May 2008

U.S. Supreme Court Upholds Retaliation Suits

The Washington Post reported May 28 that the U.S. Supreme Court announced "that workers who claim that they faced retaliation for complaining about racial or age discrimination may sue in federal court, and made clear that federal employees have the same protection as their counterparts in the private sector." In two "decisions that drew support from both liberal and conservative justices, the court said its past decisions compelled the view that federal laws that protect workers from discrimination also protect them from retaliation for filing complaints, even if the words of the statute do not specifically say so."

In the first case, CBOCS West v. Humphries, the New York Times said the justices decided in a 7 to 2 decision for "a former assistant manager of a Cracker Barrel restaurant, a black man named Hedrick G. Humphries. Mr. Humphries had complained that a white assistant manager had been motivated by racial discrimination in dismissing a black employee. In his lawsuit, Mr. Humphries claimed that he then lost his own job in retaliation for his complaint." Lately, the number of retaliation complaints has been growing, "because it is often easier for employees to demonstrate that they were retaliated against than that they were victims of discrimination in the first place." In fact, "retaliation complaints filed annually with the Equal Employment Opportunity Commission doubled in the last 15 years to 22,000 from 11,000."

The Wall Street Journal added that, in the Humphries case, the "restaurant chain, backed by the U.S. Chamber of Commerce and other business groups, argued that while [the law in question] offered no remedy, employees claiming retaliation could seek redress through another law," which "is more restrictive..., as it imposes tighter deadlines, excludes some employers, and doesn't apply to nonemployment contracts."

In the second case, Gomez-Perez vs. Potter, the Los Angeles Times reported "the court based its 6 to 3 decision on anti-age discrimination laws on the books for more than 30 years, saying federal employees, like those in the private sector, are protected from retaliation." With the ruling, "the court restored an age-bias suit filed by a 45-year veteran of the Postal Service who alleged she was harassed by her supervisors after she had filed an age discrimination complaint."

According to the Christian Science Monitor , "both decisions are important because they affirm a trend at the high court embracing an expansive reading of civil rights laws." Some analysts expected the court to "adopt a more restrictive approach to such laws – making it harder for victims of discrimination to sue – after the 2006 retirement of Sandra Day O'Connor and the arrival on the court of her replacement, Justice Samuel Alito."

The Financial Times noted that "business groups warned [the decisions] could lead to more retaliation lawsuits." Robin Conrad, executive vice president at the National Chamber Litigation Center, explained that "it makes it harder for employers to resolve and defend the claim. That would be bad for employers and bad for employees."

NAM, Environmental Groups File Competing Suits Against EPA

On May 27, the National Journal reported that environmental groups and industries filed "their intent to sue EPA in federal court over the agency's regulation limiting smog. Five groups represented by Earthjustice –  including the American Lung Association, the Natural Resources Defense Council and the National Parks Conservation Association – ... argued that EPA violated the Clean Air Act by not following the advice of their scientific advisers to issue a tougher standard," while the "National Association of Manufacturers (NAM) and other industry groups... countered that the EPA issued a standard that is too costly to businesses, and that the agency did not objectively consider the science in deciding to replace a less-stringent requirement."

Bryan Brendle, director of energy and resources policy for NAM, explained, "We believe that EPA cherry-picked the science to stack the deck, leading to the decision to a stricter standard."

Arkansas World Trade Center to Host Trade Mission to Mexico City

The Arkansas World Trade Center has organized a June 23-27 business trade mission to Mexico City in conjunction with the Consulate General of Mexico, the Arkansas Economic Development Commission, the Arkansas Farm Bureau and the Little Rock Regional Chamber of Commerce.

The delegation to Mexico will participate in an informative briefing on the benefits of bilateral trade under the North American Free Trade Agreement. NAFTA has been in effect for more than 14 years and during that time exports from the United States to Mexico have grown from nearly $41.6 million in 1993, before the trade agreement, to $136.5 billion in 2007.

During the trade mission, meetings will be conducted with high-level Mexican executives, from both the private and public sectors, as well as with members of the U.S. Department of Commerce working in the U.S. embassy. Business-to-business contacts will be arranged, depending on each participant’s specific interest and business needs. Appointments have been scheduled with key business representatives of the larger aircraft manufacturers and logistic companies in Mexico.

The Arkansas Farm Bureau will highlight the benefits for Mexican businesses of doing business with Arkansas farmers and the agriculture industry. The agenda also includes a ceremony to witness the collaboration agreement between UALR and the Universidad of Hidalgo, in the city of Pachuca. In addition, a special tour has been scheduled of the new state-of-the-art Bombardier Aero Space manufacturing facility in Querétaro Aerospace Park, Querétaro, Mexico.

