January 2001
For Members Only
This is the fax/printout version of the monthly newsletter for NCCBI members
__________________________________________________________________________

State’s First Woman Lieutenant Governor to Keynote Legislative Conference

Beverly Perdue, the seven-term state senator who became the first woman elected lieutenant governor, will deliver the keynote luncheon address at NCCBI's Legislative Conference on Feb. 22. The half-day event, which will again take place at the McKimmon Center on the campus of N.C. State University in Raleigh, is open to all NCCBI members. A crowd of about 400 is expected to attend.

Other major political figures invited to appear at the conference include Senate President Pro Tem Marc Basnight, House Speaker Jim Black, Senate Minority Leader Patrick Ballantine, House Minority Leader Leo Daughtry and State Treasurer Richard Moore. NCCBI Chairman Mac Everett of Charlotte will preside at the conference. NCCBI President Phil Kirk will deliver closing remarks before the luncheon.

Traditionally, the governor is the luncheon speaker at the NCCBI Legislative Conference. But because this year's conference falls so close to the NCCBI Annual Meeting on March 21, it was decided not to ask Gov. Mike Easley to address an NCCBI function twice in so short a period of time. Easley has accepted NCCBI's invitation to be the luncheon speaker at the Annual Meeting.

The chairs of NCCBI's seven policy committees will present the positions their groups have studied over the past several months. The recommendations, as reviewed and endorsed by the association's Executive Committee, form the heart of the legislative agenda that NCCBI will pursue in this year's legislative session.

The evening before the Legislative Conference, on Feb. 21, NCCBI will again host a reception honoring members of the General Assembly and other officials. That event, which will run from 5:30 to 7 p.m., will be held at the Capital City Club in downtown Raleigh. NCCBI is accepting sponsorships for the Legislative Reception.
 
Costs for the conference are as follows: For NCCBI members, $35 to attend just the reception, $80 to attend just the conference, or $100 to attend all the events. For non-members, the costs are $45 to attend just the reception, $100 to attend just the conference, or $120 to attend all the events.

NCCBI will mail complete information and registration materials to all members in the weeks ahead.

Conference Agenda

8:30 a.m.: Registration and continental breakfast

9 a.m.: Welcome by Chairman Mac Everett

9:05 a.m.: Senate perspective from Senate President Pro Tem Marc Basnight

9:20 a.m.: House perspective from House Speaker Jim Black

9:35 a.m.: Legislative positions presented by the chairmen of the seven policy committees.

10:15 a.m.: Financial forecast by David Crotts, of the General Assembly's Fiscal Research Division

10:30 a.m.: House minority party perspective from House Minority Leader Leo Daughtry

10:40 a.m.:
Senate minority party perspective from Senate Minority Leader Patrick Ballantine

10:50 a.m.: Break

11 a.m.: Education outlook by Sen. Walter Dalton and Rep. Gene Rogers

11:20 a.m.: Transportation issues by Sen. Wib Gulley and Rep. Nelson Cole

11:40 a.m.: Legislative and administrative priorities by State Treasurer Richard Moore

12:00 noon: Federal issues overview by a representative of the National Association of Manufacturers

12:25 p.m.: Closing comments by NCCBI President Phil Kirk

12:35 p.m.: Wrap-up by NCCBI Chairman Mac Everett

12:40 p.m.: Luncheon and keynote address by Lt. Gov. Beverly Perdue

1:30 p.m.: Adjourn


Hunt challenges Executive Committee to stay behind school reforms
North Carolina's remarkable improvements in public education would not have been possible without the strong support of the business community, Gov. Jim Hunt told the NCCBI Executive Committee during its quarterly meeting last month. "We would not be where we are today in education without NCCBI and the state's business community," Hunt said in remarks at the Dec. 7 meeting on the campus of UNC Charlotte.

The Executive Committee in September unanimously agreed with a request by Gov. Hunt for it to serve as an advisory body to the state Education Cabinet. Hunt spoke at the December meeting to explain what he expected the Executive Committee to do in that capacity. The Education Cabinet advises the governor on education policies. It is composed of the heads of the five branches of education in the state -- the chairman of the State Board of Education, the state Superintendent of Public Instruction, the president of the Community College System, the president of the UNC System, and the president of N.C. Association of Independent Colleges and Universities.

Hunt urged the Executive Committee to continue supporting improvements in public education after he leaves office. "We need to have people to stay on top of this," Hunt said. "Who's going to keep pushing us? That's where you come in," he told the group.

