First day of Business Summit focuses on competitiveness, international trade

Posted on July 17, 2012 by Kentucky Chamber Blog

On July 16, two Kentucky mayors kicked off the Kentucky Chamber’s Business Summit and Annual Meeting, presented by Bingham Greenebaum Doll, LLP,  with a discussion on how Kentucky’s two largest cities – Lexington and Louisville – compete with other U.S. cities. Louisville Mayor Greg Fischer noted however, that the question should not just be how the cities compete  nationally, but how they compete globally.

Fischer, and Lexington Mayor Jim Gray have been working closely together, along with the help of the Brookings Institution, to identify the main competitive advantages that these two cities offer. Manufacturing – specifically automotive manufacturing – is one thing both cities have in common, with a Ford plant located in Louisville, and a Toyota plant located right outside of Lexington in Georgetown.

To build upon this strength, the mayors recently launched the Bluegrass Economic Advancement Movement (BEAM) – to develop a joint regional business plan supporting the growth of high-quality jobs in advanced manufacturing. Fischer said one of the primary goals of BEAM is to increase exports of Bluegrass Region by more than 50 percent over the next five years.

“We also discovered with Brookings that in a state with 8 percent unemployment, many of our manufacturers say they struggle with finding a qualified workforce,” said Gray. “What can we do differently? We have to recognize that we have a problem and attack it.”

Next on the agenda, Dr. Pearse Lyons, Founder and President of Alltech, provided an update on international trade and connectivity. Under Lyons’ leadership, Alltech has become a global leader in the animal health and nutrition industry, giving him unique insight into making Kentucky “an entrepreneur’s Commonwealth.” Lyons views Kentucky’s future as undoubtedly linked to the imagination and curiosity of its entrepreneurs. Imagination, he said, and our ability to take that vision or image around the world is essential to the Commonwealth’s future in the global marketplace. Lyons inspired the audience with Alltech’s many ventures that have helped give Kentucky and Alltech an international presence and ultimately left listeners with the message that “the future of Kentucky is about doing things.”

At the end of day one of the Business Summit, a panel of business leaders addressed how international trade can benefit the state’s signature industries — horses, bourbon and coal. Former Gov. Martha Layne Collins, who moderated the panel, set the stage with statistics. Exports accounted for:
– 12% of Kentucky’s gross state product in 2011
– 48,000 direct jobs
– 39,000 indirect jobs

On bourbon, Makers Mark Chairman Emeritus Bill Samuels, Jr., noted that the internationalization of bourbon is strong, with Kentucky brands leading the way. The strengh of the industry could create an “inevitable monopoly” for Kentucky, and a few small changes by state government are needed to align state policies with the industry’s prospects for growth.

Keeneland President Nick Nicholson noted that Kentucky, when compared to other countries, is the third largest ‘nation’ in thoroughbred production in the world. International sales are growing, and Keeneland’s strong market share has helped it and Kentucky develop an international brand.

Alliance Coal President and CEO Joe Craft said coal is the fastest-growing fuel in the world and the industry expects demand to increase by 1.3 billion tons in the next four years. Craft said improvement in the national economy should create a higher value for domestic sales of western Kentucky coal.

Click here to download powerpoint presentations from the Business Summit.

Filed under: Economy, Events, Kentucky Competitiveness, Manufacturing, Uncategorized | Tagged: , , , , , , , , , , , , , , , , , , , , | 1 Comment »

Kentucky Chamber offers certificates of origin

Posted on January 11, 2012 by Kentucky Chamber Blog

International exporters can rely on accredited state Chamber to serve trade needs

Kentucky’s future prosperity rests on its preparation to compete in the global marketplace. This means recognizing that our true economic competitors are no longer limited to Ohio, Indiana, Tennessee and other states, but now also include countries like China, Korea and India. The Kentucky Chamber has set the goal of doubling exports from the state over the next five years, and we are working on the policies and partnerships necessary to create the best environment for companies across the Commonwealth to realize that goal.

We are pleased to offer our members who export internationally a reliable source for obtaining certificates of origin. A certificate of origin is a trade document required by customs authorities in destination countries where goods are shipped with the purpose of verifying the country in which the goods were manufactured.

False declarations or those that are fraudulently certified can not only result in severe penalties, but also may harm trade relations between the United States and other countries. With very few exceptions, chambers of commerce are the only institutions granted the authority to issue certificates of origin. The Kentucky Chamber of Commerce is an accredited state chamber under the U.S. Chamber of Commerce, and works in cooperation with the World Trade Center of Kentucky.

Certificates of origin are discounted to $25 per shipment for Kentucky Chamber members. Future members pay $55 per shipment. Contact Denise Scott at 502-848-8724 or Brenda Travis at 502-848-8743.

Filed under: Kentucky Competitiveness, Manufacturing, Small Business | Tagged: , , | Leave a Comment »

Costly unemployment tax increase averted

Posted on September 9, 2011 by Kentucky Chamber Blog

Yesterday, Kentucky paid the first interest payment due to the federal government for money borrowed to pay unemployment claims. By paying it prior to the Sept. 30 deadline, Kentucky employers will not lose the federal tax credits worth a total of $600 million.