Anyone interested in joining the delegation to Mexico, whether as an individual or company, should contact Laura James at the Arkansas World Trade Center at (479) 418-4803 or ljames@arwtc.org by Monday, June 9, for more information and assistance with travel arrangements.

Manufacturers Need Educated and Skilled Workforce to Compete

As the 25th anniversary of “A Nation at Risk” – the National Commission on Excellence in Education report that condemned America’s “mediocre” educational performance – was marked last month, the National Association of Manufacturers (NAM) called the reform of America’s public school system “a national imperative that must be addressed by government, educators and business leaders across the nation.” 
           
“It is clear to the nation’s manufacturers that America is still ‘a nation at risk’ when it comes to preparing young people for real life and real jobs,” said NAM President John Engler. “The timing could not be worse. As competition intensifies in the global marketplace, U.S. manufacturers are having a tough time finding qualified people to replace the retiring baby boom generation in increasingly high-tech and sophisticated jobs.

“America’s public school system is failing to make education relevant to today’s career opportunities. We must keep students in school by offering alternative pathways to graduation. We must ensure that high school graduates are ready for work and ready for college if we want to have the educated and prepared workforce necessary to keep America competitive in the global economy,” he said.

“Manufacturers are dealing with the most dramatic workforce crisis in U.S. history,” Engler said. “Eighty percent of manufacturers report shortages of qualified workers. While manufacturing provides good, family-supporting jobs with the highest average salary among all business sectors, young people, their parents and teachers don’t know about manufacturing’s promising career opportunities. The education and business communities must work more closely together to align educational programs with the academic and occupational skills necessary for 21st century manufacturing careers.”

The State Chamber/AIA has held for many years that education and economic development are inseparable and has worked diligently to pass and protect significant education reform that has successfully improved many aspects of the Arkansas education system. At the national level, we are supportive of the federal No Child Left Behind legislation and encourage its reauthorization.

According to NAM’s 2008 Competitiveness Redbook, Arkansas ranks 44th among the states in educational attainment of the population 25 and older. Its figures shows 80.5 percent of Arkansans in that have group have completed high school or the equivalent, with 18.2 percent holding a bachelor’s degree and 6.2 percent an advanced college degree.

NAM President Addresses Workforce, Energy Issues

Pennsylvania's Sun Gazette reported May 21 that "rising energy costs and companies being unable to find qualified workers are the two major challenges the manufacturing industry faces, according to John Engler, president of the National Association of Manufacturers (NAM)." At a meeting of the Central Pennsylvania chapter of NAM, Engler said that building the workforce was top priority, and that "it is important to reach out to young people and to high school counselors and let them know the opportunities that are available in the manufacturing sector."
 He added that manufacturing jobs are no longer "dark, dangerous and dirty" as most Americans see them. "Now, manufacturing jobs are more" technical. Engler also noted that "rising energy costs are another challenge for" the manufacturing industry.

Leading Economic Indicators Rose in April for Second Month of Gains

On May 20, the New York Times reported that the Conference Board's "index of leading economic indicators rose in April for a second month, the first back-to-back gain since October 2006, suggesting that the current slowdown will be short-lived." The 0.1 percent gain beat forecasts, which had predicted the index to be unchanged.

The Wall Street Journal added that the "leading index was boosted by stock prices, interest rate spreads and housing permits, and those factors offset negative contributions from average weekly hours and consumer expectations."

The AP reported that "gas prices are high, food's more expensive and the job market's cold, but the U.S. may still avoid a recession," according to the index.

Health-Care Costs Hurt Manufacturers' Bottom Lines

The Los Angeles Times reported earlier this month that an analysis by the New America Foundation recently found that "U.S. manufacturers who provide health insurance spend an average of $2.38 per worker per hour on healthcare – more than twice as much as their foreign competitors." Many "manufacturers have blamed rising healthcare costs for decisions to drop health benefits for workers or shift jobs overseas."

While economists suggest that companies should "pass those costs onto workers by lowering wages or onto consumers by raising prices," the foundation's "analysis suggests that neither lower wages nor higher prices are an option for most companies." According to the study, "healthcare costs [are] outpacing wages and productivity. With stiff global pricing competition, that means healthcare costs have to come out of the bottom line."

Kristen Gerencher, in MarketWatch 's Health Matters blog, added that, according to the study, employers in the U.S. "spend 11.3 percent of payroll on health care on average vs. 4.9 percent among the foreign sample, which is weighted by trade value. Employer contributions in the U.S. manufacturing industry were even higher at 13 percent of payroll."