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.
Congratulations to TCATA as it celebrates its 90th year of operation in 2010. It may be trite
to say but nevertheless it remains true that an association is only as strong as it members. While the challenges to the allied trades have changed over the years, the need for a strong, unified voice for the industry remains needed now as much as ever. Thank you to all members for your many years of support!
 
 


  2010
  TCATA Annual Management
  & Educational Conference

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

   

 

Consulting Services - Ask any questions on OSHA, DOT, EPA or human resources issues. One member reports saving potentially thousands by having a comp review of his company’s personnel manual.

Payment Processing – If you accept credit cards, this benefit can save you hundreds of dollars. Several members report saving several times the cost of their annual dues on this benefit alone.

 
 

 

 

 

 

                   

Association & Industry News

  2010 TCATA Conference Business Program Finalized jan 20
College Scholarship Applications due April 1

Safety Revision Process Begins jan 20
Clean Show Unveils New Website jan 20
TCATA to Increase Online Education Offerings in 2010 jan 20
Cotter Assumes Leadership Positions jan 20
Coin Laundry Association Celebrates 50th Anniversary jan 21
TCATA Introduces New Benefit - Consulting Services At No Cost
Media Overstates Risks, Toxicologists Say
Jury Issues Verdict in Long Running Modesto Pollution Case

TCATA Acknowledges Contributors to Scholarship Fund UPDATED
In Memoriam

Legislative & Regulatory Updates

  TCATA's Proposal to Change International Fire Code Adopted
Industry Fights for Cleaners in Philadelphia, Washington, DC feb 5
President Obama Signs Tax Relief Into Law
TCATA Comments on New York City Council Proposals

Proposal On Form 1099 Will Add Administrative Burden

Proposed Card Check Legislation Would Severely Impact TCATA Members UPDATED
Business Organizations Sue to Prevent OSHA’s Expanded Penalties

House Passes Sweeping “Cap and Trade” Legislation UPDATED
California Considers Additional Withholding For Independent Contractors
EPA to Reconsider Proposed Drycleaning Regulations
Court Cases Of Note UPDATED
EPA Reinstates Toxic Release Reporting Requirements
President Obama Signs Fair Pay Act Into Law
New ADA Law Now In Effect

Members In The News

  Congressman McHenry Visits Leonard Automatics on 40th Year Anniversary
Diamond Chemical Appoints Adam Meyers To The Position of CFO

Willer Named Girbau Industrial National Sales Manager

Fulton Awarded Grant by New York State
Alliance Receives Honor for Exports Success
Kannegiesser Announces Staff Changes

       

2010 TCATA Conference Business Program Finalized

This April 28-May 1, there is only one place to be - the TCATA Annual Management & Educational Conference in Charleston, South Carolina. If you've not attended this meeting, you are missing something special. With most of us overwhelmed by demands on our time for various meetings, the TCATA Conference stands out as one of the best, one for which your return on investment is real.

Under the leadership of Lynn MacDonald of Tri-State Supply, Conference Chair, and David Tingue of Tingue, Brown Co., Business Program Chair, an outstanding business program is planned. Herb Meyer, the former second-in-command at the CIA, will provide a global briefing that will inform attendees about events and trends worldwide that affect or will affect your business. Global terrorist threats, key demographic trends and what is happening in India and China are some of the topics he'll cover. He'll provide practical information that will assist you in planning the future of your business.

If you are not "on the bus" with marketing your business online, Bob DeStefano will help you get there. In a practical, down-to-earth presentation, he'll show you why you cannot ignore the new realities of online marketing and social media, and will show you some "baby steps" you can take to get where you need to be. As a special bonus, he'll offer attendees a free analysis of their website, something that will save you significant time and money.

Also on the business program are Jade West of the National Association of Wholesaler-Distributors, who will bring attendees up to date on important legislative/regulatory issues affecting their business. She'll also provide information on how to communicate most effectively with Congress. Consultant Bill Keene will provide an update on the most important "need to know" issues on DOT, EPA and OSHA regulations, as well as answer questions. He was retained by TCATA last summer to advise members on these matters, and Bill's attendance at this meeting will be a good opportunity for members to meet him and to learn of the ways he can help your business save money by complying with regulation. Click here for a full description of the business program and the conference schedule.
    