Hunt said his successor, Gov. Mike Easley, will work with NCCBI to continue educational improvements. "He's a willing learner," Hunt said about Easley, "but you're going to have to support him and stay behind him. (Easley) can become a very good education governor if you push him to be one."

Hunt stressed that, despite the national recognition North Carolina has received for improving its schools, much remains to be done and can only be accomplished over time. "I want you to keep up with this thing. I want your ideas on how we can do this better. This is a marathon, not a sprint."

Please welcome these new members
New members that have joined NCCBI from Nov. 1 to Nov. 30 include: Archerd & Cuthbertson, PLLC, Asheville; Rep. Joanne W. Bowie, Greensboro; Craft Homes USA, Monroe; Durham Public Schools, Durham; Forsyth County Public Library, Winston-Salem; Henry Dockworks Inc., Rocky Mount; High Country Bank, Boone; Hudson Brothers Construction Co., Greenville; Hyde County Schools, Swan Quarter; Johnston, Allison & Hord, PA, Charlotte; Mail Boxes Etc., Huntersville; Hon. John Martin, Raleigh; MicroMass Communications Inc., Raleigh; Rep. Mia Morris, Fayetteville; NC Network, Raleigh; Pearson’s Oil Co., Candler; Phillips Interests, High Point; Linda Staunch & Associates, New Bern; WTXY Radio, Whiteville; Yancey Insurance Agency Inc., Raleigh; York Oil Co., White Plains.

State Government Watch

State agencies told to cut spending to deal with worsening budget deficit 
The state's worsening budget situation continues to raise alarms after November receipts came in $106 million under budget. Five months into the state's fiscal year, the General Fund now is $287.1 million below target. Including non-tax revenue, mainly income on investments controlled by the state Treasurer's office, the deficit grows to $301.8 million for the period. NCCBI is stepping up its monitoring of the budget situation by tracking additional revenue line items (see the chart below), including piped natural gas, plus adding a column where we compare year-to-date figures with tax collections from the same period last year.

State officials already have begun some belt-tightening measures to deal with the looming deficit, which State Budget Officer Marvin Dorman said could grow to as much as $325 million. Agency heads have been told their budget allocations will be cut for the rest of the fiscal year. A directive from the Budget Office requires agencies to cut spending by their average reversions for the last five years plus one percent of the agencies' current state appropriation. Exempt from the cutbacks are the Department of Health and Human Services and the judicial branch.

Hunt Administration officials and legislative budget analysts are anxiously awaiting sales tax figures for the Christmas shopping season. No one is expecting a surge in revenues; the hope simply is that the revenue slide will stop there. However, weak December numbers could swell the shortfall by another $70 million to $100 million.

The problem is that tax revenues aren't growing as fast as the state assumed they would when the current budget was adopted last June. For example, the state has collected $169 million more in individual income tax collections through five months of this fiscal year than last. But the budget assumed a growth of $350 million. The same is true in about every line item. Moreover, the state lost a couple of lawsuits over illegally collected taxes and has had to refund $60 million to Ford Motor Co. and Chrysler. That money came out of existing corporate income tax collections, which is why that line item is in the red in the chart above. 

Overall economic conditions in the state remain positive but not as robust as before. Latest available numbers from the Employment Security Commission show the state gaining 27,900 new jobs from October 1999 to October 2000, with seasonally adjusted industrial employment now standing at 3,818,000. Those numbers would have been much better but for the fast that the industrial sector lost 15,000 jobs in October. About half of those job losses were in manufacturing.

Most paychecks are fatter today than a year ago. Manufacturing production workers earned an average of $12.82 an hour in October and worked an average workweek of 41.1 hours for weekly earnings of $526.90. That's $11.60 more than a typical manufacturing worker earned last year at this time. The state recorded 26 mass layoffs in the third quarter, putting 4,316 people out of work. Manufacturing had 17 mass layoffs in the quarter, representing 2,851 workers. Unemployment is edging up a bit even in the metro areas, as shown below:
n Asheville, 2.4 percent, up from 2.3 percent
n Charlotte/Gastonia/Rock Hill, NC/SC, 4.0 percent, up from 3.4 percent
n Fayetteville, 4.0 percent, unchanged
n Goldsboro, 3.5 percent, up from 3.2 percent
n Greensboro/Winston-Salem/High Point, 2.9 percent, up from 2.7 percent
n Greenville, 4.2 percent, up from 4.0 percent
n Hickory/Morganton/Lenoir, 2.8 percent, up from 2.7 percent
n Jacksonville, 3.4 percent, unchanged
n Raleigh/Durham/Chapel Hill, 1.6 percent, unchanged
n Rocky Mount, 5.6 percent, up from 5.0 percent
n Wilmington, 3.4 percent, unchanged


