Manufacturers Notch a Critical Victory in Washington Alliance of Technology Workers v. DHS
Following Intervention by the NAM and Other Business Groups, D.C. Circuit Upholds STEM OPT Program
Washington, D.C. – Following a 2–1 decision by the D.C. Circuit affirming the validity of a program that provides hundreds of thousands of skilled workers for manufacturers and other American businesses, National Association of Manufacturers Chief Legal Officer Linda Kelly released the following statement:
“The NAM Legal Center is incredibly proud of today’s victory, which helps ensure the continued availability of hundreds of thousands of highly skilled workers for manufacturing roles. As manufacturers continue to experience significant labor shortages, the STEM OPT program remains a critical talent pipeline, providing opportunities for high-skilled graduates to enhance their education through hands-on work. Today’s win builds on the NAM’s impressive track record of defeating unlawful restrictions and meritless attacks on critical visa programs.”
Background:
Without the STEM OPT program, manufacturers would be unable to fill critical positions requiring specialized training in science, technology, engineering and math. So, in 2018, after an anti-immigration activist group brought a lawsuit against the Department of Homeland Security seeking to invalidate the entire STEM OPT program, the NAM and two other business groups moved to intervene as defendants in the case. That motion was granted, and in December 2020, the District Court for the District of Columbia granted the NAM and its co-intervenor defendants’ motion for summary judgment, ruling that DHS acted within its statutory authority and in accordance with the Administrative Procedure Act by continuing the STEM OPT program. The plaintiff activist group appealed to the D.C. Circuit, and today, the court issued its decision—rejecting the plaintiff’s bases for invalidating the STEM OPT rule and affirming the lower court’s judgment.
-NAM-
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 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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.
Wabash Castings to Host Sen. Todd Young
Leaders to Discuss Manufacturing Competitiveness and Policies Needed to Help the Industry
Washington, D.C. – On Tuesday, Oct. 4, Senator Todd Young (R-IN) is scheduled to visit NAM member company Wabash Castings. Sen. Young will be joined by Wabash Castings CEO and newly elected NAM board member Sachin Shivaram as well as other company leaders and manufacturing workers to discuss policies impacting the manufacturing industry as laid out in the NAM’s “Competing to Win” plan.
Sen. Young has been a champion of key provisions of the NAM’s competitiveness agenda in his support of the CHIPS and Science Act and the Infrastructure Investment and Jobs Act.
Interested media are invited to cover the walking tour of the facility and participate in media availability following the event, time and schedule permitting.
WHO: | Sen. Todd Young (R-IN) Sachin Shivaram, CEO, Wabash Castings, NAM Board Member |
WHERE: | Wabash Castings, Wabash, Indiana |
WHEN: | Tuesday, Oct. 4, 1:00 p.m. – 2:00 p.m. EDT |
RSVP: | Email [email protected] to RSVP |
Background: The NAM’s policy priorities are outlined in the latest version of “Competing to Win,” a comprehensive blueprint to bolster manufacturers’ competitiveness. The plan includes solutions to urgent problems, such as energy security, immigration reform, supply chain disruptions, the ongoing workforce shortage and more.
-NAM-
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 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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 Achieves Victory in Proxy Suit
The NAM notched a significant legal victory yesterday when a federal judge vacated the Securities and Exchange Commission’s suspension of a 2020 rule regulating “proxy advisory firms.”
The background: Proxy firms advise institutional investors on how to vote their shares in publicly traded companies, but those firms have long been unregulated and unaccountable.
- In 2020, in large part through the advocacy of the NAM, the SEC finalized a rule increasing oversight of these firms—but in 2021, the SEC’s new leadership announced that the agency would not enforce the rule.
- Suspending the rule without public notice and comment was a violation of administrative law—and the NAM stepped up to challenge this circumvention of the Administrative Procedure Act in court.
The win: Yesterday, the NAM won its case against the SEC in the U.S. District Court for the Western District of Texas. The decision makes clear that the SEC acted unlawfully by suspending the compliance date for the proxy firm rule without following the notice-and-comment procedures required under the APA.
