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Fall 2009 OCMA News |
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Fall 2009 OCMA News |
FALL 2009 OCMA NEWS OCMA Meeting Explores Important Issues The nearly fifty (50) OCMA members attending the October 14th meeting heard about several critical issues affecting their industry. The issues ranged from potential nominees to the National Labor Relations Board (NLRB) that may radically change labor policy in America to a bold, innovative "wellness program" at a member foundry. Lisa M. Jones, Frantz Ward LLP, provided the annual labor & employment law update. The main points of her update are outlined below:
1. The appointment of Justice Sonia Sotomayor is unlikely to alter the Court's voting patterns. She is likely to join the liberal bloc of the Court, but the decisions will continue to reflect the opinions of the more conservative majority. Justice Sotomayor's legal career has two noteworthy decisions affecting professional sports. She ruled against Maurice Clarett's bid to join the NFL as a sophomore and she issued an injunction favoring major league baseball players over the owners during the 1994-95 baseball strike. 2. The five-member National Labor Relations Board (NLRB) has been operating with only two members since December 2007 because the Democratic Senate refused to approve nominees submitted by former President George Bush. President Obama has submitted three nominees who are expected to be approved despite the fact that one of the nominees is not a mainstream labor jurist. Craig Becker, Associate General Counsel to the SEIU and a member of President Obama's Transition Team has been nominated despite some legal writings that call into questions his fitness for the board. Importantly, he believes that the NLRB could implement many of the key aspects of the Employee Free Choice Act (EFCA) without approval by Congress. He also has radical views on employer free speech rights during elections. He has written that employers should be prohibited from speaking to employees during union organization drives. 3. Regarding the present status of Employee Free Choice Act (EFCA), the health care debate has overshadowed (EFCA). However, some version of (EFCA) is likely given the Democratic Party's indebtedness to organized labor; the overwhelming Democrat majority in the House of Representatives, the possibility of a filibuster-proof majority in the Senate, and President Obama's strong endorsement of the bill. 4. The original version of (EFCA) has lost support primarily because
of the proposed elimination of the secret ballot. A key vote is Senator
Arlen Specter from Pennsylvania, formerly a Republican, but now running
as a Democrat. Senator Specter has suggested a compromise that would
provide for extremely quick or "quicky" union representative
elections, would allow union access to employees at work; would increase
penalties for employer unfair labor practices and bad faith bargaining;
and contains additional provisions designed to speed up the NLRB's
case handling process. 5. The Department of Homeland Security has rescinded the controversial "No-Match Rule" that would have imposed civil & criminal penalties on employers who failed to verify employees' legal work status. 6. The Genetic Information Non-Discrimination Act (GINA) creates a new protected class of persons with a genetic predisposition to develop a disease. Title II that applies to employers will become effective on November 21, 2009. It prohibits employers from discharging or refusing to hire, or otherwise discriminating on the basis of genetic information; bars employers from intentionally acquiring genetic information about applicants and employees; and imposes strict confidentiality requirements regarding genetic information. 7. The Ledbetter Fair Pay Act was signed into law on January 29, 2009. It amends Title VII and other laws to declare than an unlawful employment practice occurs when: 1) a discriminatory compensation decision or other practice is adopted; 2) an individual becomes subject to the decision or practice; or 3) an individual is affected by application of the decision or practice, including each time compensation is paid. 8. Proposed legislation on the horizon includes the Paycheck Fairness Act that would significantly alter federal pay discrimination claims by creating a requirement for a bona fide factor other than sex to defend pay discrimination. The Employment Non-Discrimination Act (ENDA) prohibits workplace discrimination based upon sexual orientation.
