NAM to FTC: Noncompete Rule Would Harm Manufacturers
The NAM is urging the Federal Trade Commission to extend the comment period on its recently proposed rule to ban noncompete agreements in the workplace, citing the rule’s broad economic impact and significant legal implications.
The background: On Jan. 5, the FTC proposed a rule that would prohibit employers from imposing noncompete agreements on workers, calling such clauses “an unfair method of competition” and saying they prevent the forming of new businesses and result in lower wages for all workers.
What the NAM is doing: The NAM opposes the proposed change, and the association joined a coalition of other business groups this week requesting that the public comment period, which runs through March 20, be extended by 60 days. The reason: the proposal would have far-reaching legal consequences for manufacturers, including risks to intellectual property.
- “A sufficient comment period is needed to ensure the regulated community can fully assess [the rule’s] effects,” the coalition told FTC Secretary April Tabor. “Moreover, there are significant legal questions that must be addressed by commenters.”
- “Among the issues raised by the FTC action is whether the Commission has the legal authority to issue such a rulemaking, the rule’s potential preemption of the numerous state laws and regulations on this issue, and how such preemption will alter the regulated community’s legal obligations.”
Working for manufacturers: The NAM is exploring all possible avenues, including congressional oversight and litigation, to mitigate the impacts of the proposed rule. Litigation is contingent on financial support from NAM members, as all of the NAM’s activities in the courts are funded outside of member dues.
What to Know about Hiring Military Talent
With 200,000 people transitioning out of the military annually in addition to veterans, reservists and military spouses, the military population represents a highly skilled workforce. At a recent roundtable, panelists from Smithfield Foods, Dow and National Gypsum discussed how the manufacturing industry can leverage this population’s strengths.
Key Insights
- Manufacturers should identify a leader with military background in their organization to support the hiring process, particularly in parsing military and manufacturing lingo in job descriptions and resumes.
- Manufacturers should communicate if they will accept military experience as an equivalency to an associate’s or bachelor’s degree in their job descriptions.
- Networking can be the determining factor in getting an interview and landing a job offer. The MI will be hosting a virtual hiring fair in late February. Keep an eye on our website for more updates!
- Employee resource groups can be an excellent resource for newly hired military talent and can advocate for population-specific needs.
Read the full article here.
How Manufacturers Should Pursue Second Chance Hiring
With one-in-four Americans possessing a prior conviction, manufacturers can access a diverse and motivated talent pool by pursuing second chance hiring.
At the Manufacturing Institute’s inaugural Workforce Summit held back in October, panelists from the MI, Saint-Gobain, JBM Packaging and Envoy shared tips on how to create such hiring programs and the benefits they’ve seen so far.
Key Insights
- Data shows that second chance individuals are retained longer, have higher productivity and engage in more training than the average individual.
- Start with a pilot program, then scale it up. It’s important to select a site that has the right culture, plant manager and HR support.
- Build a framework that allows the company to fairly evaluate an individual’s background.
- Offer support systems and partner with community organizations to meet the unique needs of this population.
Read the full article here.
How Manufacturers Should Pursue Second Chance Hiring
With one-in-four Americans possessing a criminal record, manufacturers who pursue “second chance hiring” are accessing a diverse and motivated talent pool. What do they need to know to begin?
At the Manufacturing Institute’s inaugural Workforce Summit, held in Cincinnati, Ohio, last October, panelists from manufacturers Saint-Gobain and JBM Packaging and from Envoy, a social impact advisory firm specializing in fair chance employment, shared tips on how to create such hiring programs.
Risk assessment: While safety is a concern, panelists emphasized that there is a difference between perceived risk and actual risk.
- “The data shows that second chance individuals are retained longer, have higher productivity and engage in more training than the average individual that you bring in,” said Cassi Zumbiel, managing director at Envoy.
- Saint-Gobain uses “a framework for background checks which we have developed in collaboration with our legal team. Candidates in the second chance hiring programs demonstrate higher level of commitment and a proactive approach to job searching, setting themselves up for success in future roles. We like to collaborate with our community partners in order to provide a good candidate experience and a seamless recruiting process,” explained Magda Dexter, senior vice president of communications and human resources at Saint-Gobain.