College Scholarship Applications due April 1

No one need tell the parent of a child in college about the costs of education today. TCATA members are reminded that college scholarship funds are available to your employees - and their children - by virtue of your membership in TCATA. The Dean Allen Educational Fund provides $1,000 per year for up to four years of college. Applications for the fall semester are due April 1, 2010. Please help us by publicizing the program within your company by placing a scholarship poster in areas where employees gather – let us know if you’d like one sent to you. Please note that the scholarship is available to companies who have been members of TCATA for at least three years; the person applying needs to have been employed for at least a year at the member company.

Click on the Membership Info tab above, then “College Scholarship Funds” to access full information. Please also consider making a contribution to the fund, which is the only way that this valued benefit can continue. Some members have found that making a contribution in the name of someone in the industry that has passed on is a nice way to remember that person.
   

Safety Revision Process Begins

TCATA recently began the process of revising the standard for safety in drycleaning and laundry plants (ANSI Z8.1). The Safety Committee, headed by Jim Moran of Pellerin Milnor Corp., will make recommendations on changes to the standard. In particular, the revised standard will reflect technological changes in the industry. The Committee will then seek the input of TCATA members, end-users and government agencies on these proposed changes before the standard is presented for final approval.
    

Clean Show Unveils New Website

The Clean Show sponsors and management have announced an improved and more user-friendly website for the Clean Show (www.cleanshow.com) Both prospective attendees and exhibitors will find it easier to learn about various aspects of the Show. It features separate exhibitor and attendee sections, each containing full information about the value of participating. The site also features timely news bulletins to keep visitors up-to-date on the latest developments, including a Facebook page. You can become a Clean Show fan on Facebook by following the link in the bottom left corner of the Clean Show home page. The next Clean Show will be held June 6-9, 2011 in Las Vegas.
    

TCATA to Increase Online Education Offerings in 2010

You spoke, we listened. Many members have provided feedback that they value the education TCATA has made available online - particularly via webinars - where all you need is a phone and a computer. No travel, no hotels and you can have as many people as you wish attend for one fee. TCATA is offering another comprehensive set of webinars throughout 2010 that will address areas that members are interested in - sales, marketing, economic conditions and social media. In conjunction with some sister associations, we'll be delivering education right to your office! Be sure to check the home page of the TCATA website periodically for details.
    

Cotter Assumes Leadership Positions

TCATA CEO David Cotter was elected to two leadership positions in January. He will serve as Vice Chairman of the Associations Executive Council of the National Association of Wholesaler-Distributors (NAW), assuming the position of chairman next year. The Council is a group within

NAW composed of approximately 50 trade associations that represent distributors from various industries. In that position, he will also serve on the Board of Directors of NAW, a national association comprised of direct member companies and a federation of national, regional, state and local associations and their member firms which collectively total approximately 40,000 employers, with locations in every state in the United States. TCATA has worked closely with NAW for many years, and they are widely recognized as one of the most effective voices for business in Washington, DC.

Mr. Cotter was also elected president of the Cleaning and Laundry Association Executives Council (CLAE), a group comprised of the national, state and regional association executives in the laundry and drycleaning industry. The Council meets annually to share information and discuss mutual challenges faced by the associations and their members. Through this discussion, CLAE members are able to combine their resources to best meet these challenges and serve their respective members more effectively.
    

Coin Laundry Association Celebrates 50th Anniversary

Congratulations to the Coin Laundry Association (CLA),a sister association and Clean Show partner, as it celebrates a significant anniversary throughout 2010 – 50 years of service to the laundry industry. Celebratory events include an anniversary blog with contributions from early founders and association partners, photographs and a few surprises along the way. CLA members are invited to share their memories and photos on the anniversary blog, contribute to podcasts and register for the 50th Anniversary Celebration Cruise taking place in October.

“We’re excited to observe this momentous event with a year-long celebration,” said CLA President and CEO Brian Wallace. “Fifty years is a true testament to the leaders who not only formed the association, but also all of those who have guided its growth.”

The association was established by industry manufacturers and distributors in October 1960 and incorporated in Chicago as the National Automatic Laundry and Cleaning Council in January of 1961. The Coin Laundry Association is a not-for-profit trade organization with more than 2,500 members. The Coin Laundry Association’s mission is to ensure a profitable and growing retail, self-service laundry operation by providing superior education, products and services to laundry owners.
    

TCATA Introduces New Benefit - Consulting Services At No Cost

TCATA is excited to inform you of a brand new benefit that is available only to members of the Association, a benefit that will almost assuredly save your company money, perhaps even thousands of dollars. As a member, you may now consult with two top experts on issues concerning DOT, EPA, OSHA, human resources and personnel issues at no cost! You’ve worked hard to build your company and you also need to work hard to preserve your assets. TCATA can help you do that. Click here for details.
    

