The NAM leads the fight for a strong manufacturing economy. Thanks to member involvement and effective Washington lobbying, the NAM gets results!

2001 Bottom-Line Achievements for Manufacturers

• Historic Win on OSHA Ergonomics Rule
  Thanks to a united business community, NAM member/coalition lobbying and a pre-emptive NAM lawsuit against OSHA, Congress in March 2001 overturned OSHA’s $18 billion ergonomics (repetitive motion) rule. Major problems with the rule: 1) even the best corporate programs could not meet the standard; 2) it would have usurped workers’ comp laws; 3) employers would have been liable even for injuries aggravated—but not caused—by work; and 4) every firm would have to set up detailed programs, even if only one injury was reported.

• Interest Rates
  For several years, the NAM has been the leading national advocate for the view that our nation can achieve—and should pursue via monetary and fiscal policy--strong economic growth without fear of inflation. We’ve advocated that view in meetings with Fed Chair Alan Greenspan and media interviews, and helped to reshape the national dialogue. In 2001, given a slow economy, the Fed has acted to reduce interest rates significantly.

• Blacklisting of Federal Contractors
  In April 2001 the Bush Administration suspended the Clinton Administration’s contractor-blacklisting rule. The NAM helps lead the coalition the combated the rule. Government procurement officers said they did not have enough time to comply with the rule, nor did they feel qualified to make the subjective judgments about contractors that the rule required.

• ERISA Pre-emption
  Heeding NAM arguments, the Supreme Court in March 2001 handed down a decision in Egelhoff v. Egelhoff. It affirmed employers’ ability to administer benefits plans without the muddling effects of numerous and often conflicting state laws.

• Product Warranties
  In Cooper Tire v. Crosby, the Georgia Supreme Court in February 2001 reversed an ill-advised decision handing trial lawyers another avenue to sue manufacturers. The NAM had filed an amicus brief.

• GetTech! Math and Science Education
  The NAM’s Center for Workforce Success is the lead sponsor of GetTech. This unique multimedia program encourages middle-school students to take math and science seriously, so as to be ready for the "cool" engineering and technology jobs of the future. GetTech public service announcements have aired on TV thousands of times; and packets have been sent to more than 14,000 middle schools. Learn more at http://www.gettech.org/.

1999-2000 Achievements (106th Congress)

• China PNTR (Permanent Normal Trade Relations)
  Describing our pro-China trade leadership, The New York Times called the NAM "the nation’s chief business lobbying group." Overcoming stiff opposition, the NAM marshaled bipartisan support for P.L. 106-286, giving U.S. companies far more access to China’s 1.3 billion consumers. We helped forge plans for a bipartisan commission to monitor human rights, compliance and import surges. A major NAM compliance initiative will help the U.S. enforce China’s WTO commitments.

• R&D Tax Credit – Record-Length Extension
  One of the foremost achievements of the 106^th Congress was the five-year extension of the R&D credit. The NAM, part of the R&D Credit Coalition leadership, played a major role in this victory, which greatly enhances firms’ ability to plan R&D projects. In 2001, the NAM is lobbying for a permanent R&D credit via congressional staff briefings, a coalition Web site (www.nam.org/RnDcredit) and more.

• H-1B Visas
  The NAM led the coalition that in October 2000 secured a law to enable employers to hire the high-skill people they need—without arbitrary quotas—to maintain our global competitiveness. The law raised the arbitrary quota on H-1B visas through FY 2003, improved the green card process and allocated more application-fee monies to education and training.

• Fuel Economy Standards – Savings of $3,000 per New Vehicle
  NAM members helped convince Congress to block the Clinton Administration’s plan to jack up corporate average fuel economy standards in 2000. An increase could raise the price of U.S.-made vehicles by up to $3,000 (according to the National Academy of Sciences.)

• Defense of the Corporation
  During the autumn of 2000—on the premise that the best defense is a good offense—the NAM went on the offensive against corporation-bashing by the Gore campaign and others. Our efforts included NAM Chairman Tim Timken’s meetings with journalists in Washington and New York newspaper, op eds and interviews on national television.

• Foreign Sales Corporations (FSCs)
  In 2000, U.S. manufacturers faced a potential of $4 billion in European Union sanctions and an added $4 billion in taxes annually, after the WTO ruled FSCs to be an illegal trade subsidy. The NAM organized meetings between key congressional leadership staff and business that were pivotal in overcoming late-session legislative hurdles and preserving these key tax benefits, via a sound FSC replacement law.

• Electronic Signatures
  In June 2000 Congress enacted electronic-signatures law P.L. 106-229, which provides a framework for making e-signatures legally reliable, uniform and convenient. Several trade associations, led by the NAM, supported the bill early on and helped shape the measure through the legislative wickets during two-and-a-half years of work.

