Association & Industry
News
Legislative & Regulatory
Updates
Members
In The News
 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.
-
- - - - - - - - - - - - - - - - - - - - - - - - - - - -
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.
- - - - - - -
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.
|
