The Textile Care Allied Trades Association (TCATA) is an international trade association representing
manufacturers and distributors of drycleaning and laundry equipment and supplies.
It is the only trade association dedicated exclusively to the interests of the allied trades.


  2009
  Webinar
  
Are Your Profits Quietly Being   Stolen? What Every CEO Should   Know
  Barry Brandmann
  September 30, 2009


  
2010
  TCATA Annual Management &
  Educational Conference

  April 28 - May 1
  Wild Dunes Resort
  Charleston, South Carolina

   

 

 
 

 

 

 

 

                   

Association & Industry News

  TCATA Announces Date Change for 2010 Conference june 29
Clean ’09 Deemed Successful in Spite of a Challenging Economy june 29

Economist Provides Mid-Year Update july 1
Jury Issues Verdict in Long Running Modesto Pollution Case
Meet Your New Board Members
Drycleaners News Celebrates 50th Anniversary of Membership in TCATA
TCATA Elects Officers, Board Members
TCATA Awards 2009 College Scholarship
2009 Conference Smaller In Size But Big On Value
Survey Predicts Continued Recession With Modest Recovery

Small Businesses Benefit from 2008 Economic Stimulus Act Depreciation Provisions UPDATED
TCATA Acknowledges Contributors to Scholarship Fund UPDATED
In Memoriam

Legislative & Regulatory Updates

  San Francisco Area Air District Considers Acceleration Of Perc Phaseout
California Considers Additional Withholding For Independent Contractors june 26
EPA to Reconsider Proposed Drycleaning Regulations
Court Cases Of Note UPDATED
EPA Reinstates Toxic Release Reporting Requirements
Department of Labor Issues Model Notices For Cobra Subsidy Under Stimulus Package
Proposed Card Check Legislation Would Severely Impact TCATA Members UPDATED
Industry Prevails in Proposed Perc Ban in Philadelphia
Repeal of LIFO Accounting Method Could Be Costly to TCATA Members UPDATED
TCATA Partners with DLI to Seek Fire Code Changes UPDATED
President Obama Signs Fair Pay Act Into Law
New Family Leave Insurance Becomes Law In New Jersey
New ADA Law Now In Effect

Members In The News

  Kannegiesser USA Announces Promotion of Blaine Jackson july 2
Colmac Celebrates 50 Years in Business

ADC Announces Staff Changes

R. W. Martin & Sons Promotes Ottman to GM
Tingue, Brown & Co. Launches Asian Division
Paratherm Names New COO
Mike Achin Appointed Sales Manager of Package Supply Corporation
Rick Case of Speed Queen Announces Retirement
Kenneth Holder Joins Fabritec
M & B Hangers Celebrates Safety Milestone
Milliken Named a Top Company to Work For
Welcome New Members UPDATED

       

TCATA Announces Date Change for 2010 Conference

TCATA has changed the date of its 2010 Annual Management & Educational Conference at the Wild Dunes Resort in Charleston, South Carolina to April 28 - May 1. This change in date was necessary because of a conflict with other industry meetings. Please mark your calendar, and plan to attend this meeting, where you'll hear great speakers and interact with the best and brightest in the industry!
    

Clean ’09 Deemed Successful in Spite of a Challenging Economy

With another Clean Show having just ended, the informal consensus among most exhibitors and attendees is that Clean ’09 was a successful show. Given turbulent economic conditions over the past nine months, many were understandably nervous whether the Show would be successful. While the total number of people in attendance was down (the final numbers will be available soon), a comment consistently expressed was that quality attendees were there – people serious about buying equipment and/or supplies.

This year’s Show featured expanded educational sessions, which included – for the first time ever – seminars by six international associations. Most of these seminars were very well attended. This expansion of educational sessions is in keeping with the Clean Show’s goal of truly being the World Educational Congress for Laundering and Drycleaning.

TCATA CEO David Cotter was interviewed about the Clean Show and the industry by a local radio station in New Orleans. A portion of this interview was played several times on the radio on the first day of the Show.
    

   

   

   

    
     

Economist Provides Mid-Year Update

TCATA CEO David Cotter participated in a June 9 “Economic Update” webinar designed specifically for distributors. Presenter Adam Fein of Pembroke Consulting is a well respected economist that specializes in the distribution sector. TCATA has arranged for members to download the presentation handouts at no charge – click here.
    

Jury Issues Verdict in Long Running Modesto Pollution Case

(May 2009) The decade-old lawsuit brought by the city of Modesto, California against several manufacturers, distributors and drycleaners over groundwater pollution by chemicals used in drycleaning was concluded in May – at least for now. While the jury cleared the chemical companies of most claims in the lawsuit, Dow Chemical and PPG were found liable for compensatory damages of approximately $18 million (likely to be offset by prior settlements), with no punitive damages assessed (the jury found that the defendants did not act with malice). R. R. Street was found to have no liability. Distributor Goss-Jewett, which is no longer in business was also found not liable.

