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A PUBLICATION OF THE SOUTH CAROLINA MANUFACTURERS ALLIANCE • MADEINSC.ORG • MAY 2011


Executive Editor Lewis F. Gossett gossett@myscma.com Managing Editor James A. Richter richter@myscma.com Art Director Will Bryan will@gencreative.com Design/Layout Genesis Creative www.gencreative.com Contributing Writers M. Brian Magargle Advertising (803) 799-9695 James A. Richter richter@myscma.com Editorial Office 1340 Bull Street Columbia, SC 29201 phone (803) 799-9695 fax (803) 771-8738 www.madeinsc.org Copyright ©2011 SCMA. All rights reserved. Reproduction in whole or in part without the permission of the SCMA is prohibited. Printed in South Carolina.

© Shutterstock

When you have finished with this magazine please recycle it.

From the President The Manufacturing Industry and Those Who Defend It.

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Efficiency & Accountability

Meet the New Director of the SC Labor, Licensing and Regulations Agency

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Member News The Latest News About SCMA Members Across the State.

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Defenders of Manufacturing Profiles of the Four 2010 Defenders.

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What SC Makes Make SC Manufacturing's Economic Impact on our State.

SC Means Business

Meet the New Secretary of the SC Department of Commerce.

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Bridge to Justice

SCMA Calendar

How Federal Governent is Increasing EmployeeEmployer Litigation

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Upcoming SCMA Events & Next Issue Preview.

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© Photo courtesy of BMW

From the President

W

hen I took this job in 2003, I knew how important it was that we defend manufacturing in South Carolina. I thought at the time that this would be an undertaking completely consistent with my own political and economic philosophy. Eight years later, I’ve learned quite a lot about the SCMA and the members we represent. I’ve learned that advocating for South Carolina manufacturing was not just consistent with but actually identical to my personal approaches to government and the economy. More importantly, though, I’ve learned that I did not truly understand the concept of “defending manufacturing” until I had worked with the people we have honored as Defenders of Manufacturing – this year and in years past. There is simply no way to discuss the defense of manufacturing without beginning with Mr. Milliken. Shortly after his passing, I described him to a reporter not as a “once-in-a-generation” figure but rather as “once-ina-century.” I am not going to recount here the many great things this man accomplished in his long and full life – we will do that in a future edition of this magazine. Instead, as you read about and consider the work of our Defenders of Manufacturing, do so in the context of Mr. Milliken’s life and his dedication to the American manufacturing worker. His life’s work touched so many South Carolinians, and the amazing thing about his contributions is that there are South Carolinians not yet born who will live fuller, richer lives because Mr. Milliken passed this way.

in many of our adult lifetimes. Improvement has come, though, and more seems to be on the horizon. Slowly but surely and sometimes in fits and starts, South Carolina is recovering. Leading the way is the manufacturing sector. In fact, I firmly believe that no other economic sector can bring us back like manufacturing is doing now and hopefully will continue to do as we go forward.

One of the best events SCMA has held in years was in January when we recognized our past and current recipients. We honored our past winners Senator Harvey Peeler, Senator Larry Martin, House Speaker Bobby Harrell, Former State Representative Harry Cato, and Former Director of the South Carolina Department of Revenue Burnie Maybank. We also recognized this year’s recipients: Senator Glenn McConnell, Senator Hugh Leatherman, Roger Chastain, and Bill Barnet. Each of these gentlemen has contributed much to his State, community, and industry. It was an honor to be with them in Greenville for such a special event.

Thank you for your continued support of SCMA and for your continued commitment to manufacturing in the Palmetto State.

Lewis F. Gossett

President & CEO South Carolina Manufacturers Alliance gossett@myscma.com

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photography by Renee Ittner-McManus

The avocation of defending manufacturing is constant and rewarding. Our members truly make a difference in the lives of over 600,000 South Carolinians whose employment depends directly or indirectly on manufacturing. Our economic troubles of late have been severe – the worst

So, defending manufacturing is as important now as it has been. Mr. Milliken set so many benchmarks for all of us, but his commitment to South Carolina industry and the work he did on its behalf set an example unlike any other. Our mission at SCMA is to live and work to those standards and to ensure that our policymakers know what it will really take for our great state to grow and prosper.


The South Carolina Manufacturers Alliance

Member News

The SCMA Honors 88 Facilities for Safety

DHEC Awards AbitibiBowater

The South Carolina Manufacturers Alliance recently recognized 88 South Carolina manufacturing facilities for outstanding safety records in 2010. Facilities with a low rate of incidents resulting in lost workdays, job transfers, or restrictions received an award.

The Department of Health and Environmental Control honored the AbitibiBowater Catawba facility with its Spare the Air Award. The award recognizes efforts to protect air quality.

Staubli Corporation Donates Robot to Clemson University valued at $45,000, the robot will join the resources of the university’s International Center for Automotive Research. Students will use it to research industrial applications, such as the development and testing of control methods on automated production lines.

BMW to Invest Another $100 Million in Greer Plant

Business Connections South Carolina St yle

The investment will be used to streamline its export operation from the plant and launch its new x3 Semi-Knocked Down (SKD) program. under the SKD program, the company will ship 4,000 painted x3 body shells for assembly in emerging markets worldwide.

Close Receives the Watauga Medal from N.C. State Former Chairman of the SCMA and President and CEO of Springs Creative Products Group, Derick Close, received the university’s highest nonacademic award, the Watauga Medal, which honors distinguished service to n.C. State. Among his many contributions to his alma mater, Close was highly instrumental in initiating a scholarship program to attract talented students to the university’s textiles program.

First Industrial Park with Hydrogen Fuel Opens in South Carolina

Successful business expansion plans are all about connecting the dots. As the nation’s largest publicly owned generator of electricity, Santee Cooper can provide you access to all of the power and the resources of South Carolina’s Power Team. Composed of Santee Cooper and all 20 of the state’s electric cooperatives, the Power Team is dedicated to building strategic relationships with smart, forward-thinking businesses that are looking to expand within the state. We back this commitment by delivering quality service and reliable power at some of the lowest rates in the nation. Get connected in South Carolina. Visit www.scprimesite.com/MA11.

The hydrogen fuel station will supply fuel for a Kimberly-Clark distribution facility in Graniteville, S.C. By replacing regular forklifts with fuel cell-powered lifts, the facility will decrease its greenhouse emissions by up to 90 percent.

