Area meetings end 22 cities 
and hundreds of new friends later

After crisscrossing the state with stops in 22 cities, NCCBI wrapped up its annual fall membership meetings at a reception in Wilmington on Nov. 6. Chairman Mac Everett, as energetic and enthusiastic at the last meeting as he was at the first, declared the annual tour a success. 

“What a thrill it’s been to bump into folks I haven’t seen in a long time and to make a whole lot of new friends,” he said. “Now more than ever before I’m impressed by the reach of NCCBI across North Carolina and the wide variety of members we have.”

The online edition of this month’s newsletter contains pictures from Area Meetings in Boone, Charlotte, Concord, Elizabeth City, Gastonia, Greenville, Kinston, New Bern, Rocky Mount, Salisbury, Southern Pines and Statesville. We'll have the rest of the Area Meeting pictures next month.

A total of 1,725 members and guests attended the 22 events, up from 1,665 at last year’s 21 meetings. Attendance was down at a few, most likely because of changes in scheduling. For example, the Boone meeting, which has been a relatively well-attended breakfast, was switched to a reception this year. It wasn’t anticipated that this change would make it more difficult for some members in that area to attend.

Among the many bright spots on the tour was the heavily attended meeting for members in the Burlington/Elon College area. Thanks to the diligent work of Avery Thomas, of the Thomas, Stout, Stuart, Core & Stuart accounting firm, the Burlington meeting has grown to become the second-largest one on the tour, trailing only the meeting for Triangle area members.

First Citizens wraps up NCCBI's 
best-ever membership campaign

Although final numbers have yet to be tallied, it's apparent that the First Citizens Bank folks produced the best-ever membership campaign in NCCBI's 58-year history. At last count, the bank had brought in 383 new members.

Added to other, ongoing membership recruitment efforts, including those by members of the NCCBI Board of Directors, 470 new members have joined since April 1. That raises total membership in NCCBI to more than 2,200.

The enthusiasm of the First Citizens team is a major reason for the success of the campaign. Another reason is the extra effort that's been put into promoting NCCBI to business people throughout the state during informal receptions. Since April 1, First Citizens Bank leaders, NCCBI board members and NCCBI staff have staged many of these membership recruitment events. They have been held in Cullowhee, Hendersonville, Greensboro, Reidsville, Sanford, Asheboro, Skyland, High Point and Fayetteville. That's in addition to the 22 Area Meetings.

Two major membership recruitment events are coming up soon. One is planned for Jan. 25 in Winston-Salem at the N.C. School of the Arts. The evening reception will be sponsored by NCCBI board members in Winston-Salem. The second will be Feb. 15 at White Oaks in Charlotte. NCCBI Chairman Mac Everett of Charlotte, the First Union Bank executive, will be the main host for that event.

NCCBI's recent success in membership recruitment has even attracted some national attention. The Association of Membership and Marketing Executives recently honored NCCBI and the California state chamber by presenting its top award for "Highest Market Share Growth." The award was presented to NCCBI Development Director Rosemary Wyche at the organization's annual meeting, which was held in conjunction with the meeting of the Council of State Chambers in Santa Fe, New Mexico.

Welcome these new members

Such a challenge, critics said, would almost certainly draw a counterattack from organized labor, and lead to a costly, drawn-out and uncertain court fight. But Jeffress disputed that assertion. "If the next president determined that there is no basis for the rule, all it takes is to give 30 days notice, have 30 days comment, and then a decision," Jeffress said in a New York Times article.

NCCBI joins suit filed by coalition over new ergonomics rules
 
NCCBI has joined a lawsuit filed by the National Coalition on Ergonomics (NCE) seeking to halt or overturn actions by the Occupational Safety and Health Administration to impose ergonomic regulation. NCCBI President Phil Kirk said the association agreed to be named as a party in the action at the request of the National Association of Manufacturers, a major player in the NCE. NCCBI is the state affiliate of NAM.

NCCBI's action came as several national business organizations sought help from the courts over the new workplace rules.

"You cannot do something this big this fast and still do it right," said NAM Senior Vice President Mike Baroody. "If OSHA were serious about a sensible rulemaking, it simply could not have finalized the ergonomics regulation in less than a year."
"OSHA’s regulatory juggernaut has violated employers’ right to due process, by failing to provide a clear standard regarding which workplace circumstances or conduct would meet the obligation to control significant risk," said U.S. Chamber President Thomas Donohue. "OSHA’s refusal to listen to reason as they rushed ahead with this ill-advised and illegal proposal is an example of irresponsible government at its worst."

