MMA Works to Block Health Care Mandates
MMA participated in a coordinated effort to oppose 14 health care mandate bills before a Michigan Senate committee in May. The hearing provided the opportunity for employers and other health care purchasers to address all of the proposed mandates at once, rather than continuing to fight them one at a time.
“The business community was united in its message: The constant annual barrage of costly and damaging health care mandates must stop,” said Amy Shaw, MMA director of education and employment relations. “We need a comprehensive solution to the skyrocketing costs of health care — not a slew of mandates that are just going to exacerbate the problem.
“The bottom line is that all of these mandates represent a tremendous cost increase for job providers. Employers deserve the flexibility to choose which benefits work best for their employees and within their budget constraints.”
MMA will continue attempts to thwart the adoption of the mandates and will update association members about any potential action on the bills.
Supreme Court Rules Workers Must Prove Disability
The Michigan Supreme Court ruled on 6/12/08 that an injured worker has the burden to prove he or she has a disability that qualifies for workers’ compensation benefits, according to Gongwer News Service. In the case, Stokes v. Chrysler, the court ruled the plaintiff failed to show he could not perform another job with his former employer and remanded the case back to the workers’ compensation magistrate for a new hearing.
The case involved an employee, Fredie Stokes, who filed for workers’ compensation benefits claiming a disability from a condition in the neck and upper back. He testified that he left his job at Chrysler driving a fork lift because of advancing rheumatoid arthritis in the neck. There was no testimony about other work he might have pursued at the company.
“The claimant must show more than a mere inability to perform a previous job” to qualify for benefits, said Justice Stephen Markman. “A workers’ compensation claimant bears the burden of proving that he has a disability ... and that burden does not shift to the employer.”
Senate Kills Ergo Committee Funding
The Senate passed the Department of Labor and Economic Growth (DLEG) budget in late May, which removed funding for the operation of the two committees charged with developing a state-specific ergonomics rule.
The move was the Senate’s attempt to stop the expensive ergonomics standard from going any farther.
“The support from the Senate on this issue was critical,” said MMA’s Amy Shaw. “We’re hoping the House will align with the Senate’s position and will, once and for all, put this growth-killing initiative to rest.”
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Completely Revised and Updated Employer Handbook Now Available
The MMA Employer Handbook, which provides comprehensive information on state and federal human resources laws and practices, has been completely revised and updated for 2008.
The handbook, developed in cooperation with Clark Hill PLC, includes information on complying with the FMLA, HIPAA, ADA, MIOSHA and many other laws, as well as guidance on wage and hour issues, immigration and other topics. Required forms and posters are also included.
MMA offers the Employer Handbook as a subscription service. Current subscribers to the service have already received their revised binder.
Subscribers receive the complete handbook, free updates to the included information as it occurs throughout the year and a CD with compliance forms and printable labor law posters. The cost is $125 for MMA members and $250 for non-members. A one-year renewal is $50 for members and $100 for non-members. Order online or contact MMA’s Dane Cooke at 800-253-9039, ext. 551, or 517-487-8551.
Minimum Wage Rates to Rise Again in July
The federal minimum wage makes its next hike on 7/24/08, to $6.55 per hour, under the 2007 law that will raise minimum wages to $7.25 per hour by 2009 in three phases. In Michigan, the state minimum hourly rate will rise to $7.40 on 7/1/08.
If you haven’t already posted the revised federal wage rate poster in your workplace, you can find it in MMA Pubications. It can be downloaded for printing free of charge.
State Moves Closer to Balance in Workers’ Comp Disputes
A Michigan Senate committee moved a bill to ensure balanced representation on workers’ compensation issues to the full Senate on 6/12/08. The measure, supported by the MMA, would require Senate advice and consent for appointments to all government bodies that handle workers’ compensation disputes.
MMA’s Amy Shaw testified before the committee on behalf of member employers.
“There is a strong need to protect the delicate balance between employer and employee interests in our workers’ compensation system — and that is why all appointments for the three bodies responsible for the appeals process should be subject to advice and consent of the Senate,” said Shaw.
Currently appointments to the Quality Advisory Committee, the gatekeeper to both the Workers’ Compensation Appellate Commission and the Board of Magistrates (the two bodies that resolve workers’ compensation cases), are only subject to the approval of the governor.
