The Supplier Spin Blog

The Supplier Spin blog is the source for the latest public policy news and analysis of the motor vehicle parts supplier industry. Bookmark the page or use the orange icon on the top right of the menu bar to subscribe using this site's RSS feed capability.  You can also follow the blog postings by visiting our Twitter or Facebook page. 

   

Rare Earths Take Center Stage with US-China Trade

May 7, 2012

Posted by Dan Houton

On March 13, the United States Trade Representative (USTR) exercised its rights under the World Trade Organization (WTO) and began a two-month consultation phase with China to address China’s export restraints on rare earth materials which are critical to many of the innovative technologies manufactured by motor vehicle parts suppliers.  Should consultations not yield an agreement, as many observers expect, a WTO Dispute Settlement Panel will be initiated.    

Given China controls about 95 percent of the world’s rare earth production, its export restraints (i.e. export quotas and export taxes) have shot up prices for suppliers and other manufacturers in key sectors.  As suppliers well know, even a small cost increase for a critical material can threaten the stability of a manufacturer’s operations.  Though mostly relevant to the original equipment (OE) sector, rare earths will also be critical for aftermarket suppliers as newer technologies, such as hybrid engines, reach more consumers. 

“Upholding our trading partners to their international obligations not only corrects unfair trade practices but also helps maintain the integrity and respect for a rules-based trading system that is essential for American businesses and workers to effectively compete in an increasingly competitive global market,” said Bob McKenna, MEMA President and CEO, in response to a request for public comment from USTR regarding its rare earth case.

As important as the WTO is for addressing serious trade violations with our trading partners, suppliers need reliable supply chains and MEMA looks forward to working with the U.S. government to better secure the materials they need, a task that will likely take on more importance with an increasingly competitive and resource demanding global economy.     

MEMA, on behalf of its affiliate associations AASA, HDMA, MERA, and OESA, is continuing to assist USTR in its case against China’s rare earth export restraints and sees good odds the U.S. will prevail, as it did in a recent and very similar WTO case regarding China’s export restraints on certain raw materials.  

Appeals Court Decision on NLRB Posting Rule - The Right One

April 19, 2012

Posted by Ann McCulloch

Yesterday, the U.S. Court of Appeals for the District of Columbia issued an injunction delaying the effective date in the case brought by the National Association of Manufacturers (NAM) against the National Labor Relations Board (NLRB) regarding the NLRB’s posting rule. 

NAM and other business groups, including MEMA through its amicus brief in the case, challenged the NLRB’s rule that would require employers to post a notice outlining an employee’s right to unionize, arguing it is beyond the authority granted to the NLRB. 

The rule was scheduled to take effect on April 30, 2012. However, with the injunction in place, the NLRB cannot enforce the rule until the court hears arguments and issues a further ruling, delaying the effective date.

The court’s decision is a significant development and puts a check on part of the NLRB’s arbitrary and unnecessary agenda. The NLRB’s other recent rules and decisions are equally as troubling and threaten the balance of employer-employee relations as well as continued job growth and economic recovery. 

The NLRB’s actions need to be seen for what they are – an unprecedented and unwarranted overreach of what Congress intended the NLRB to do.

Transportation Reauthorization Legislation - Critical to Supplier Industry

February 6, 2012

Posted by Catherine Boland

Motor vehicle parts manufacturers depend on effective transportation. Suppliers must be able to provide their customers with the parts, systems, and components needed to efficiently manufacture motor vehicles and equipment. In order to meet this important objective, the industry needs a reliable highway system.

With the current extension of the transportation reauthorization bill expiring at the end of March, it is imperative that Congress take action to ensure the continuation of a safe and efficient U.S. highway system.

Last week, the House Transportation Committee passed a long-term transportation reauthorization proposal. The four and a half-year bill calls for reforms to existing programs, streamlines the project approval process, gives states more flexibility, and encourages private sector participation in infrastructure financing and rebuilding. The Senate Environment and Public Works Committee passed a two-year transportation reauthorization bill, S. 1813, and the Senate Commerce Committee has passed a number of bills concerning vehicle and highway safety.