- As the court said in its opinion, “[agencies] do not have the inherent power to stay or delay a final rule absent notice-and-comment rulemaking.”
What’s next: The NAM has also filed suit against the SEC’s 2022 rescission of critical components of the 2020 rule. That case is still ongoing, with oral arguments scheduled for December—but this week’s decision ensures that the SEC will not be able to re-suspend the 2020 rule if the NAM is successful in its challenge to the rescission.
Our take: “Today’s decision is a victory for the rule of law, and the NAM Legal Center was proud to lead this effort for the industry,” said NAM Chief Legal Officer Linda Kelly. “Federal agencies are bound by the Administrative Procedure Act—standards the SEC failed to meet by indefinitely delaying the compliance date for the 2020 proxy firm rule without notice-and-comment rulemaking. Manufacturers depend on regulators to promulgate and enforce reliable rules of the road, and the NAM looks forward to similarly holding the SEC to account in our ongoing case against the agency’s unlawful rescission of the 2020 rule.”
Manufacturers Celebrate Victory in NAM v. SEC
Judge Overturns SEC’s Suspension of 2020 Proxy Firm Rule
Washington, D.C. – Following a decision granting the National Association of Manufacturers’ motion for summary judgment in NAM v. SEC and vacating the Securities and Exchange Commission’s unlawful suspension of its duly promulgated proxy advisory firm rule, NAM Chief Legal Officer Linda Kelly released the following statement:
“Today’s decision is a victory for the rule of law, and the NAM Legal Center was proud to lead this effort for the industry. Federal agencies are bound by the Administrative Procedure Act—standards the SEC failed to meet by indefinitely delaying the compliance date for the 2020 proxy firm rule without notice-and-comment rulemaking. Manufacturers depend on regulators to promulgate and enforce reliable rules of the road, and the NAM looks forward to similarly holding the SEC to account in our ongoing case against the agency’s unlawful rescission of the 2020 rule.”
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.” In October 2020, the NAM filed a motion to intervene in ISS v. SEC (ISS’s attempt to overturn the rule) in support of these reforms.
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 today issued an opinion granting the NAM’s motion for summary judgment and vacating the SEC’s suspension of the rule. As the court explained, “[Agencies] do not have the inherent power to stay or delay a final rule absent notice-and-comment rulemaking.”
In July 2022, the SEC rescinded critical portions of the 2020 rule, a move that Timmons said “epitomizes ‘arbitrary and capricious’ rulemaking.” The NAM has filed suit challenging the rescission; a summary judgement hearing in NAM v. SEC is scheduled for December 9, 2022.
-NAM-
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 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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.
Action Needed on Interest Deductibility, NAM Study Shows
An important new study released by the NAM shows that failure to reverse a new, stricter limit on interest deductibility could cost the United States nearly half a million jobs.
The background: Manufacturing is a capital-intensive industry—and manufacturers often borrow funds to purchase capital equipment and invest in growth. The interest they pay on those loans is tax deductible up to a certain limit. However, a recent change in tax law modified the way that limit is calculated—leaving companies with a smaller deduction and increased costs as they seek to invest in equipment and job creation.
The data: The study published by the NAM paints a bleak picture of the economic impact if Congress fails to take action to fix this problem. According to the EY analysis, keeping a stricter interest deduction in place would increase manufacturers’ cost of capital and lead to reduced investments in the U.S. economy. The result would be lost jobs, reduced employee compensation and lessened U.S. GDP. Specifically, the study finds that the stricter interest limitation will cost the United States:
- 467,000 jobs;
- $23.4 billion of employee compensation; and
- $43.8 billion in GDP.
What’s next: The NAM supports the Permanently Preserving America’s Investment in Manufacturing Act (H.R. 5371/S. 1077), bipartisan legislation that would reverse the stricter limitation and ensure that manufacturers can make critical investments in themselves and their communities.