Another weak month for the state budget 

Tax source
dollars in millions

Projected monthly budget

Actual November
collection

Y-T-D projected,
5 months

Y-T-D actual,
5 months

Y-T-D actual,
prior year

% current
collections
vs. budget

Individual income

$575.2

$536.9

$2,914.9

$2,733.6

$2,564.6

93.8%

Corporate income

($28.3)

($72.8)

$112.1

($63.2)

$170.2

(56.4%)

Sales & use

$308.7

$284.3

$1,480.4

$1,456.2

$1,421.3

98.4%

Franchise

$40.6

$50.2

$170.3

$286.7

$182.5

168.3%

Insurance

$2.4

$2.0

$95.9

$89.1

$90.8

92.9%

Beverage

$16.9

$16.2

$71.0

$70.0

$67.1

98.6%

Inheritance

$12.7

$7.7

$63.8

$60.9

76.8

79.8%

Privilege license

$1.8

$1.7

$21.1

$20.8

$1.2

98.6%

Tobacco products

$3.5

$3.6

$17.9

$18.0

$21.7

100.6%

Real estate excise

$1.3

$1.3

$8.4

$8.4

$18.6

100.0%

Piped natural gas

$5.6

$3.2

$18.2

$16.2

$9.0

89.0%

Other

$1.3

$1.2

$2.1

$2.2

$3.5

n/a

Total

$941.8

$835.8

$4,978.9

$4,691.8

$4,639.6

94.2%

SOURCE: Office of the State Controller

 

 

Businesses experience 6,800 fewer on-the-job accidents
F
or the seventh year in a row, fewer workers were injured in on-the-job accidents in North Carolina. According to statistics released last month by the state Labor Department, the total case rate of non-fatal injuries and illnesses in 1999 decreased for all industries, from a rate of 6.0 per 100 full-time workers to 5.7. Private sector workers, meanwhile, saw the injury and illness rate improve from 6.1 to 5.7.

"The rate for injuries and illnesses has improved for many years, and we are certainly pleased with this latest information," said state Labor Commissioner Harry E. Payne, Jr. "With fewer people getting hurt on the job, we are grateful our working citizens see safety as a priority. The Department applauds the obvious focus on safety and health by companies across the state." 

Declines were recorded in most large industry segments. Agriculture, forestry and fishing recorded a 1999 rate of 6.8 injuries and illnesses per 100 full-time workers, down from 7.8 in 1998. Construction saw a rate reduction of 8.2 in 1998 to 6.2 in 1999.
The manufacturing industry segment remained even with 1998 figures at a 7.6 rate while transportation and public utilities improved from an injury and illness rate of 7.2 in 1998 to 6.9 in 1999.

In 1999, there were approximately 184,000 on-the-job injuries and illnesses. Of those, 43,600 were serious enough to require days away from work beyond the day of injury. That compares with approximately 190,800 injuries and illnesses in 1998 with about 48,900 cases with days away from work.

Business Growth

Corning plans second major expansion of fiber-optics plant
C
orning Inc. said it will invest $450 million expanding its optical fiber manufacturing plant in Cabarrus County, creating 475 new jobs in the Concord area and making the facility the largest fiber-optic manufacturing plant in the world. The expansion will run concurrently with a $550 million expansion that Corning announced for that facility last February, "This is unprecedented - a company announcing two expansions of this magnitude in less than a year," Gov. Jim Hunt said. "The increased fiber capacity made possible through the expansion of Concord and the addition of a new facility enables us to keep pace with the tremendous worldwide demand for Corning's optical fiber," said Alan Eusden, senior vice president and general manager, Optical Fiber, Corning. "Our significant contract announcements with key network providers confirm the strong value placed on our fiber products."The new expansion brings Corning's total North Carolina investment to more than $2.5 billion and its North Carolina employee count to more than 6,500. Corning will be eligible for tax credits under the William S. Lee Quality Jobs and Business Expansion Act, including credits for job creation, investment and worker training.