Kevin Schmidt, Ohio Manufacturers' Association, discussed the new energy efficiency targets established under SB 221 and how they may affect Ohio manufacturers. Key points of his presentation are provided below: 1. SB 221 created new energy efficiency targets that Ohio's investor-owned utilities - First Energy, AEP, & Duke have to meet. The utilities are allowed to recover, dollar-for-dollar, the costs to reach these targets. For example, First Energy's target reduction is 0.30% in 2009 and accumulates to 22% by 2025. 2. First Energy has devised a new rider to their existing rate structure known as the Demand Side Management and Energy Efficiency Rider or DSE2. Rider DSE2 will assess an additional fee for kilowatt-hour of electricity consumed by non-residential customers in order to recover the costs associated with peak demand reduction and energy efficiency programs. 3. During the SB 221 debates, industrial groups including OMA and OCMA pointed out that many manufacturers had already improved their energy efficiency to stay competitive. Forcing these companies to pay a new rider on their bills that would have subsidized competitors who had not taken earlier action to reduce energy use resulted in punishing early adopters. In response to these arguments the legislature created a provision that allows a "mercantile customer" to avoid the rider if they let the utility take credit for energy efficiency improvements they adopted after January 1, 2006. If these energy efficiency projects reduce electricity usage by a greater percentage than First Energy's annual targets, the company is exempt for the DSE2 rider during that time period. 4. A "mercantile customer" is a customer who uses at least 700,000 kWh annually for non-commercial reasons. Only the smallest of foundries would fail to qualify for this program. First Energy is using the mercantile provision by creating an administrator program. Rather than add staff internally to hunt down projects, First Energy allows organizations such as OMA, Ohio Hospital Association, & COSE to administer the program, educate their membership, and find projects that would qualify for electricity efficiency reductions. 5. Companies can get credit for just about any improvement that resulted in using less electricity. Examples include: more efficient lighting, improved motors, chillers, new HVAC, new compressors, etc. Process improvements also qualify. Even if a company is using more electricity than ever due to growing demand, if the company is using the electricity more efficiently, it qualifies for a rider exemption. 6. The length of time a company can remain exempt from the rider depends on the amount of electricity saved by the projects. For example, assume that you installed new efficient lights and motors reducing your electricity usage by 4%. This would exempt your company from the First Energy rider through 2013. If the company finds 0.2 % more savings, the exemption would last through 2014. Your exemption from the rider continues as long as the new projects are in service. 7. Although it is impossible to calculate the cost of the rider with any pretense of accuracy, First Energy estimates that a mercantile customer using 25 million kWh per year would save nearly $90,000 from 2010 through 2012. The cost savings will be greatly affected by the cost to the utilities to achieve the energy efficiency savings and the number of companies that apply for and are accepted the DSE-2 exemption. The more companies that obtain the exemption, the higher the costs for those companies that do not qualify for the exemption or do not take energy efficiency actions. 8. To qualify for the OMA administered program, a company just needs to complete a non-binding agreement and fill-out a one-page survey. The information provided on the survey form will be given to Patrick Engineering, a firm OMA has selected to assist in this process. Patrick Engineering will assist a company applying for the DSE-2 exemption at no cost to the company; OMA is picking up the tab. They will help in filling out the forms and in calculating energy efficiency. OMA will submit the completed forms to First Energy and monitor the status of your project. 9. Kevin encouraged companies to move quickly to try to receive approval for the exemption before the rider takes effect on January 1, 2010. Kevin's PowerPoint presentation is available from the OCMA office. If you are interested in a copy, please call or e-mail.