For weeks, the Kentucky Chamber has been warning officials that a loss of the federal unemployment tax credit would be devastating to Kentucky employers. During those same weeks, the governor and legislative leaders have indicated a willingness to address the issue before the September 30 deadline. Because the General Assembly is not in session, only the governor could act to avoid the loss of credit by either calling legislators to Frankfort for a special session or finding a mechanism by which the state could make the interest payment.

Despite calls for a special session by legislators on both sides of the aisle, Gov. Beshear opted to avoid a special session and make the payment by authorizing a cash flow transfer to the dedicated account created to pay this interest. The governor explained the transfer in a press release issued late yesterday:

After exhausting all possible options for federal relief, Gov. Beshear authorized the full payment of Kentucky’s interest bill. State law mandates that these interest payments be paid in a timely manner from the Unemployment Insurance Penalty and Interest Account. That account had a balance of $9.8 million, and Gov. Beshear authorized loaning the remaining $18.4 million to the account from the Commonwealth’s management of its overall cash flow.

This internal loan will be managed similarly to other funds where the timing of revenue intake and spending differs within a fiscal year, such as with the Tobacco-Master Settlement Agreement Funds. The $18.4 million internal loan must be repaid by the close of Fiscal Year 2012.

The action taken by Gov. Beshear averts the immediate crisis, but does not address the long-term payment of interest in the future. By “loaning” money to the fund, the governor’s action will require the General Assembly to take action in 2012 to “repay” the loan and to find a funding mechanism for future interest payments. Based on projections by the Unemployment Insurance Task Force Report, Kentucky will have to make these interest payments for the next 4-6 years until the full loan to the federal government is repaid.

The Kentucky Chamber will work with the General Assembly and the administration to find a long-term solution in the best interest of employers that will prevent this sort of crisis in the future. For now, employers across the state can breathe a sigh of relief that action has been taken to avoid what would have been a devastating tax increase. View a message from Dave Adkisson on our YouTube Channel.

Filed under: Kentucky Competitiveness, Labor, Manufacturing, Small Business, Taxes & Budget | Leave a Comment »

NLRB issues final rule requiring business to post notice of labor rights

Posted on August 26, 2011 by Kentucky Chamber Blog

In a move that appears to continue the regulatory attempt to implement the Employee Free Choice Act (aka “card check”), the National Labor Relations Board (NLRB) issued a final rule last week requiring most employers to post a notice of labor rights as provided by the National Labor Relations Act (NLRA). The Kentucky Chamber and other  business organizations submitted comments to the NLRB opposing the rule because the content of the notice is heavily biased towards organized labor. The notice informs workers on how to unionize and its benefits, but mentions nothing about a worker’s right to refuse to pay union dues or the consequences of unionization, such as losing the right to speak directly to management. Although the bottom of the notice contains language stating employees have the right to refrain from unionizing activities, it doesn’t go far enough in balancing the interests of both business and labor. The only major change from the proposed rule to the final rule is the omission of the requirement to have employers send the notice by e-mail, voice mail or text messaging if they usually communicate with their employees in that manner.

Filed under: Kentucky Competitiveness, Labor, Manufacturing | Leave a Comment »

Chamber submits comment opposing NLRB proposed rule to shorten union campaigns

Posted on August 23, 2011 by Kentucky Chamber Blog

The Kentucky Chamber submitted a comment to the National Labor Relations Board opposing a proposed regulation that would drastically reduce the amount of time employers can respond to a union election campaign, from about 40 days to 10-15 days. Unions support these ambush elections because they significantly limit the ability of employers to counter union rhetoric to employees. The rule would also require employers to turn over to unions all voting employees’ names, mailing addresses and work email addresses.

Filed under: Human Resources, Kentucky Competitiveness, Manufacturing | Leave a Comment »

REINS Act brings congressional oversight to overreaching government agencies

Posted on July 22, 2011 by Kentucky Chamber Blog

Rep. Geoff Davis (R-KY) has introduced a powerful bill in Congress that would help reduce regulatory burdens by bringing greater accountability into government agencies. House Resolution 10, the Regulations from the Executive in Need of Scrutiny (REINS) Act, would require Congress to scrutinize every new “major rule” – i.e., a rule with an annual effect on the economy of $100 million or more – proposed by the executive branch and affirmatively approve any such rule before it is enforced on the business community. Complying with multiple layers of regulation diverts valuable resources that could be used for business expansion and job growth.

While the Kentucky Chamber is encouraged that President Obama has charged federal agencies to closely analyze the effectiveness of past regulations, there is nothing in place to limit the scope of future regulations. In a letter to lawmakers, the Chamber voiced support for the REINS Act, believing it would restore a much-needed balance of power that ensures our elected officials have a voice in the adoption of major rules. Economic decisions of this magnitude deserve the rigor of the full legislative process and should not be delegated to unelected bureaucrats.

