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Product Liability Reform
As expected, President Clinton has vetoed the product liability reform legislation passed by Congress last month. The margin of victory in both the House and Senate were considerably below the two-thirds majority needed to override a presidential veto. The bill would have established a uniform federal product liability standard with caps on punitive damages at $250,000, or twice compensatory damages, and the elimination of joint and several liability for non-economic damages. The presidential veto followed strong lobbying by the trial lawyers who oppose the legislation.
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Illegal Immigration Bill
The Senate has defeated an amendment to the illegal immigration bill, S. 1664, that would have eliminated the demonstration projects under which employers are to call the government before hiring new employees to verify that the person's name and social security number match. The amendment was offered by Sens. Spencer Abraham (R-MI), Russell Feingold (D-WI), Mike DeWine (R-OH), Trent Lott (R-MS), Joseph Lieberman (D-CT) and James Inhofe (R-OK) and was defeated by a tabling motion on a 54 to 46 vote. Employer groups, including CORGA and FMI, were successful in making demonstration projects voluntary in the House immigration bill, H.R. 2202. In a visit with Senator DeWine last month, CORGA's executive director, Sammi Soutar, and other food industry representatives discussed the issue. Differences between the House and Senate bills will be resolved in a House-Senate conference committee.
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Commissary Expansion
The Clinton Administration's Department of Defense request to undertake a test giving reservists unlimited shopping privileges was rejected by the subcommittees with jurisdiction over commissaries. Neither the Morale, Welfare and Recreation Panel of the house National Security Committee nor the Personnel Subcommittee of the Senate Armed Services Committee included the expansion provision in their portions of the house and Senate fiscal year 1997 defense authorization bills now being considered at the full committee level. The proposed test was to be regional and to run for one year. Last year, and in 1993, defense authorization bills would have given reservists and all their dependents unlimited commissary access. FMI led the efforts that were successful in having it deleted.
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Minimum Wage Pressure
House and Senate Democrats and some moderate Republicans continue to press for a minimum wage increase. House Republicans blocked another procedural move to force House consideration of the minimum wage issue by a 219 to 203 vote and in the Senate, Sen. Edward Kennedy (D-MA) was blocked again from offering his amendment. In addition, Senate Majority Leader Robert Dole (R-KS) floated a plan to repeal the 4.3-cent-per-gallon gasoline tax increase enacted in 1993 and to link the rollback of the tax with a minimum wage increase. For Congress to move toward its goal of a balanced budget, any cut in the gas tax would have to be offset by matching spending cuts in other programs.
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National Labor Relations
The recently adopted fiscal year 1996 budget package prohibits the National Labor Relations Board (NLRB) from using funds to promulgate the proposed rule regarding single-location bargaining units. The proposed rule provides that an unrepresented single unit is appropriate for bargaining, if there is no other location within a mile; 15 or more employees are at the site; and at least one supervisor is present at the location. FMI filed comments in late January stating that the rule would promote instability in collective bargaining by allowing unions, but not employers, to designate single-location bargaining units. This action means that final decision on the rule will be held up at least until the November elections.
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Inspected Meat Shipments
President Clinton has signed the Farm Bill, Public Law 104-127, the "Federal Agriculture Improvement and Reform Act of 1996 (FAIR)." This law also establishes a seven-member Safe Meat and Poultry Inspection Panel. This U.S. Department of Agriculture advisory panel, to be comprised of food science, meat science or poultry science professionals, will review and evaluate the scientific merit and cost-effectiveness of inspection procedures, petitions and formal changes to current inspection regulations. This new statute also directs the Secretary of Agriculture to submit to Congress recommendations on how to achieve instate shipment of meat inspected under a state meat and poultry inspection program. The Department has 90 days to compile the report.
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'Responsible' Companies Bill
Sen. Edward Kennedy (D-MA) has introduced a bill (S. 1668) that would reduce tax rates for "good" companies that provide job benefits and security to their workers. Specifically, the measure would create a two-tier tax rate for companies to encourage them "to act more responsibly" - the current 35% rate and a reduced 26% rate for "responsible" firms. Under the bill, if a company invests in education and training for its workers, provides specified levels of health care and retirement benefits, and shares its profits with its workers, it will received the reduced tax rate. The hurdles are set so high that few, if any companies would qualify. Additionally, the bill would make changes to the private pension system governed by the Employee Retirement Income Security Act (ERISA), to allow portability of pension coverage and facilitate pension coverage for employees who don't have access to coverage. These provisions implement pension proposals in the President's FY 1997 budget request.
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TEAM Act Legislation
The Senate Labor and Human Resources Committee approved S. 295, the "Teamwork for Employees and Management (TEAM) Act," on party-line vote last month. It is now ready for full Senate consideration. The TEAM Act will amend Section 8(a)(2) of the National Labor Relations Act, allowing nonunion employees and their managers to form teams to address workplace issues involving the terms and conditions of employment. The house passed the TEAM Act on Sept. 27, 1995, by a vote of 221 to 202.
