Labor and Employment

To keep manufacturing an engine of the economy, we need labor policies that support flexibility and innovation.

MI Insider

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.

Policy and Legal

Manufacturing Voters Oppose Corporate Minimum Tax

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The vast majority of manufacturing voters in Arizona disapprove of the U.S. Senate’s proposal to impose a “corporate minimum tax,” according to the results of a joint NAM–Arizona Chamber of Commerce & Industry snap poll yesterday.

The results: More than 90% of the manufacturing voters polled are against the tax, while 91% said it would harm manufacturers’ ability to invest in their businesses, upgrade facilities and buy new machinery.

  • Respondents also said the measure would put both manufacturing jobs and the U.S. economy in jeopardy.

The NAM’s view: “With the U.S. and Arizona economies already showing signs of weakening, this is the wrong time to further undermine growth and the manufacturing sector’s overall competitiveness,” NAM Chief Economist Chad Moutray said.

  • Moutray cited analyses by the nonpartisan Joint Committee on Taxation and the NAM that found the tax would disproportionately harm manufacturers.
  • This tax “will make it harder to hire more workers, raise wages and invest in our communities,” Moutray continued. “Arizona’s manufacturing voters are clearly saying that this tax will hurt our economy.”

The Arizona Chamber says: “In the face of record-high inflation, supply chain backlogs and a major labor crunch, now is not the time to hammer manufacturers with new taxes,” Arizona Chamber of Commerce & Industry President and CEO Danny Seiden said.

  • “Arizona job creators will continue to urge lawmakers to reject this manufacturers tax and instead focus on policies that encourage job growth and strengthen our state and national economic competitiveness.”
Press Releases

NEW: Arizona Snap Poll Shows Manufacturing Voters Strongly Oppose Reconciliation Tax

Washington, D.C. – The National Association of Manufacturers and Arizona Chamber of Commerce & Industry released a new snap poll today showing that an overwhelming majority of manufacturing voters in Arizona disapprove of the U.S. Senate’s plan to raise taxes on manufacturers. More than 90% of manufacturing voters opposed the tax, while 91% agreed that the tax would harm manufacturers’ ability to invest in their business, buy new machinery and upgrade facilities and put manufacturing jobs and economic recovery at risk.

“With the U.S. and Arizona economy already showing signs of weakening, this is the wrong time to further undermine growth and the manufacturing sector’s overall competitiveness. As the nonpartisan Joint Committee on Taxation analysis has shown, the corporate minimum tax is disproportionately focused on manufacturers and will limit the sector’s ability to grow and invest—in Arizona and across the country,” said NAM Chief Economist Chad Moutray. “As the survey shows and as other data indicate, it will make it harder to hire more workers, raise wages and invest in our communities. Arizona’s manufacturing voters are clearly saying that this tax will hurt our economy.”

According to recent analyses by the Joint Committee on Taxation and the NAM, the “corporate minimum tax” currently under consideration in the U.S. Senate will largely fall on the backs of manufacturers, cost almost 220,000 jobs and reduce GDP by nearly $70 billion, while reducing labor income by over $17 billion in 2023 alone.

“Arizona job creators will continue to urge lawmakers to reject this manufacturers tax and instead focus on policies that encourage job growth and strengthen our state and national economic competitiveness,” Arizona Chamber of Commerce & Industry President and CEO Danny Seiden said. “In the face of record-high inflation, supply chain backlogs and a major labor crunch, now is not the time to hammer manufacturers with new taxes.”

Background/Methodology:

Conducted by the NAM analytics team, this snap poll collected 223 responses from a statewide sample of Arizona manufacturing workers, managers and advocates. In total, 80% of the responses came via SMS text to web and 20% came via email.

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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 12.8 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.

Press Releases

Illinois Manufacturers’ Association Wins Inaugural COSMA Leadership Award

San Diego, California For their work to attract and maintain the manufacturing workforce, the Illinois Manufacturers’ Association won the 2022 Leadership Award from the Conference of State Manufacturers Associations. COSMA members also serve as the NAM’s official state partners and drive manufacturers’ priorities on state issues, mobilize local communities and help move federal policy from the ground up in all 50 states and Puerto Rico.