- For JBM Packaging, it’s about having honest and transparent conversations with candidates about their backgrounds. JBM also works with case managers to get referrals and assess candidates’ fit with the company.
How to get started: Dexter recommended that companies start with a pilot program, then scale it up, noting that it’s important to select a site that has the right culture, an engaged plant manager and HR support.
- Saint-Gobain has also tried out a variety of different support systems across their company, including hiring a part-time social worker as well as instituting a buddy system and a mentoring program.
- Zumbiel encouraged companies to do background checks only after a conditional offer has been made, recommending that companies should limit the look-back period to three to seven years. “That helps eliminate some of that bias and makes you really look at the candidate holistically.”
- Panelists also noted that it was important to review job descriptions to make sure they specify that second chance candidates are welcome.
From jobs to careers: Ninety percent of JBM’s second chance hires are entry-level production workers; the other 10% have mechanical or machinist skills and fill entry-level technical roles. However, Valerie Plis, director of human capital and culture at JBM, realized there was a lot of experience that the company wasn’t tapping into.
- Plis shared a story of a second chance hire who started as a machine operator. As Plis got to know her, she realized that the new hire had a background in training. The new hire progressed from an operator trainer to a lead trainer, then joined the HR team. In addition to leading training across the company, she now helms the second chance recruiting initiative, coming back full circle.
- Plis added, “At JBM, we started working on putting together some very defined career paths. It’s changed the way we conduct our performance reviews, so now we’re focused on growth and development.”
Succeed by partnering: While second chance hires come with a lot of benefits, there are also some challenges that are unique to this population. Partnering with community organizations can help, the panelists said.
- For Dexter, it’s about figuring out what the company will offer and what the community partners will offer. “We will support with on-the-job training. We will support with [providing] structure at work. We will rely on [our community partners] for job readiness and life skills training.”
- Zumbiel noted that “the community partner can advocate for the employer about the great opportunities and the benefits of working in manufacturing” and also prepare candidates to ace their interviews.
The last word: “A lot of the things we implemented, we thought we were doing just for our second chance population, but they actually ended up becoming a huge benefit for our entire workforce,” Plis said.
Watch: Timmons Talks Workforce on CBS
NAM President and CEO Jay Timmons joined CBS Mornings today to discuss manufacturing’s number one challenge: finding enough skilled workers to fill available jobs.
NAM Hosts “Rebuilding Ukraine: Inaugural Conference of Manufacturers in the U.S. and Ukraine”
Washington, D.C. – This week, the National Association of Manufacturers and the Ukrainian League of Industrialists and Entrepreneurs co-hosted “Rebuilding Ukraine: Inaugural Conference of Manufacturers in the U.S. and Ukraine.” The conference was led by NAM President and CEO Jay Timmons and ULIE President Anatolii Kinakh.
“Manufacturers have demonstrated their unwavering support for Ukraine and denounced Russian aggression,” said Timmons. “Manufacturers in the U.S. have a long and proud history of standing firm in support of democracy, the rule of law, transparency, freedom and opportunity. We stand with President Zelenskyy, the Ukrainian government and the Ukrainian people as they defend those values and as they work to rebuild their country in the years ahead.”
Also participating were senior Ukrainian government officials and manufacturers, as well as NAM member companies with a presence in Ukraine and the U.S. During the meeting, Kinakh thanked the U.S. for its comprehensive support of Ukraine, including through the providing of defense arms, funding and other aspects.
“This is the first business conference of Ukraine and the U.S. on such a scale,” said Kinakh. “In our view, it will enable our partners in the U.S. to learn about the true situation in Ukraine, the business climate and our priorities. It will be the basis to shape direct ties, common interests and business plans that will boost economic activities of Ukraine.”
Kinakh stressed that a stable economy, new jobs and welfare growth for the Ukrainian people were crucial to achieve victory over Russia. Furthermore, he invited American businesses that are not currently operating in Ukraine to invest in the promising sectors in the country, including information technology, energy, infrastructure, industry renovation and education.