Pete Macler, Peter E. Macler Associates, examined the continuing challenge of providing a safe workplace in the foundry industry and presented some advice on how to revitalize health & safety programs. Key points of his presentation are presented below: 1. From 1992 to 2007, (the latest data available) there were nearly 96,000 workplace fatalities. In 2006 alone, there were more than four million (4,000,000) recordable workplace injuries and illnesses. These recordable injuries and illnesses combined with the cost of workplace fatalities exceed $170 billion per year. 2. This dollar estimate does not include the impact on families and communities from the loss of a loved one, lost production, extra overtime, and possible regulatory penalties. The impact of these events on employee morale is also indeterminate, but certainly in play. Safety is no accident and revitalizing the foundry health and safety program is an important goal for foundry managers and owners. 3. Foundries contain major risks for their employees including explosions & fires, falling objects, electrical hazards, dangers from pinching/crushing machinery, and mineral dusts and toxic fumes. Accidents can range from electrocution to injury from a trip or a fall. The injury rate in all foundries is 7.2 days lost per 100 employees compared to the workplace average for all companies of 2.3 days. Significantly, foundries with from 50-250 employees have injury rates far in excess of smaller and larger operations. Aluminum sand and iron foundries have the highest days lost average 7.3 & 7.2 days lost per 100 employees respectively. Clearly there is a need for rigorous efforts to reduce these numbers 4. One reason why safety and health programs need to be revitalized is that the Occupational Health & Safety Administration (OSHA) is revitalizing their inspection and monitoring efforts. OSHA has revised its enhanced enforcement program (EEP) that will target "recalcitrant" companies with higher than average injury rates. Violations are likely to be either serious, willful, or failure to abate. Ergonomic regulations are likely in the next several years and OSHA is using the general duty clause to issue violations now. 5. Pete recommends a "Four Point Workplace Program" to revitalize a foundry's health and safety program. These points include: 1) Management Commitment; 2) Employee Involvement; 3) Work Site Analysis; and 4) Hazard Prevention & Control. 6. Management commitment can be demonstrated by conspicuous participation, meeting with employees personally to discuss health and safety policies and objectives. Management investment in solutions also shows real support. Finally, management should provide employees the authority to shut down an unsafe operation. 7. The first step in employee involvement is training. Upon completion of training, have the trainees perform inspections and train other employees. Essential inputs include resources, authority to shut down an unsafe operation, and rewards for a job well done. 8. Work site analysis includes a review of all new processes, a periodic review of all jobs, and a self-inspection program. Communications concerning health and safety activities and improved safety conditions are useful. Finally, accident investigation and review of injury and illness records can lead to understanding the priorities for improving safety. 9. Hazard prevention & control begins with the elimination of hazards and substitution of less dangerous procedures to reduce risk of injury. Controls and procedures should be established and rules must be enforced without prejudice. Proper personal protective equipment (PPE) should be provided and preventive maintenance should be performed. A plan for medical emergencies should be established. 10. To maintain a safe workplace, safety training and monitoring is essential. Safety training should be provided for every hazard and special safety training should be provided to all new hires. Supervisors, a key element to a safe workplace, must be trained to monitor, remind, refresh, or to discipline employees engaged in unsafe activities. 11. Pete's PowerPoint presentation is nearly sixty (60) slides. This brief summary does not do it justice. If you would like a copy of the PowerPoint presentation, please email the OCMA office at ohiocastmetals@midohio.twcbc.com.
Farley Houston and Amy Hitzeman, Cast-Fab Technologies, discussed the Wellness Incentive Program implemented last year at their facility. Key points of their presentation are presented below: 1. The Health Insurance Portability and Accountability Act (HIPAA) prohibits discrimination in a group health plan based on health factors such as medical history, health status, and claims experience. However, an exception exists for wellness programs to vary benefits or cost-sharing if the program meets certain standards. — Is the amount of the award limited to 20% of the cost of coverage?