“I am so pleased to present the inaugural COSMA Leadership Award to the Illinois Manufacturers’ Association,” said Kris Johnson, president of the Association of Washington Business and chair of COSMA. “These are challenging times, but manufacturers in America have demonstrated once again, as they have throughout our nation’s history, that they are equal to the challenge. All manufacturers should be proud of the role they have played in navigating the pandemic, and the Illinois Manufacturers’ Association should be especially proud of the innovative ways it has helped its members address the workforce challenges we have all faced. Congratulations to my friend Mark Denzler and his talented team.”

The association’s recent achievements included its $7 million Manufacturing Jobs Campaign aimed at attracting students, veterans, communities of color, women, ex-offenders and other individuals to the manufacturing sector. They were also asked by Governor JB Pritzker to co-chair the state’s Equipment Task Force during the pandemic and appointed by Chicago Mayor Lori Lightfoot to lead the B2B Recovery Group that included manufacturing, transportation and warehousing, construction and utilities companies in the state.

“Mark is more than an inspirational colleague and true friend. He is an amazing representative for Illinois’ manufacturing workers on the national stage,” said NAM President and CEO Jay Timmons. “At a time when there are more than 800,000 open jobs in our industry, we need the efforts of groups like the IMA to help us find that next generation of talent and strengthen manufacturing competitiveness so that we can continue to lead our economy and our country toward a better future.”

In this inaugural year, the COSMA Leadership Award drew many extraordinary applications, each demonstrating how manufacturing associations across the country are rising to meet workforce and supply chain challenges in new and innovative ways.

-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.

Workforce

How Manufacturers Can Attract and Retain LGBT+ Talent

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Job openings in manufacturing remain high, with many manufacturers citing the shortage of skilled labor as a major business challenge. Increasingly, companies are taking a closer look at their internal cultures and asking themselves a crucial question: How can we make ourselves more attractive to new recruits from diverse backgrounds?

Seeking all willing workers: Panelists at the recent D&I Roundtable: Recruiting and Retaining LGBT+ Employees, hosted by The Manufacturing Institute, discussed the growing awareness among manufacturers of ensuring that their companies are LGBT+-friendly workplaces.

  • “When you build a psychologically safe environment, all employees benefit from it because all employees will start to share their ideas without [fear of] retribution,” said Entegris Senior Manager of Talent Management & Development Phillip Spencer.
  • “More generations identify as part of the LGBTQ+ community and want to work for companies that … support [them]. So, it really will benefit everyone and the bottom line of all of our companies” to be inclusive of the LGBT+ community.

Say no to “rainbow washing”: To recruit talent who identify as LGBT+, panelists agreed, manufacturers must genuinely create an accepting, open culture rather than just engage in “rainbow washing,”—i.e., adding a rainbow to company branding while offering few, if any, benefits to actual LGBT+ people.

  • Make sure your company is “really aligning your policies and your practices and those unspoken rules in your organization to make sure that you are doing the things that you say that you believe in when you’re talking about supporting the [LGBT+] community,” said Senior Vice President of Human Resources at Georgia Power Company and Southern Company Sloane Drake.
  • Entegris went back to basics with its inclusivity efforts, Spencer said, and it’s worked. “We started with a program talking about what does LGBTQ+ mean? And what does it mean in the workplace? Why are we talking about this in the workplace?”
  • The company also rejiggered its employee retirement fund structure when it realized the old setup did not account for same-sex couples, Spencer added.

Seek out ambassadors, but don’t push: LGBT+ employees can act as ambassadors to help a company build trust among other LGBT+ workers and prospective new talent, speakers said. Companies should seek out such potential representatives, but without assuming they will want to take on the responsibility.

  • “Nobody knows better what the experience is like than somebody who’s going through it,” said Goodyear Tire & Rubber Company Senior Engineer Arwen Kathke, who is also the community outreach chair for the Goodyear pride network. “Including those employees in your decision-making processes and having those conversations with them to understand what their experience is will go a long way.”
  • “We’ve really spent a lot of time educating” our workforce, Drake said. “It’s not the responsibility of every LGBTQ+ employee in our organization to explain what [LGBT+] means. We’ve actually put some of our employees who were willing through storytelling training; they felt very comfortable being able to share and tell their stories in large meetings and on videos and podcasts, and that was very powerful. But [you don’t want] to make it feel like the one person in the room who [identifies as LGBT+] has to be the only one who can speak on that topic.”

Measuring success: How can manufacturers determine whether they’re reaching LGBT+ talent? There are various way, panelists said.