Media Overstates Risks, Toxicologists Say

In a recent survey, scientists specializing in toxicology overwhelmingly agreed that the public does not get a fair and balanced picture of chemical risk. The majority of members of the Society of Toxicology (SOT), a professional association of the scientific discipline, believe that the media does a poor job covering basic scientific concepts and explaining risks and that environmental groups overstate chemical risks. Most of the SOT members that participated in the survey rate government agencies as accurately portraying chemical risks, except that only 40 percent of the toxicologists felt that the Environmental Protection Agency (EPA) presents risk accurately.

According to the survey conducted by George Mason University’s Center for Health and Risk Communication, 9 out of 10 toxicologists fault the media for not seeking out diverse scientific views to balance stories. About 95 percent describe the media’s performance as poor in distinguishing good from bad studies, correlation from causation, and absolute from relative risk, and in explaining the tradeoffs between costs and benefits, odds ratios, and that “the dose makes the poison” - a fundamental tenet of toxicology.

Public broadcasting rated highest among the mainstream media with only 2 out of 3 toxicologists describing PBS and NPR as overstating chemical risk. Over 80 percent see America’s leading newspapers and news and health magazines as overstating risks; the percentage rises to over 90 for both broadcast and cable television networks. Three-quarters of those surveyed indicated that the media overplay individual studies relative to the overall body of evidence and gives too much attention to the views of individual scientists relative to those of the broader toxicological community. Two out of three say there is too much attention given to studies by scientists working with environmental groups.

In the most surprising finding, two “new media” outlets - WebMD and Wikipedia - are seen by the toxicologists as being more reliable than traditional news sources for information about chemical risks. For WebMD, 56 percent feel it accurately portrays chemical risks; 45 percent say Wikipedia accurately portrays the risks.

A majority of the SOT members participating in the survey rate most government agencies as providing mainly accurate portrayals of chemical risk. Increasingly large majorities see accurate risk portrayals coming from such agencies as the Occupational Safety and Health Administration (OSHA), Food and Drug Administration (FDA), Centers for Disease Control (CDC), and National Science Foundation (NSF) whose presentation of chemical risk is rated as accurate by 85 percent of toxicologists. One glaring exception is EPA which was rated as overstating risk by 41 percent, accurately stating risk by 40 percent, and understating risk by 19 percent.

Fewer than 25 percent believe that regulation should be guided by the precautionary principle, which mandates that a substance suspected of harm should be banned in the absence of scientific consensus. When asked about specific chemical risks, only 3 percent of the nearly 1,000 toxicologists from academia and private industry see Teflon and genetically modified organisms as presenting a high degree of risk and only 12 percent see high fructose corn syrup, used in soft drinks, as high risk. In contrast, 26 percent rate sunlight as a high health risk as do 29 percent for aflatoxin, a naturally occurring fungus in peanut butter.

The survey results can be viewed at the SOT web site (http://www.toxicology.org/pr/press.asp).

(reprinted with permission from the Halogentated Solvents Industry Alliance)
     

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.
    

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: Milton Magnus, M & B Hangers, Leeds, AL; David Tingue, Tingue, Brown & Co., Skokie, IL; and Dale Loomis, Loomis Brothers, Fenton, MO.
    

In Memoriam

It is with sadness that we report on the passing of the following four members:

Harry G. Campagna, of Qualitex Company in Chicago, passed away in December surrounded by his family. Harry held various positions at Qualitex over his more than 44 years with the company and was also a co-owner a majority of those years. Harry and his wife Fredi ( who passed away several years ago) were strong supporters of not only TCATA but also our industries. Ava B. Campagna, who joined the company in 1992, has been President and General Counsel of Qualitex for several years and will continue leading the company. Ava has served on the Board of Directors and as Vice President of Supply Manufacturers of TCATA.

Don Gwaltney of Mathews, Virginia on December 30, who retired in 2009 from Phenix Supply Company after a 50-year career in the textile care industry. Previously, he served as vice president of Sterling Supply, where he was named to the Sterling Hall of Fame and was inducted into the Super Masters Club for being a top salesman. Mr. Gwaltney also worked at Wyandotte Chemical and as a general manager for several drycleaning plants. Don is the father of former TCATA Board member Dwayne Gwaltney. He is survived by his wife Patricia, two children, eight grandchildren and one great-grandchild. In lieu of flowers, donations can be made to Central United Methodist Church, P.O. Box 297, Mathews, VA 23109.