What we’re saying: “These numbers show the importance of preserving manufacturers’ ability to deduct interest and finance critical job-creating investments,” said NAM Senior Director of Tax and Domestic Economic Policy Charles Crain. “With 467,000 jobs at risk, the NAM is leading the effort to secure a reversal of this harmful change by year’s end.”
New Study | Stricter Interest Expense Limits Costs Half Million Jobs
Failing to Address EBIT-Based Limitation Harms Manufacturers’ Competitiveness
Washington, D.C. – Following the release of an analysis on the economic impact of failing to reverse a stricter limitation on deductions for interest on business loans that took effect earlier this year, National Association of Manufacturers Managing Vice President of Tax and Domestic Economic Policy Chris Netram released the following statement.
Key Findings:
The stricter EBIT-based 163(j) interest expense limitation before market adjustments would cost:
- 467,000 jobs;
- $23.4 billion of employee compensation; and
- $43.8 billion in GDP.
“Manufacturers are already facing incredible economic headwinds due to increased input costs, rising interest rates, labor shortages and snarled supply chains. This analysis shows that failing to reverse the damaging change to the tax treatment of interest on business loans disproportionately harms manufacturers at a perilous time—costing hundreds of thousands of jobs and billions of dollars in economic growth.
“America is an international outlier in imposing such a strict interest expense limitation. With nearly half a million American jobs at stake, Congress must act by year’s end to reverse the stricter EBIT-based limitation and allow manufacturers to continue to invest for growth.”
EY’s Quantitative Economics and Statistics group prepared the analysis.
Background:
Prior to 2022, the interest expense limitation was calculated based on a company’s earnings before interest, tax, depreciation and amortization (EBITDA). This year, a stricter limitation based on a company’s earnings before interest and tax (EBIT) took effect. By excluding depreciation and amortization from the calculation, the stricter limitation increases the tax burden on manufacturers that make investments in long-lived capital equipment.
-NAM-
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 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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.
Manufacturers Wake Up to Welcome News of Railway Agreement
Washington, D.C. – Following news of a tentative agreement between U.S. railroad companies and unions to avoid a strike, National Association of Manufacturers President and CEO Jay Timmons released the following statement:
“This morning’s announcement of a tentative agreement between the railroads and their workers is a welcome relief. Manufacturers had been putting into place contingency plans as they were facing disruptions with moving their supplies and products. Manufacturers thank President Biden, Secretary Walsh, Secretary Buttigieg and others in the administration who understood the stakes and stepped in to help prevent a very serious nightmare for the supply chain.”
-NAM-
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 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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.
Manufacturers Call for Quick Resolution to Rail Negotiations
Timmons: Delays in concluding the rail negotiations will exacerbate the pain of inflation and supply chain disruptions, and failing to reach an agreem
Washington, D.C. – Following news that White House aides and Cabinet officials spent Tuesday reviewing contingency plans for a work stoppage, including outreach to shippers, truckers and air-freight lines to keep goods moving, National Association of Manufacturers President and CEO Jay Timmons released the following statement on the ongoing negotiations between Class I railroads and labor unions representing the freight rail workforce:
“For years now, America’s manufacturing workers have endured the effects of rapidly rising material costs and severe supply chain disruptions, and our member surveys have shown quarter after quarter that these are among the top challenges affecting manufacturing growth in America. Further delays in concluding the rail negotiations will exacerbate the pain of inflation and supply chain disruptions, and failing to reach an agreement before Friday’s deadline would devastate the movement of manufactured products that families depend on,” said Timmons. “The Presidential Emergency Board has announced reasonable recommendations that nearly all parties have accepted, so now is the time to resolve remaining issues. We appreciate the administration’s proactive approach, and Congress should be ready to act as a last resort. But manufacturers still believe that the parties have it within their power to resolve these talks before they inflict severe economic damage.”
Currently, the American freight rail network accounts for nearly 40% of total freight volume, and a strike or delay in finalizing a long-term contract would have devastating impacts across surface supply chain networks and economic output. The Association of American Railroads recently released a report that found a nationwide freight rail interruption could cost more than $2 billion per day in lost economic activity.