The city of Modesto, which initiated this lawsuit in 1998, claimed that multiple sites were contaminated by perc. However, the judge dismissed the majority of sites from the case, finding there was no evidence of damage caused by the defendants’ products. In 2006, the city won a $3 million verdict in an earlier phase of the trial, an amount recovered from previous settlements.

Streets issued a statement that it was pleased and proper for the jury to have vindicated the company from all liability. Dow Chemical plans to appeal the verdict, and noted that Modesto had failed to prove many of its claims. PPG issued a statement disagreeing with the verdict.
    

Meet Your New Board Members

Kevin Lawson is Vice President of Tri-State Laundry Equipment of Kernersville, North Carolina. Tri-State Laundry is a subsidiary of ACW Management Corporation, where Kevin started working in 1983. At that time, he was drycleaning location manager and went on to become district manager where he oversaw multi-location operations and identified and developed new locations. In 2000, Kevin took over the in-house equipment and installation operations, later forming a full equipment distributorship representing major manufacturers.

One of Kevin’s goals as a TCATA Board member is to bring awareness to other distributors about the importance and value of membership in the Association. The father of two grown children, Kevin enjoys boating, saltwater fishing, motorcycles and golf in his spare time.

    

Ed Kirejczyk III, president of The EDRO Corporation, East Berlin, Connecticut was elected to the TCATA Board of Directors in April. He is part of a third generation of family ownership. The EDRO Corporation, founded in 1946, is a manufacturer of various lines of laundry equipment, including washer-extractors, tumbler dryers and ozone systems.

Ed has been with EDRO for 19 years, where he has designed and developed several proprietary products for the company, including DynOzone - DynaWash® Ozone System for washer-extractors and modular designs for U.S. Navy shipboard washer-extractors and tumbler dryers. As a Board member, he plans to concentrate in particular on the planning process for the long term viability of TCATA.

On the personal side, Ed is an avid golfer and boater. He is also an accomplished musician, particularly as a piano player. A graduate of the Boston University School of Management, Ed and his wife Cristina have two small children.

   

Leslie Schaeffer is vice president of BPS Communications, Inc., Willow Grove, Pennsylvania, publisher of National Clothesline newspaper. Clothesline, with national circulation, is one of the premier publications in the drycleaning industry, covering news and events that affect cleaners throughout the country. This year, the newspaper celebrates its 50th year of existence, having been started in 1959 by Leslie’s parents Sol and Carol Memberg.

In addition to her duties at Clothesline, Leslie is the show manager for the Drycleaning & Laundry EXPO held in Atlantic City every two years and manages the printing division of BPS. She is the mother of two grown children and has one grandchild. In her free time, Leslie enjoys walking and shopping, and is currently learning the game of golf. She and her husband Rob live in the Philadelphia area.

    

   

Jeff Allen is Vice President and General Manager of E.J. Thomas Co. in Columbus, Ohio, where he has worked for 35 years. Founded in 1936, the company is a full line supply distributor that services five states.

During his tenure on the Board, Jeff hopes to concentrate on supporting best practices in the drycleaning and laundry industry. Jeff is a graduate of Ohio State University and Xavier University, and spends his free time golfing, traveling and keeping up with his nine grandchildren.
    

   

    

Drycleaners News Celebrates 50th Anniversary of Membership in TCATA

TCATA is pleased to announce that Drycleaners News of Oxford, Connecticut is celebrating its 50th year of membership in TCATA. Drycleaners News is one of the premier publications for owners and operators of drycleaning plants in the Northeast, devoted exclusively to their concerns and needs. Published for over 50 years, Drycleaners News reaches a loyal readership that relies on the publication’s editorial content and product information to help them run their day-to-day operations. Dedicated to helping readers improve their profits and efficiency – and to reporting about ever-changing regulations specific to the Northeast – Drycleaners News guarantees the reader intelligent, informative news about the drycleaning industry.

Drycleaners News is part of Zackin Publications, which also has successful publications in the loan servicing, commercial mortgage finance, residential mortgage banking, wind energy and solar energy industries. Current owner and publisher Paul Zackin took over the business in 2002 from his father David, who bought Drycleaners News in 1967.

TCATA is most appreciative of Drycleaners News’ many years of commitment to the Association, and we wish them much continued success.
    

TCATA Elects Officers, Board Members

Lawton Jones of Phenix Supply Company, Atlanta, Georgia was elected President-elect of the Textile Care Allied Trades Association (TCATA) at the Association’s recent Annual Conference in the Bahamas.

Mr. Jones has been a contributor to TCATA in many areas. He is a member of the TCATA Board, has chaired the Nominating Committee, was Business Program Chair for the 2002 TCATA Conference and currently serves as Vice President of the Supply Manufacturers Group,

Mr. Jones’ two-year term as president will begin in May of 2010. He and his wife Laura have three children.