Once the legislation in the House makes it through the Committees, it is likely to be combined into a comprehensive surface transportation bill which Speaker John Boehner (R-Ohio) has promised the House will vote on prior to Feb. 20. Similarly, the various bills in the Senate Committees are expected to be combined on the floor for full consideration before Congress recessed during President’s Day week.

Transportation authorization legislation provides the critical framework for our infrastructure and regulatory requirements. MEMA is working to include language in the legislation that will encourage the purchase and installation of heavy-duty safety technology and to ensure safety provisions do not increase costs to manufacturers who import vehicle equipment.

 

Focus on What is Needed to Improve Manufacturing Base

January 27, 2012

Posted by Ann McCulloch

With the President’s State of the Union address and the Washington Auto Show which is taking place this week, policymakers are talking about manufacturing, jobs, and the economy. MEMA continues to play a key role in that debate, submitting comments to the President’s Council on Jobs and Competitiveness on what is needed for the nation’s largest manufacturing sector – motor vehicle parts suppliers – to grow and prosper. 

MEMA and its affiliate members AASA, HDMA, MERA and OESA will be bringing their messages to Washington on February 29-March 1 during the supplier industry’s annual Legislative Summit. They will be discussing the need for greater support of advanced vehicle technologies, a realistic regulatory environment, a tax climate conducive to growth, trade initiatives that further expansion, transportation reauthorization, and worker training needs for a changing industry.

We sincerely hope that the President and members of Congress will reach across the aisle and discuss policies that will create an environment in which domestic manufacturers – especially parts manufacturers – can thrive. Hundreds of thousands of jobs and our nation’s economic success hang in the balance. With that much on the line, it is time to set politics aside and get to work on solutions that will make a difference.

Avenues to a Competitive Manufacturing Environment – The Topic on Everyone’s Mind

January 11, 2012

Posted by Ann Wilson

As the nation’s largest manufacturing sector, motor vehicle parts suppliers directly employ over 685,000 people across the nation.  Retaining valuable domestic manufacturing jobs here in the United States continues to be a subject of national debate and MEMA is thankful that issues critical to manufacturing continue to be addressed in such a public light. 

This month alone, the motor vehicle parts supplier industry has been a favorite topic of nationwide discussion.  The Atlantic recently published the article, Making it in America, highlighting the opportunities and challenges faced by aftermarket supplier, Standard Motor Company.  Additionally, supplier companies AGS Automotive, DuPont, Siemens, and Thyssenkrup all participated in a White House forum on the topic of “insourcing” while also exchanging ideas on ways to encourage more companies to invest in the U.S. and how to create more domestic manufacturing jobs. 

From the motor vehicle parts supplier industry’s perspective, this discussion is indeed positive.  We hope to see these thoughts and ideas translated into action – a renewed focus on research and development, investment in advanced vehicle technologies, and worker training programs that address the skills needed for a changing industry. 

MEMA will continue to work with Congress and the Administration on policies that will help achieve our desired result of adding more manufacturing jobs in this country.  For more information on the motor vehicle parts supplier industry’s policy objectives for the coming year, please contact Ann Wilson.

Judge Asks NLRB to Delay Enforcement of MEMA-Opposed Posting Rule

December 20, 2011

Posted by Ann McCulloch

On Dec. 19, U.S. District Court Judge Amy Berman Jackson asked the National Labor Relations Board (NLRB) to delay enforcement of a rule that would require employers to post a notice of an employee’s rights to form a union.  The request came during a hearing in a lawsuit filed by the National Association of Manufacturers (NAM) against the Board which argued that the NLRB lacked authority to compel employers to post the notice.  MEMA, on behalf of its affiliate organizations AASA, HDMA, MERA and OESA, also filed an amicus brief in the case opposing the NLRB’s efforts.  The rule is scheduled to take effect on Jan. 31, 2012. 