  • “There’s one great metric that’s going to help any organization understand 100% if it’s inclusive: Do you allow people to self-identify?” Drake said.
  • Another way is to review employee representation data, as well as the number of self-identifying people moving through leadership-development pipelines into leadership positions.

The last word: “If you create a supportive environment and have your internal development done,” said Kathke, “with employees who are starting to step up and really foster that environment, that’s going to work out a lot better in the long run.”

Workforce

Husco Provides Jobs to Afghan Refugees

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For Jason Schuetz, Husco’s vice president of global operations and advanced manufacturing, what started out as meeting a business need at his company has turned into something profoundly more fulfilling.

How it all started: The Waukesha, Wisconsin–based company, which specializes in hydraulic and electromechanical control systems, had open positions that needed to be filled—a challenge that many manufacturers face daily.

  • “We were struggling for a long time to fill the positions that we had open. And we knew that if we continued to think in conventional ways, we would get conventional output and that was not much,” said Schuetz.
  • “We were short a number of direct hire positions, similar to a lot of places in the area,” added Husco Director of Operations Mark Dreikosen. “We were looking for creative solutions to fill our staffing needs.”

An opportunity knocks: After months of minimal results in the hiring search, an opportunity was brought to Husco through Lutheran Social Services to help provide jobs for Afghan refugees who fled from the Taliban and relocated in Waukesha.

  • After many internal conversations and external meetings with Lutheran Social Services and Manpower International, a global workforce solutions company, Husco moved forward in March.
  • The result? Over the past several months, Husco has hired and welcomed 33 Afghan refugees.
  • “It was needs based, really, for Husco,” said Dreikosen. “Fortunately for us, it wasn’t the first time we’ve done something like this. We’ve helped support groups who have emigrated from Myanmar, formerly Burma, under similar context where there’s political unrest.”

Adapting to change: Schuetz said that 2016 experience helped Husco prepare for some of the challenges the company faced with regard to documentation, language and some cultural differences, but new challenges surfaced as well.

  • Schuetz said that being very fresh to the U.S. workforce, the refugees needed to be taught what the “professional expectations were in the U.S.”
  • Work instructions needed to be translated into Pashto and reformatted to accommodate reading from right to left rather than left to right.
  • “None of the individuals had licenses or had a means of getting to work,” said Schuetz. “So, we needed to quickly lean on and partner with Manpower—who has been vital in this—to help find and set up transportation.”
  • To accommodate religious needs, Husco set up multi-faith meditation spaces so the new employees can pray throughout the day. In addition, for a facility-wide event during Ramadan, the company catered appropriate food so individuals could still participate and be part of the team while practicing their religious obligations.

Breaking the language barrier: To help the refugees’ English-speaking skills, Husco ensures there are translators available on every shift.

  • Two employees, Hamza Jebran and Baitullah Jan—Afghan refugees themselves who studied English—serve as translators for their new colleagues. (Click here to watch an interview with Jebran.)
  • “Another of our employees, Habib, couldn’t speak a word of English when we first met him a few months ago, and now we can have a conversation with him,” said Dreikosen. “Sometimes we will have one of our employees come up during a shift meeting and teach the rest of the crew some Pashto as they’re trying to learn some English and share their culture at the same time. It’s really cool to see.”

Eager to learn: For Dreikosen, the refugees’ motivation and eagerness to learn transcend the language and other cultural differences.

  • “They’re as driven and motivated as any other employee who comes through Husco’s doors—and we caught on to that very quickly,” he said. “Their drive for success, given their situation, and how important it is to have a home and to feel welcomed, it’s inspiring.”

Strong foundation: Schuetz says that what has made Husco’s refugee program a success is the company’s strong foundation with its current employees.

  • “It’s been successful for us because we have always made it a point to treat our people fairly and with respect,” he said. “The refugees have been welcomed by their fellow employees because they know that we treat everyone this way, and we would help anyone. There are many challenges, but this team decided they were going to make this work, and every obstacle that they encountered, they knocked it down and moved the ball forward.”
  • The support from Husco has made the program a success: “It starts with our supervisors, our quality engineers, our technicians—they’re all in. They know there’s going to be bumps along the way, but they’ve bought in and know that this is the right thing to do,” said Dreikosen.
  • Dreikosen notes that Husco is now receiving more referrals and inquiries from job seekers of all sorts of backgrounds. They’ve heard about the good the company does and how welcoming it is, and that attention has made the company more attractive in the eyes of job seekers.