• Leadership in Promoting the Growth of E-Commerce
  Electronic commerce promises a new generation of productivity and efficiency improvements for manufacturers. The NAM facilitated this growth by winning enactment of the e-signatures law, launching a state-of-the-art B2B marketplace (www.manufacturingcentral.com), hosting roundtables that examine emerging e-commerce issues, educating policy-makers on the topic and supporting the moratorium on discriminatory e-commerce taxes.

• Product Safety (Tire Recalls)
  A reasonable law (P.L. 106-414) related to tire recalls in 2000 wisely omitted criminal penalties in product liability suits. The NAM opposed and pledged to "Key Vote" a Senate proposal that would have jeopardized cooperation between federal authorities and manufacturers by criminalizing subjective engineering judgments.

• Rebuilding The Bipartisan Consensus on Trade
  Support for international trade hit a low point in late 1999, when efforts to start a new round of WTO talks failed in Seattle. But the trade-education efforts of NAM members—on Capitol Hill and around the country—plus coalition lobbying led to Congress’ adoption of key trade measures in 2000: China PNTR status, re-affirmation of U.S. membership in the WTO and bolstered U.S. trade with Caribbean and African nations.

• Health Reform
  During the 106^th Congress, NAM members initiated thousands of letters, faxes and calls to legislators, successfully urging rejection of the Kennedy-Dingell-Norwood bill. Going far beyond the consensus protections that could have been enacted, this scheme would have cost employers more than $1,000 per worker, and individual employers subjected to health care lawsuits could have faced multi-million dollar judgments. This victory effectively saved the employer-provided health care system.

• Backdoor Rulemaking
  The NAM repeatedly called public attention to—and offered specific examples of—the Clinton Administration’s pattern of exceeding its legal authority and circumventing formal rulemaking procedures. NAM lawsuits halted agency action in 4 of 13 examples. Our FOIA request in September 2000 forced EPA to make public 88 "midnight" regulatory decisions it planned for the final months of the Administration.

• Installment Sales
  NAM members’ lobbying succeeded in removing an unfair tax burden on thousands of smaller manufacturers in late 2000 when policy-makers restored the installment sales rule. Congress restored the pre-1999 policy, allowing sellers of a business to pay portions of their capital-gains tax bill as they receive payments from the buyer, rather than all at once.

• Confidentiality of Competent Authority
  In another victory for NAM members, then-President Clinton signed legislation guaranteeing the confidentiality of competent authority agreements, pre-filing agreements, closing agreements and all related background information. The NAM worked closely with two other business groups to achieve this important victory.

• Federally Permitted Releases Lawsuit (NAM v. EPA)
  An NAM lawsuit (NAM v. EPA) convinced EPA to suspend its interim guidance on federally permitted releases (FPRs). It would have sparked between 1.5 million and 2.25 million new emissions reports—with few environmental benefits. The NAM accused EPA of ignoring industry comments and reversing longstanding policy on FPRs mandated under two environmental laws (CERCLA and EPCRA).

• India Trade
  Since 1994, the NAM and Confederation of Indian Industry have worked to expand U.S.-India trade. In 2000, we hosted Indian Prime Minister Vajpayee and brought together 300 business and government leaders from the two countries, laying the foundation for more progress. The same week, the Ex-Im Bank agreed to promote $1 billion in U.S. exports to India. A $500 million MOU with the State Bank of India will help small and medium Indian businesses buy U.S. goods.

• Pre-Merger Notification (Hart-Scott-Rodino) Fees
  NAM-member testimony and lobbying was instrumental in persuading Congress to reform the outdated 1976 Hart-Scott-Rodino antitrust law. The law refocused federal reviews on the largest mergers, allowing firms involved in smaller mergers to save the $45,000 filing fee plus immense paperwork burdens.

• Global Climate
  For the third consecutive year, the NAM in 2000 helped convince Congress to enact Knollenberg (R-MI) appropriations language preventing EPA from implementing the flawed Kyoto Protocol. The treaty would severely disrupt the economy via major reductions in greenhouse gasses, energy taxes and more.

• Trucking and JIT Deliveries
  Delaying the Transportation Dept.’s (DOT) trucking "hours of service" rule until at least 10/1/01 saves manufacturers thousands of dollars in 2001. The regulation, ostensibly for safety reasons, seeks to regulate truckers’ hours, but would actually increase congestion by forcing more trucks onto the road during rush hours.

• Encryption
  The NAM was at the forefront of 106^th Congress efforts that persuaded the Clinton Administration to lift restrictions on the strength of encryption hardware and software that American companies can send abroad—a significant victory.

• Patent Reform
  Adopted with strong support from NAM member lobbying, the American Inventors Protection Act of 1999 has helped speed up the patent-issuance system and reduce litigation. These reforms constitute the most important changes to the Patent Act in 50 years.