“The overreach of the NLRB with this rule and others it is proposing is simply unwarranted,” said Bob McKenna, MEMA’s President and CEO.  “Our members are concerned with retaining and creating jobs and ensuring a vibrant, healthy parts supplier industry.  The NLRB’s agenda would threaten those objectives.”

MEMA Washington office staff continues to work with the NAM, U.S. Chamber of Commerce, Coalition for a Democratic Workplace and other organizations to oppose this rule and others proposed by the NLRB and will keep members aware of any further developments moving forward.  Companies with questions may contact Ann McCulloch.

MEMA – Supported REINS Act Passes House

December 12, 2011

Posted by Catherine Boland

On Dec. 7, the House passed the REINS Act, also known as the Regulations From the Executive in Need of Scrutiny Act, sponsored by Rep. Geoff Davis (R-Ky.).  The legislation would increase Congress’s authority over the executive branch by making any major regulations subject to Congressional approval.  The bill would also change the process so that major regulations would be contingent on Congressional approval.  If a majority in each chamber does not vote in favor, the regulation would not be carried out.

MEMA recently sent a letter to Rep. Davis supporting this legislation.  MEMA believes the REINS Act will provide necessary congressional oversight of major regulations in order to ensure that regulations will not negatively impact job growth and the economy.  Requiring an up-or-down vote by Congress on major regulations will make the legislature accountable to voters for the costs associated with the regulatory proposal.

The measure passed the House on a 241-to-184 vote, which included the support of four Democrats.  However, the bill’s future is now uncertain as it is unlikely to be taken up by the Senate and beyond that, President Obama has issued a veto threat.  MEMA will continue to be supportive of Congressional efforts to examine and place checks on overly burdensome regulation.  For more information, please contact Catherine Boland.

MEMA Files Second Amicus Brief Against NLRB Posting Rule

December 8, 2011

Posted by Ann McCulloch

MEMA continued its efforts to oppose the NLRB’s proposed rule on posting requirements by filing an amicus brief in the U.S. District Court lawsuit filed in South Carolina by the U.S. Chamber of Commerce challenging the National Labor Relations Board’s (NLRB) August 30 Final Rule, siding with the Chamber in its arguments.  This is the second brief MEMA has entered on this issue, following its Nov. 23 filing of an amicus brief in a similar U.S. District Court lawsuit in the District of Columbia brought by the National Association of Manufacturers. 

The NLRB rule would require employers to post a notice of an employee’s right to unionize.  MEMA opposes the NLRB’s mandate to employers to post the notice as beyond the scope of the Board as well as the unfair labor practices that employers would be subject to for failure to comply. 

“This posting rule and our members’ concern over unprecedented overreach by the Board led us to file in the Chamber lawsuit as well,” said Bob McKenna, MEMA’s President and CEO.  “We believe that the NLRB lacks the authority to impose this rule on employers and see it as part of an aggressive, unnecessary agenda that we hope the Courts will be able to put in check.”

MEMA Weighs in with Washington State on Preliminary Copper Regulations

December 1, 2011

Posted by Ann McCulloch

MEMA filed comments with Washington State regarding its Preliminary Better Brakes Rule.

“Overall, we believe these draft regulations provide a balanced approach to the vast majority of issues,” stated Ann Wilson, MEMA’s senior vice president of government affairs.  “We are particularly supportive of the certification requirements.”  However, Wilson cautioned that it is necessary to implement a fair and transparent system to ensure compliance by all parties and urged the State to carefully consider industry’s comments. 

MEMA has been an active participant in Washington’s Better Brake Group and will continue to work on behalf of parts suppliers as the draft regulations move forward.  For more information, please contact Ann Wilson.

MEMA Has Eye on Rare Earth Supply Chain

November 23, 2011

Posted by Dan Houton

In today’s global and complex supply chain, businesses are challenged at times in securing materials and products needed for their produced goods.  One of the more important challenges auto parts suppliers and other key industries face today is availability and price of rare earth elements (REE).     