2. Cast-Fab's Wellness Incentive program provides for three tiers of payment for the medical insurance plan with the best rate in Tier 1, the next best rate in Tier 2, and Tier 3 has no discount. Tier designations are determined by participation in Wellness activities. Wellness activities are placed into three (3) groups. CORE METRICS PREVENTIVE 3. In order for an employee to qualify for the Tier 1 rate, they must have an annual physical with bloodwork, be tobacco free, and attain four (4) metrics. Before the Wellness Program, only 75% of Cast-Fab employees obtained annual physicals. This year under the program, all but two employees received physicals. Those two employees were automatically placed in Tier 3. The best Tier a smoker can qualify for is Tier 2 and at that level, they must attain 4 additional metrics. Employees that do not attain Tier 2 goals are placed in Tier 3. 4. The Anthem 360 Care Plan provides increased attention and care for those diagnosed with chronic health problems such as diabetes, asthma, and heart disease. Through this program it was discovered that the Cast-Fab workforce has twice the number of persons with diabetes than normal. 5. Results from the program showed that 60% of the employees achieved Tier 1 status; 28% achieved Tier 2 status, and 12% achieved Tier 2 status. Two employees discovered cancer in early stage, three received referrals for hypertension, and ten discovered abnormalities on blood tests. In addition, three employees quit smoking and four had colonoscopies. 6. For the future, Cast-Fab plans to move Tiers 2 & 3 to 20% of full cost and to expand to other family members. They plan to add additional Preventive activities and they are investigating partnering with the American Diabetes Association to expand awareness of the problem and reduce the prevalence of diabetes in their workforce. 7. To raise awareness of the Wellness Incentive Program, Cast-Fab sponsored two activities related to health awareness; a Holiday Fundraiser for the American Heart Association (AHA) and an AHA Start Walking Program.
8. In 2008, Cast-Fab Technologies, Inc. Chairman Jim Bushman was recognized by the Cincinnati Heart Association for his contributions to the organization. To promote more heart health awareness, Cast-Fab sponsored a Holiday Fundraiser to recognize and honor four employees who were lost in 2007-2008 due to a stroke or heart attack. Employees were asked to make contributions and a Pay-to-Play Corn Hole Tournament was held. The fundraiser was a great success with employees more interested in participating because it was held in honor of former Cast-Fab employees. 9. In February 2009, Cast-Fab utilized a pre-packaged Walking Challenge program from the American Heart Association. The program inspires employees to fight heart disease and stroke by getting people moving through workplace walking. Twenty (20) per cent of the workforce participated on eleven (11) teams of 4-5 employees with a designated captain. Both indoor and outdoor routes were available and work was stopped during lunch so that walkers could walk through the Cast-Fab main aisle. A full round-trip of the Cast-Fab facility was 1/2 mile. All miles were counted and posted in the cafeteria. The challenge participation was much greater than anticipated and the competition inspired the walkers and created a fun atmosphere with lots of trash talking. One unintended consequence was the increased interaction between departments because of the make-up of the teams. 10. The Walking Challenge participants walked approximately 2,200 miles a distance from Cincinnati to San Francisco. The teams celebrated their accomplishment with a "Subway" luncheon and all participants received credit under the Preventive activities of the Wellness Incentive Program. Each captain selected one team member who made the greatest change. Eleven (11) participants also took part in the Heart Mini-Marathon & Heartwalk Corporate Team. A number of participants are still walking and another competition is planned for this coming February. 11. The walking challenge and Wellness Incentive Program are seen by Cast-Fab management as an excellent way to improve the health of its employees. Since 50% of healthcare costs are a result of poor lifestyle behaviors, healthier employees with lower healthcare costs lead to a more competitive workforce giving Cast-Fab Technologies, Inc. a competitive advantage. The PowerPoint presentation is available from the OCMA Office.