Kentwool Socks Now Available on Amazon The innovative synthetic-wool socks, long a favorite product in the PGA, are now available to a larger market on Amazon.com.

Showa Denko Carbon to Expand The Japanese-based company will invest several hundred million dollars to expand its Ridgeville graphite electrode plant. The expansion will create 100 new jobs and boost annual production capacity from 45,000 tons to 75,000 tons.

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Thompson Awarded the Order of the Palmetto Thompson Construction Group President & CEO, Greg Thompson, was awarded the Order of the Palmetto in January. The Order of the Palmetto is the highest honor that can be bestowed upon a private citizen in South Carolina.

Ascend to Expand Greenwood Facility Ascend Performance Materials, LLC will invest $3.25 million to expand its Greenwood, SC facility. The facility produces nylon fiber for airbags, tire cord, and military products. The expansion will bring 32 new jobs over the next three years.

SC Manufacturers Elected to NCC Leadership Posts Robert H. Chapman, III, Inman Mills; Malloy Evans, Frontier Spinning Mills; and David Hastings, Mount vernon Mills have been re-elected to leadership positions on the national Cotton Council of America Board of Directors for 2011.

Automation Engineering to Expand The expansion will include research, development, design and manufacture of capital equipment to produce tubular products for the oil industry, a new market for the company. The $6.1 million investment is expected to generate 78 new jobs over the next five years.

Milliken & Company – Earn “World’s Most Ethical Companies” Listing For the fifth consecutive year, Milliken & Company was named to the Ethisphere Institute’s list as one of the World’s Most Ethical Companies. The methodology for the WME ranking includes reviewing codes of ethics, litigation and regulatory infraction histories; and evaluating the investment in innovation and sustainable business practices.

Force Protection Industries Makes Donation to S.C. Governor’s School Force Protection donated $20,000 to the S.C. Governor’s School for Science and Mathematics (GSSM). The funds will enable select students to spend seven weeks in England doing real-world scientific research alongside skilled mentors.

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What South Carolina Makes Makes South Carolina Manufacturing's Economic Impact on Our State

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• Made in SC

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outh Carolina has cultivated a highly skilled workforce, business-friendly environment, highly competitive cost structure, and superb quality of life to attract new jobs and investment in the manufacturing sector. The state’s proactive steps to create a business-friendly environment are paying major dividends. Household manufacturing names such as BMW, Bridgestone/Firestone, General Electric, Heinz, Kimberly-Clark, Roche Carolina, Boeing, Catepillar, Milliken, and Starbucks have invested in South Carolina over the last few decades, and the momentum continues today with even more new investments, relocations, and expansions.

A sophisticated and integrated transportation network includes five commercial airports, easy access to major interstates, 41,000

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miles of state-maintained highways, and the deep-water Port of Charleston - the seventh-largest container port in the United States. All of these factors have provided the state of South Carolina with a competitive edge in having a business environment where manufacturers can operate to meet their markets’ needs. The benefits and economic impact of manufacturing in South Carolina are great – historically and today. Manufacturing provides good jobs for South Carolina residents with wages that are substantially higher than non-manufacturing jobs. Manufacturing has a greater multiplier effect on the rest of South Carolina’s economy than any other sector. Manufacturing drives private-sector development and innovation – leading to advanced technologies and products that improve our quality of life.

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© Photo courtesy of GE

South Carolina boasts competitive tax rates, relatively business-friendly tort and workers’ compensation systems, world-class transportation assets, major research facilities, and a commitment to a skilled workforce. A national leader in workforce development, the state’s award-winning readySC™ program offers coordinated training through the state’s 16 technical colleges at no cost for eligible new or expanding companies. The University of South Carolina and Clemson University help make the state a hub for academic excellence and world-class research. The Savannah River National Laboratory in Aiken is one of only 17 national laboratory facilities in the United States.


© Photo courtesy of BMW

• DuPont investing $500 million in Berkeley County for a Kevlar fiber production facility.

BMW starts production of X3 in Greenville.

• Proterra Inc., a company specializing in design, development, and assembly of all-electric and battery-dominant hybrid-drive solutions and complete vehicles for commercial applications, investing $68 million and expecting to create more than 1,300 new jobs in Greenville County. • Electric vehicle manufacturer CT&T (a joint venture with the 2AM Group) investing $21 million in Duncan for its first North American assembly operation. • Caterpillar’s Electric Power Division, which makes diesel- and gaspowered generators, is expanding and will add 500 jobs over time at its Newberry County plant. • Starbucks opened a roasting plant in Calhoun County in 2009 that created 160 new jobs.

© Photo courtesy of CT&T

20.9% of Gross State Product • 15% of all SC jobs • Manufacturing Wage is 27% above statewide average • More than 5,000 SC Facilities • Direct & Indirect Impact = $141 Billion/Year

Here are just a few examples:

CT&T, in a joint venture with the 2AM Group, announce its first North American assembly operation.

Another major economic development milestone occurred in January 2011, when the German manufacturer, ZF Group - broke ground for a new $350 million manufacturing plant in Laurens County that will produce fuel-efficient automatic transmissions for the passenger car and light-truck market, a move that is expected to create 900 jobs. ZF Group, which already has a strong presence in the state, cited South Carolina’s proximity to major transportation hubs, competitive business environment, and skilled workforce as major advantages that factored into its growth plans. It’s not just individual companies that are trumpeting South Carolina’s business advantages. CNBC ranked South Carolina’s workforce fifth best in the nation and ranked the state sixth best in the nation for cost of doing business.

© Shutterstock

© Photo courtesy of ZF Group

Manufacturing Means Jobs

Groundbreaking of ZF Group's manufacturing plant in Laurens.

Selling South Carolina “South Carolina’s success in recruiting new investment and jobs in the manufacturing sector is a strong reflection on our state’s skilled workforce, unmatched market access, and most importantly, our understanding that manufacturers locate where they can be successful,” said April Allen, President of the South Carolina Economic Developers Association (SCEDA).