China currently controls 97 percent of the world’s REE mine production and 50 percent of reserves and has been employing export and production policies that have driven up world prices of rare earth metals in recent years.  A similar approach has been used by China with a number of raw materials important to many businesses which resulted in the U.S. and other countries filing a case against China at the World Trade Organization (WTO).  A WTO decision this summer agreed with the U.S. position and a final appeal decision expected in early 2012 that upholds the U.S. position could add more pressure on the United States Trade Representative (USTR) to file a rare earth case against China.       

MEMA, on behalf of one of its affiliate associations, the Original Equipment Suppliers Association (OESA), sent a letter to USTR Ron Kirk on November 4, urging him to take a strong position against China’s rare earth policies at the U.S.-China Joint Commission on Commerce & Trade annual meeting held on November 20-21.  “While fully aware that there are many pressing issues relating to U.S.-China trade, MEMA joins other key sectors in the belief that rare earth elements should be a priority in the U.S.-China dialogue,” the letter stated.  In the coming weeks, OESA will be conducting a member survey to determine to what extent China’s policies are disrupting the supply of rare earths. 

Attention has also turned to reestablishing a once-robust domestic U.S. rare earth production

industry with a number of bills having been introduced in Congress to assist this effort as well as cooperating with foreign allies to secure new REE sources outside of China.  Conservation of and alternatives to rare earth metals are also being explored.   

China is here to stay as a major economic power and U.S. parts suppliers are eager to compete with anyone if the rules of trade are fair and enforced. 

MEMA Files Brief in NAM-NLRB Lawsuit on Posting Requirements

November, 22 2011

Posted by Ann McCulloch

The Motor & Equipment Manufacturers Association (MEMA), on behalf of its affiliate associations Automotive Aftermarket Suppliers Association (AASA), Heavy Duty Manufacturers Association (HDMA), Motor & Equipment Remanufacturers Association (MERA), and Original Equipment Suppliers Association (OESA), has filed an amicus brief in the U.S. District Court lawsuit filed by the National Association of Manufacturers (NAM)against the National Labor Relations Board (NLRB) concerning its August 30 Final Rule on posting requirements, siding with the NAM in its arguments. 

The NLRB rule would require employers to post a notice of an employee’s right to unionize.  MEMA opposes the NLRB’s mandate to employers to post the notice as well as the unfair labor practices that employers would be subject to for failure to comply.  MEMA also argues that the requirement violates an employer’s right to Free Speech protections as the NLRB cannot compel an employer to promote the agency’s agenda.

“MEMA is taking the unprecedented step of filing a brief in this lawsuit because of the egregious overreach of the NLRB,” said Bob McKenna, MEMA’s President and CEO.  “The NLRB is clearly overstepping the authority it was given by Congress and the rule that it is proposing is contrary to the National Labor Relations Act (NLRA) and a violation of the Constitution.”

The brief also argues that the NLRB has not presented credible evidence pointing to a need to support such drastic changes to its statute.  As such MEMA, urges the court to reject the “unreasonably overbroad interpretation of its authority to legislate substantive changes in the requirements and enforcement of the NLRA, especially where the Board’s actions seriously infringe upon the fundamental Free Speech rights.”

“At a time when job retention and creation should be at the forefront of the Administration’s agenda, the NLRB is instead choosing to move forward with a very partisan agenda,” McKenna continued.  “Not only is this unfortunate, it is potentially disruptive to workplaces across the country, and that is not what is needed to put this country and its economy on a path to success.”

MEMA Weighs in on China Patent Enforcement

November 9, 2011

Posted by Dan Houton

China’s intellectual property rights (IPR) violations are diverse and vast, posing significant challenges to American companies domestically as well as in China, or globally for that matter.  While attention is usually paid to counterfeit goods and piracy, a growing problem relates to Chinese infringers filing patents in China based on foreign patents.      