Other officers elected at the Conference were Phil Hart, Kannegiesser USA, Grand Prairie, Texas as Secretary-Treasurer-elect; Fred Schwarzmann, A.L. Wilson Chemical, Kearny, New Jersey as Vice President of the Supply Manufacturers Group; Bryant Dunivan, Energenics Corporation, Naples, Florida as Vice President of the Machinery Manufacturers Group; and Lawton Jones of Phenix Supply Co. as Vice President of the Distributors Group. They were each elected to a one-year term.

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The results of TCATA’s recent Board elections were also announced. The following were elected to a two-year term:

Bryant Dunivan, Energenics Corporation, Naples, Florida, Phil Hart, Kannegiesser USA, Grand Prairie, Texas and Ed Kirejczyk III, The EDRO Corporation, East Berlin, Connecticut to represent the Machinery Manufacturers Group.

Fred Schwarzmann, A.L. Wilson Chemical, Kearny, New Jersey and Kevin Weir, Liberty-Pittsburgh Systems, Pittsburgh, Pennsylvania to represent the Supply Manufacturers Group.

D’Arcy McConvey, Dalex Canada, Inc., Concord, Ontario and Kevin Lawson, Tri-State Laundry Equipment Company, Kernersville, North Carolina to represent the Machinery Distributors Group.

Jeff Allen, the E. J. Thomas Company, Columbus, Ohio to represent the Supply Distributors Group.

Leslie Schaeffer, National Clothesline, Willow Grove, Pennsylvania to represent the Trade Journal Group.
    

TCATA Awards 2009 College Scholarship

Susan Brueggemann of Sullivan, Missouri has been selected the recipient of TCATA’s 2009 Dean Allen Education Scholarship. As such, she will receive $1,000 for college tuition for the next four years.

Ms. Brueggemann has maintained a 4.0 GPA throughout high school and is ranked first in her class. She was recently named to the Missouri Scholars 100 which recognizes the top 100 scholars in the state. In addition to her outstanding academic record, Ms. Bruegemann was an all-star track athlete, a member of the band and served as class treasurer.

Susan is the daughter of William Evans, an employee of Gurtler Industries in South Holland, Illinois. She plans to attend the University of Missouri.

TCATA President Rick Kelly, Pellerin Milnor Corporation, Kenner, Louisiana commented that the Association is very pleased to be able to help Susan and the other students who have received this award meet their educational goals. Employees and the children of employees of companies who are members of TCATA are eligible for this scholarship.
    
    

2009 Conference Smaller In Size But Big On Value

The reviews are officially in, and the consensus is clear that the recent TCATA Conference held at Grand Bahama Island was another one for the books! While recent economic conditions took their toll on attendance this year, they did not take a toll on the networking, information from great speakers, and the establishment of new friends and business relationships. One of several highlights from the conference was speaker Hunter Lott, an expert on what companies need to know and do to stay out of court, who received a unanimous 100% rating of “excellent” by attendees. Mr. Lott provided valuable information on what every company should know about a variety of human resources issues. Overall, there was great chemistry among those who attended, and TCATA is exploring the possibility of returning to that facility in the next few years. We hope to see all members April 21-24, 2010 in Charleston, South Carolina.
    
    

   

Survey Predicts Continued Recession With Modest Recovery

(May 2009) The long, intense recession will continue this year, but a modest rebound is on the way, according to the most recent Manufacturer's Alliance/MAPI Quarterly U.S. Industrial Outlook, released in late May.

Manufacturing production fell 22 percent in the first quarter after falling 18 percent in the fourth quarter of 2008. Similar conditions are expected for the remainder of the year, with MAPI officials predicting a 12 percent drop in manufacturing production in 2009, followed by a 2 percent increase in 2010.

"Fortunately, we foresee an eventual end to the current recession in late 2009," Daniel J. Meckstroth, Ph.D., chief economist for the Manufacturers Alliance/MAPI said in a statement announcing the report. "Government stimulus, growing pent-up demand, lower commodity prices-particularly oil prices-lower mortgage rates, an end to the inventory runoff, and declining imports will all contribute to a modest rebound in industrial production activity."

In the first quarter of 2009, only two of the 27 industries tracked in the report showed growth compared to year-ago levels. One industry was flat, and 24 reported production below year-ago levels. The largest drop came in steel production, which declined 61 percent.

A turnaround is expected to begin in 2010, with 17 industries expected to grow, led by housing starts and motor vehicles and parts production.

   

Small Businesses Benefit from 2008 Economic Stimulus Act Depreciation Provisions

Some businesses can benefit from the 2008 Economic Stimulus Act, which increased the maximum amount for depreciation under section 179 of the federal tax code from $128,000 to $250,000 for 2008. It also raised the section 179 phase-out limit, formerly $510,000 for this year, to $800,000. Section 179 depreciation provides a way for businesses to recover quickly some of the costs of certain property purchases, such as equipment.

The law also reinstates 50 percent special depreciation, also known as bonus depreciation, for much of the country. This special depreciation entitles taxpayers to depreciate 50 percent of the cost or other basis during the year for an asset placed into service in 2008 and depreciates the remaining cost or basis over the asset’s normal life.

