OSHA 2010 AGENDA INCLUDES ERGONOMICS ENFORCEMENT AND NEW INITIATIVES: The Occupational Safety and Health Administration (OSHA) April 26 hosted a live webchat to discuss its 2010 regulatory agenda, including updates on ergonomics enforcement and a new program that will require employers to implement a safety plan to find and fix worksite hazards. During the webchat, OSHA Assistant Secretary David Michaels said that in addition to adding a new line on the Form 300 to record musculoskeletal injuries, OSHA will be increasing enforcement of ergonomics hazards under the general duty clause. OSHA will also be stepping up enforcement under the existing noise standards in construction, but has decided it will abandon its attempt to formally establish a hearing conservation program for construction workers.
As a counterpart to increased enforcement under existing standards, OSHA will be implementing a new initiative as part of the Department of Labor’s (DOL) program, Plan, Prevent, Protect, which will require employers to come up with a plan to address all problems and hazards regulated by DOL agencies that affect employees. OSHA’s initiative under Plan, Prevent, Protect is an Injury and Illness Prevention Program (dubbed I2P2) that will require employers to implement internal safety programs that will indentify, anticipate and prevent hazards that could cause injury or death to an employee. “The approach of the new strategy is to change the culture of compliance from one in which some employers and other regulated entities wait for labor enforcement personnel to catch them violating the law to one in which employers and others proactively plan to reduce risk to workers by implementing the plan and protecting workers as a result,” Michaels said during the webchat.
To facilitate the implementation of the I2P2 program, OSHA has decided to push back the release of the notice of proposed rulemaking on silica until February 2011, but confirmed that the rule updating the existing standard for cranes and derricks is still on schedule for a July release.
ABC SAYS MORE FEDERAL BUREAUCRACY WOULD HURT SMALL BUSINESS GROWTH: ABC April 29 expressed concern over the creation of the Bureau of Consumer Financial Protection (CFPB) that is included in the Restoring American Financial Stability Act of 2010 (S.3217). The CFPB would add a new layer of federal bureaucracy to small business lending by establishing additional paperwork and record-keeping requirements. In a letter to members of the U.S. Senate, ABC stated that “The construction industry has suffered the most acute impacts of the economic downturn, and access to capital, or the lack thereof, is a major and continuing factor in our industry’s struggles.”
“We do not need more red tape and more federal government regulations,” said 2010 ABC National Chairman Jim Elmer, founder and president of James W. Elmer Construction Co., Spokane, Wash. “The majority of U.S. construction firms are small businesses that need unhampered access to capital to fund construction projects and create jobs. “In order to jump start the lagging economy and put the men and women of the construction industry back to work, ABC calls on Congress and the administration to focus on free-enterprise initiatives and open competition instead of creating yet another new federal government agency,” said Elmer. “With unemployment in the construction industry at nearly 25 percent, creating jobs should be their number one priority.”
REGISTER NOW FOR ABC’S 2010 LEGISLATIVE CONFERENCE: Registration is open for the 2010 ABC Legislative Conference, to be held June 15-17 in Washington D.C., and ABC members that register by May 19 can take advantage of the early-bird discounts. Click here to register now.
During the conference, attendees will have the opportunity to connect with hundreds of construction colleagues in the nation’s capital and get the latest updates on critical issues affecting the construction industry, including health care reform, union-only project labor agreements, job creation and the culture of union favoritism. There also will be time scheduled throughout the conference for attendees to go on coordinated visits to Congress and federal agencies to advance merit shop initiatives with representatives. This is a critical opportunity for ABC members to get involved and speak out on behalf of merit shop contractors.
In addition, participants will hear from guest speakers James Carville and Mary Matalin, coauthors of the bestselling memoir, All’s Fair: Love, War, and Running for President, who will give audiences a look at today’s important political issues, as well as a behind-the-scenes look at Washington politics.
ABC SENDS JOB CREATION RECOMMENDATIONS TO JOINT ECONOMIC COMMITTEE: The Joint Economic Committee (JEC) May 5 held a hearing titled, “Avoiding Another Lost Decade: How to Promote Job Creation.” Prior to the hearing, ABC sent a letter to members of the JEC expressing concern over the 25 percent unemployment rate in the construction industry and expressing a need for immediate action. ABC pointed out in the letter that the recently passed jobs bill simply provided employers with tax incentives to hire new employees, but did nothing to address the lack of available projects on which companies can work.
Instead, ABC offered a proposal to truly boost job growth. Under the proposal, ABC recommended the following: eliminate uncertainty in the business environment by calling on Congress to focus on free-enterprise initiatives and open competition instead of anti-business legislative and regulatory proposals; increase access to capital for new construction projects and viable, low-risk projects/contracts that simply need funding in order for work to commence; provide meaningful tax relief and reduce the tax burden on hard-working Americans and small businesses; enact a national comprehensive energy plan that includes new construction and upgrades to the nation’s insufficient and crumbling infrastructure; allow the entire construction industry workforce to participate in federally funded or federally assisted projects; and support construction training programs that will attract new skilled workers.
PROPOSAL COULD EXTEND PAYROLL TAXES TO S CORPS: ABC April 28 expressed concern over a proposal being considered by the U.S. House of Representatives Committee on Ways and Means and the U.S. Senate Finance Committee that would significantly increase payroll taxes paid by S corporation shareholders. The plan is being proposed to offset the costs of the Tax Extenders Act of 2009 which would extend tax cuts that expired at the end of 2009 through 2010.
Although the proposal is not finalized, it is expected to expand the application of payroll taxes to active shareholders of S corporations that are primarily engaged in “the performance of services.” A letter, signed by ABC and 10 other organizations, sent to House Ways and Means Committee Chairman Sander Levin (D-Mich.) and Senate Finance Chairman Max Baucus (D-Mont.), used as an example an architectural firm whose revenue is split between architectural services and sales of architectural books. Under the new proposal, payroll taxes could apply to the percentage of the example firm’s revenue gained from the architectural services that is distributed to the shareholder, regardless of any capital investments made by the shareholder, including human capital.
“By blurring the line between income from labor and income from capital, this proposal will set the stage for future increases in payroll taxes on more capital-intensive sectors such as manufacturing and agriculture,” the letter stated. ABC pointed out that when the tax is applied to the service sector, it will hurt the ability of companies to invest in and create jobs. ABC also noted the proposal conflicts with Congress’ decision not to apply the 3.89 percent tax in the health care reform bill to S corporation shareholders. The new proposal effectively reverses that decision.