saving initiatives…our focus is to be your “go to” supplier. Our services include: Tool & Die | Stamping | Welding | E-coat Paint General Assembly | Product Engineering

Share Your Member News Send press releases, pictures and announcements to MMA’s Elyse Kopietz at kopietz@mma-net.org or 517-487-8553.

To learn more about our services, contact us at 989-876-7121 or www.boppbusch.com

Time tested…Production Proven.

Consider Insight and MMA e-publications in your marketing plans: www.mma-net.org > News & Info > Advertising & Sponsorship

Chrysler Brand, Chrysler Group LLC. “Carhartt shares Chrysler’s respect and appreciation for hard-working Americans.” “Detroit reflects the industrious, hard-working, nose-to-the-grindstone spirit of America and Carhartt takes great pride in having called this city home for the past 123 years,” Tony Ambroza, Carhartt vice president of marketing, said in the release. “We are excited to support Chrysler’s ‘Imported from Detroit’ campaign with this line of made-in-America work wear. Featuring several iconic Carhartt styles, this collection is for the blue collar men and women who value a hard day’s work and everyone who knows what it’s like to roll up their sleeves to get the job done.”


Member Services

Enjoy Valuable Travel Discounts: A Benefit For You and Your Employees! New Service! Hotel Discounts

Learn about other MMA services: www.mma-net.org > Services & Discounts

Whether you are looking for an upscale hotel, an all-inclusive resort or something more cost-effective, we have the right hotel for you… and at the right price. So start saving now. Receive up to 20 percent off the “Best Available Rate” at participating locations when you book a hotel through Wyndham Hotel Group with your MMA member discount. This includes 15 hotel brands representing over 7,000 hotels and more than 595,000 hotel rooms on six continents. See the MMA website, www.mma-net.org > Services & Discounts > More Services > Hotel Discounts, for more information.

For more information about MMA Discount Programs, contact Larry Janicki at 517-487-8556 or janicki@mma-net.org.

Car Rental Discounts Avis and Budget offer a full range of products and benefits, special member rates, and excellent service when renting a car. Enjoy: • Paperless rental service: Skip the rental counter lines with Avis Preferred® and Budget Fastbreak.® Plus, eliminate lost receipts and sign up for Avis and Budget e-Receipts™. • Where2 GPS navigation: Discover new destinations with real-time traffic updates. • e-Toll™: Instead of waiting in long lines, pay your toll electronically. And whether you’re traveling for business or pleasure, your membership with MMA entitles you to special discounts. For instance, you and your employees can save 5-25 percent off competitive rates when you use your MMA AWD (Avis Worldwide Discount) or BCD (Budget Customer Discount) number. Plus, save even more with value-added member savings coupons. See the MMA website, www.mma-net.org > Services & Discounts > More Services > Car Rental Discounts, for more information.

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Upcoming Events MMA Committee Meetings • MMA Seminars • Events of Interest to Manufacturers

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MMA Air Policy Committee Meeting, Lansing MMA Health Care Policy Committee Meeting, Lansing

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MMA Tax Policy Committee Meeting, Lansing 517-487-8552

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SBIR/STTR Proposal Prep — DoD/DoE Focus, Lansing www.mma-net.org

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What is the New Freedom to Work? Lansing www.mma-net.org

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14th Automotive Suppliers Symposium: Ready, Set, Launch!, Grand Rapids www.gvsu.edu

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MMA Environmental Policy Committee Meeting, Lansing 517-487-8552

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See www.mma-net.org > Seminars & Events for details on MMA seminars, meetings and the most up-to-date calendar of events or call 517-487-8557. Photo: Snowy scene in DeWitt

Access more events: www.mma-net.org

1 MMA Employment & Workforce Policy Committee Meeting, Lansing 517-487-8552


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January/February 2013 Insight