NCCBI is the state affiliate of the NAM and the U.S. Chamber of Commerce, which also is initiative legal action against OSHA's ergonomics rules.

The NAM filed a petition for review in the U.S. Court of Appeals for the D.C. Circuit on grounds that it is unsound procedurally, scientifically and legally. The National Coalition on Ergonomics and other major business groups support the NAM in pursuing a legal remedy, with more expected to join as the process moves forward.

"Our other objections to the rule are by now well known: it reaches beyond the workplace to make employers liable for injuries aggravated, but not caused by, work; it overrides existing workers compensation laws and creates a ‘most-favored injury’ status for ergonomics; and, its finalization now ignores the will of a bipartisan majority in both houses of Congress, which voted to block implementation of the rule," Baroody continued.

The NAM and the business community overall contend that OSHA’s rush to regulate on ergonomics has led to a rule that is too broad, overly vague and unsound scientifically. "While OSHA will say this is a standard more than 10 years in the making, the proposed rule was published – complete with errors – less than a year ago. We’re talking about the most far-reaching and costly rule in the agency’s history, and we think 11 months is a fraction of the time needed to develop an effective regulation."

The NAM noted that OSHA has pressed on with publication on the final rule despite a steady decline in ergonomics complaints, according to the Bureau of Labor Statistics.

Ergonomics Briefing Paper
Prepared by the NAM

The overall injury and illness rate is currently at its lowest level since the Bureau of Labor Statistics (BLS) began reporting this information in the 1970s. In spite of BLS data showing that musculoskeletal disorders (MSDs) have declined by 24 percent since 1994, and despite the lack of consensus in the scientific and medical communities on the causes of MSDs, OSHA is moving aggressively forward with an ergonomics regulation and ignoring the intent of Congress.

Employers covered by OSHA’s proposed rule – which was published in the Federal Register on Nov. 23, 1999 – would be responsible for taking measures to reduce all MSDs, including carpal tunnel syndrome and neck and back strains, by initiating and maintaining a basic ergonomics program once A SINGLE injury is reported in their facility. OSHA considers an injury "work related" if working conditions contributed to the injury, even if non-work factors contributed as well. Further, where typical workers’ compensation rules currently provide two-thirds of an employee’s pay while out of work, OSHA’s rule will require workers to be paid at 90 percent of their pay if claiming an ergonomic injury. OSHA has, in effect, created a "most favored injury" status for ergonomics.

If covered, employers must set up an ergonomics program to control "work-related" MSDs which must include the following elements: (1) management leadership and employee participation; (2) hazard identification and information; (3) job hazard analysis and control; (4) training; (5) medical management and (6) program evaluation. In October 1998, Congress approved $890,000 for the National Academy of Sciences (NAS) to conduct an independent, peer-reviewed analysis of the available science on MSDs. The NAM opposes the rule and urges OSHA to wait until all the evidence is in before moving forward.

OSHA’s rule defines "work related" even as an injury aggravated by work. Under the rule, any injury sustained away from work but aggravated by work is the employer’s responsibility.

The NAM supports bipartisan legislation, H.R. 987, "The Workplace Preservation Act," introduced on 3/4/99 by Rep. Roy Blunt (MO-07) and approved by the full House of Representatives on 8/3/99 by a vote of 217-209, which would prevent OSHA from moving ahead with an ergonomics regulation until a comprehensive review of all medical studies related to MSDs is completed by the NAS. With a current lack of consensus in the scientific and medical communities on the causes of MSDs, the NAM believes this objective assessment by the NAS of all available data will narrow, if not eliminate, the significant differences of opinion that currently exist regarding ergonomics in the workplace.

On May 24, 2000, during the House Appropriations Committee consideration of the FY 2001 Labor, HHS and Education appropriations bill, Rep. Anne Northup (KY-03) proposed an amendment that would prohibit OSHA funds from being used "to promulgate, issue, implement, administer or enforce any proposed, temporary or final standard on ergonomic protection." It was approved by a vote of 32-22. Most recently, on June 8, the full House rejected 220-203 a labor-backed amendment, offered by Rep. James Traficant (D-OH), that would have stripped the Northup language from the spending bill. The NAM fully supports Rep. Northup’s efforts to keep OSHA from imposing the most expensive and overreaching rule in the history of the agency on manufacturers who, by and large, are already doing the right thing and spending mightily on the safety and health of their employees.