Quality Tissue unveiled a $1 billion plan for a new tissue and paper towel manufacturing facility in Anderson County. More than 550 construction workers are currently building the plant, scheduled to open later in 2011. First Quality Tissue will ultimately create 1,000 new jobs at the facility. “Among the factors that attracted First Quality to Anderson County are the pool of skilled labor, a positive work ethic and the

$12,500,000,000 worth of capital investment in SC manufacturing in the past three years. (during the Recession) Site Selection magazine consistently names South Carolina in the top 10 in its Top State Business Climates and also in its survey based on business executives’ opinions. Area Development named South Carolina a 2010 Silver Shovel Award winner in recognition of economic development projects in 2009. This momentum has led to a string of major investments and expansion announcements in recent years. In May 2010, First

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availability of the infrastructure necessary to sustain our facility,” said Frank Ludovina, company representative for First Quality. “Just as important, however, is the pro-business environment.” Between 2007 and 2010 alone, South Carolina recruitment efforts in the manufacturing sector led to more than $12.5 billion in capital investment and the creation of 58,663 new jobs.

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Manufacturing is the foundation of South Carolina’s economy. Manufacturing’s share of South Carolina’s GSP (Gross State Product) is $24.9 billion – 20.9% of the state’s entire GSP. Manufacturing salaries average $47,000 per year (not including benefits), higher than the average for the total private sector. Two factors in particular attract workers to manufacturing: higher pay and benefits, and opportunities for advanced education and training. Moreover, it is these high-paying jobs that result in the creation of support jobs in both the supply chain and in the community service sector. Helping boost the sector is a high concentration of skilled workers. According to the U.S. Bureau of Labor Statistics, the state ranks second in the nation in employment concentration of industrial engineers, third for industrial engineering technicians, and fourth for environmental engineering technicians. South Carolina also ranks second in the nation in employment concentration of industrial engineers, third for industrial engineering technicians, and fourth for environmental engineering technicians. South Carolina is in the top three among states nationally for concentration of engine and other machine assemblers (ranked No. 2 in 2009), chemical equipment operators (ranked No. 3 in 2009), and tenders and computer-controlled machine tool operators (ranked No. 3 in 2009). Leading in innovations, manufacturing is the engine that drives the development of new technologies. Through research and use of state-of-the-art equipment, manufacturers apply cutting-edge thinking to produce better quality products that not only benefit the consumer but also allow companies the opportunity to evolve and succeed in the global marketplace. Manufacturing facilities in South Carolina can tap into a network of R&D resources: • South Carolina Research Authority (SCRA): A recognized leader in applied research and commercialization markets worldwide, SCRA focuses its research in areas such as alternative and renewable energy, composite application, nanotechnology, and metals technology. www.scra.org

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South Carolina

Average Annual Wages • South Carolina Average Salary

$36,253 • Manufacturing Average Salary

$46,192 • Nuclear electric power generation

$83,980 • Motor Vehcile Body Manufacturijng

$78,312 • Plastics Materials and Resin Manufacturing

$61,204 • Rolled steel shape manufacturing

$58,188 • Textile Machinery Manufacturing

$37,336 • Manufacturing above SC average

+$9,939 May 2011 •

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• Clemson University’s International Center for Automotive Research (Cu-ICAR): The center, which includes state-ofthe-art equipment and facilities, development capabilities, and testing facilities, conducts research in such areas as automotive design and development, manufacturing, systems integration, and vehicular electronic systems integration. www.clemson.edu/centers-institutes/cu-icar

Manufacturing pays 20% of all wages paid in South Carolina. • Clemson University Advanced Materials Center: The center boasts some of the world’s best science and engineering faculty and graduate students who utilize state-of-the-art equipment and material to conduct leading-edge research and is home to the highest resolution electron microscope possessed by any university in the nation. www.clemson.edu/centers-institutes/ cuadvancedmaterialscenter • University of South Carolina’s NanoCenter: Research areas include nano-electronics, polymer nano-composites, and nano-imaging. www.nano.sc.edu

what South Carolina Makes Makes South Carolina to have a successful and strong economy - to create jobs and raise income levels for South Carolinians – manufacturing must be at the forefront of economic development efforts. Manufacturing is the only sector that directly and indirectly creates jobs and wealth. no other sector contributes more – whether it’s tax revenue, high wages, or community support – than the more than 5,000 manufacturing facilities in South Carolina. While this number represents approximately 4.5% of all business establishments in the state, the impact of manufacturing facilities on South Carolina’s economy is tremendous. Consider these facts: • Manufacturing pays 20% of all wages paid in South Carolina • Manufacturing pays approximately 13% of all property taxes in South Carolina • In certain rural counties, manufacturing represents more than 60% of the tax base • Manufacturing directly creates and supports over 256,000 jobs and indirectly supports another 328,000 jobs – a network that impacts over 584,000 jobs in South Carolina Manufacturing still matters in South Carolina. It will remain well into the future, but only if we recognize its value and promise and are willing to provide the competitive environment and tools necessary for manufacturers to operate in today’s fast-paced and ever-changing world. As the nation and the state of South Carolina begin to emerge from the effects of the Great Recession, it will be manufacturing that leads the recovery. +++

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Focus on Economy

South Carolina Means Business.

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overnor Nikki Haley's first cabinet nomination was Bobby Hitt to serve as Secretary of the South Carolina Deparment of Commerce. A fixture in the South Carolina business community for many years, Hitt’s nomination sent a strong message to the South Carolina business community that economic development would be a top priority for the Haley Administration.

Meet the New Secretary of the SC Department of Commerce: Bobby Hitt

“He is exactly what I was looking for. He knows what it’s like to be on the other side of the red tape,” said Governor Haley during the press conference announcing Hitt’s nomination. “From the alliances to the ports to the research universities to commerce to everything in between, there is no process that it’s not just that he doesn’t know, but that he hasn’t participated in – there’s no learning curve with Bobby Hitt.” During the 18 years in which Hitt represented BMW to the public, he frequently served as the company representative who would meet with other manufacturers considering locating in the state. He turned BMW into a consistent touchstone for economic development projects.