The last word: “When this opportunity was brought to us through Lutheran Social Services, we grabbed onto it tightly and realized that with the challenges that we were going to encounter day to day, the end game was so much greater,” said Schuetz. “It’s been rewarding in so many ways.”

What the NAM says: “With more than 900,000 open jobs in manufacturing, we need to attract and hire from the widest talent pool possible,” said Manufacturing Institute President Carolyn Lee. “When manufacturers hire refugees, they see fewer turnovers and increased efficiencies, and at the same time, they’re helping improve the lives of refugees, their families and communities. Increasing diversity in the talent pool and developing more inclusive workplaces strengthens the competitive advantage of our industry and our workforce.”

Workforce

“It Is the Future”: Creators Wanted Arrives in Midland, Michigan

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The Creators Wanted Tour marked several milestones yesterday, as it kicked off its 10th stop on its cross-country trek and first-ever appearance at a major golf tournament.

In the swing of things: With generous support from Dow, the Creators Wanted Tour—a joint initiative of the NAM and its workforce development and education partner, The Manufacturing Institute—arrived in Midland, Michigan, this week for the LPGA Dow Great Lakes Bay Invitational.

  • The tour’s goal: to educate and excite students, parents, teachers and other mentors across the country about careers in modern manufacturing—in part with trips through an immersive series of “escape rooms” where participants get hands-on with advanced manufacturing, learn about the creative skills at work in the industry and have fun solving riddles and puzzles that unpack key information about manufacturing careers.
  • Dow recently announced that it is doubling its initial Creators Wanted campaign commitment to $2 million, which will help ensure continued tour stops and more outreach to the next generation of manufacturers.

Competitors needed: For the U.S. to remain competitive on the world stage, its manufacturing sector requires willing, dedicated talent, Dow Chairman and CEO and NAM Board Chair Jim Fitterling told the audience at the tour stop’s kickoff event on Wednesday. Fitterling joined representatives from the NAM, the MI and the Michigan Manufacturers Association.

  • “The competitiveness of America’s workforce is critical,” Fitterling said. “If we want those supply chains back here, it isn’t a labor cost issue. It’s really [about] skills, and it’s also [about worker] interest.”
  • Michigan Manufacturers Association President and CEO John Walsh agreed, saying, “The number-one concern in every single company across the entire state in every single industry is personnel—getting people who are interested in manufacturing to come work and stay and move forward.”
  • The industry has averaged 800,000 job openings every month for more than a year, NAM President and CEO Jay Timmons noted.
  • That could spell trouble for the economy as a whole, said Manufacturing Institute President Carolyn Lee: “By the end of 2030, if we don’t fill these jobs, it could be a $1 trillion loss in GDP for the U.S.”

Not your grandparents’ manufacturing: The speakers pointed out that manufacturers must counteract the outdated and erroneous perceptions about their industry.

  • “An awful lot of students say that they won’t consider going into manufacturing because they aren’t encouraged by their parents to go into that field,” Fitterling said. “And sometimes they have perceptions about manufacturing that just aren’t current and aren’t modern. Creators Wanted is about … [giving] them a hands-on experience to show them what’s going on in advanced manufacturing today. This is a world that’s very digital. … There are all kinds of new technologies being used.”
  • One of the Creators Wanted Tour’s measurable goals by 2025 is “to change the perception for parents from 27% [favorability regarding manufacturing], where we began just a couple years ago, to 50%,” Lee said.

BAs not required: Manufacturing also offers career paths that don’t require a college degree, the speakers noted—another potential advantage that young people should know.

  • “There’s an alternative to college,” Fitterling said. “College is wonderful. And for those who wish to pursue that, they should, but there are students who might want to make something with their hands.”
  • Timmons recounted how his own father, who worked in the retail industry, was determined that Timmons attend college. “He said, ‘I want you to pursue a different type of career,’” Timmons said. “[But] I think we’ve gone full circle. And I think we realize now that today the manufacturing industry is the future. It is the future that everybody wants for their children.”

The last say: Careers that start on factory floors in manufacturing facilities can lead to leadership roles, Fitterling reminded the audience.

  • “Many generations of people in manufacturing [at Dow] have had great careers, and some have even gone on to lead companies out of that background,” he said. “We want to show students what’s possible and make sure that we use this [Creators Wanted] platform to get that message out and have the impact that we want to have throughout the United States.”