Philip Frank Costabile, Chairman of the Board for PAC Industries, Harrisburg, Pennsylvania on December 14. Under his leadership, the company expanded its commercial laundry enterprise into six states. A member of St. Theresa’s Parish in New Cumberland, Philip was appointed to the Governor’s Early Learning Investment Commission in 2008. Committed to fitness, he enjoyed exercise, golf, the beach, and spending time with family and friends. The same passion and energy that he brought to his family and business prepared him for his most difficult challenge. In 1996, Phil was forced on a health odyssey where he triumphantly overcame the odds of a four-time transplant survivor. In lieu of flowers, memorial contributions may be made to the Thomas E. Starzl Transplant Institute, 3459 5th Avenue, 725N, MUH, UPMC, Pittsburgh, PA 15213.

Ed Kirejczyk, Jr., Chairman of the EDRO Corporation in East Berlin, Connecticut on October 23. He was very involved in his community, including work at the Red Cross, the Pulaski Club and the YMCA. He and his wife Barbara attended a recent Conference where EDRO was honored on the 50th anniversary of their membership in TCATA. He is survived by his wife Barbara, his four children, including Edward III who currently serves on the TCATA Board, and several grandchildren. To share a memory with the Kirejczyk family, please visit www.burritthill.com Contributions in his memory may be directed to the Klingberg Family Center, 370 Linwood St., New Britain, CT 06052 or the YMCA of New Britain, 50 High St., New Britain, CT 06051.
     
       

    

TCATA's Proposal to Change International Fire Code Adopted

(November 2009) At the recent ICC Code Development Hearings in Baltimore, the Code Council adopted a proposal submitted by TCATA, in cooperation with DLI, to conform the sprinkler requirements in drycleaning plant occupancies with the requirements of the NFPA32 Drycleaning Standard. Under the current International Fire Code guidelines, drycleaners installing Class IIIa or IIIb solvent machines are required to have sprinkler systems. The new standard will omit the sprinkler requirement provided that other specific fire prevention features are in place. The proposed change in the IFC code must still survive the Final Action Hearings to be held in Dallas in May following a public comment period, but once finalized will become part of the revised code when published in April 2011. TCATA is very pleased with this outcome on behalf of its members and drycleaners.
      

Industry Fights for Cleaners in Philadelphia, Washington, DC

(February 2010) The future of more than 100 drycleaners in Philadelphia remains uncertain as the Philadelphia Air Pollution Control Board’s Ad Hoc committee continues to consider a possible phase-out of perc in co-commercial facilities. On January 20, several industry trade organizations aired their views on this proposal and challenged some of the data that is being presented by the committee prior to making its final recommendation to the Board. Most of the information being challenged by the drycleaning industry association representatives concerns interpretation of existing scientific data regarding exposure to perc. The Board is due to meet next in March.

Industry associations, including the Drycleaning and Laundry Institute, also testified at an initial hearing in Washington, DC on a proposed bill that would ban the use of perc in drycleaning plants.
   

President Obama Signs Tax Relief Into Law

(November 2009) President Obama signed a law which includes Net Operating Loss (NOL) tax relief. This temporary relief will allow struggling companies to get quick cash refunds from the IRS by using either their 2008 or 2009 losses to offset taxes paid in the past five years. This temporary tax relief is available to all size companies. There is a temporary limit in year 5 of the carryback: any refunds for taxes in the prior fifth year would be reduced by 50%. There is no limit in the refunds for taxes paid in the 4th, 3rd, 2nd or 1st year of carryback.

For more details about the New NOL tax law, including its impact on multinational companies, financial statements, consolidated returns, etc., see pages 3 and 4 of the Deloitte explanation of the new law.
      

TCATA Comments on New York City Council Proposals

(October 2009) The Sanitation Committee of New York City Council has proposed two bills that would have a significant impact on drycleaners and several TCATA members. The first would require that all plastic bags used by drycleaners contain a minimum amount of recycled content; the second would require that drycleaners take back hangers for recycling and reuse.