Business leaders were quick to applaud the nomination: “As a member of the Governor-Elect’s transition team, it has been our goal from day one to provide cabinet appointment recommendations of individuals who will work tirelessly to better the quality of life for all South Carolinians,” said Derick Close, President & CEO of Springs Creative, LLC and past Chairman of the SCMA. “This appointment ensures that the state’s Commerce Department has the strong leadership it needs in promoting economic opportunity in South Carolina.” “Governor-Elect Haley could not have picked a more qualified individual to lead the Department of Commerce,” said Barry Falin, VP of Thompson Industrial and then 1st Vice Chairman of the SCMA. “Having known and worked with Bobby for a number of years, I have always been impressed with his commitment to economic development and to strengthening South Carolina’s business climate. Bobby is a respected innovator and is results oriented. Those qualities coupled along with his energy and enthusiasm will make him an invaluable asset as the state of South Carolina moves forward.”

© Photo courtesy of BMW

“Bobby’s leadership at SCMA has been a huge boost to our organization, said Lewis F. Gossett, President and CEO of the SCMA. “From experience, we know that the Department of Commerce could not be in more capable hands. We are excited to work with him in this new role.”

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For nearly two decades, Hitt has navigated South Carolina ports issues, served on the company side of incentive negotiations with the state’s last five commerce secretaries, and played a key role in one of the state’s biggest business success stories. Now, Hitt, a one-time

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newspaperman now leads the Department of Commerce as the state tries to recover from the lingering effects of the Great Recession.

“The Face of BMW” Often referred to by the media simply as the spokesman for BMW Manufacturing Co., anyone who knows Hitt knows he’s been far more than that. The 61-year-old Charleston native has been a key strategist for the company in the realm of South Carolina business and politics. In 1992, when BMW Manufacturing Co. was starting to establish itself in South Carolina, executives quickly began to feel that the cultural, political, and business environment was information overload. BMW had engaged the Columbia law firm of Nelson Mullins Riley and Scarborough as its legal team - Hitt, a former journalist and newspaper editor was the firm’s marketing director. Hitt became one the main people who dealt with the General Assembly, the state Commerce Department, and a plethora of agencies and local governments that BMW would have to satisfy in order to build its first North American automotive plant in Greer. An early priority among BMW’s German management team was to ensure a supply of world-class engineers in South Carolina for the automotive industry that was about to bloom around the BMW manufacturing plant. Hitt held many meetings with Clemson University and his executive team to shape the graduate engineering program that would become the International Center for Automotive Research (CU-ICAR) in Greenville. He was an important player in the development of the vision for CU-ICAR and for supporting the Centers of Economic Excellence, - a program that has helped ensure CU-ICAR’s success and bring it international acclaim. BMW invested an additional $3 million in the endowed chairs program at Clemson and $25 million more at CU-ICAR’s Campbell Engineering Center. That set the path for the public-private partnership that CU-ICAR became.

Goals for Commerce Confirmed in January 2011, Bobby Hitt has taken the helm of the South Carolina Department of Commerce as the first manufacturer in that position, and has his sights set on making sure South Carolina gets its share of economic development opportunities. As the state’s leading economic development agency, the department’s initiatives span everything from business recruitment to attracting foreign investment through offices in Europe and Asia, to promoting export activities, and to helping businesses break into foreign

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© Shutterstock

Focus on Economy

markets. The department also assists with building and site location, links companies to a suite of financing resources, provides grants for community development and infrastructure improvements, and offers a range of workforce development programs.

"The question is, now that we are on the front end of the bubble, how do we make sure we capture as much of it as we can - get our share, and more?" - Bobby Hitt

Hitt said he’s not planning any major changes at the new department. “I’m an incrementalist. I’ll look at changes I think need to be made. There’s nothing going on in the department that needs to be fixed. The question is, now that we are on the front end of the bubble, how do we make sure we capture as much of it as we can - get our share, and more? My focus is on recruiting and building industry”

In ensuring that South Carolina has the right business environment for existing businesses to grow and to recruit new investments, Hitt is working with South Carolina’s legislative and business leadership to tackle a number of issues that need to be addressed now in order for future investments to be successful. One contentious issue the agency is currently dealing with is the selection of a plan to provide equivalent dual rail access to the Port of Charleston. Hitt emphasizes the importance of resolving differences over the outgoing administration’s plans for a rail yard to serve the terminals. “Three out of four vehicles made in BMW’s Greer plant travel on those rail lines to be exported,” he said. “South Carolina must have a Class 1 rail service that meets the needs of industry. Competitive dual rail service is absolutely essential for the port to be a major player on the east coast. Dual rail access is not just essential to BMW, but to almost all manufacturers in South Carolina.”

she is the first female governor of South Carolina and a firstgeneration American from a family that emigrated here from India,” said Hitt. “There are a lot of things in the pipeline that have been in here,” Hitt said. “Governor Haley’s election and the attention she gets nationally have drawn some people to want to look at South Carolina. We are working on building those contacts. I see great things happening in South Carolina’s future.”

• Made in SC

Certified Industrial Sites. Certified Incentives.

Also on Hitt’s agenda: • Creating a unified brand to market South Carolina’s transportation and logistics infrastructure, tourism, and industrial efforts

Certified Workforce. Certified Assistance.

• Turning out more technical college and university graduates • Creating a comprehensive transportation and logistical plan for the state’s infrastructure “Commerce cannot do this alone - we are going to need the business community’s buy-in and support. I plan to actively engage a number of economic development groups and the membership of the South Carolina Manufacturers Alliance in these efforts,” said Hitt. “We have a great opportunity to continue building on what our state has to offer. Through our combined efforts, we can make South Carolina the premier location for doing business.”

®

Certified Business Ready for your Project. Learn more about our Certified Business Ready® program at SouthernCarolina.org.

+++

The state already has a good reputation with European employers like BMW, Robert Bosch, and Michelin - Hitt believes that Governor Nikki Haley’s election has raised the state’s profile overseas. “She has attracted national and international attention because

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What Does Certified Business Ready Mean for Your Company?