• NAM Virtual University
  From the shop floor to the corporate office, NAMVU offers a wide range of courses from OSHA compliance and Haz-Mat handling to marketing and customer service. It all but eliminates down time for training away from the factory floor. It offers more than 700 courses from 10 virtual colleges at http://www.namvu.com/.

• Blocking Terrorist Attacks on Chemical Plants (risk management plans)
  The NAM formed a coalition, recruited the FBI and state/local safety authorities; helped draft bipartisan legislation and secured support for a 1999 law that blocked terrorist electronic access to corporate worst-case-scenario estimates for chemical accidents at factories.

• Agribusiness Mergers & Acquisitions (M&As)
  The NAM was the first broad-based group to warn against and "Key Vote" a proposal that would have plagued the agribusiness sector and set a dangerous antitrust law precedent. Defeated in the Senate 71-27, the Wellstone (D-MN) scheme that would have imposed an 18-month moratorium on agribusiness M&As, preventing struggling small firms from saving jobs and salvaging assets.

• Environmental Justice
  An NAM-led coalition helped derail EPA’s unworkable 1998 interim guidance, which affected firms seeking environmental permits.

• Factory Disruptions Averted
  1999 Fastener Quality Act regulations threatened to disrupt U.S. factories via delays in production and delivery of fasteners used in thousands of products. An NAM-hosted coalition saved the auto industry alone $330 million via a new law that focuses on prosecuting counterfeiters instead of duplicative recordkeeping and testing for all firms.

• Y2K Liability
  The NAM was the business community’s leader in pursuing reforms to avert a potential Y2K litigation nightmare. The NAM-led coalition won enactment of 1999 legislation that provided safeguards against potential Y2K class-action suits and a "cooling off" period so companies could fix problems before going to court. In 1998, we helped draft and win enactment of a bill that fostered Y2K information sharing. We also convinced the Justice Dept. to permit NAM members to share Y2K information without fear of government antitrust litigation.

2000 Court Victories

• Sanctions
  Heeding NAM arguments, the Supreme Court struck down a Massachusetts law that penalized companies doing business in Burma by adding 10 percent to their bids for state-procurement contracts. Hence, U.S. companies will no longer have to choose between $500 billion in bidding opportunities for state/ local government contracts and $785 billion in trade with countries targeted by sanctions.

• Deductibility of Wages, Benefits (INDOPCO)
  NAM arguments prevailed in two key court decisions that counter IRS efforts to countered historically deductible wages and benefits as capital expenses. The decision helped companies avert major administrative burdens, as firms that offer consumer financing would have been required to keep timesheets and allocate a portion of employees’ time to sales and a portion to financing.

Litigation Highlights -- 1998

The NAM’s powerful litigation and amicus program has not only focused judicial attention on the impact that major cases have on American manufacturers, but also has helped lead to victories in many cases.

• United States v. Bestfoods
  A unanimous Supreme Court specified limited circumstances when a parent corporation may be held liable, under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), as an operator of a polluting facility that is owned and operated by its subsidiary.  The NAM’s amicus brief opposed unlimited derivative liability.

• Faragher v. Boca Raton
  Although the Supreme Court declined to use the NAM’s proposed negligence standard for employer liability for hostile environment sexual harassment claims, it did adopt a clear affirmative defense to help conscientious companies avoid liability.

• The Steel Company v. Citizens For A Better Environment
  In a sweeping victory, the Supreme Court agreed with the NAM that Congress did not intend to authorize citizens to seek penalties for violations of the Emergency Planning and Community Right-to-Know Act of 1986 ("EPCRA") that were cured before the citizen suit was filed.

• Chamber of Commerce v. Department of Labor
  The NAM and other groups secured a court-ordered stay of OSHA’s "Cooperative Compliance Program," which targets nearly 12,000 manufacturers and other selected companies for comprehensive inspections or enrolling in a compliance program with requirements that previously had been voluntary.

• IBP, Inc. v. Herman
  In this safety case, the NAM urged the D.C. Circuit to rule that host employers are never liable under OSHA law for the unsafe acts of the employees of contractors. The D.C. Circuit issued a ruling limited to the facts. This issue is likely to recur.

Litigation Highlights -- 1997

• State Oil Co. v. Khan
  In a landmark result, the U.S. Supreme Court overruled a 29-year-old precedent that had prevented manufacturers from being able to put resale price ceilings on their products.

• Klehr v. A.O. Smith Corp.
  The U.S. Supreme Court agreed with the NAM to limit excessive delay in enforcing the statute of limitations against plaintiffs in RICO cases.

• General Electric Co. v. Joiner
  The Supreme Court agreed to use an NAM-supported "abuse of discretion" standard to allow trial courts the flexibility they need to determine whether expert testimony is reliable.

• 3M v. Nishika, Ltd.
  The Minnesota Supreme Court agreed to interpret that state’s version of the Uniform Commercial Code to preclude a buyer of allegedly defective goods from suing for economic losses outside the normal breach of warranty remedies.