TCATA has been working with its partner organization the National Cleaners Association (NCA) in educating the staff and members of the Sanitation Committee concerning the impact this would have on cleaners and their suppliers. TCATA submitted written testimony to the Committee and attended the initial hearing on these proposals. Among key points made by TCATA and NCA were that both cleaners and the allied trades have made significant efforts over the years to initiate recycling programs, but that most consumers choose not to participate; reuse of hangers can be unsanitary; mandating a minimum amount of recycled content in bags is an inefficient way to achieve a reduction in the use of plastic, and this is not achievable if the plastic is to remain clear; and that any mandated recycled content would likely be unenforceable. Both TCATA and NCA emphasized that the industry supports efforts to “go green” but that these efforts often have detrimental, unintended consequences and must be thought through carefully.
      

Proposal On Form 1099 Will Add Administrative Burden

(November 2009) This proposal is gaining momentum and we urge you to contact your Senators and Representatives to tell them why and how this will hurt business.

Recently, a Congressional proposal changing the regulations on issuing 1099 Forms has surfaced that should concern all businesses.

Under current tax law, any business that pays an individual more than $600 annually for services provided to the business, issues a Form 1099 information report to the individual and to the IRS. The Form 1099 lists the total amount of the payments. Businesses are not required to issue Form 1099 to corporations. A proposal has been made that would alter the requirement in two ways. First, it would eliminate the corporation "exception." (In the case of services, many corporate vendors provide common services as overnight delivery, telephone, internet, banking, advertising, technical, and financial.)

Second, it would require the business to issue a Form 1099 for payments for goods it receives from any vendor. Basically, this change would require a business to issue a Form 1099 to any of its vendors to which payments of more than $600 annually are made for goods or services. TCATA and its partner organizations are concerned about the additional, significant administrative burden that this proposal would create.
      

Proposed Card Check Legislation Would Severely Impact TCATA Members

(September 2009) Because so much attention has been focused on national health care proposals in recent months, some have assumed that the Employee Free Choice Act (EFCA), aka “card check” legislation, has gone away. Be assured that it has NOT gone away, and remains a major concern of TCATA’s and nearly every other organization representing business. This legislation remains a priority for defeat, and we urge members to stay up on this important issue. Here is the latest:

  • Labor’s commitment to passing the Employee Free Choice Act (EFCA) remains strong. Some 18,000 union members attended more than 400 town halls throughout the August recess pushing for health care reform and card check legislation.
      
  • Labor is moving away from firmly supporting the EFCA in its current form to supporting a modified version of the bill based on the principles of the current legislation that includes binding arbitration.
       
    Newly appointed Senate HELP Committee Chair, Sen. Harkin said recently that a deal had been struck in July to move a modified version of the EFCA forward and that he intends to use his new post to bring the EFCA up during “this session of Congress.” However, the Senator had previously stated on the record that “Nothing is happening on [the EFCA] right now”.
      
  • Speaking to the AFL-CIO’s Annual Convention this week, Sen. Specter (D-PA) claimed that a deal had been “pounded out” on the Employee Free Choice Act that would be “totally satisfactory” to organized labor. Sen. Specter said that framework of such a deal would embrace the core principles of the original legislation, including quick certification of labor unions and some form of binding arbitration for union contracts. In his remarks, the Senator expressed hope that such a deal could be passed by the Senate before the end of the year.
       
  • Labor representatives continue to urge for a vote on the bill this year. However, recent indications from Senate leadership that the Senate’s current calendar would prevent a vote in the coming weeks.

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. Click here to learn about Canada's experiences with card check.
        

Business Organizations Sue to Prevent OSHA’s Expanded Penalties

(September 2009) The National Association of Manufacturers (NAM), National Association of Home Builders and the U.S. Chamber of Commerce have sued in D.C. Circuit Court to prevent the Occupational Safety and Health Administration (OSHA) from expanding the scope of its penalties without clear statutory direction. In December 2008, OSHA published a rule that permits OSHA to obtain multiple penalties against an employer for providing incorrect personal protective equipment (PPE), no PPE, or incorrect training to employees. The new principle adopted in the rule is that the penalty is to be assessed for each employee, rather than based on the single decision or failure by the employer to use the proper training or PPE for all employees or a group of employees. The rule applies even when the violation is minor, not willful, and causes no harm or injury to employees. For example, a $7,000 penalty for a “serious” violation, for example, could now become a $700,000 penalty if 100 employees are potentially affected, and OSHA could expand the per-employee penalty rule to other cases, not just PPE or training cases. The suit challenges the rule because Congress did not give OSHA the power to address penalty issues in its standards.
      