On Friday, November 4, MEMA filed comments in response to a Federal Register Notice (FRN) from the U.S. Patent and Trademark Office (PTO) seeking public comment regarding concerns/challenges right holders may have with patent enforcement in China.  This is part of a multi-agency effort to “identify and assess the challenges U.S. inventors are facing with China’s judicial and administrative patent enforcement systems.”

 “Given the growing economic relations between the U.S. and China, the world’s two largest economies, it is imperative that intellectual property enforcement in China meets a standard that allows American companies and American innovation to remain competitive” the comments state, reflecting the concerns parts suppliers have with patent enforcement in the increasingly important Chinese market.

The supplier industry is responsible for nearly 40 percent of the U.S. automotive R&D and is responsible for two-thirds of the value of a new vehicle. Much of the intellectual capital required for the design, testing and engineering of new parts and systems for motor vehicles comes from suppliers.  Ensuring foreign governments, particularly in developing countries like China, have the legal and enforcement  mechanisms in place to protect IP is essential for enabling American companies to compete in growing overseas markets. 

MEMA’s PTO comments addressed five key areas of China’s patent enforcement system that were highlighted in the FRN; (1) Acquisition and enforcement of utility model and design patents (2) evidence collection and preservation in Chinese courts (3) obtaining damages and Injunctions (4) enforceability of court orders and (5) administrative patent enforcement.

MEMA continues to be active in advocating policies and other efforts that better protect its members’ intellectual property rights. 

MEMA Brand Protection Committee Meets at National IPR Center

October 14, 2011

Posted by Dan Houton

On Tuesday, October 11, participants of MEMA’s Brand Protection Committee (BPC) met at the National Intellectual Property Rights Coordination Center in Arlington, Virginia to learn about and discuss the Federal government’s efforts to collaborate with industry in protecting America’s intellectual property rights (IPR).    The National IPR Center is a unique federal facility that stands at the forefront of the U.S. government’s response to global intellectual property (IP) theft, coordinating the efforts of 19 agencies and offices. 

The meeting included presentations from agencies such as the Immigration and Customs Enforcement (ICE) division of the Department of Homeland Security (DHS), the Federal Bureau of Investigations (FBI), the U.S. Patent & Trademark Office (PTO) and the Department of Commerce.  The speakers educated MEMA members on how to work with enforcement agencies on counterfeit and piracy cases.  In addition, participants were updated on IPR legislation moving through Congress and other federal efforts promoting IPR protection. 

IPR violations cost the U.S. motor vehicle parts industry billions of dollars each year and the BPC works to make sure the industry’s concerns are being addressed in efforts to combat IPR infringement worldwide.    

Parts Suppliers See Opportunity in Passage of FTAs

October 14, 2011

Posted by Dan Houton

MEMA applauds Congress for passing free trade agreements (FTA) with Colombia, Panama and South Korea on Wednesday and looks forward to President Obama signing them into law.  These agreements are critical to helping America maintain its leading role in the world economy and offer real opportunities for parts manufacturers and their employees in two of the fastest-growing regions: Asia-Pacific and Central/South America.     

The global economy requires America to more actively engage our trading partners, be it through free trade agreements or other trade/investment partnerships, to help grow our economy.  Competition is robust and we can ill afford to neglect these and other markets as key competitors, such as the EU and Canada, employ aggressive trade deals with key countries. 

As manufacturers, MEMA members are ready to take advantage of the pending FTAs which will provide significant business opportunities for American motor vehicle parts manufacturers, ensuring jobs and helping to restore manufacturing to its rightful place in America's economy.

Progress Made on Intellectual Property Rights (IPR) Enforcement

October 6, 2011

Posted by Dan Houton

After three years of negotiations, the United States and seven other countries signed the Anti-Counterfeiting Trade Agreement (ACTA) on Saturday, October 1, in Tokyo.  Joining the U.S. in signing the agreement were Australia, Canada, Japan, Republic of Korea, Morocco, New Zealand and Singapore.  The EU, Mexico and Switzerland were parties to the negotiations of the agreement and are expected to sign after completing required domestic procedures.   Together, these countries represent half of world trade and efforts will be made to expand ACTA membership to other key trading partners. 