To formalize manufacturers’ commitment to supporting Ukraine, the NAM and the ULIE signed a Memorandum of Understanding at the meeting yesterday. This MOU will serve as a roadmap to the cooperation between the two organizations and outlines the key goals and objectives for the partnership.
In March 2022, in the wake of the Russian invasion of Ukraine, the NAM Board of Directors unanimously voted to denounce Russia’s invasion of Ukraine and to stand with the people of Ukraine in their fight to preserve freedom and independence. The resolution expressed support for the economic and financial sanctions implemented against Russia and called for the removal of the Russian Federation from the World Trade Organization and termination of permanent normalized trading relationship status with the U.S.
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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.
ULIE
Ukrainian League of Industrialists and Entrepreneurs (ULIE) is a strong non-governmental association uniting large enterprises and SMEs, which produce 80% of Ukrainian GDP. The League has 28 representative offices abroad and 39 committees for various sectors. ULIE is an observer organization in business at OECD and cooperates with BusinessEurope. It established several bilateral business councils (with Lithuania, Latvia and others).
For more information, please visit https://uspp.ua/en/.
What Manufacturers Should Know about Hiring Military Talent
With 200,000 people transitioning out of the military annually, in addition to veterans, reservists and military spouses, the military population represents a highly skilled talent pool that manufacturers are eager to tap. But how should they go about doing so?
At a recent roundtable, the Manufacturing Institute—the NAM’s 501(c)3 workforce development and education partner—brought together veterans who have transitioned successfully out of the military into manufacturing careers, as well as manufacturers who have prioritized attracting and retaining military talent. The panelists discussed how companies can leverage this talent, and here’s some of what they had to say.
A great fit: “If you look at manufacturing, a large part of the job is doing things well, day after day after day—and that’s essentially what happens in the military. It’s that military discipline. It’s one of the most compelling reasons why we should be aggressively hiring military veterans,” said Dow Global Business Director Greg Bunker.
- “We’ve got three principles in our organization that we call ROI: responsibility, operational excellence and innovation. We know that veterans bring each of these to the table,” said UnitedHealth Group Director of People Analytics Troy Vandenberg (formerly director of people analytics at Smithfield Foods).
Networking matters: Transitioning from the military to the civilian workforce can be difficult, but veterans who make direct connections with manufacturers often land excellent job offers. The MI’s Heroes MAKE America program facilitates those connections, offering veterans opportunities to meet manufacturers as well as support in the job search process.
- Nicole Rena, an Army veteran and now a shift operations manager at Smithfield Foods, applied to five jobs at Smithfield and didn’t hear back on any of them. But then the program manager at HMA contacted Smithfield’s talent acquisition department to ask if they could speak with Rena about why she wasn’t chosen, so she could be more successful moving forward.
- As Rena put it, “The first 15 minutes of the call was about what I could do better on my resume, but after talking about my background and what I was looking for, the talent acquisition lead said he was going to count this as my first interview.”
- She landed the job! In her 18 months at Smithfield, Rena has been promoted twice.
Language can be a barrier: Rena’s experience speaks to one of the disconnects identified by veterans and manufacturers alike—the language used in job descriptions and resumes. Veterans often do not know how to best describe their skills and experiences in a way that civilian employers can understand.
- To avoid missing out on great talent, the panelists advised, manufacturers should ensure that a leader with a military background is involved in the hiring process, to translate military lingo and skills into more familiar manufacturing terms.
- Manufacturers should also specify in their job descriptions whether they will accept military experience as equivalent to an associate’s or bachelor’s degree, Bunker advised.
Support is crucial: Once veterans have been hired, the company must ensure they are set up for success. “Transitioning is a really scary process for veterans. It’s very stressful. The support that a company can provide is huge,” said Meg Zehringer, a Coast Guard veteran and a corporate environmental engineer at National Gypsum.
- Employee resource groups are a great way to provide support to veterans while also serving as a platform to advocate for population-specific needs, the panelists agreed.
- To be most effective, ERGs should be run by employees, not human resources departments, noted Vandenberg. Bunker added that establishing connections between the ERG and company leaders is also key.