Some states do not follow the special depreciation rules and the tax provisions’ most effective use will depend on taxpayers’ circumstances. Small businesses should consult their tax advisors.

The Economic Stimulus Payments Information Center on the IRS’s Web site is the best source of Economic Stimulus information from the IRS. Or look for the Stimulus Payment graphic on home page of IRS.gov, click on “Rebate Payment Questions”, and then scroll down for “Information for Businesses”. As guidance is issued, the Web site will be updated, so check back frequently.

To get the latest IRS business information, go to this page at IRS.gov to start a free subscription to e-News for Small Businesses.
   

TCATA Acknowledges Contributors to Scholarship Fund

TCATA wishes to acknowledge and thank the following members who recently made contributions to the Association’s scholarship funds: David Dawson, R. R. Street & Co., Naperville, Illinois; Alex Atwater, A-1 Products, Birmingham, Alabama; Milton Magnus, M & B Hangers, Leeds, AL; Paul Zackin, Drycleaners News Corp., Waterbury, CT; Joel Goldman, United Wire Hanger Corp., Hasbrouck Heights, NJ; David Tingue, Tingue, Brown & Co., Skokie, IL; and Dale Loomis, Loomis Brothers, Fenton, MO.
    

In Memoriam

TCATA reports with sadness on the passing of the following members:

John Danais, formerly of the John Danais Co. in New Hampshire. Jack served on several TCATA committees, including the Executive Committee. He was Vice President of the Distributor Group and a member of the Board of Directors from 1991 to 2000. Jack is survived by his wife Barbara and three daughters.

Elena Pilger, wife of David Pilger, Industrial Equipment and Supplies in Miami. Many members knew Elena, who was a regular attendee at the TCATA Conference.

Frank Parker of Phenix Supply Co., Atlanta, Georgia on February 22, 2009 was 92 years old and had been with his company for 59 years, having just resigned from the Phenix Board last year. He was a Navy veteran of World War II. Mr. Parker served on the TCATA Board of Directors from 1977-1988, was Vice President of the Distributors Group from 1977-78 and TCATA President from 1982-84. He is survived by his wife Dot, children Teresa and Russ, four grandchildren and four great-grandchildren.
     
       

    

San Francisco Area Air District Considers Acceleration Of Perc Phaseout

(June 2009) The Bay Area Air Quality Management District (BAAQMD - covering the San Francisco area) conducted a public workshop on June 10 to present proposed revisions to Regulation 11, Rule 16: Perchlorethylene and Synthetic Solvent Dry Cleaning Operations. Under the current rule (as amended in March), drycleaning equipment using perc will be phased out between July 2010 and January 2023. Management District Board members discussed accelerating the phase-out schedule at this hearing. Kelly Kelleher of Kelleher Equipment represented TCATA at this meeting, and reports that no major decisions were made. Bay Area Board members discussed other technologies available to drycleaners, and decided to survey cleaners to obtain information that may help them make a decision about accelerating the machine replacement date. The Board members, at the urging of drycleaning industry representatives, stated they would take the state of the economy into consideration when making a decision. Contact TCATA or the California Cleaners Association (cca@camgmt.com) for details.
      

California Considers Additional Withholding For Independent Contractors

(June 2009) Like many states, California is having serious budget problems and is searching for new sources of revenue. One of the most recent developments is a proposal to impose a mandatory three percent withholding on all payments made to independent contractors by the businesses that engage them. A major concern will be for what could be millions of independent contractors in California that will now be subject to an arbitrary state withholding of amounts from payments they receive from out of state companies that have engaged them to provide a service in California.

California already has a law that requires businesses that are service recipients to report payments made to individual independent contractors – service providers (not corporate service providers). This requirement mirrors Federal law and the requirements for Form 1099.

The tricky question about the California law (there are a few other states that have a reporting requirement too) is what businesses (service recipients) have to withhold taxes from the payments they make to independent contractors in California?

Click here for the alert sent by the Direct Selling Association that provides more information on this issue.
      

EPA to Reconsider Proposed Drycleaning Regulations

(April 2009) The U.S. Environmental Protection Agency (EPA) recently decided to reconsider its 2006 amendments to the drycleaning NESHAP requirements. Those familiar with the situation state that it is likely that the EPA does not think it can offer a strong defense of these proposed regulations in court. Years ago, TCATA joined with several other industry associations – with Halogenated Solvents Industry Alliance taking the lead - in suing the EPA over these amendments, arguing that EPA has neither the supporting data nor the statutory authority to mandate the phase-out proposed by EPA. Oral arguments in the lawsuit brought by industry associations have been postponed pending the outcome of EPA’s reconsideration.
      