OCMA Vice President of Environmental Affairs Ryan Burke, OSCO Industries, Inc., presented the environmental report. He commented that "there has been a big change in Washington, DC with USEPA being much more amenable to the desires of the key environmental groups". The next four years could prove to be very challenging for our industry. Key issues are outlined below: PM 2.5 Rule Stayed Again 1. The Sierra Club and Natural Resources Defense Council appealed the implementation of the 2.5 rules because they objected to the grand fathering clause. An Appeals Court Judge stayed the rule for nine months. About twenty sources are affected. Mandatory Green House Gas (GHG) Reporting (Proposed Rules 1. Proposed on April 10, 2009, these rules would require initial report for calendar year 2010 submitted by March 31, 2011. The final rule was published on September 22, 2009 and becomes effective on January 1, 2010. 2. Report would only cover emissions from stationary fuel combustion sources. Foundries are not a listed source category. Facility that emits 25,000 tons of CO2 or more per year from all stationary sources must report these emissions. USEPA estimates that approximately 10,000 facilities are affected and these facilities account for approximately 85% of GHG emissions. 3. The first report will be due March 31, 2011 and USEPA estimates the cost of filing will approach $115 million in 2011, but will be only $72 million on an annualized basis in subsequent years. The rule does not preempt state or regional rules. 4. Abbreviated Reporting is available in the first year. It applies to facilities that contain ONLY stationary combustion sources. All other facilities must use either "best available monitoring methods" or the methods specified in the rule. Best available monitoring methods may only be used until March 31, 2010. After that date, the methods specified in the rule must be used unless a written request is submitted to USEPA within 30 days of the effective date of the rule, January 1, 2009. 5. Most foundries will be able to use the Abbreviated Facility Report that calls for the facility name and physical address as well as the year and months covered by the report. The report requires the total facility GHG emissions aggregated for all stationery combustion sources calculated according to the rule and expressed in metric tons. Operating data and process information used in the calculations will also be required. The Abbreviated Facility Report must include a signed and dated certification statement from the owner or operator according to the rules requirements. 6. Both OCMA and AFS submitted comments stating that a cupola should not be considered a stationary fuel source. Despite the fact that our comments clearly showed that a cupola was totally different from the other stationary sources such as boilers, combustion turbines, engines, incinerators, and process heaters, USEPA ruled that cupolas are considered stationary sources. 7. For GHG reporting, the "once in always in" rule does not apply. If the facility falls below 25,000 tons per year for five consecutive years, it no longer has to report. If the facility falls below 15,000 tons per year for three consecutive years, it no longer has to report. However, reporting resumes immediately if emissions exceed 25,000 tons per year. Start-up, Shutdown, and Malfunction Rules
1. Court vacated two parts of the Start Up, Shutdown, and Malfunction (SSM) rule that exempted sources from applicable emission standards during (SSM). The exemptions remain in effect until the Court issues a mandate finalizing the vacature. 2. This affects any Area Source Foundry and any rules that refer back to the two parts that were vacated. This decision was brought about by a lawsuit filed by environmental groups. It was not supported by the USEPA. 3. USEPA indicated that it will determine its enforcement response based upon factors such as "good faith efforts" and whether the malfunction event may have been "caused in part by poor maintenance or careless operation". 4. This will be a very important issue for our industry. Stay tuned.
6th Annual Golf Outing
The 6th Annual OCMA Golf Outing faced tremendous headwinds in an economy decimated by the financial meltdown. Although last year's outing broke all-time records, the OCMA Golf Committee understood that type of success was not viable in this economy. Fortunately, our new Golf Committee Chairman Dave Greek Jr., Hill & Griffith Company, and other members of the committee worked harder than ever and we received tremendous support from our member companies. As a result, despite the miserable economy and worse weather, the golf outing was a great success, bringing in more than $16,000. More than 70 golfers attended the outing on Friday, August 28, 2009 at the Cumberland Trails Golf Club, a very popular venue. The winning team decided in an exciting scorecard playoff due to a rain-out was sponsored by Foseco Metallurgical Inc. and was comprised of Dale Madden, Steve Funderburg, Donnie Thompson, Honda of America Mfg., Inc. and Dave Wagner, Foseco Metallurgical Inc. These gentlemen will be treated to a day of golf at the award winning Sand Ridge Golf Club in Chardon as guests of Fairmont Minerals Ltd. The second place team was sponsored by REFCOTEC and included Bill DcWood, Jim Krivanek III, Jim Krivanek IV, and Eileen Grandage. Great playing everyone. The success of the outing this year was beyond our expectations, but we certainly hope that next year's economy and weather are much improved! OCMA Golf Outing Committee Members
Dave Greek Jr., Chair, Hill & Griffith Company
AFS Central Ohio Chapter OCMA Golf Outing Hole Sponsors AFS Canton Chapter Kirk & Blum, Inc.
AFS Southwestern Ohio Chapter Kurtz Bros., Inc. Volunteers Roger Bartz, RMT, Inc. Join Us This Winter
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