Background: On Monday, Sept. 12, the NAM sent a letter to congressional leaders reiterating support for the work of the Presidential Emergency Board, which has aided in the talks. The NAM also urged Congress to use its statutory authority to institute the PEB’s recommendations should it become necessary to intervene. The NAM supported President Biden’s selection of an independent and objective PEB and believes that the recommendations announced on Aug. 16 have provided an appropriate framework to avoid disruption to freight rail operations.
-NAM-
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 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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.
Second Chance Hiring Works For Union Pacific
Finding and keeping a job can be challenging for people with criminal records. These jobseekers face exclusionary business practices and logistical obstacles, which result in an unemployment rate for this population that is five times higher than the general US public. To minimize this inequality, The Manufacturing Institute—the workforce development and education partner of the NAM—has joined with Union Pacific to expand candidate pools and bring more outstanding individuals into the manufacturing industry.
A second chance: Union Pacific began working on the second chance initiative last year, and the results have already proven fruitful.
- In 2022, the company launched a pilot program with local community organizations in Houston to eliminate barriers to employment for the formerly incarcerated and helped ensure the long-term success of these second chance candidates.
- In its first three months, the program brought in nearly 100 new applications and created positive relationships and support systems.
The steps to success: The Union Pacific team discovered that three components were critical to helping candidates find jobs and succeed:
- First, companies interested in hiring such candidates must update their own hiring practices and rethink potential barriers for otherwise qualified candidates—whether that means adjusting onerous required credentials or background checks.
- Second, partnerships and strong relationships with local community partners can help ensure that these candidates have the support they need to be successful. Tools like the MI’s Community Partnership Scorecard helped Union Pacific find partners that fit well with their goals.
- Third, establishing pilot initiatives in high-demand markets can help a company learn about best practices that can be replicated elsewhere. Plus, sharing experiences with other employers can help additional companies find success.
Expanding the program: Union Pacific’s current focus involves bringing the Second Chance initiative to new markets across the country to replicate the pilot program results.
- “Everyone I speak with about our success in Houston wants to know how we can take this model and multiply,” said Union Pacific Talent Acquisition Manager Ken Kawamura.
Leaders in the field: With the success of this initiative, Union Pacific has become an industry leader in establishing inclusionary hiring practices and building community partnerships. The company hopes to help establish second chance programs throughout the country.
- The Manufacturing Institute has been a critical partner in this work, providing information and resources necessary to its success.
- “The MI is committed to supporting members in the pursuit of effective Second Chance initiatives,” said MI Vice President of Workforce Solutions Gardner Carrick. “Our goal is to leverage those learnings and strategies across the manufacturing industry to expand talent and opportunity in the sector.”
The last word: Union Pacific’s primary goal in pioneering this initiative is to build a more equitable workforce for all employees.
- “In our eyes, once you are a part of Union Pacific, you are no different than any other employee, regardless of your background,” said Senior Director of Talent Acquisition Dan Culbertson.
Case Study: The Building Blocks of a Successful Second Chance Hiring Initiative
In early 2021, The Manufacturing Institute began collaborating with Union Pacific to build a Second Chance hiring initiative to expand candidate pools to be more inclusive of those with criminal records. Union Pacific Chairman, President and CEO Lance Fritz made expanding his company’s talent pipelines a priority and considers Union Pacific’s commitment to Second Chance employment an important part of that strategy.
To help design and implement Union Pacific’s Second Chance initiative, the MI partnered with Envoy Advisory via its Envoy initiative to make use of its expertise in inclusive hiring policies and practices and build partnerships with high-performing reentry and workforce organizations in Houston, Texas.
Assessing and adapting Union Pacific’s existing hiring policies and practices allowed for a deeper understanding of the candidate journey and illuminated potential barriers and support gaps for candidates from this population. While the pilot program was aimed specifically at candidates with criminal records, many of the identified employment barriers applied to a broad range of candidates from vulnerable backgrounds. Our case study outlines the three essential components of a successful Second Chance hiring initiative. Read the full case study here.