®

South Carolina’s Certified Business Ready Region SouthernCarolina.org · 803.541.0023 · sca@southerncarolina.org

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Focus on Safety

Efficiency &

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Accountability

n December 8, 2010, Governor Nikki Haley nominated Catherine Templeton to be the Director of the South Carolina Department of Labor, Licensing and Regulation (LLR). The first female and second person to be nominated to serve in the cabinet of the Administration, Templeton was chosen because of her extensive background in employee law and relations.

for South Carolina’s Workforce

“I couldn’t be more excited to have Catherine Templeton on our team,” said Governor Haley during the nomination announcement. “Catherine understands that LLR’s mission should be to serve the businesses and taxpayers of our state. She’s taken on unions and knows our state’s right-to-work status makes us more competitive. She's a professional who hasn't just been good at everything she's touched, she's been great at it.” Governor Haley continued, “When I was looking at LLR, there were three things that were important. First, we need to protect the people. Second, time is money. Third, we need to stop burdening businesses with too much regulation and red tape. We have real challenges at LLR: morale issues, inefficiency, and regulatory issues. So, we need someone who is going to go in there and clean things up, and Catherine is the person to do that.” "I am humbled and honored to be a part of Gov.-elect Haley's team,” said Templeton. “I worked at LLR right after reorganization, and I've seen how LLR can be run properly and efficiently to both protect the citizens of South Carolina and to help the business community.” The mission of the Department of Labor, Licensing and Regulation (LLR) is to promote the health, safety and economic wellbeing of the public through regulation, licensing, enforcement, training, and education. The mission goes hand-in-hand with the Governor's effort to raise personal incomes of South Carolinians by creating a better environment for economic growth, improving quality of life, and improving education in the State.

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A Lowcountry Labor Lawyer

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After graduation from Wofford in 1993, Templeton worked as a Human Resource Manager at Milliken & Company’s Cedar Hill Plant in Union before going on to study at the University of South Carolina School of Law. During her time as a law student, Templeton worked for LLR where she served as advisor to the Agency Director and now President & CEO of the SCMA,

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Lewis Gossett. In her three years in this position, she was instrumental in many pieces of legislation, including the South Carolina Trade Secrets Act and other pending labor issues concerning Right to Work regulatory policies. Shortly after leaving LLR, Templeton joined the Charleston law office of Ogletree Deakins. Much of her work has centered on organized labor and healthcare. At Ogletree, she practiced primarily in the areas of labor and employment, with emphasis on litigation – working union campaigns against the UAW, IBEW, and the Teamsters. Templeton also served on Ogletree’s EFCA team, which provided extensive training throughout the country on the proposed Employee Free Choice Act. She has represented healthcare systems and corporate management and has successfully litigated both federal and state employment, personal injury, complex nursing home/professional liability, and FLSA class action cases. Recently, she was invited by retired U.S. Supreme Court Justice Sandra Day O’Connor to be one of two national coordinators for the Our Courts/iCivics project. The project aims to help students develop skills and resources to become informed and active civic leaders. Templeton has been honored numerous times over the course of her career. She was included in the 2009 list of Best Lawyers in America, and in 2010 she was given the prestigious Compleat Lawyer Award, an award given by the USC School of Law Alumni Association to alumni who demonstrate high standards of professional competence, ethics, integrity, and superior performance in their professional career.

Goals for SC LLR Confirmed by the state Senate in January 2011, Catherine Templeton has worked quickly to bring savings to LLR. Savings Templeton has brought about in her first two weeks in office included:

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s r e v i l e D

LLR is comprised of six separate sub-divisions: • The Division of Professional & Occupational Licensing • The Division of Fire & Life Safety Includes the Office of State Fire Marshal and the S.C. Fire Academy

• The Division of Labor Includes Elevator and Amusement Rides, Labor Services, Labor-Management Mediation, Migrant Labor, Occupational Safety and Health (OSHA), and OSHA Voluntary Programs (OVP)

• The Division of Administration • The Division of Legal Services • The Office of Immigrant Worker Compliance

• Reduced requested General Fund allocations by almost $600,000 from the previous administration’s budget. • Reduced fees for 98,373 licensees in South Carolina for a savings of approximately $1.6 million per renewal cycle. • Reduced the verification fee payable to the agency by various businesses throughout the state for a savings to businesses of $60,630 annually. • Created a savings in salary and benefits of $2 million annually by executing a reduction in force and not filling vacant positions. • Cut waste in current Fire Marshal’s budget to find $650,000 for the urban Search and rescue. • Annual savings of $2,500 from using letterhead templates instead of ordering from prison industries. “The Haley administration asked all of our Cabinet members to show results to the people of this state quickly,” said templeton. “At LLR, we are going to operate within our means while continuing to provide services and carry out regulatory policies as efficiently and effectively as possible.” LLR’s more than 400 employees are tasked with enforcing various state labor, employment, and building code laws, including South Carolina Occupational Safety and Health (S.C. OSHA) and the Office of the State Fire Marshal. LLR also enforces and administers the state’s illegal immigration law and provides administrative services to the various Boards that license 40 professions and occupations including physical therapists, nurses, physicians, and architects. “South Carolina’s budget situation does present a number of challenges for the administration of services that LLR provides,”

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said templeton. “The state OSHA program is one of the most effective safety programs available. It’s not about fining or punishing companies; it’s about ensuring that South Carolina employees are safe and measures are taken to correct any infractions. If we are unable to properly fund the state’s OSHA program at an adequate level, the federal government will become the chief administrator of all OSHA efforts in South Carolina. This means company representatives will have less interaction with OSHA professionals who can provide recommendations to resolve safety or health violations in the workplace.” templeton said another area of concern was reducing wait times for businesses and individuals applying or renewing licenses. She said the agency will work to streamline the process through the use of e-commerce and online applications that lessen the burden of traditional application processes. “LLR is going to operate as efficiently as possible through accountable services that are friendly and responsible to taxpayers,” said templeton. upon learning of templeton’s appointment, SCMA President Lewis F. Gossett stated, “Governor Haley continues her strong start with this nomination. Catherine has the skill set, the demeanor, and the work ethic to tackle the many issues facing LLR. Manufacturing in South Carolina will see an appropriate balance between regulation and job creation. We look forward to working with Catherine as she tackles this enormous challenge.” +++ Catherine templeton director of the South Carolina department of labor, licensing, and Regulation (LLR)

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© Shutterstock

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William Barnet, III

F Defenders of Manufacturing Four years ago, the South Carolina Manufacturers Alliance established the Defender of Manufacturing Award to recognize manufacturing professionals and legislative leaders whose tireless work made South Carolina a better place for the manufacturing community to do business.

Meet your 2010 defenders...

rom loading trucks to leading a now century-old family business to serving the South Carolina public, both as a volunteer and an elected official, William (Bill) Barnet, III has traveled a life-long journey with what he calls a “balanced passion.” Barnet, following the example of his father, became the fourth generation of his family to work for William Barnet and Son, Inc. In 1961, Barnet and Son purchased its first plant in the South in Tryon, North Carolina, and added its first South Carolina facility in Spartanburg ten years later. In 1976, Bill Barnet was elected president of the company and served in that position for 25 years, leading the company through unprecedented growth and success.