Mooresville ceramics plant expands
NGK Ceramics USA plans a $40 million, 50-employee expansion of its Mooresville production facility, Gov. Jim Hunt said on Dec. 12. The announcement comes on the heels of a $15 million expansion currently under construction and brings the company's total investment in Iredell County to $108 million. "Since NGK first opened its doors in 1988, the company has expanded five times demonstrating their commitment to North Carolina and the quality of the Iredell County area and its workforce," Hunt said. "NGK continues to bring good-paying jobs to our state and is one of our state's greatest ambassadors among Japanese businesses." NGK Insulators of Nagoya, Japan, is the parent company of NGK Ceramics USA and is the world's largest insulator maker. The Mooresville facility produces a unique honeycomb-type ceramic filter used in automotive catalytic exhaust systems. The company will be eligible for investment, job creation and worker training tax credits under the William S. Lee Quality Jobs and Business Expansion Act.

Sports apparel maker picks Northampton County site
FX GEAR, a division of MSFI, will open a new 50-employee sewing, embroidery and distribution operation in Rich Square to make sports apparel for Nike, Champion, Logo/Puma and other clients. The company is purchasing the Mylcraft building on U.S. Hwy 258 in Rich Square to house the operation. "Northampton County will certainly benefit from these new jobs and will hopefully see additional expansion as this company continues to grow," Gov. Jim Hunt said in a Dec. 7 announcement. Jim White, FX GEAR plant manager in Rich Square, said cut-and-sew operations have already been established. He said the company recently entered the second project phase, involving order processing and distribution. This phase also includes a 40,000-square-foot warehousing operation. The project's third phase is planned for next year and could include screen-printing and embroidery operations. If growth stays on pace, White expects to have more than 100 employees by the end of 2001. The company will receive $10,000 from the N.C. Industrial Recruitment Competitive Fund and will be eligible for job creation, machinery and equipment, and worker training tax credits under the William S. Lee Quality Jobs and Business Expansion Act.

German drug maker buys Wilson facility
Wilson's economy got a boost when Eon Pharma LLC, a subsidiary of Eon Labs Manufacturing Inc., purchased the former Novopharm facility from Teva Pharmaceuticals and said it will immediately begin operations at the 275,000-square-foot facility. Eon plans to hire about 60 people in its first year, and be fully operational in two to three years. Eon Labs Manufacturing Inc. is owner by Hexal AG, the No. 2 generic drug company in Germany. 

Federal Government Watch

Preliminary Analysis of OSHA’s Final Ergonomics Program Standard

Prepared for the National Association of Manufacturers by
Lawrence P. Halprin, Keller and Heckman, LLP 
Suite 500 W, 1001 G Street, N.W.
Washington, D.C. 20001
202-434-4177 fax: 202-434-4646

Stated Purpose:
Reduce the frequency and severity of MSDs caused, contributed to or significantly aggravated by acute and/or chronic workplace exposure to the following risk factors: awkward posture, contract stress, force, repetition, and vibration. (Unlike the proposed rule, static posture and cold temperatures are not included.)

SCOPE:
General Industry (does not include Agriculture, Construction, Maritime or Railroad Operations).

Core ELEMENTS:
1) MSD Hazard Information and Reporting;
2) Management Leadership and Employee Participation;
3) Hazard Analysis and Control;
4) Training;
5) Medical Management; and
6) Program Evaluation.

COMPLIANCE PHASES:

Phase I: No later than 10/15/01, provide all employees with information on MSD hazards and the reporting of MSDs and MSD signs and symptoms. Do whatever more is necessary to be in compliance with the requirements with Phase II as they come due.

Phase II: No later than 10/16/01, promptly investigate each employee report of an MSD or an “MSD sign” or “MSD symptom” and, to the extent required by the standard (as explained below), implement management leadership, employee participation, medical management, hazard analysis, and initial hazard controls.

Phase III: To the extent required by the standard (as explained below), implement permanent hazard controls and program evaluation.

COMPLIANCE STEPS:

Step 1: MSD hazard and reporting information
Deadline: Complete by 10/15/01.
Requirements: Provide all employees with required information on MSD hazards and the reporting of MSDs and MSD signs and MSD symptoms.

Step 2: Determine whether reported condition is an “MSD incident” Deadline: Promptly investigate and make determination for reports received after 10/15/01.
Requirements: Determine whether a reported condition is an “MSD incident” requiring further inquiry. Maintain records of employee reports and employer responses. The test is whether the condition:

is work-related (caused, contributed to or significantly aggravated by work); and resulted in days away from work or restricted work (excluding the day of the report), medical treatment beyond first aid, or an “MSD sign” or “MSD symptom” lasting 7 days from report. (Notwithstanding their subjectivity and lack of a severity threshold.)