This agreement represents significant progress in the worldwide effort to combat infringement of intellectual property rights (IPR).  The global proliferation of counterfeiting and piracy hurts innovators and legitimate businesses,  but ACTA allows for better collaboration among trading partners seeking to provide effective IPR enforcement through three key provisions: (1) enhanced international cooperation; (2) promotion of sound enforcement practices; and (3) a strengthened legal framework for IPR enforcement in the areas of criminal enforcement, enforcement at the border, civil and administrative actions, and distribution of copyrighted material on the Internet.

This is great news for MEMA members who must protect their trademarks and other intellectual property.  IPR violations cost the U.S. motor vehicle parts industry billions of dollars each year.  MEMA’s advocacy for protecting its member’s intellectual property is lead through its Brand Protection Committee (BPC).  The BPC is holding its next meeting on October 11 at the National Intellectual Property Rights Coordination Center in Arlington, Virginia.  This unique federal facility stands at the forefront of the U.S. government’s response to global intellectual property (IP) theft and the meeting will offer presentations from enforcement agencies such as the Federal Bureau of Investigations and U.S. Immigration and Customs Enforcement to educate MEMA members on how to work with enforcement agencies on counterfeit cases. 

On the legislative front, MEMA this week participated in an industry coalition lobby day to advocate for “Rogue Sites” legislation which seeks to cut off foreign websites, dedicated to counterfeiting and piracy, from American commerce.  The Protect IP Act was introduced in the Senate (S. 968) in July and has strong bipartisan support.  The bill is expected to be introduced in the House in the coming weeks. 

Manufacturers See Important Gains in Panama FTA

September 30, 2011

Posted by Dan Houton

Though a small country, Panama is critically important for trade prospects for American businesses and workers.  The pending US-Panama Free Trade Agreement (FTA) will allow for increased trade between Panama and American companies.  With a $5 billion expansion of the Panama Canal, Panama’s role as a shipping gateway will greatly increase, providing more opportunities for American trade flows and investment in fast-growing Latin America.  Currently, about two-thirds of the Canal’s shipments go to or come from U.S. ports.  At the same time, Panama is one of the fastest growing economies in Latin America with annual growth in the next four years projected around 7 percent.

A small but growing auto trade market, American motor vehicle parts suppliers are eager to do more business in Panama where 96 percent of U.S. auto parts will receive duty-free treatment immediately upon implementation of the FTA and 78 percent of motor vehicle imports will be duty free immediately.  This is particularly beneficial to the U.S. as 100 percent of vehicles in Panama are imported.  In addition, auto-part import companies in Panama not only serve the domestic market but also serve as a hub for exports to Central and South America, thereby giving American manufacturers greater access to one of the world’s fastest growing regions.

Competition is heating up in Panama where, in addition to a number of existing FTAs with other Latin countries, Panama recently has signed FTAs with Canada and the EU that await ratification in the near future.  MEMA’s members are eager to do business with Panama and help grow the American economy.  They are just waiting for Congress to pass this important FTA along with pending FTAs with Colombia and Korea.

House Members Deserve a Thank You for Vote to Curb NLRB Power, MEMA Files Comments on Labor Department Rule

September 27, 2011

Posted by Ann McCulloch

Recently, the U.S. House of Representatives took an important step to protect U.S. employers from egregious government intervention by passing H.R. 2587, the Protecting Jobs from Government Interference Act.  In response to the House vote, MEMA president Bob McKenna issued a statement praising the House for passing this legislation, stating “this bill reigns in the National Labor Relations Board and prevents a government agency from dictating where a business may locate a facility or invest in a community.” The bill passed by a vote of 238 to 186. 