Throughout his life, Bill Barnet has set an example of civic involvement that displays his keen ability for visionary leadership. He has served on a variety of local and state boards, such as Leadership Spartanburg, and has chaired the Palmetto Business Forum and the Converse College Board of Trustees. A member of FleetBoston Financial Group’s board since 1985, Barnet was named to the board of directors of Bank of America in 2004. He served on the PASS Commission under Governor David Beasley, bringing enhanced standards and increased accountability to South Carolina’s education system. His commitment to education continued through his work on the state’s Education Oversight Committee, and in the fall of 2010, he taught a seminar course on civic engagement and leadership at Wofford College. When approached to run for mayor of Spartanburg in 2001, Barnet reluctantly agreed to run even though the November election was only five days away. Incredibly, his write-in “campaign,” which included no speeches and no money spent,

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earned him a place in the runoff election, where he captured 58 percent of the vote. When sworn in as mayor in January 2002, he joined Strom Thurmond as the only other person in South Carolina history to have won a write-in campaign. Bill Barnet’s ability to prepare for change and direct his efforts toward positioning for the future is highlighted by his work promoting the success of his state. From 1995 to 1996 he served as Chairman of the South Carolina Textile Manufacturers Alliance, a period of time marked by transition and change within the organization. Under his leadership, the Alliance embraced the opportunity to develop and broaden its focus to include all manufacturing interests within South Carolina. Barnet’s role in reshaping the organization in its new iteration as the South Carolina Manufacturers Alliance helped it to become the only statewide organization devoted exclusively to the needs of its entire manufacturing base and thus a powerful voice for industry in the state. SCMA’s current position is due in large part to the leadership and guidance Bill Barnet provided at that crucial time. Not only did he have the foresight to lead the transition, but his unique set of personal skills and his reputation and stature within the business community at large gave enormous credibility to the new structure of the SCMA. Bill Barnet is so well known throughout South Carolina that his time and energies continue to be in high demand by various organizations looking for leadership and guidance. He is a staunch advocate for our manufacturing base, contributing those valuable skills whenever needed by his industry. He has fought for the textile sector alongside the giants of the industry in this State, and he has insisted at the State level that public policy be geared toward job creation in manufacturing. “Bill Barnet embodies the qualities this organization seeks to showcase in its Defender of Manufacturing Award,” according to SCMA President and CEO Lewis F. Gossett. “I remember clearly the time he told me at an SCMA meeting to which I was speaking that the organization was going to expand its membership. He was adamant that it would be a good move for the organization and for manufacturing in South Carolina. Right on both accounts, of course, but his leadership was essential to make it happen.” ~

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Roger W. Chastain

P

assionate about manufacturing. Fearless in his advocacy for manufacturing employees. Dedicated to his industry and his community. Just a few of the phrases that describe Roger Chastain and just a few of the reasons why he is a recipient of this year’s Defender of Manufacturing Award. Chastain received his bachelor’s degree from the University of South Carolina and did additional graduate work at the University of Michigan and Columbia University. He began his manufacturing career in 1964 at Riegel Textile Corporation, becoming president, CEO and director in 1985. After Mount Vernon Mills purchased Riegel, Chastain became president of the Riegel Textile Division and was named executive vice president of Mount Vernon. In 1993, Chastain was named President, Chief Executive Officer and Vice-Chair of Mount Vernon Mills, Inc. – a role that he held until his retirement in 2008. During his time as President of Mount Vernon Mills, the company grew to take a prominent role in the textile manufacturing sector in South Carolina and the nation. His focus on promoting growth and development while balancing the concern of his workers has garnered Chastain a prominent place in the Upstate of South Carolina, particularly in the Greenville business community, where he is an inspiring example of leadership and commitment to community service. Chastain established the Mount Vernon Mills Endowed Scholarship at Greenville Technical College, which is awarded to accepted or enrolled students with academic achievement and financial need, but who are not receiving federal grants. Chastain has been a fearless and tireless advocate for manufacturing in South Carolina, working diligently to ensure that this state maintains a pro-manufacturing business climate. He is a forceful opponent of unfair trade practices committed by other nations and has been unwavering in his efforts to educate policymakers on the threats of those infractions. During his

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• Made in SC

Hugh K. Leatherman, Sr.

tenure as President of the American Textile Manufacturers Institute, Chastain worked with textile industry leaders from across the nation on issues relating to the federal government by lobbying Congress and working with executive agencies that carry out trade, regulatory, and administrative policies. He has also devoted his energy toward fostering an environment of accountability for public officials, frequently confronting those elected officials unwilling to acknowledge or confront the problems of unfair trade. Motivated by his desire to retain American manufacturing jobs, he has been one of the leading industrial voices opposing the trade agreements he believed would adversely affect American manufacturers and the people they employ. In fact, at one SCMA event, one of those public officials asked as he arrived at the meeting whether Roger Chastain was in the room. When told that he was, the official uttered an expletive but entered the room anyway. Chastain was polite but continued to call that official on the carpet for what Chastain believed were positions detrimental to South Carolina factory workers. Chastain has worked for many years with the South Carolina Manufacturers Alliance. He has served on its Board of Directors and is one of only two people to be designated as a Board Member Emeritus of SCMA. When needed, Chastain has been one of the first to pick up the phone and call elected officials to advocate for SCMA positions in Columbia. “Roger Chastain was one of the first members I met with when I became President of SCMA,” stated Lewis F. Gossett, President and CEO of SCMA. “I remember how passionately he talked about the jobs he was trying to save – not only in his company but also in others. He knows the value of our manufacturing base, and his career has been devoted to its health. Defender of Manufacturing is as appropriate a title for Chastain as anyone I know.” ~