Court Cases Of Note

Taxation of Out-of-State Businesses

(June 2009) The U.S. Supreme Court decided not to review a case involving state taxation and interstate business. In April, several business organizations supported an appeal to the U.S. Supreme Court regarding a Supreme Judicial Court of Massachusetts’ decision that would allow extensive taxation by states of out-of-state businesses that have no physical presence in the taxing state – meaning no employees and no operations.

This is the second case in two years that the Supreme Court has declined to hear regarding state taxation of out-of-state companies. In response, TCATA and others join with the National Association of Manufacturers in urging Congress to enact bipartisan legislation (H.R. 1083), the Business Activity Tax Simplification Act. The legislation would establish a bright-line test of physical presence to determine whether a state can impose business activity taxes, including state income taxes, on an out-of-state business engaged in interstate commerce. Click here for details on this issue.
   

Two Asbestos Cases

(June 2009) The state Supreme Courts of Washington and Pennsylvania have handed down adverse rulings in two asbestos cases. In the state of Washington, Lunsford v. Saberhagen Holdings, Inc., the National Association of Wholesaler-Distributors and other organizations argued that a state appeals court’s ruling that strict liability¹ may be retroactively applied should be overturned. (Lunsford involved a plaintiff’s claim of asbestos-related mesothelioma from household exposure to asbestos years before strict liability was recognized in Washington.) The Washington Supreme Court held that strict liability applies retroactively to all claims that occurred before the adoption of strict liability in that state. Strict liability was applied to manufacturers in 1969 and to non-manufacturer product sellers in 1975. Interestingly, in October of last year, the Ohio Supreme Court reached the opposite conclusion on a similar issue.

In Pennsylvania, the issue in the Bugosh v. I.U. North America case was whether to apply the old Restatement (Second) of Torts or the newer Restatement, Third of Torts: Product Liability, which would allow defendants to introduce state-of-the-art evidence as to what the defendant knew or should have known about the dangers of the product in question at the time of the sale/exposure. The Pennsylvania Supreme Court issued an opinion dismissing the appeal as “improvidently granted.” Contact TCATA if you wish more detail on either case.
¹ a doctrine which holds that a party may be held liable for damages regardless of the degree of culpability
    

Supreme Court Limits Liability In Pollution Case

(May 2009) In a very significant case for manufacturers, the Supreme Court recently limited the liability of two major railroads for chemical spills in California. The federal government wanted to apply joint and several liability (meaning a party can be charged 100 percent of the cleanup cost even it is only responsible for a small part of the problem) to several companies in this case, but the Supreme Court chose instead to overrule lower courts in holding companies responsible for only part of the clean up. The railroad companies were found to have a limited responsibility for clean up costs since only ten percent of the contamination was attributable to them. The justices also reasoned that while Shell Oil (one of the defendants, found to have no liability) was aware of minor, accidental spills, this knowledge was insufficient to conclude the company was an “arranger” of the disposal and hence responsible financially. This decision means that onerous joint and several liability may be avoided if a percentage of liability can be calculated.

Supreme Court Rules Asbestos Fears Must Be Serious

(June 2009) The U.S. Supreme Court overturned a Tennessee Court of Appeals Ruling that could have lead to a major wave of new, unwarranted asbestos lawsuits. In CSX Transportation v Hensley, the Tennessee court ruled that asbestos plaintiffs no longer need to demonstrate that their fear about incurring injury or illness from asbestos exposure is “genuine and serious,” contradicting previous Supreme Court rulings. In this particular case, the state court awarded the claimant $5 million in pain and suffering based on thin evidence of any genuine fear.

The U.S. Supreme Court ruled that the jury should have been given an instruction to find liability only if the plaintiff’s fear of getting cancer was genuine and serious. Juries, especially in emotional cases, should be given clear guidance on the law to provide the proper balance between plaintiffs and defendants. This is an important decision that prevents state courts from neglecting the rights of business to fair trials.

Illinois Allows Evidence Of Third Party Liability

(May 2009) The Illinois Supreme Court has overturned previous court decisions that prevented a jury from hearing evidence that parties other than the defendant manufacturer may have caused the plaintiff’s asbestos injuries. Previous rulings led the courts to prevent the defendant from submitting evidence that some other party caused the plaintiff's illness. Until this decision, Illinois law had been unique in excluding such evidence, and the decision will prevent lawyers from unfairly singling out one defendant for liability. The outcome is welcome relief because the previous rule invited claims against remote defendants, forcing unfair settlements and feeding the asbestos litigation crisis.

Delaware Rules Employer Not Liable For Secondhand Asbestos Exposure

(May 2009) The Delaware Supreme Court has issued a favorable ruling for business in Riedel v. ICI Americas, Inc., affirming the trial court’s ruling that an employer is not liable for secondhand asbestos exposure. The opinion follows the arguments made by several business organizations in an amicus brief filed last summer. In this case, the plaintiff alleged that she was exposed to asbestos that was brought home on her husband’s work clothes, which she laundered. The trial court assumed that she was injured by the asbestos, but rejected the claim anyway. The amicus brief argued that the mere foreseeability of harm to third parties is not enough to extend the employer’s duty of providing employees with a reasonably safe work environment to potential harm outside the workplace.