An “MSD Sign” is one of the following:
Decreased range of motion
Deformity
Decreased grip strength
Loss of muscle function

An “MSD Symptom” is one of the following:
Pain
Numbness
Tingling
Burning
Cramping
Stiffness

Decision Point: If an “MSD incident”, proceed to Step 3; otherwise stop.

Step 3: Is Action Level exceeded?
Deadline: Complete within 7 days of MSD incident determination.
Requirements: Determine whether employee’s job “routinely involves,” on 1 or more days a week, exposure to one or more “relevant” risk factors at or above the following Action Levels:

Repetition:
Performing the same motions every few seconds or repeating a cycle of motions more than twice per minute for more than 2 consecutive hours in a workday. Using a keyboard and/or mouse in a steady manner for more than 4 hours total in a workday.

Force:
Lifting
more than 75 pounds at any one time; more than 55 pounds more than 10 times per day; or more than 25 pounds below the knees, above the shoulder, or at arms’ length more than 25 times per day. Pushing/pulling with more than 20 pounds of initial force for more than 2 hours total per day (equivalent to pushing a shopping cart with five 40 pound bags of dog food). Pinching an unsupported object weighing 2 or more pounds per hand, or use of an equivalent pinching force, for more than 2 hours total per day. Gripping an unsupported object weighing 10 pounds or more per hand, or use of an equivalent gripping force, for more than 2 hours total per day.

Awkward Postures (further clarification from OSHA required)
Working with the back, neck or wrists bent or twisted for more than 2 hours total per day in any of the following described postures diagramed in the standard (Although it is not clear, it only makes sense that these diagrams would be an exhaustive listing of the covered awkward postures): Repeatedly raising or working with the hand(s) above the head or the elbow(s) above the shoulder(s).

Kneeling or squatting. Standing with the (apparently unsupported) back bent forward at least 30 degrees. Working with the (apparently unsupported) neck bent forward some unspecified angle (apparently at least 30 and possibly 45 degrees) and possibly bent back some unspecified angle. (OSHA apparently omitted the angle specifications.) If the diagrams are exhaustive, neck twisting would not be separately covered. Ulnar deviation of at least 30 degrees with open hand or hand gripping object. Wrist extension of at least 45 degrees or flexion of at least 30 degrees while gripping an object.

Contact Stress:
Using the hand or knee as a hammer more than 10 times per hour for more than 2 hours total per day;

Vibration:
Using tools or equivalent that typically has high vibration levels (such as chainsaws, jack hammers, percussive tools, riveting or chipping hammers) for more than 30 minutes total per day.

Using tools or equipment that typically has moderate vibration levels (such as jig saws, grinders, or sanders) for more than 2 hours total per day. (Note: this could include operation of floor cleaning equipment, lawn mowers, and possibly forklifts.)

Decision Point: If have an MSD incident (per Step 2) and a relevant Action Level is exceeded, go to Steps 4, 5, 6 and 7; otherwise stop. OSHA estimates that, on average, approximately 37% of workers will have exposures at or above the Action Levels.

Step 4: MSD Management
Deadline: Initiate within 7 days of determination that relevant Action Level is exceeded.
Requirements: Implement medical management requirements, including: free access to HCP (including multiple HCP review), work restrictions, and WRP for up to 90 days. Maintain records of work restrictions, time off and HCP opinions.

Step 5: Management Leadership & Employee Participation.
Deadline: Initiate within 30 days of determination that relevant Action Level is exceeded.
Requirements: Implement management leadership and employee participation requirements.

Step 6: Train Program Coordinators
Deadline: Complete within 45 days of determination that relevant Action Level is exceeded. Repeat every 3 years.
Requirements: Train employees who set up and manage program.

Step 7: Job Hazard Analysis (JHA)
Deadline: Initiate within 60 days of determination that relevant Action Level is exceeded.
Requirements: Determine whether job poses MSD hazard based on

1) the Appendix D “safe harbor” tools (e.g., NIOSH Lifting Equation);
2) recommendations of a professional trained in ergonomics; or
3) any other reasonable method. (As a practical matter, assume the burden of proof will be on the employer to demonstrate the reasonableness of any alternative method.) Maintain record of each JHA.

Decision Point: If job poses an MSD hazard (i.e., it is a “problem job”), go to Step 8; otherwise go to Step 9 and then Step 11. OSHA estimates that approximately 33% of all workers will have exposures above the “safe harbor” Appendix D exposure levels.