Related: Earlier in the day at a Success, Opportunity, Acceleration and Resilience (SOAR) event, during a fireside chat with Dow Senior Vice President of Operations, Manufacturing and Engineering John Sampson and in front of a packed crowd, Lee announced that Dow is providing a $500,000 grant over four years to support the MI’s Women MAKE America’s 35×30 campaign. The campaign aims to see women represent 35% of the manufacturing workforce by 2030.

Coming up next: The Creators Wanted Tour will come to several cities, including Columbia, South Carolina, Chicago and Baton Rouge, Louisiana, in fall 2022.

Workforce

“You’re Your Own Limit”: Andrea Tucker Talks Success at Smithfield Foods

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If you want to be like Andrea Tucker, just ask her how she got to where she is today—she’ll happily help you plot a path to professional success like hers.

Rising to the top: Tucker is a complex plant manager at Smithfield Foods in Tar Heel, North Carolina, the largest pork-processing plant in the world. But she didn’t begin there, and she wants other Smithfield employees to know it.

  • “I started as an hourly employee on third shift, and now I’m running the plant,” said Tucker, a 2019 honoree of The Manufacturing Institute’s STEP Ahead Awards (now the Women MAKE America Awards). “If you want to be me, let’s put a plan together and work toward it. At Smithfield, if you put in the work, it gets noticed.”

Manufacturing from the start: Tucker, a Georgia native, grew up on a small tobacco farm. In 2000, a lifetime affinity for numbers, process and mathematics led her to answer an ad seeking an accounting inventory clerk at Smithfield.

  • “For me, working in manufacturing kind of closed the gap of what happens after things are grown or made or after animals are raised,” Tucker said. “A passion was ignited in me: [for] the process flows, the ‘people’ side of things and how things work. I could use my love of math and make and see real change. From that day on, I felt like I could do something that mattered.”

“You’re your own limit”: Since joining Smithfield, Tucker has worked in multiple positions across the meat-packing company’s accounting and operations teams. Along the way, she received encouragement from management, and that backing has led her to become a trusted mentor to other employees.

  • “[When I was an hourly worker], I was told, ‘You have a good grasp of how things work. You know how to motivate and inspire people. Have you thought of operations?’” Tucker recalled of her first career change within Smithfield. “Smithfield is a big advocate of ‘you’re your own limit.’ You’re not tied to one plant or position or department.”
  • At the company’s urging, after 12 years in Tar Heel, Tucker took a position at Smithfield’s Wilson, North Carolina, facility as plant manager.

Women in manufacturing: The move “inspired me to see results, not only in processes but in other people, primarily women,” Tucker said.

  • “For many [of the women at the facility], I was not only Andrea the manager but Andrea the counselor, Andrea the person I can talk to about this problem I’m having with my 13-year-old,” she said. “There were a lot of single moms.”
  • The success stories among this contingent are many, Tucker said. Here’s one: Tucker noticed that an employee, a young mother, was struggling personally—and she learned that the woman was at risk of losing custody of her children. “I said, ‘Look, I know you have three kids, and this is not the life you wanted. I need you to be able to be that responsible parent. Smithfield has an employee assistance program; let’s get you enrolled. If I get your commitment that you’re ready for change, I will make sure you stay that course.’”
  • The employee did. “She put forth the effort. She and her kids, they’re thriving. She’s even enrolled in one of our emerging leaders programs.”

Opportunities abound: Smithfield continues to create pathways to professional advancement for its employees. These include:

  • A tuition reimbursement program;
  • A mentorship program; and
  • Women’s Connect, a mentorship program specifically for women.

Continuing to inspire: Tucker came back to Tar Heel earlier this year, in another step upward within the company. When she was first offered her current job, Tucker—despite having coached so many employees successfully—wasn’t sure she would be able to do it.

  • “Then I told myself, ‘Think about all the stories where people said they never thought they could do more,’” she said. “It reminded me, ‘You reached out and touched so many people at Wilson, why are you not giving yourself the same opportunity in Tar Heel, back where you started?’”

The last word: Tucker has advice for those daunted by moving up the ladder at work. “At the end of the day, it’s just people,” she said. “You take it one day at a time, and you just try to touch the lives of as many people as you can.”