McKenna also urged the Senate to quickly take up and pass similar legislation “so that businesses can focus on making critical decisions free from government intervention.”  Without Senate consideration and passage of this bill, it cannot become law. 

On the regulatory front, MEMA also last week filed comments with the Department of Labor responding to a proposed rule that would change the definition of persuader activity.  MEMA opposed the proposed rule as it would effectively limit an employer’s right to consult an attorney in matters related to union elections.  MEMA has also responded with comments to an NLRB proposed rulemaking that would shorten the time frame in which union elections are held.

Labor issues remain a top priority for the supplier industry and MEMA’s Washington office will continue to actively voice the views of AASA, HMDA, MERA and OESA members through the appropriate legislative and regulatory channels.  For more information on these issues, or what your company can do to become more involved, please contact Ann McCulloch, 202-312-9242, amcculloch@mema.org.

Remanufacturing Summit Focus on Jobs, Sustainability Gets Bipartisan Support

September 22, 2011

Posted by John Chalifoux

Over the last two days, MEMA and MERA helped host the first-ever Remanufacturing Legislative Summit in Washington, DC.  The awareness of remanufacturing –the products and processes, chances for domestic job creation, and environmental benefits—has truly been elevated on Capitol Hill by this event, and we are very grateful to all of the companies that participated.  A few highlights:

The Congressional Remanufacturing Reception attracted nearly 200 attendees— including Members of Congress, congressional staff and federal agency representatives —to interactive exhibits that showcased the sustainability and job creation benefits of remanufacturing.  During the 60 individual meetings with Congressional offices, many lawmakers from both political parties expressed an interest in touring MERA member facilities and starting a dialogue on how best to promote remanufacturing in the United States. 

In short, the MERA Remanufacturing Legislative Summit was a great success and paves the way for future policy discussion about how to advance the industry. Many thanks to the attendees, guest speakers, exhibitors, Remanufacturing Industries Council and MEMA/MERA staff for making this event possible.  Much more to come as MERA and the MEMA DC staff follow up on our work here over the last two days! 

MEMA Discusses Importance of Remanufacturing at APEC 2011

September 19, 2011

Posted by Ann Wilson

MEMA participated in a workshop on remanufacturing held during the 2011 Asian Pacific Economic Cooperation meeting on September 16. 

The APEC economies have worked for many years to address trade barriers impacting remanufactured products, and MEMA joined other industry leaders in discussing the importance of remanufacturing and the environmental and economic benefits of a vibrant remanufacturing industry.  APEC countries were particularly interested in defining remanufacturing and creating distinctions between remanufacturing, rebuilding, and refurbishing.

MERA President John Chalifoux will participate in an exhibit of remanufactured products to be held on September 23.

For more information or copies of our presentation, contact Ann Wilson (awilson@mema.org)

Expect more postings on remanufacturing after the conclusion of the first-ever MERA Remanufacturing Legislative Summit on September 20-21 in Washington, D.C.

Patent Reform Good for Manufacturers

September 13, 2011

Posted by Ann McCulloch

Motor vehicle parts manufacturers play a critical role in developing new technologies that make cars and trucks safer, more fuel efficient, and smarter.  As such, suppliers are leaders in innovation within the transportation sector and rely on a healthy and vibrant patent system in order to continue this innovation. 

Last week, the Senate took steps to encourage innovation across all sectors by passing the America Invents Act and sending this important piece of legislation to the President for signature.  This legislation, which makes the most sweeping changes to our nation’s patent system in decades, will modernize and update the U.S. Patent and Trademark Office (PTO).  The revisions in this bill will streamline the existing system, making it easier to get patented goods to the marketplace.”

While the bill is not perfect and does not give the PTO complete control over the fees they collect from patent applicants, it does make important changes to the current system including changing to the false markings law to allowing only the federal government or a party that has suffered a competitive injury to bring a false marking claim against a patent holder and creating new post grant review procedures and new reexamination procedures.