Step 8: Implement Interim Controls
Deadline: Complete within 90 days of determination that relevant Action Level is exceeded.
Requirements: Implement initial engineering, work practice or administrative controls (or PPE where no others are feasible) to “substantially reduce the exposures” to the MSD hazards posed by the problem job. Maintain record of control measures.

Step 9: Train Affected Employees
Deadline: Complete within 90 days of determination that relevant Action Level is exceeded. Repeat every 3 years.
Requirements: Train current employees in problem job, and their supervisors and team leaders.

Step 10: Implement Permanent Controls
Deadline: Complete within later of: a) 2 years of determination that relevant Action Level is exceeded; and b) 1/18/05.
Requirements: Implement permanent engineering, work practice or administrative controls (or PPE where no others are feasible) to control (exposures to) MSD hazards for the problem job so that they: a) are no longer likely to cause MSDs requiring work restrictions or medical treatment; b) are at levels below those “specified” by the OSHA-approved “safe harbor” hazard identification tools (e.g., NIOSH lifting equation, Snook Push/Pull Tables) in Appendix D; or c) if neither “a” nor “b” is feasible, are reduced to the extent feasible with the obligation to re-assess for further feasible controls every 3 years until “a” or “b” is achieved. Maintain record of control measures.
Limitations: The employer’s obligation is limited to the site where the triggering “MSD incident” occurred. The employer may determine that the MSD hazard poses a risk only to the “injured” employee and limit the job controls, training and evaluation of controls for that job to that employee.

Step 11: Program Evaluation
Deadline: Complete within 3 years of determination that relevant Action Level is exceeded. Repeat every 3 years.
Requirements: Implement comprehensive program evaluation and correct any deficiencies. Maintain record of program evaluation.

MISCELLANEOUS REQUIREMENTS AND COMPLIANCE OPTIONS

Retention Periods
Employee reports and employer responses: 3 years
Work restrictions and time off: 3years
HCP Opinion: duration of employment plus 3 years
Job hazard analyses: earlier of 3 years or update
Control measures: earlier of 3 years or update
Ergonomics program evaluation: earlier of 3 years or update

Required Access
All required records but HCP opinion: employees, employee representatives, OSHA and NIOSH.7
HCP opinion: affected employee, holder of employee’s written consent OSHA and NIOSH per written access order.8

Quick Fix Option
Instead of setting up a full ergonomics program, the quick fix option permits the employer to implement a limited program involving MSD management, job hazard analysis, and hazard control and evaluation. This option is only available if, within the last 18 months: (1) no more than one prior MSD incident has occurred in the problem job; and (2) there have been no more than two prior MSD incidents in the entire workplace. In addition, the problem job must be fixed within 90 days of determining that the Action Level is exceeded.

Existing Program Grandfathered
The employer may continue its existing program if it: 1) implemented all of the core elements before 11/14/00; 2) completed a review of the program elements and program effectiveness before 1/16/01 (it is not clear whether completing a review includes completing the correction of identified deficiencies); and 3) fully complies with the MSD management provisions of the standard by 1/16/02. This option appears largely illusory because we believe OSHA would judge compliance with the core elements based largely on how closely the employer’s program matches the more detailed requirements of the full standard. However, that determination is probably better made through a side-by-side comparison between your existing program, assuming OSHA would find it effective, and what the final standard would otherwise require. Technically, a grandfathered program is subject to a compliance inspection on or after 1/16/01. You should assume the employer has the burden of proving that it qualifies for this exemption, and that it would have to be able to make that proof at any future time, which could be many years into the future. Finally, a grandfathered program would appear to have an extra two months to implement WRP.

Business planning issues:

Should I take advantage of the “grandfather” provision?

Should I use the “non-mandatory” Appendix B or develop my own approach (e.g., content, standalone v. part of broader training) in providing MSD information?

What should I do prior to 10/15/01 to ensure Phase II compliance? Primary factors include how far along the existing program is toward compliance, the historical and projected frequency of problem jobs, and the availability of resources and ability to respond in short time frame.

Should I provide the more in-depth ergonomics training to all employees at the site, or all employees likely to be involved in problem jobs before a triggering event, or should I train employees only when required by the standard? At a site with a significant number of employees likely to be in problem jobs, the train-as-required approach, with its relatively short compliance deadlines, could leave the employer looking like a cat chasing its tail.

Which of the OSHA approved analytical tools, if any, are appropriate for the jobs at my site? If I use the NIOSH Lifting Equation, will OSHA say the maximum permissible lift is the “Recommended Weight Limit” (RWL)?, 1.5 x RWL?, 2 x RWL? Do I need outside expertise to make these decisions?