I

f I ever have to go into battle and there is only one person I can take with me, it’s going to be Senator Hugh Leatherman.” Those words from former South Carolina Secretary of Commerce Joe Taylor describe exactly how the State’s manufacturing community feels about the Senator from Florence. He has been there for manufacturing and represents exactly what the Defender of Manufacturing award is all about. Hugh Leatherman’s public service began in 1967 when he was elected to the Quinby Town Council. From 1971 to 1976, he served as Mayor Pro Tempore of the Town of Quinby before being elected to the South Carolina Senate in 1980. Currently, Senator Leatherman is the Chairman of the Senate Finance Committee, but also chairs the Senate Finance and Interstate Cooperation committees. Additionally, Senator Leatherman serves on the Joint Bond Review Committee, and he is one of the five members of the State Budget and Control Board, which oversees the state’s financial dealings on a monthly basis. Throughout his thirty-year career in the state legislature, Senator Leatherman has tirelessly worked to advance South Carolina’s manufacturing interests. He has supported key legislative initiatives in the areas of tort reform, workers’ compensation reform, right to work policies, and numerous economic development initiatives. Senator Leatherman has not only supported these efforts, but in most instances, he has led those efforts through principal sponsorship of the legislation. His work has contributed to make South Carolina’s economic climate suitably attractive to corporations such as Honda, GE, ESAB, Heinz, Johnson Controls, and Roche. He had a key hand in securing the presence of the newest Boeing facility in North Charleston, a move that will bring thousands of jobs to the state.

in the area. In the area of higher education, he has been a strong supporter of developing South Carolina’s Technical College System, an important aspect of the state’s continued growth. His instrumental work in securing funding and resources for higher education were recognized in 2008 with the opening of the Hugh K. Leatherman Advanced Training Center of the Southeastern Institute of Manufacturing and Technology (SiMT) on the campus of Florence/Darlington Technical College. Senator Leatherman secured $6 million in state funding for the facility, which will contribute to the future of manufacturing in South Carolina by promoting technological training and prototype development. Overall, his leadership has been vital in protecting and growing the South Carolina Technical College System and the State Port, two institutions essential to the health and future prosperity of South Carolina manufacturing. At moments of opportunity, when South Carolina needed economic development leadership, Hugh Leatherman stepped up to bat through his legislative skills, determination, and at times, sheer force of will, to ensure an economic environment where manufacturers such as The Boeing Company, Honda, Roche, and many others could locate and expand in South Carolina. Often, this work was behind the scenes, and as is his way, Senator Leatherman did not seek publicity for his vital work on behalf of South Carolina’s manufacturing employees. Still, for those individuals and groups that were involved in those efforts, his contributions were clearly indispensable. “Joe Taylor is right about Senator Leatherman,” said SCMA President and CEO Lewis F. Gossett. “I have had the privilege of working with many great State Senators over the past 20 years, and Senator Leatherman is cut from the same cloth as folks like Verne Smith and John Drummond. He leads, and he gets results. Watching him demand answers during a recent hearing on equivalent dual rail access at our Port and hearing his strong statements that he would see a suitable conclusion to this important matter prove to me yet again that manufacturing has a real friend in the Senator from Florence County. Manufacturers are fortunate that he ‘goes into battle’ for us whenever needed.” ~

Senator Leatherman has also been heavily involved in plans for a new dual access rail plan that will increase the access to the Port of Charleston and create new development opportunities

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Glenn F. McConnell

Q

uiet, behind-the-scenes leadership that makes a huge difference for South Carolina manufacturing. Senator Glenn McConnell has been a stalwart for industry and richly deserves his recognition this year as a Defender of Manufacturing. His service to South Carolina and the people employed by its manufacturers now approaches its fourth decade. He has truly had a career for the ages in South Carolina politics. AFtER OBtAInInG HIS LAW DEGREE at the university of South Carolina, Glenn McConnell worked with the neighborhood Legal Assistance Program and the Charleston naval Shipyard before going into private practice. In 1980, he was elected to the South Carolina Senate - that same year, he was honored with an Outstanding Achievement Award by the South Carolina Republican Party. He has been granted an Honorary Doctorate from the university of Charleston, the Citadel, Francis Marion university, and the Medical university of South Carolina. In 2001, Senator McConnell was elected as the first Republican President Pro tempore of the South Carolina Senate since Reconstruction. He has chaired the Rules Committee and now chairs the Senate Judiciary Committee, which handles the majority of legislation that comes before the Senate for consideration. In addition, he currently serves on the Banking and Insurance Committee, the Ethics Committee, the Interstate Cooperation Committee, the Labor, Commerce and Industry Committee, and the Rules Committee. He also chairs the Hunley Commission, which aims to “acquire, recover, and preserve” the first successful submarine to sink an enemy ship.

2011

of that community. He has been particularly active on the issues of tort reform, workers’ compensation reform, right to work, and reasonable environmental regulations, not only supporting but leading efforts by principally sponsoring legislation. On numerous occasions, Senator McConnell used his mastery of the rules of the Senate and his leadership positions to ensure that significant reform efforts such as workers’ compensation and tort were ultimately crafted in terms favorable to the manufacturing community. Senator McConnell has also been a constant advocate for economic development in the manufacturing community, providing indispensable leadership throughout the efforts to land some of South Carolina’s largest job-creating projects, the most recent being the new Boeing facility in north Charleston. Senator McConnell’s efforts have been invaluable in their benefit to the economic environment of South Carolina. Despite the significance of his work, he has conducted his efforts with little fanfare and without seeking public accolades. “time and time again, Senator McConnell has been there when we needed him the most,” said SCMA President and CEO Lewis F. Gossett. “Whether it was through giving advice on how to move legislation forward, executing legislative maneuvers to ensure passage, or sheer heavy lifting to accomplish his goals, the Senator has been a key supporter of manufacturing in South Carolina. Workers’ compensation reform never happens but for his efforts. His work on behalf of the employees working in our factories may not always make headlines, but it always makes a difference.”

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“I value Senator McConnell’s leadership and friendship to the highest degree,” stated Bobby Hitt, current Secretary of Commerce and Immediate Past Chair of SCMA. “I will not soon forget his willingness to step into the leadership void and work to stabilize the political environment for our State Ports. He is a great ally for industry and a true public servant to South Carolina.”

www.SCautomotivecouncil.com

~

A staunch supporter of the manufacturing sector in South Carolina, Glenn McConnell’s thirty years in the South Carolina Senate have been marked by careful attention to the needs

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May 2011 •

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Legal Update

© Shutterstock

©Shutterstock

The Lawyers of Constangy, Brooks & Smith, LLP Invite You to Visit

The Department of Labor’s “Bridge to Justice” Program One Small Step for Workers, One Giant Leap for Trial Lawyers By M. Brian Magargle, Esq.