The last word: “Equally as important as the wording of your job descriptions and preferred skills is creating a culture that invites a diverse group of people. That’s going to play a huge factor in attracting veterans,” said Zehringer.
Get involved: If you are interested in learning more about HMA, its next Heroes Connect event will be a networking opportunity with Johnson & Johnson on Wednesday, Jan. 25.
- You can also tune in to (or share with interested veterans) this Veterans Learning Series workshop on how to use LinkedIn effectively, coming up on Thursday, Jan. 26.
- And last, HMA will be hosting a virtual hiring fair in late February. Keep an eye on the MI website for updates!
Melissa Hockstad to Chair NAM’s Council of Manufacturing Associations
2023 Association Executive of the Year Selected to Head Premier Industry Leadership Group
Washington, D.C. – The National Association of Manufacturers’ Council of Manufacturing Associations announced new 2023 leadership at the CMA 2023 Winter Leadership Conference. Melissa Hockstad, president and CEO of the American Cleaning Institute and the 2023 Association Executive of the Year as named by Association TRENDS and CEO Update, will serve as chair of the CMA Board of Advisers. Jennifer Abril, president and CEO of the Society of Chemical Manufacturers & Affiliates (SOCMA), will serve as vice chair. Made up of more than 200 industry-specific manufacturing associations representing 130,000 companies worldwide, the CMA creates powerful partnerships across the industry and ensures manufacturers have the strongest possible voice.
“The Council of Manufacturing Associations is a positive force for collective advocacy, industry thought leadership and association operations. We strive to be the group industry associations choose,” said Hockstad. “The country depends on our leadership, and I look forward to collaborating with the manufacturing association community to strengthen our voice and advance our competitiveness agenda in this new year.”
“Melissa and Jennifer are experienced and accomplished leaders who are well-positioned to continue the cooperative spirit that has made the CMA such an influential organization for our industry. To add to her long list of achievements, Melissa was just named 2023 Association Executive of the Year by Association TRENDS and CEO Update,” said NAM President and CEO Jay Timmons. “I look forward to working with them to promote plans and policies that keep manufacturing resilient and uphold the values that have made America exceptional: free enterprise, competitiveness, individual liberty and equal opportunity.”
Prior to leading the ACI, Hockstad held senior leadership positions at American Fuel & Petrochemical Manufacturers and SOCMA. Hockstad previously served as CMA vice chair.
The CMA’s mission is focused on bolstering the industry’s nationwide grassroots mobilization efforts and improving the competitiveness of manufacturers in the United States. CMA members work with the NAM to unite the manufacturing association community, and ultimately the broader business community, around strategies for increased manufacturing job creation, investment and innovation in America.
Newly appointed 2023 CMA board members include the following:
- Holly Alfano, CEO of the Independent Lubricant Manufacturers Association
- Kerwin Brown, president and CEO of the Bakery Equipment Manufacturers and Allieds
- Charles Johnson, president and CEO of The Aluminum Association
- Heather Rhoderick, president of the Valve Manufacturers Association of America
- Corey Rosenbusch, president and CEO of The Fertilizer Institute
- Leslie Sarasin, president and CEO of FMI – The Food Industry Association
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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.
NAM Legal Center Hits the Ground Running in 2023
It’s a new year, there’s a new Congress, and the NAM Legal Center is renewing its efforts to stand up for manufacturers in courtrooms across the country. Coming off a successful 2022, in which it achieved pivotal wins holding the Securities and Exchange Commission accountable to the rule of law and protecting a vital visa program for high-skilled workers, the NAM Legal Center is planning on a similar sweeping defense of the industry in 2023. Here’s what you need to know.
What it is: The NAM Legal Center is the leading voice for manufacturers in the courts. Enlisting the best and brightest legal minds—and funded through voluntary contributions from NAM members—the NAM Legal Center promotes manufacturing interests by reining in regulatory overreach, protecting vital manufacturing policies and priorities and litigating on behalf of impacted manufacturers across the United States.
Why it matters: “When lobbying efforts fall short, and a new rule or statute goes into effect, the last line of defense is the court system,” said NAM Deputy General Counsel for Litigation Erica Klenicki. “We step in to be a forceful advocate on behalf of the industry, fighting difficult fights and working to overturn harmful policies.”