We applaud Rep. Davis for introducing this bill and his recognition that Kentucky – primarily its signature energy industry – has felt the impact of excessive regulation more than most. Kentucky’s future as an energy production leader is in serious jeopardy due to the unfettered regulatory control of the U.S. Environmental Protection Agency. With the recent passage of sweeping policy changes – from health care to financial reform – and EPA’s targeted regulations on Appalachia coal, there is no better time than now to tighten the belt on far-reaching regulations. The REINS Act will improve Congressional oversight, increase accountability for all branches of government, and ultimately result in smarter, not swollen, regulations.

To learn more about the REINS Act or to show support for this legislation, click the image below.

Filed under: Government Modernization, Kentucky Competitiveness, Manufacturing, Small Business | Leave a Comment »

OSHA issues directive on PPE standards

Posted on March 7, 2011 by Kentucky Chamber Blog

In January, OSHA withdrew its proposal that would have required many businesses to develop administrative or engineering controls in place of personal protection equipment, or PPE (e.g. goggles, face shields, ear muffs, etc). As a sign that the agency intends to ramp up enforcement, OSHA has now issued a directive that provides OSHA personnel with instructions for determining whether employers have complied with the agency’s personal protective equipment standards. The new Enforcement Guidance for Personal Protective Equipment in General Industry clarifies what type of PPE employers must provide at no cost to workers and when employers are required to pay for PPE. The directive also helps employers determine when PPE complies with current consensus standards, and updates PPE enforcement policies based on court and review commission decisions. See the news release for more information.

 

Filed under: Manufacturing, OSHA | Leave a Comment »

OSHA withdraws noise reduction proposal

Posted on February 14, 2011 by Kentucky Chamber Blog

In response to strong opposition by the business community, including members of the Kentucky Chamber, OSHA withdrew its onerous noise reduction proposal that would have required many businesses to develop administrative or engineering controls in place of personal protection equipment (e.g. ear plugs, ear muffs, etc.). Such a change would have substantially increased costs for business without proof that it resulted in a measurable improvement in hearing protection.  In a statement, OSHA Assistant Secretary of Labor Dr. David Michaels acknowledged the shortfalls of the proposal and said there was more work to be done:

… it is clear from the concerns raised about this proposal that addressing this problem requires much more public outreach and many more resources than we had originally anticipated. We are sensitive to the possible costs associated with improving worker protection and have decided to suspend work on this proposed modification while we study other approaches to abating workplace noise hazards.

Filed under: Kentucky Competitiveness, Manufacturing, OSHA | Leave a Comment »

NLRB proposes new regulation requiring labor law postings

Posted on February 1, 2011 by Kentucky Chamber Blog

The National Labor Relations Board (NLRB) has proposed a new regulation that would require most employers to post a notice of labor rights as provided by the National Labor Relations Act. While the NLRB claims the posting would be similar to other workplace notices already required, this proposal is heavily biased towards organized labor. The notice seeks to inform workers on how to unionize and its benefits, but mentions nothing about a worker’s right to refuse to pay union dues or the ramifications of unionization, such as losing the right to speak directly to management. This proposal appears to continue the NLRB’s attempt to pass pro-union measures through regulation since Congress has refused to pass the Employee Free Choice Act (“card check”). If you wish to review the proposal or submit a comment, check it out here. The deadline to comment is February 22. The Kentucky Chamber will also submit a comment in opposition to the proposal. If you have any input, please send Charles George an email at cgeorge@kychamber.com.

Filed under: Kentucky Competitiveness, Manufacturing | Leave a Comment »

OSHA enforcement news

Posted on December 3, 2010 by Kentucky Chamber Blog

OSHA proposes to change its interpretation of the word “feasible” in the following sentence of the noise standards.  “When employees are subjected to sound exceeding those listed in Table G-16, feasible administrative or engineering controls shall be utilized.  If such controls fail to reduce sound levels within the levels of Table G-16, personal protective equipment (PPE) shall be provided and used to reduce sound levels within the levels of the table.” Since 1983, OSHA has allowed employers to rely on a hearing conservation program based on PPE (e.g. earplugs, ear muffs) if the program reduces noise exposures to acceptable levels and is less costly than administrative and engineering controls.

OSHA now plans to interpret the word feasible to mean “capable of being done” or “achievable”.  If it can be done, it must be done.  It will assume the cost of administrative or engineering controls is economically feasible unless the cost threatens the employer’s ability to remain in business.

Employers with facilities where occupational noise levels exceed the 90 decibel exposure limit for an 8-hour shift who are currently utilizing a hearing conservation program with PPE to reduce sound levels below the limit could now be cited and fined.  Under the proposed interpretation these businesses will now be required to reduce occupational noise exposures through development of administrative and engineering controls.

Comments on OSHA’s proposed enforcement policy change are being accepted until March 21, 2011. To submit comments simply click here. For questions or help filing comments, call Charles George at 502-848-8766 or by email at cgeorge@kychamber.com.

Filed under: Manufacturing, OSHA, Small Business | Leave a Comment »

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