Statistics on Workplace Injuries 
According to the Bureau of Labor Statistics

A total of 1.7 million injuries and illnesses that required recuperation away from work beyond the day of the incident were reported in private industry workplaces during 1998, according to a survey released earlier this year by the Bureau of Labor Statistics (BLS), U. S. Department of Labor. The total number of these cases has declined in each year since 1992. 

A total of 5.9 million injuries and illnesses, including those that did not require recuperation away from work beyond the day of the incident, were reported in private industry workplaces during 1998, resulting in a rate of 6.7 cases per 100 equivalent full-time workers, according to the BLS survey. Employers reported a 4 percent drop in the number of cases and a 3 percent increase in the hours worked compared with 1997, reducing the case rate from 7.1 in 1997 to 6.7 in 1998. The rate for 1998 was the lowest since the Bureau began reporting this information in the early 1970s.

In 1973, the BLS incident rate of lost-time workplace accidents per 100 full-time employees was 11.0. That rate has declined steadily over the years since then and stood at 6.7 at the end of 1998, a drop of nearly 61 percent in such workplace accidents over that time period. 

In 1992, the Bureau record 2.33 million workplace injuries that required recuperation away from work beyond the day of the incident. The number declined to 1.73 million at the end of 1998, the study said. Of that number, musculo-skeletal injuries -- the type most specifically addressed by ergonomics rules -- accounted for 592,500 of all workplace injuries, or about one of every three that required recuperation away from work beyond the day of the incident. 

Frequently Asked Questions
Answered by the NAM

u "Is my company covered even if we've never had what OSHA calls a "musculoskeletal disorder" (MSD)?"
Yes. All manufacturing facilities would be covered by OSHA's standard. Even if there never has been even a single MSD in a facility, manufacturers would be required to satisfy OSHA that they establish "management leadership", "employee participation" and "hazard information and reporting" relating to MSD issues. Once a covered MSD is reported, the full-blown OSHA program would be applicable.

u "What kinds of conditions is OSHA talking about?"
Injuries of muscles, nerves, tendons, ligaments and joints, including many strains and conditions of ordinary life. Covered are complaints of "low back pain", "sciatica", "trigger finger", "rotator cuff syndrome", "tendinitis", and carpal tunnel syndrome, among others.

u "I've heard that our safety incentive programs and even our workplace drug testing policies have to be reconsidered under the OSHA proposal. What do they have to do with ergonomics?"
OSHA would require all manufacturers to "reconsider" policies and practices that may make employees reluctant to report MSD signs and symptoms. In OSHA's view, safety incentive programs can have that effect, as might requirements that all employees reporting accidents must submit to a drug test.

u "How are MSDs reported?"
First, you must give employees information about "common MSD hazards" as well as the signs and symptoms of MSDs. Second, you must set up a way for employees to report such signs and symptoms to the company, and get responses. Third, you must provide "MSD (medical) management", including an assessment of whether work restrictions are necessary (with accompanying wage protection requirements), access to a health care professional at no cost to the employee, and a written opinion regarding the employee's condition.

u "What's the significance of an MSD report?"
Once a single MSD is reported, you can attempt to eliminate the related "hazard" via OSHA's "Quick Fix" method. If that is unsuccessful or if another MSD occurs, you must set up the complete ergonomics program. This includes "job hazard analysis and control", "training", "MSD management (including wage replacement in many instances) and program evaluation.

u "What are 'problem jobs'?"
A "problem job" is any and every job in which an MSD is reported. The resulting obligations also apply to any other job in that workplace that involves the same physical work activities and conditions as the one in which the MSD is reported.

u "Are any requirements triggered once a position is labeled a 'problem job'?"
After you survey employees on the physical difficulties of the job, you must observe the job and evaluate the "hazards" posed by ergonomic "risk factors", such as "force", "repetition", "awkward postures", "contact stress", "cold temperatures" "static postures", "vibration" and others. You must then implement "feasible" controls -- remembering that OSHA's preference is for engineering changes, rather than administrative controls or personal protective equipment. Thus, a "fix" dictated by the rule can include things from new tools to increased staffing (to minimize repetition and repeated exposures) to automating various processes. You also have an ongoing obligation to "periodically look to see whether additional controls are now feasible and, if so, implement them promptly".