Supreme Court Rules On EPA Cost-Benefit Analysis

(April 2009) The U.S. Supreme Court has ruled that the U.S. Environmental Protection Agency may consider using a cost-benefit analysis in determining the level of required technology used in power plant cooling towers. While this ruling does not mandate the EPA use a cost-benefit analysis, it opens the door on using this in the future in other mandated environmental actions.
      

EPA Reinstates Toxic Release Reporting Requirements

(May 2009) EPA Administrator Lisa Jackson has signed a final rule that will reinstate strict reporting requirements for facilities that release toxic substances. This rule reinstates the toxics release inventory (TRI) reporting requirements that had been reduced in 2006. TRI is a publicly available database containing information on toxic chemical releases and waste management activities. Visit www.epa.gov/tri for more information.
      

Department Of Labor Issues Model Notices For Cobra Subsidy Under Stimulus Package

In mid March, the U.S. Department of Labor (DoL) released four model notices employers need to inform former employees of the availability of a premium subsidy for COBRA health continuation coverage. The premium subsidy for certain former employees was enacted as part of the Stimulus Bill signed into law by the President on February 17, 2009. Each of the model notices is tailored to a specific set of circumstances.

To access DoL’s press release on this topic, click here.

To access the model notices, go to the Employee Benefit Security Administration’s (EBSA) dedicated web page.

Under the “For Employers” heading, click on the “COBRA ARRA Model Notices” link.
Please note the availability of additional helpful information on this page as well.

Additionally, the Internal Revenue Service (IRS) has produced some guidance to employers on how to manage the subsidy offsets on their quarterly tax forms. For IRS’ Q’s and A’s on the preparation of the form, click here.

To access the Employer’s Quarterly Federal Tax Return, click here.

To access Quarterly Form instructions, click here.
        

Proposed Card Check Legislation Would Severely Impact TCATA Members

July 2009 – You should know that TCATA and its partners oppose any compromise on this legislation. For the latest on this bill, click here.

Here’s the latest: Congress has adjourned for the Independence Day holiday and will reconvene in Washington for four weeks before the August recess. It is rumored that some form of the misnamed Employee Free Choice Act (EFCA) may come up for a vote in the month of July. Now is the perfect time to contact your legislators and those who represent districts in which you have operations while they are at home, urging them to oppose the EFCA. For help in crafting a message to your representative, visit http://myprivateballot.com/toolkit/.

Sen. Harkin (D-IA), who is managing the EFCA in the Senate, continues to pledge action on some form of the EFCA before the August recess. Harkin has threatened that if he doesn’t have the votes to pass an alternative version of the bill, then he will bring the EFCA in its current form to the Senate floor. While many members of Congress have expressed concerns with EFCA in its current form, it is important that we continue to urge members – especially senators – to oppose votes, especially votes on cloture in the Senate, on the EFCA in any form.

Many in Congress have made passage of the misnamed "Employee Free Choice Act" (aka card check legislation) bill a priority. As you know, this legislation would, among other things, effectively eliminate private ballot elections and stack the deck against the employer during negotiations with unions. TCATA and its business allies consider this legislation of the highest priority for defeat. Businesses of all sizes are facing serious detrimental consequences, but small businesses in particular are being targeted by this legislation. Click here for a brief summary of this bill's impact on small business. Previously, it has not been cost effective for unions to organize small business, but it will be under this legislation. We urge you to contact your Senators soon (click here for a sample letter you can use): Please copy TCATA (info@tcata.org) on any correspondence with your Senators so we can coordinate efforts with our association partners.
        

Industry Prevails in Proposed Perc Ban in Philadelphia

(April 2009) As happened in New Jersey, a united drycleaning industry - led by its trade associations - has worked together successfully to defend drycleaners’ choice of solvent. Philadelphia’s Air Pollution Control Board has declined to act on a proposal that would have eliminated perc drycleaning in plants that are co-located with other businesses or residences. Had the proposal passed, the impact would have been felt not only in Philadelphia but across the country, where such bans might be considered or gain momentum.
      

Repeal of LIFO Accounting Method Could Be Costly to TCATA Members

May 2009 - Preservation of LIFO at Stake – Your Immediate Help Needed

President Obama provided details on his proposals for revenue increases. As expected, repeal of the LIFO (last in, first out) method of accounting is included in that budget, something he plans to repeal for ALL businesses, regardless of size. Having been told by a number of members that preservation of LIFO is important to their business, TCATA has been involved in a coalition to preserve LIFO. We need your help!

The best way for us to ensure that LIFO is not repealed is to keep repeal out of any tax legislation proposed by the Chairmen of the House Ways & Means and/or Senate Finance Committees; in legislative language, to keep repeal out of a Chairman’s “mark.” We absolutely MUST convince the members of the tax writing committees that LIFO is an appropriate means of evaluating inventory which accomplishes the same purpose as FIFO, that repeal of LIFO would cause economic harm, and that voting for repeal of LIFO would be a potentially damaging anti-business vote.