With regard to resources, please consider the following:

OSHA’s Estimate of The number of “MSD Incidents”
Based on the BLS data, OSHA says there are over 600,000 lost workday (LWD) MSDs per year in the United States. OSHA estimates there are approximately twice as many non LWD cases per year (approximately 1.2 million), many of which OSHA believes would qualify as persistent symptom cases. OSHA also asserts that only half of the recordable MSD cases are recorded. OSHA concludes that MSD incident cases will be recorded (and reported to BLS) at a rate 50% higher than current MSD rates.

Estimate of the Number of MSD Reports and Responses
If, for purposes of discussion only, one were to accept OSHA’s estimates, there would be over 900,000 LWD MSDs and 1.8 million non LWD MSDs per year. At a minimum, that could trigger 2.7 million employee reports and 2.7 million employer responses, an average of 7,400 per day across the United States.

Estimate of MSD Incidents, Action Trigger Cases and Problem Jobs
OSHA has estimated that employers will be required to fix almost SEVEN MILLION jobs in the first year the standard is in place. 65 Fed. Reg. 68772, col. 3. That works out to an average of approximately 19,000 jobs per day beginning on October 15, 2001. We would not even attempt to guess at how many employers might be affected. Under any scenario, there certainly would seem to be a question as to whether there are enough in-house and outside consulting resources (especially within the OSHA–supported state consultation services) to service the potential groundswell of demand for ergonomics expertise across the United States on or about 10/15/01 in time to meet the short compliance deadlines under the Standard.


Names in the News

Duke Energy promotes executives
Robert P. Brace
was named executive vice president and CFO at Duke Energy. In other executive changes at Duke, Sandra Meyer was promoted to senior vice president and corporate controller at the holding company. Brace, 50, joins Duke from British Telecommunications plc (BT) in London, England, where he served as group finance director. Brace fills the position that opened in May when Richard J. Osborne was appointed Duke’s chief risk officer. As CFO, Brace will be responsibile for all corporate finance, accounting, tax and investor relations functions. Brace joined BT as finance director for BT UK in 1989, and later was named group controller. He was promoted to group finance director and appointed to the company’s board in 1993. Meyer joined Duke in 1976 and held several accounting positions with various Duke subsidiaries. In other appointments, Chris Rolfe was promoted to senior vice president of human resources, Cary Flynn was promoted to senior vice president of corporate tax, Sue Becht was promoted to senior vice president of investor relations, and Roberta Bowman was promoted to senior vice president of public affairs. Also, Jeff Triplette was promoted to vice president of insurance

Carlisle takes job as head of Economic Opportunity Fund
S
tate Commerce Secretary Rick Carlisle said he will become the managing general partner and CEO of the N.C. Economic Opportunity Fund, an outgrowth of the Rural Prosperity Task Force's recommendations to strengthen rural North Carolina. The private, for-profit fund will use $40 million from private institutional investors and possible additional state monies to leverage more than $100 million to serve start-up and expanding businesses in the state's rural areas. The Economic Opportunity Fund will focus primarily on financing small companies with potential for rapid growth located in rural areas. With current funding, Carlisle expects to invest in 40-65 companies over the next 10 years with funding levels ranging from $500,000 to $5 million. The fund will partner with the Kenan-Flagler School of Business and the Frank Hawkins Kenan Institute of Private Enterprise to bring the school's expertise to rural businesses. Carlisle will also assume an adjunct faculty position at the school.


N.C. State salutes NCCBI
NCCBI President Phil Kirk received an award for the business community's leadership in the successful $3.1 billion bond campaign for community colleges and UNC at the first groundbreaking for a building partially financed with bond money. The occasion was the Dec. 20 groundbreaking for the Ruby C. McSwain Education Center at the J.C. Raulston Arboretum at N.C. State University. Chancellor Mary Anne Fox credited the business community for its lobbying leadership and for organizing the successful campaign through the North Carolinians for Educational Opportunity. Kirk thanked the audience for its support for "the biggest higher education bond package in the history of the United States." Mrs. Ruby McSwain of Sanford and J. Willie York of Raleigh made seven- and six-figure gifts, respectively, to the new facility. Bond money of $500,000 will be supplemented by additional private contributions. 

NCCBI President Phil Kirk has been named an honorary director of the North Carolina Council on Economic Education. He is the fourth person to receive this designation, joining John Medlin, Sherwood Smith and Gov. Jim Martin. The council promotes economic literacy throughout the state, with an emphasis on K-12 students.