u "When can I be sure that I'm done and have met my compliance obligations?"
Good luck guessing! Until you implement "controls" acceptable to OSHA that completely eliminate "problem jobs" and "MSDs", you will be under obligations to take further steps, monitor the impact of those steps, and go on to make further workplace changes. Will each interim measure you take satisfy OSHA? Will the agency's field compliance officers – likely to be less than knowledgeable about your industry and inexperienced in your manufacturing processes – agree with your conclusions as to what is "feasible" in terms of engineering or other changes? These and other questions are likely to remain unresolved…until that lucky day when your work-site is examined by OSHA inspectors applying compliance guidelines issued by the agency regarding this vague rule.

u "What does OSHA mandate for employees who can't work because of an alleged MSD?"
In a startling departure from most OSHA standards, the agency would implement mandated compensation protection for employees who can't perform their regular jobs because of MSDs. Employers would be required to guarantee 100% of normal after-tax earnings of employees on restricted work, and 90% of normal after-tax earnings for employees who are removed from the workplace because of these conditions.

u "Some employees who report MSD symptoms engage in activities outside work that are more likely to produce those symptoms more than their jobs. Doesn't that scenario eliminate our responsibilities under the rule?"
No. In fact, OSHA's proposal would limit a company's ability to even identify such outside activities that contribute to reported symptoms, in contrast to virtually every state workers' compensation law. Where signs and symptoms are reported for jobs that include a degree of lifting, repetition and other requirements, there is no practical way for an employer to avoid the OSHA rule's responsibilities, even where the individual's signs and symptoms are more closely linked to outside activities.

u "Doesn't this treat MSDs differently than other workplace injuries?"

Yes, it establishes these as the "most favored" condition, guaranteeing compensation at levels above those now provided for more traumatic and severe injuries and illnesses by almost all workers' compensation programs and disability insurance policies.
 

u "We've covered ergonomics issues for years under our workplace safety & health program. We've achieved some improvements. Am I right to assume that this proposal is not a big deal for us?"

Results of Congressional Elections

STATE GOVERNMENT NEWS

Concerns Mount Over
Looming Budget Deficit
Four months into its fiscal year, the state General Fund is barely taking in enough tax revenue to meet budget projections, and legislators are hearing some bad news about more tax repayments and shortages in other areas. Although budget conditions can change (the holidays usually pump extra millions into the state coffers), officials are beginning to worry over what could amount to a revenue shortfall of $320 million for the year that ends July 1.

With October's numbers counted, the state has collected $3.86 billion in tax revenue. The good news is that's about 3 percent more than last year at this time. The bad news is it's about 4 percent less than the state had hoped to collect in the first four months of the year. The biggest concern is over individual income tax collections, which came in nearly $22 million under budget in October. The state expected to collect $607.8 million in individual income taxes in October but actually took in $585.9 million. After four months, individual income taxes are $143 million under budget.

Bottom line, total tax revenue over the first four months of the year is $181 million under budget, or 95.5 percent of what the budget is built on. The numbers get a little worse, at $189 million under budget, after adding in non-tax revenue, such as interest income on state investments. 

The budget numbers came in after officials learned the state has lost another $60 million in lawsuits. The Joint Legislative Commission on Governmental Operations was told last month the state had been ordered to make refunds to Chrysler Financial Corp. and Ford Motor Credit Co. over state taxes charged on wholesale financing for Chrysler and Ford cars sold in the state from 1994 to 1999. The automakers had contested paying the taxes and sued. A judge in Mecklenburg County ruled in Chrysler's favor in February 1999, and a judge in Wake County ruled for Ford Motor Credit in August 1999. The state Court of Appeals upheld Chrysler, saying the transactions took place in Michigan, not North Carolina. When the state Supreme Court declined an appeal, the state Revenue Department threw in the towel and paid Chrysler $20.5 million and Ford $38.2 million in refunds and interest.

The state already has made the refund to Chrysler out of corporate income tax receipts -- a big reason why that line item is in the red in the chart above.  Also, the chart shows corporate income tax numbers net of transfers to other accounts, mainly the school building fund. Gross corporate income tax collections stand at $135.8 million after four months of the current year. But that compares to $332.6 million at this point last fiscal year.