And, feel free to browse around awhile. www.constangy.com

A

nd, two steps back for employers. Despite the need for more jobs in the private sector, Washington continues its anti-employer agenda. With little public fanfare, the United States Department of Labor’s Wage and Hour Division (WHD) implemented a new program in December entitled “Bridge to Justice.” A more accurate title would be “Bridge to Trial Lawyers.”

By its own estimate, the WHD received more than 40,000 complaints from employees in the 2010 fiscal year on issues such as unpaid overtime, minimum wage violations, and Family and Medical Leave Act (FMLA) problems. To handle the increasing number of complaints, the WHD recently hired 350 new investigators. Then, it went even further by entering into a formal agreement with the American Bar Association to connect workers whose complaints are not fully investigated or resolved by WHD investigators with trial lawyers “who may be able

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to help” those workers. In fact, the lawyers who receive referrals through the Bridge to Justice Program must have some prior experience with wage and hour and FMLA issues, which could make litigation against employers more likely. The WHD admits that the program is “an unprecedented collaboration” between the Department of Labor and the American Bar Association. The WHD claims that by referring workers whose claims have questionable merit to trial lawyers, the program will “help level the playing field for employers who

May 2011 •

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Legal Update

With the cost of litigation forcing employers to settle frivolous litigation rather than fight it, Bridge to Justice will undoubtedly increase the number of lawsuits filed against employers.

As a result of the Bridge to Justice Program, the WHD has significantly changed the way it processes complaints and communicates with employees bringing those complaints. now, the WHD will provide the complaining employee with a toll-free number to the American Bar Association for referral to a local trial lawyer at any one of four stages of its investigation, including before any real investigating is done. The WHD will inform a complaining employee about his or her right to contact an attorney: • At the complaint intake stage, if the employee decides not to file a formal complaint or says that he or she would rather pursue litigation instead of an investigation; • At the complaint review stage, if the WHD believes that its “current resources and workload” will provide the employee with “quicker access to justice”;

• After an attempt at conciliation if the employer refuses to remedy the situation and the WHD believes that having the employee contact the American Bar Association is a “better option than further investigating the complaint”; or • After a full investigation, if the complaint is not settled, and the WHD believes that it would be beneficial to employee “to leverage the resources of the private bar” against the allegedly offending employer.

Bridge to Justice should at least create more work for trial lawyers and redistribute some of employers’ wealth when the complaint has little or no merit. If it is even a remotely meritorious complaint, the federal government and a gaggle of trial lawyers stand ready to help – just what our struggling economy needs the least.

Employers will be well served to review their procedures for identifying and handling potential FMLA issues and common wage-hour issues such as the misclassification of nonexempt employees as exempt employees; the failure to pay for all time worked, particularly where lunch periods are automatically deducted from working time; and the use of individuals as independent contractors. In fact, in its Strategic Plan for Fiscal years 2011-2016, the WHD has committed to focus on all variations of the independent contractor issue, including subcontracting, third-party management, franchising, and “other contractual forms that alter who is the employer of record or make the worker-employer relationship tenuous and less transparent.”

In addition to the toll-free number, if the WHD has conducted any form of an investigation, it will also provide the employee specific information about possible violations that may have occurred and even an estimate of potential back wages owed. The WHD will also explain its “special process” for the employee and any retained lawyer to “quickly obtain certain relevant case information and documents when available,” which presumably will not be available to the involved employer until formal litigation occurs. At least the WHD is candid about the effect of these changes and expanded assistance to employees, stating that they “will be very useful for attorneys who may take the case.” With the cost of litigation forcing employers to settle frivolous litigation rather than fight it, Bridge to Justice will undoubtedly

be used against them in subsequent litigation. In a worst case scenario, if the WHD passes along information it obtained in an investigation to a trial lawyer receiving a referral, that lawyer could contact other, non-complaining employees to try to mount a class action suit against an unsuspecting employer.

increase the number of lawsuits filed against employers. Some of the referrals, of course, may actually have some merit. WHD investigators, however, are very knowledgeable and good at their job. They seldom ignore or dismiss complaints that have merit. If there are many meritorious cases referred to trial lawyers, the WHD is not doing its job, and Congress should consider outsourcing the entire WHD to the ABA and trial lawyers.

+++ Constangy, Brooks & Smith, LLP, has represented management in labor and employment matters since 1946 and has more than 20 offices in 13 states. Brian Magargle practices in the Columbia, South Carolina, office in the areas of employee benefits and employment law. He may be reached at 803.256.3200 or bmagargle@constangy.com

Employers must also be very careful about what information they provide to the WHD during the course of an investigation since it is possible that the information will be transmitted directly to a trial lawyer who takes a case. Since employers frequently provide time records and wage data for a broad range of employees during an investigation, they must anticipate that such data could © Shutterstock

want to do the right thing.” Forget it. In reality, those employers may be the ones being sued, as the WHD steers employees toward litigation.

Legal Update

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May 2011 •

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2011 SCMA Meetings / Events

Joint Fiber Buyers Annual Meeting Date · June 26-28 Location · Crowne Plaza Hotel, Hilton Head Island, SC

Human Resource Managers Annual Meeting Date · September 21-23 Location · The Westin Poinsett, Greenville, SC

SCMA Golf Classic Date · October 31 Location · Musgrove Mill, Clinton, SC

Sponsorship & Exhibiting Opportunities Available · For more information, visit www.myscma.com

©Shutterstock

or contact Jessica Watts at (803)799-9695 or watts@myscma.com

NEXT ISSUE The next issue of Made In S.C. Magazine will showcase the life and achievements of Mr. Roger Milliken and the impact he had on South Carolina and the nation.

At the intersection of business and government

©Photo courtesy of Milliken

With 15 lawyers selected for listing in The Best Lawyers in America® and more than185 years experience in representing business and industry in Environmental and Regulatory matters.

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• Made in SC

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David J. Tigges, Managing Shareholder/CEO McNair Law Firm, P.A. 1221 Main Street / Columbia, SC 29201 / 803 799 9800 / www.mcnair.net Anderson

B lu f f t o n

Charleston

Charlotte

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H i lt o n H e a d I s l a n d

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