Press Releases

New Study: Ports Stoppage Would Be Devastating Hit to Manufacturers’ Competitiveness

Cost Economy Half a Billion Dollars a Day, Destroy 41,000 U.S. Jobs

Washington, D.C. – As negotiations between the Pacific Maritime Association and International Longshore and Warehouse Union near a critical deadline, manufacturers are sounding the alarm about potential economic consequences of a port stoppage if disruption were to occur over two weeks at the ports of Los Angeles and Long Beach, the nation’s largest port complex. According to a study by Inforum Economics, a 15-day disruption would cost the U.S. economy nearly half a billion dollars a day—for a total of $7.5 billion—and destroy 41,000 jobs, including more than 6,100 in manufacturing.

As the industry continues to grapple with historic supply chain challenges, inflationary pressures and rising transportation and energy costs, manufacturers are calling on the parties to reach an agreement immediately to avoid this continued uncertainty.

“The ports of Los Angeles and Long Beach support a major share of cargo relied upon by American businesses and consumers, supporting supply chains across the entire country. With supply chains already stretched thin, inflation at its highest level in four decades and concerns of a recession rising, any disruption would mean a devastating hit to our economy and to manufacturers’ competitiveness,” said National Association of Manufacturers President and CEO Jay Timmons. “The disruption would be felt immediately. Manufacturing jobs will be lost if parts and supplies don’t arrive. New equipment, machinery and products can’t be built when ships are backed up and there is no one available to unload and process cargo. Our overseas customers won’t wait for us to fix these disruptions, either—they’ll simply find other suppliers, weakening U.S. manufacturing competitiveness in the process.

“This is why the Pacific Maritime Association and the International Longshore and Warehouse Union must not allow a disruption at these ports. Manufacturers, our millions of employees and the countless others whose lives and livelihoods depend on the products we make are counting on the PMA and the ILWU to reach a resolution and keep the ports running.”

Background: At the time of publication, the PMA and ILWU are engaged in labor negotiations. The NAM commissioned an analysis using the Inforum LIFT economic model to quantify the impacts of a 15-day closure at the Los Angeles and Long Beach ports. Specifically, it estimates how such a closure would impact U.S. employment, output and income. These ports have experienced historic disruptions and bottlenecks since late 2020, and nearly 84% of manufacturers now list freight and transportation costs as a key driver of inflation.

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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 12.7 million men and women, contributes $2.71 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.

Policy and Legal

New Unionization Changes Could Harm Manufacturers

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An ongoing push for new unionization policies would be damaging for manufacturers and their workforces, and the NAM is leading the fight against them. NAM Director of Labor and Employment Policy Brian Walsh recently laid out what these efforts are and what they mean for the manufacturing industry.

The background: Recent unionization efforts at major corporations like Starbucks and Amazon have gained headlines across the US. But, according to Walsh, these movements are part of a much broader effort:

  • “Where manufacturers should be really concerned…is the possible changes to union-organizing activity through legislation, such as the PRO Act, or through decisions from the National Labor Relations Board that will change current interpretations of labor law and enact card check nationwide,” said Walsh.

Card check: In case you aren’t familiar with it, card check is an alternative to the secret ballot elections that are required to occur with federal oversight.

  • To begin the unionization process, card check efforts require over 50% of employees to sign a card indicating their interest in forming a union. Card check proposals also jeopardize employees’ right to privately cast their ballots and could lead to less secure union elections, according to Walsh.
  • “The NLRB’s General Counsel, Jennifer Abruzzo, aims to overturn longstanding practices surrounding union elections and card check policies,” added Walsh. “She has also called for overruling prior standards that have given employers the right to speak to their employees on union organizing. This would be devastating for employers.”

PRO Act: “Manufacturers support workers’ federally protected right to collectively bargain, but the Protecting the Right to Organize Act would hurt relationships between employers and employees by allowing unions to access personal employee information in union-organizing drives,” said Walsh.

  • “It is also another way to eliminate the secret ballot by taking away the ability for workers to privately cast their votes in a union election. This makes a worker’s vote known on a physical card for union organizers and their co-workers to see—making them susceptible to pressure campaigns.”

The NAM in action: The NAM is advocating against these policies and has been successful at holding back the PRO Act in the Senate.

  • Most recently, the NAM has been leading a campaign to make sure that card check language is not included in Congress’ final China competition bill.

What’s ahead: “Because of the composition of the NLRB, we expect many cases to be decided against employers,” said Walsh. “This is where the work of the NAM Legal Center is going to be really important in our efforts to beat back union tactics. We will be engaged in NLRB proceedings—and are prepared to go to court when necessary.”

Get involved: To take action on this issue, go here.

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