Achievements: The NAM Legal Center has notched a number of critical victories for manufacturers over the past several years, including:
- Halting the SEC’s efforts to indefinitely suspend lawful regulation of proxy advisory firms without any rulemaking process, in a case called NAM vs. SEC;
- Preserving the STEM OPT Program, which provides thousands of highly skilled workers for manufacturers, in Alliance of Technology Workers v. Dep’t of Homeland Security;
- Safeguarding crucial tax fairness rules for exports in NAM vs. Dep’t of the Treasury;
- Defeating unlawful restrictions on critical visa programs in NAM, et al. v. Dep’t of Homeland Security and USCC, NAM, et al. v. Dep’t of Homeland Security;
- Blocking the Consumer Product Safety Commission’s intrusion into chemical regulation in Ass’n of Mfrs. v. CPSC;
- Invalidating an Environmental Protection Agency rule that severely restricted land use by imposing vague and overbroad permitting requirements in American Farm Bureau Federation v. EPA and Georgia v. Wheeler; and
- Overturning a National Labor Relations Board mandate that required employers to prominently post a notice of employee rights in the workplace in NAM v. NLRB.
Coming up: The NAM Legal Center is gearing up to tackle a number of critical issues for manufacturers in 2023, Klenicki says. High on the list are the activist NLRB, the administration’s aggressive environmental, social, and governance agenda and the Federal Trade Commission’s efforts to broadly regulate the labor market.
The last word: “Right now, we’re seeing a significant uptick in executive action, and given the divided Congress, that action is only going to increase over the coming year,” said Klenicki. “We’re prepared to bring litigation as needed to challenge overreaching policies and defend manufacturing competitiveness.”
For more information, or to support the NAM Legal Center’s work, contact Klenicki at [email protected].
NAM Continues Fight for SEC Proxy Advisory Firm Rule
Washington, D.C. – On Friday, the National Association of Manufacturers filed its opening brief before the U.S. Court of Appeals for the 5th Circuit in NAM v. SEC, appealing a lower court ruling dismissing its challenge to the Securities and Exchange Commission’s unlawful rescission of the 2020 proxy advisory firm rule. NAM Chief Legal Officer Linda Kelly released the following statement on the appeal:
“As we said in district court, the SEC engaged in arbitrary and capricious rulemaking in rescinding this commonsense rule. The Administrative Procedure Act requires federal agencies to explain the basis for significant policy reversals, rely on logical reasoning and allow interested parties a meaningful opportunity to provide comment—standards the SEC clearly failed to meet.
“The NAM Legal Center will continue to fight to preserve the 2020 rule in full and protect manufacturers from the SEC’s dramatic about-face.”
Background:
The NAM has long called for increased oversight of proxy advisory firms. In July 2020, the SEC issued final regulations to enhance transparency and accountability for proxy firms, a move NAM President and CEO Jay Timmons called a “long-sought, major win for the industry and millions of manufacturing workers.” The NAM has been the leader in protecting the 2020 rule in court:
- In October 2020, the NAM filed a motion to intervene in ISS v. SEC (ISS’s attempt to overturn the 2020 rule) in support of the SEC’s authority to regulate proxy firms. That case, with the NAM as an intervenor-defendant, is pending before the U.S. District Court for the District of Columbia.
- In June 2021, the SEC announced that it was suspending enforcement of the 2020 rule; the NAM filed suit against the SEC in October 2021 challenging this unlawful suspension. The U.S. District Court for the Western District of Texas ruled for the NAM in September 2022, overturning the SEC’s suspension of the 2020 rule.
- In November 2021, the SEC proposed to rescind critical portions of the 2020 rule. The SEC finalized the rescission in July 2022—and the NAM quickly filed suit, saying that “the SEC’s arbitrary actions to rescind this commonsense regulation clearly violate its obligations under the Administrative Procedure Act.” In December 2022, the U.S. District Court for the Western District of Texas granted summary judgment in favor of the SEC, failing to engage with the substance of the NAM’s APA claims.
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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.