 

Philanthropy

Blue Cross backs Smart Start

Blue Cross and Blue Shield of N.C. will partner with Smart Start in a yearlong statewide campaign to raise awareness of local Smart Start resources available to help NC’s children enter school healthy and ready to succeed. The insurer donated $1.2 million toward the campaign, which will hinge on a series of one-minute television segments entitled Building Brighter Futures. The segments will begin airing this month and will address topics ranging from playground safety to dental care. BCBSNC is the campaign’s sole largest corporate sponsor and this contribution is the largest single-year contribution ever made to Smart Start. The total campaign’s estimated value is almost $3 million, including matching contributions by broadcasters from across the state, the Partnership for Children and local Smart Start partnerships.

 
CP&L gives $900,000 to UNC-W
T
he CP&L Foundation has honored two former members of the utility's board of directors, Daniel D. Cameron and Gordon C.Hurlbert, with a gift of $900,000 to the Cameron School of Business at UNC-Wilmington. The CP&L gift establish a development fund and endow two professorships in the business school. The Gordon C. Hurlbert Endowment will support a professorship in information systems. The Betty H. Cameron Professorship, named for Mr. Cameron's wife, will support hiring a distinguished faculty in entrepreneur studies. The Pat Moran Hurlbert Development Fund, named for Mr. Hurlbertıs wife, will use $233,333 of this gift to endow a faculty development fund.

Thrift honored for work with Smart Start
Ashley O. Thrift has received North Carolina's highest civilian honor, the Order of the Long Leaf Pine, for his work as chairman of the North Carolina Partnership for Children. Thrift is a partner with the law firm of Womble Carlyle Sandridge & Rice, PLLC in Winston-Salem. He began his work with Smart Start in 1993 as co-chair of the Forsyth Early Childhood Partnership and became chairman of the North Carolina Partnership for Children board in 1996. Gov. Jim Hunt presented Thrift with this honor during a ceremony at the North Carolina Partnership for Children office in Raleigh, where Thrift was joined by his wife, Dr. Julianne Still Thrift, and daughter, Laura.

Work First Council applauds NCCBI
NCCBI received recognition for its cooperative efforts with the Governor's Work First Business Council at the group's Dec. 11 meeting. Gov. Jim Hunt saluted the business community for hiring 15,840 Work First welfare clients. NCCBI members have been active in this effort. Dr. Bill Atkinson, CEO of New Hanover Regional Medical Center, chairs the council and Sen. Jim Broyhill is the honorary chair. NCCBI President Phil Kirk is a member of the council. The council has worked with many NCCBI members, including local chambers of commerce in working to place welfare clients onto permanent jobs. Polly Hathaway, director of the Work First Business Council, is leaving to go to work as program manager for corporate contributions for Blue Cross and Blue Shield of North Carolina.


The NCCBI Master Calendar of Upcoming Events

JANUARY

25

Thursday

6 p.m. - 7 p.m.

Membership Reception, Winston-Salem area

26

Friday

10 a.m. - 1 p.m.

Environmental Concerns Committee
Capital City Club, Raleigh

FEBRUARY

1

Thursday

11:00 a.m. - 2:00 p.m.

Council of Local Chambers
NCCBI board room, Raleigh

15

Thursday

6 p.m. - 7:30 p.m.

Membership Reception
White Oaks in Charlotte

21

Wednesday

5:30 p.m. - 7:00 p.m.

NCCBI Legislative Reception
Capital City Club, Raleigh

22

Thursday

8:45 a.m. - 2:00 p.m.

NCCBI's Legislative Conference
NCSU McKimmon Center, Raleigh

23

Friday

10 a.m. - 1 p.m.

Environmental Concerns Committee
Capital City Club, Raleigh

MARCH

21

Wednesday

 

Small Business Advisory Board
Raleigh Convention & Conference Center

21

Wednesday

 

NCCBI Annual Meeting
NCCBI Board of Directors Meeting
Raleigh Convention & Conference Center

21 

Wednesday

9:45 a.m. - 11:45 a.m.

Young Executives Forum
 Raleigh Convention & Conference Center

23

Friday

10 a.m. - 1 p.m.

Environmental Concerns Committee
Capital City Club, Raleigh

 

THIS IS THE END OF THE FAX/PRINTOUT VERSION
OF THE JANUARY FOR MEMBERS ONLY NEWSLETTER

 

 

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