Despite progress in the Senate, it is unlikely the bill will get the House’s or the governor’s approval.
‘Hire Michigan First’ Awaiting Senate Action
Legislation that would require companies that receive state contracts and economic development incentives to hire in-state workers passed the Michigan House and awaits action in a Senate committee.
In addition to the hiring requirements, the plan would force businesses that knowingly hire undocumented workers to forfeit and pay back any state tax breaks and abatements that had been received. The companies’ state contracts would also be canceled and they would be barred from any future contracts.
Opponents of the package say it could allow companies with unionized labor to move employees from outside of Michigan into the state more easily than could businesses without unionized employees. Supporters of the measure claim the priority of businesses that receive government contracts and tax incentives should be to hire individuals from Michigan’s labor market.
MMA/MRC Compensation Survey Shows Strong Merit Pay Increases
The 2008 MMA/MRC Compensation in Michigan Manufacturing Survey results have been compiled and are available for purchase. The report offers you compensation data on more than 275 different manufacturing jobs, ranging from clerical to managerial to executive positions, covering both office and plant environments. Data on base salary and total cash compensation levels, incentive plan participation, supplemental benefit programs and executive perquisites are included.
The latest survey data shows that, overall, labor market pay rates have increased about 3.5 percent on average from 2007 to 2008.
“Actual pay increase budgets averaged 3.1 percent last year and are projected to be 3.1 percent for 2008 as well,” said Ed Ura, president of MRC and the report’s author.
The survey also found that most compensation increases (about 75 percent) will be in the form of merit increases, which are budgeted at 3.5 percent for next year, as opposed to general (across-the-board) increases, which are projected at only 2.9 percent.
Order the 2008 compensation survey report in MMA HR Services or call MRC at 734-454-2500. MMA members and survey participants receive a significant discount.
The MMA/MRC Benefits & HR Policies in Michigan Manufacturing survey questionnaire will be distributed in July. Contact MRC to participate and get 50 percent off the final report, scheduled to be published in October.
Federal Lawmakers Debate UI Extension
In recent weeks, the U.S. House and Senate have passed measures to extend unemployment insurance benefits to unemployed Americans in response to higher unemployment rates. The proposals would provide up to 13 weeks of additional coverage once state benefits to the unemployed ran out.
It is estimated that the Senate version of the measure would cost the federal government $12.2 billion and another $850 million in additional state unemployment benefits.
The House legislation now moves to the Senate where chances of passage are slim. If a bill makes its way to President Bush, he has indicated he will veto it.
States Increasingly Interested in Employer Wellness Programs
Feeling the pain of higher health care costs in government budgets, Workforce Management reports that several states are considering incentives or requirements that employers provide employee wellness programs. (Free site registration required to view Workforce Management article.)
The magazine cites a California proposal to require employers doing business with the state to have one or more employee wellness programs and a bill introduced in Michigan last year that would give preference for government contract work to companies with wellness initiatives in place.
Other states — like Indiana — are implementing incentive programs. A measure passed in that state last year provides tax credits, equal to 50 percent of the program’s costs, to small businesses that offer a wellness program.
While recognizing the benefits of wellness plans, the article says many employers are bristling at wellness mandates.
Manufacturers Day at the Races to Support Education
 The Shop Rat Foundation hover craft, built by 6th-8th grade students, on display at the MMA CEO Forum. |
Mark your calendar for the second annual “Manufacturers Day at the Races” at the Michigan International Speedway on 8/16/08 to help a good cause. MMA is once again co-sponsoring the event, which supports the efforts of the Shop Rat Foundation, a non-profit offering hands-on skilled trades education to students to foster the next generation of manufacturing workers.
Racing fans, manufacturers, educators and supporters of hands-on educational initiatives are encouraged to take part in this special event. Tickets provide a grandstand seat for the race that day, pre-race pit passes and admission to the event’s hospitality tent including two drink tickets and a lunch. A portion of the $130 ticket cost will be donated to the Foundation.
Recently, the Foundation oversaw the student-led production of a hover craft, which was on display at MMA’s CEO Forum and Legislative & Executive Reception in May. A group of 6th through 8th graders built the machine with the help of instructors and industry volunteers.
Call the speedway at 517-592-6666 and ask for the Shop Rat or Manufacturers Day at the Races Event ticket package to register or see the Shop Rat Foundation Web site for more information.
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