House Passes Sweeping “Cap and Trade” Legislation

(August 2009) The House of Representatives has passed a sweeping cap and trade bill (The American Clean Energy and Security Act) by a very narrow margin. The planned reduction in the supply and increase in the cost of the energy on which American businesses depend will increase the cost of doing business for everyone in the supply chain, costs which businesses will have to – at least to some degree – pass on to their customers. This inevitable increase in the cost of consumer goods and services was largely ignored by the Members of Congress who voted for the legislation. The bill will likely be considered in the Senate beginning in September. You are urged to contact your Senator to express your opposition to this bill (click here for background information).

The National Association of Manufacturers (NAM) and the American Council for Capital Formation (ACCF) have just released an important analysis of the economic impact of the climate change legislation the House passed in June. This comprehensive study demonstrates that enacting H.R. 2454, the American Clean Energy and Security Act – commonly known as the Waxman-Markey bill – will cause serious, long-term damage to U.S. growth and jobs, with the manufacturing economy taking an especially hard hit. The analysis also includes 15 state-by-state breakdowns, confirming that states with large manufacturing sectors will suffer most from the higher energy costs caused by Waxman-Markey. We will release data for the remaining states in the coming weeks.

The key findings:

  • Cumulative loss in GDP up to $3.1 trillion (2012-2030)
  • Employment losses up to 2.4 million in 2030
  • Manufacturing output decreases from 5.3 percent to 6.5 percent by 2030
  • Residential electricity price increases up to 50 percent by 2030
  • Gasoline price increases (per gallon) up 26 percent by 2030

For more information, please visit www.nam.org/climatechangereport.
      

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.
      

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 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.
        

    

Congressman McHenry Visits Leonard Automatics on 40th Year Anniversary

Leonard Automatics was honored to host North Carolina Congressman Patrick McHenry as part of the company’s 40th anniversary celebration. McHenry was received by Jeff Frushtick, president / CEO of Leonard Automatics and was given a tour of Leonard’s new production facility. The tour was followed by lunch and a brief speech by the Congressman where he congratulated Leonard Automatics on reaching their 40th anniversary as a company and presented Mr. Frushtick with a plaque commemorating the milestone.
    

     

Diamond Chemical Appoints Adam Meyers To The Position of CFO

Diamond Chemical of East Rutherford, New Jersey has announced the appointment of Adam Meyers to the position of CFO. Prior to joining Diamond Chemical, Adam held various positions in different capacities within the medical device, pharmaceuticals and financial services industries. He will be assuming Bill Lovatt’s duties upon his retirement and will be in charge of all finance related activities. Adam has his MBA in Financial Management from the Lubin School of Business at Pace University and is a Certified Public Accountant.
        

   

Willer Named Girbau Industrial National Sales Manager

Continental Girbau, Inc., Oshkosh, Wisconsin recently named Seth Willer national sales manager, responsible for the Girbau Industrial brand. Prior to taking on his new role, Willer served four years as regional sales manager for the Continental Girbau brand in the Central United States and Canada. In 2007, he received the Continental Girbau Salesman of the Year President’s Award for sales achievement.

In his new position, Willer will work closely with Continental regional sales managers and staff to establish a professional network of Girbau Industrial distributors and national accounts. Additionally, he will manage Girbau Industrial distribution, marketing, advertising and product development.
    

    

Fulton Awarded Grant by New York State

 

(l to r) Bram Palm, President & CEO; Kathy Sega, VP/Gen. Mgr.; David Paterson, Governor of New York State; Mark Hilton, VP of Mfg. & New Product Development; Kevin LaMontage, Chief Financial Officer.

The Fulton Companies of Pulaski, New York, manufacturers of steam and hot water products was recently awarded a $1.5 million grant by New York States’ Upstate Regional Blueprint Fund to expand its facilities. The expansion will add 125,000 sq. ft. to its plant, including a research and design center to study alternative fuels.

   

     
   

           

Alliance Receives Honor for Exports Success

Congratulations to Alliance Laundry Systems of Ripon, Wisconsin, which recently received the Wisconsin Export Achievement Award in the large manufacturer category. This award honors companies in the state that have successfully marketed their products internationally, contributing to Wisconsin’s presence in the global market.
    

Kannegiesser Announces Staff Changes

Kannegiesser of Grand Prairie, Texas, recently announced the hiring of William Cox (left) as Director of Sales. He brings over 20 years of experience in the textile processing industry, with a strong focus on sales success through professional representation and development of new territory. Previously, he was an owner operator, which will allow him to identify the complete needs of facilities.

Kannegiesser USA, Grand Prairie, Texas has announced the promotion of W. Blaine Jackson (right) 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.
      

     
    

    


      
       

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

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