Click here for a brief overview of LIFO, including the reasons why it should be preserved.

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TCATA has joined with its business partners, the National Association of Manufacturers and the National Association of Wholesalers-Distributors, in a broad coalition of organizations who seek to preserve the LIFO (last in, first out) accounting method. President Obama’s budget, recently submitted to Congress, includes a proposal that would repeal LIFO beginning in 2012. The LIFO method has been an accepted practice by businesses for many years and is considered a more accurate accounting tool than other methods because it takes into account the rising costs of replacing inventory. Repeal would result in significant tax increases for businesses of all sizes.

Alex Atwater, president of A-1 Products, Birmingham, Alabama recently joined with representatives of three other industries in a meeting with the staff of Rep. Artur Davis regarding LIFO. In that meeting, Alex and representatives from the steel, pharmaceutical and building industries urged Rep. Davis, a member of the House Ways & Means Committee, to preserve LIFO. They explained the negative consequences that repeal of LIFO would have on many businesses, large and small alike. While Rep. Davis’ staff made no firm commitment on this issue, they now better understand this issue and its effect on business. Alex’s face-to-face visit with his Representative is helpful in advancing the cause of businesses in the textile care industry, and we urge all members to take his lead. Regular communication with our government officials is critical!
      

TCATA Partners with DLI to Seek Fire Code Changes

TCATA is working with the Drycleaning and Laundry Institute in a joint effort to try to secure important changes in the fire code. Currently, the International Fire Code (IFC) requires sprinklers in drycleaning plants with Class III solvents, something that is a large cost burden for the drycleaner. There are two major fire code standards, but more and more fire marshals are citing the IFC code rather than the National Fire Protection Standard.

TCATA and DLI have formed an ad hoc committee to work on this, including representing the industry at future IFC code meetings where possible and developing a package of information that manufacturers can use to educate fire code officials about important drycleaning issues. The Committee has drafted language to submit to the ICC at its fall meeting when they consider changes to the code.

In a related story, the California Air Resources Board (CARB) recently rejected the Korean American Drycleaners Association’s petition to abolish or extend the perc phase out, citing the high cost of installing sprinkler systems to supplement hydrocarbon machines. CARB officials stated that the cost of installing sprinkler systems would be only a few thousand dollars, not the $40,000 to $100,000 cited in the petition.
      

President Obama Signs Fair Pay Act Into Law

On January 29, President Obama signed the Lilly Ledbetter Fair Pay act into law. This bill amends various federal equal employment opportunity laws and overturns a Supreme Court decision by essentially holding that there is no statute of limitations for an employee’s claim of pay discrimination. It says that discrimination occurs every time a paycheck is issued following a claim of discrimination. Because of the thresholds of Title VII, the ADA and ADEA, the number of small businesses affected is modest but, for larger companies, the burden will be heavy, particularly as this opens new avenues for increased litigation. TCATA members can click here for more information.
      

New Family Leave Insurance Becomes Law In New Jersey

All members in New Jersey should be aware that your employees are covered under the newly enacted Family Leave Insurance Program for workers caring for sick family members and newborns. You are required to post notification at your workplace about this new law. Beginning January 1, 2009, you will be required to withhold a percentage of employees’ taxable wages. As of July 1, 2009, the law will provide up to six weeks of family leave insurance to covered individuals. To learn more, visit www.nj.gov/labor, click on the “Family Leave Insurance” link.
      

New ADA Law Now In Effect

Legislation the became effective on January 1, 2009 expands the scope of the Americans with Disabilities Act (ADA), overturning several Supreme Court decision which had narrowed the applicability of the law. The new law dictates that people with ailments such as epilepsy, cancer or multiple sclerosis that can be controlled by medication are protected under ADA. The courts, when deciding if a person is disabled, should not consider the effects of mitigating measures like prescription drugs and hearing aids. The bill clarifies that an impairment that is episodic or in remission is a disability if it would substantially limit a major life activity when active.

ADA cases are likely to move from “threshold” issues (whether the person has a disability) to “liability” issues (whether the person was actually discriminated against). Employers defending such claims should understand that ADA claims are going to be defended like many other types of discrimination claims: by showing that the employer ahs a legitimate, non-discriminatory reason for its decision.
        

    

Kannegiesser USA Announces Promotion of Blaine Jackson

Kannegiesser USA, Grand Prairie, Texas has announced the promotion of W. Blaine Jackson to Senior Vice President. Blaine continues to be active in supporting all laundry associations and is known for his contributions to education and training seminars.
    

     

Colmac Celebrates 50 Years in Business

Colmac Industries, Colville, Washington recently hosted an open house to celebrate the company’s 50th anniversary. The company is a manufacturer of finishing systems for industrial laundries. These include tunnel finishers, hangering stations and loading conveyors, garment presses and vacuum transport systems.