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OSHA Reform Legislation
Last month, the Workforce Protections Subcommittee of the House Economic and Educational Opportunities Committee approved a revamped OSHA reform bill, H.R. 3234, by a vote of 7 to 5. Introduced by Rep. Cass Ballenger (R-NC), H.R. 3234 is a scaled-back version of his original OSHA reform bill, H.R. 1834, which faced strong opposition from labor unions and House Democrats. This new bill would require cost-benefit analysis on OSHA standards, waive certain penalties for businesses with 250 or fewer employees, eliminate certain paperwork violations, codify OSHA's consultation program for small business, and prohibit a practice of measuring agency performance by the number of inspections and penalties.
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FDA Medguide Regulations
Rep. Mike Crapo (R-ID) has introduced legislation, H.R. 3260, to prohibit the Food and Drug Administration (FDA) from using any funding to implement proposed regulations that would establish mandatory patient labeling requirements for prescription drugs. The Pharmacist's Patient Protection Act of 1996, is in response to FDA's Medguide initiative that would require retail pharmacists to provide FDA-approved information when dispensing a prescription to a consumer. It is estimated that FDA's Medguide program, if implemented, would cost community pharmacies in excess of $100 million annually in compliance costs. In his introductory remarks, Rep. Crapo stated that FDA's Medguide regulations are not needed because pharmacists are already providing written information to patients about their medications on a voluntary basis.
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Florida Alleges Dumping
In March, the Florida Department of Agriculture, the Florida Fruit and Vegetable Association, the Florida Bell Pepper Growers Exchange, the Ad Hoc Group of Florida Tomato Growers and Packers, and individual Florida bell pepper growers filed a petition with the U.S. International Trade Commission (ITC), alleging that they have been harmed by the importation of low-cost tomatoes and bell peppers from Mexico. Growers from several other states (California, South Carolina, Texas and Virginia) have joined in the petition. The ITC has announced the institution of a preliminary anti-dumping investigation to see if the U.S. industry has been injured by Mexican imports allegedly sold at less than fair value. The commission has 120 days to announce a decision. If injury is found, the ITC will make a recommendation to the President who then can choose to act or not act on the recommendation.
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Fair Pay Act of 1995
In March, Sen. Tom Harkin (D-IA), along with five cosponsors introduced S. 1650, a bill amending the Fair Labor Standards Act to prohibit discrimination in the payment of wages on account of sex, race, or national origin. Discrimination in compensation for equal work, is already prohibited. This bill goes further and prohibits employers from paying lower wages to employees in a job that is "dominated" by employees of a particular sex, race or national origin than are paid to employees in "equivalent" jobs that are dominated by employees of the opposite sex or difference races or national origins. The bill revives the concept of comparable worth and gives the Equal Employment Opportunity Commission the job of determining violations. To aid the Equal Employment Opportunity Commission in this job, every employer with more than 15 employees will be required to file yearly reports detailing the wages of employees in every job category and providing demographic information of employees in each category. While this bill is not going anywhere in this congress, it is a reminder of the kinds of bills that may be considered in future congresses.
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Anti-Salting Bill
Rep. Harris Fawell (R-IL) has introduced H.R. 3211, the Truth in Employment Act of 1996. The bill amends the National Labor Relations Act to state that nothing in that Act requires an employer to hire persons seeking employment in furtherance of other employment status. In particular, the bill is aimed at a practice referred to as "salting" where professional union organizers, paid by a union, seek a job at a targeted employer's facility for the express purpose of organizing the company or of causing it economic harm.
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Liquor Control States Consider Privatization
The experience of more than 30 states using private stores for four decades suggest that the private sector can sell liquor. However, for decades about a third of the states have peddled it through state and state/local monopolies with government employees as store clerks. The pace of change has been glacial. Until a few years ago, the number of states with liquor monopolies hadn't changed since the end of Prohibition. But that is changing. Several states have been discussing the privatization of liquor sales, including Iowa, Maine, Michigan, Ohio, Pennsylvania, Virginia and Washington. Virginia may see a proposal next year, and Ohio is in the process of implementing amodified program. Control states are closely watching the outcome of Michigan's privatization, which is in its infancy. Ohio currently is in the process of implementing privatization. The state is scheduled to completely shift form stae-run to privately run liquor stores by June 1997. Stores will only sell hard liquor and spirits, not beer, wine or other low-alcohol products. Although supermarkets will now be allowed to sell liquor, there are limitations. Any one individual or entity cannot have ownership of more than four agencies per county, nor eight per state. The private agents do not own the liquor and spirits inventory. The state still owns the inventory, but the retailers have to pay their own rent, utilities and payroll. Agents will receive a 6 percent commission on retail sales and 4 percent on wholesale sales. No one just selling liquor would be able to operate under those commissions. The state is still setting the prices and the agent is not marking up or down the prices. Retailers are basically serving as the state's sales agents on a commission basis. Advertising is also strictly controlled, with retailers only allowed to advertise that they are a state liquor agent. Distillers and distributors can advertise the product with price information. Liquor can be sold anywhere in the store, but has to be in a place where it can be monitored. Hours will also be strictly enforced. Stores can sell liquor between 9 a.m. and 10 p.m. every day except Sunday, when sales are prohibited.
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