Implementing this legislation will improve the quality of patents that are granted and will also improve and speed up the examination of patent applications, addressing the backlog of 700,000 patent applications.  This will ultimately allow advances in technology to be brought to market more quickly, improving the quality of future cars and trucks.

Proposed Labor Regulations Demonstrate Administration’s Overreach, Threaten Jobs Agenda

September 8, 2011

Posted by Ann McCulloch

With the President set to unveil his jobs agenda to the nation tonight, one very critical item will most certainly not be discussed that should be – the unnecessary and potentially damaging proposed regulations and other rulings that have been coming from the National Labor Relations Board and the Department of Labor regarding union activity.  The recent NLRB decision in the Boeing case, two proposed DOL and NLRB regulations, and one recently announced NLRB case all mark a significant overreach on the part of the Administration and a disturbing trend that needs to be reversed. 

Activity at the NLRB began to pick up over the summer when the NLRB announced that it would block Boeing from locating a facility in South Carolina, favoring instead a location in Washington State.  This type of government intrusion into a business decision sets a dangerous precedent.  In late June, the NLRB also issued a proposed rule that would dramatically shorten the time frame in which a union election may be held.  MEMA opposed this rulemaking and filed comments with the NLRB, joining many in the business community with similar views.  On the same day that the NLRB rulemaking was issued, the Department of Labor released a proposed rule which MEMA will also oppose that would change the definition of persuader activity, effectively limiting an employer’s ability to seek counsel in matters relating to union elections.  Lastly, the NLRB’s recent ruling in the case of Specialty Healthcare and Rehabilitation Center of Mobile, the Board issued a decision that creates a scenario in which as few as two people can comprise a collective bargaining unit.   

MEMA is encouraging all AASA, HDMA, MERA and OESA members to weigh in with their Members of Congress and express strong opposition to what amounts to back door card check efforts coming from the DOL and the NLRB.  Suppliers can also support a bill in Congress, H.R. 2587, the Protecting Jobs from Government Interference Act, which will help curb NLRB efforts by giving employers the freedom make critical business decisions such as where to locate a facility without government interference.  More information can be found on MEMA’s Action Center.   

Especially given the continued precarious state of the economy, Congress and the President need to take a closer look at the detrimental impact these proposals would have and take immediate actions to stop their implementation.  Quite simply, now is not the time for agencies within the Administration to be following anything but an agenda where job retention and expansion are the main components.

 

What Can Washington do to Create Jobs and Restore Confidence – Work Together

September 7, 2011

Posted by Ann McCulloch

Jobs and the economy – what has been the subject of so much recent debate will again take center stage this week as the President prepares to address the nation on Thursday.  House Speaker John Boehner (R-Ohio) will follow the President’s speech with a major address of his own next week.  While few details have been forthcoming on the President’s remarks, the Republican plan relies heavily on relief from significant regulatory burdens and targeted business tax cuts. 

MEMA is very supportive of efforts to relieve the pressure many business face from unnecessary and overly burdensome regulations and applauded the President’s recent withdrawal of the Environmental Protection Agency’s (EPA) proposed ozone standards.  However, motor vehicle parts suppliers also have serious concerns with EPA’s new “boiler MACT” rules as well as recent National Labor Relations Board and Department of Labor proposals that would change established procedures and timelines in matters relating to union activity.

In addition to regulatory relief, MEMA believes Congress and the Administration need to work together immediately to support specific efforts to spur job creation, including: 

  • Protecting intellectual property by passing of meaningful patent reform legislation;
  • Boosting trade with the passage of the three pending trade agreements with Colombia, Panama, and South Korea; and
  • Securing needed infrastructure investment through a transportation reauthorization bill. 

What is overwhelmingly clear is that there is a growing need for partisan politics to be set aside so that the hard work of repairing the economy and building confidence may occur.  From the supplier industry’s perspective, this is not something that one side of the aisle, or even Congress or the Administration, can tackle alone.  The challenges motor vehicle parts manufacturers face every day are real, and the solutions must be as well.

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