The company was founded in the late 1950’s by Jerry McMillan. His son, Roger McMillan, took over the leadership of the company in 1974 when his father was tragically killed in an airplane crash. Upon Roger’s retirement in 2002, Scott, his son, continued the legacy of manufacturing innovative, high quality equipment. He serves as Chairman and CEO.

At the open house, president and COO Cam Buffington thanked Colmac’s employees for their dedication and hard work in making the company a success.
    

ADC Announces Staff Changes

The American Dryer Corporation, Fall River, Massachusetts, has announced the promotion of Joseph Bazzinotti as president. A four year veteran of ADC, he previously served as Chief Operating Officer. Tony Regan was recently hired as the new Senior Vice President of Global Sales and Marketing.
    

   

R. W. Martin & Sons Promotes Ottman to GM

R. W. Martin & Sons, Kent, Ohio has announced the promotion of Chip Ottman to general manager. In his new position, he will be responsible for the sales and operations of the business. Ottman will oversee R. W. Martin’s Stoneman pre-owned machinery line, Signature-Service Scheduled Maintenance Program, Ozone Solutions Systems, and Process Water Solutions.
    

Tingue, Brown & Co. Launches Asian Division

Tingue, Brown & Co. of Saddle Brook, New Jersey has launched a new division to serve the Asian market. Based in Hong Kong, the division is a key element in the company’s global strategy. Tingue Brown plans to capitalize on the hospitality and heathcare sectors in the Pacific Rim.
    

Paratherm Names New COO

The Paratherm Corporation of West Conshohocken, Pennsylvania recently appointed Rich Clements as COO and Vice President of Operations. He will be managing Paratherm's day-to-day operations, drawing from his experiences in previous positions as Product Director, Plant Manager, Plant Engineer and Sales Manager. These roles gave him the hands-on system experience to understand the challenges Paratherm clients face in keeping heat transfer fluid and processing systems running. He has already begun the launch of "Immersion Engineering", a new program that specifically caters to solving customer system maintenance problems and emergencies. Mr. Clements, who holds a Chemical Engineering degree from the University of Maryland, will be introducing two new fluid products, broadening Paratherm's spectrum of offerings and answering specific market-driven needs.
    

Mike Achin Appointed Sales Manager of Package Supply Corporation

Package Supply Corporation of Avon, Massachusetts is pleased to announce that Mike Achin has been appointed Sales Manager.

Mike comes to Package Supply from Laidlaw, where he was director of chemical products. At Laidlaw, he was instrumental in developing new products and managing the sales force. Mike has traveled all over the country as well as the world teaching stain removal and wetcleaning classes, and has worked very closely with DLI, NCA and NEFA.

Package Supply plans on using Mike’s teaching skills to bring “value added” service to its customers. He is already working on the development of new and innovative programs to enhance the value added services that the company offers.
    

Rick Case of Speed Queen Announces Retirement

Long time laundry industry veteran Rick Case of Speed Queen recently announced his retirement from the industry. Case started with Speed Queen in 1968 as a factory service representative and has held a variety of sales positions within Alliance Laundry Systems throughout his career. In 1992, TCATA recognized him with a Distinguished Service Award for his years of service on the board of directors. He was also recognized by the Coin Laundry Association in 1994 for his leadership.
    

Kenneth Holder Joins Fabritec

Kenneth Holder has joined Fabritec International of Cold Springs, Kentucky as sales and service manager for the Southeastern U.S. He has over 25 years of experience in the fabricare industry and has been a speaker on a variety of topics, including spotting techniques and fire restoration. He currently serves on the Southeastern Fabricare Association’s board of directors.
    

M & B Hangers Celebrates Safety Milestone

M & B Hangers, Leeds, Alabama is proud to congratulate their associates for a record 1,000 days worked without a loss-time accident. Great job!
    

Milliken Named a Top Company to Work For

Congratulations to Milliken and Company of Spartanburg, South Carolina on being named in the "100 Best Companies to Work For," a list published by FORTUNE magazine!
     

Welcome New Members

TCATA is pleased to welcome the following companies as members of the Association:

Umed Corporation, Bartlett, Illinois manufactures towels, apparel and linen supplies.

Biz Sources, Inc., Richmond Hill, Ontario distributes drycleaning and laundry supplies – hangers, poly bags, paper products, lint rollers and bags.

Luminex, LLC, East Glastonbury, Connecticut distributes laundry carts, rolling racks, poly bag dispensers.

Poly Systems USA, Inc., Bayonne, New Jersey manufactures solvents for drycleaning.


      
       

TCATA's mission is to increase professionalism through business operations and sales improvement education, provide forums where business challenges are discussed and solved, generate and apply business intelligence, and create a favorable business climate by seeking fair regulation and legislation.

 

 

Contact: David Cotter, CEO, info@tcata.org

271 Route 46 West, #D203, Fairfield, NJ  07004 tel: (973) 244-1790 fax: (973) 244-4455

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