And more lawsuits over improper taxes may be out there. At the Joint Legislative Commission on Governmental Operations meeting, Senate Finance Committee Co-chair David Hoyle asked if there were any other judgments pending. Legislative fiscal analyst David Crotts said some state agencies could lose $65 million to $70 million in a lawsuit filed by public-school systems over certain state fines and forfeitures. The state Constitution says fines and forfeitures must go to the public schools, but school systems argue that some of that money is going to universities, the Revenue Department and even the DMV. "We will probably lose that case," Crotts told legislators.

And that's not all. Dick Perruzzi, director of the state Medicaid program, recently told legislative leaders that rising prescription drug costs and higher use of medical services have pushed state Medicaid costs 30 percent higher than expected. If those trends continue the rest of the fiscal year, he said, the state Medicaid program will spend $110 million more than budgeted. 

State Budget Officer Marvin Dorman, who is retiring next month, said he has some doubt about the Medicaid shortfall because the 30 percent increase in costs is far higher than the 12 percent average nationwide. Dorman, who plans to retire in January, said he hopes to cover most of what now looks like a $320 million budget shortfall by doing what he did after Hurricane Floyd -- asking state agencies to return a portion of their operating budgets. But most departments already are running on razor thin margins.


Elsewhere in state government . . . 
ESC Notifies Employers
of New Unemployment Tax Rates
The Employment Security Commission said it has mailed 2001 unemployment insurance tax rates to North Carolina’s 170,419 employers. The 2001 unemployment insurance tax rate schedule changed to reflect the 6.3 percent increase in wages paid to North Carolina workers in 2000. The tax rate is based on a ratio equal to the Unemployment Insurance Trust Fund balance divided by taxable wages as of June 30. ESC Chairman Raymond W. Goodman Jr. said that 22 percent (38,573) of N.C. employers will have a lower tax rate in 2001, 42 percent (71,489) of employers will keep the same tax rate, and 35 percent (60,357) of employers will have a higher tax rate. "Because of North Carolina’s strong economy and growth in wages, we were able to maintain a stable tax rate structure for our state’s employers," Goodman said. Some employers can lower their tax rate even more by making a voluntary contribution within 30 days of receiving their tax notice. Locally-based ESC tax auditors can assist employers in determining whether a company may benefit by making this contribution. All unemployment insurance taxes are due quarterly and fund the state’s unemployment insurance system. The first payment at the new tax rates will be due April 30.

Other News
u North Carolina lost more textile jobs between 1997 and 1998 than any other state, according to the U.S. Census Bureau. The survey put the state's textile-job losses at 9,541, about 5 percent of the workforce in those industries. The study listed 208,741 people working in N.C. textile mills and apparel plants in 1997. One year later, that number dropped to 199,200.
u North Carolina and 12 other states will seek diesel-engine emission standards for trucks, buses and heavy equipment that are tougher than federal rules. The plan would affect an estimated 400,000 heavy-duty truck and bus engines build in 2005 and 2006. In North Carolina, the Environmental Management Commission discussed the concept last month, and a draft rule will be presented early next year, said Tom Mather, spokesman for the Division of Air Quality.

u The last oil company that sought to drill for oil and natural gas off the N.C. coast has given up its federal leases. Conoco controlled eight drilling leases off the Outer Banks that the federal government sold in the early 1980s. By giving up exploration rights, Conoco joined Mobil, Marathon and Chevron on the list of companies that dropped plans to drill off the N.C. coast amid heavy political opposition.

u Average faculty salaries at our community colleges are almost 20 percent below the national average, according to a consultant's report being circulated by the State Board of Community Colleges. The study recommends bringing pay for faculty and professional staff to the national average over the next biennium at an estimated cost of $79.2 million. The report also recommended raising N.C. community college salaries to the top 20 percent nationally in the 2003-05 biennium, a goal that would cost another $174.5 million. The study found the average faculty salary in N.C. is $36,205, compared to a national average of $43,637.

u North Carolina's seasonally adjusted unemployment rate increased from 3.6 percent in September to 3.7 percent in October, the Employment Security Commission said. The change put the state rate within two-tenths of a point of the national rate, which was unchanged at 3.9 percent. The N.C. rate is a half-point higher than the 3.2 percent state rate for October 1999.

u The Coastal Resources Commission is easing up a rule that requires all new beach homes and businesses to be built at least 30 feet back from rivers and sounds. It approved a temporary rule setting criteria for building homes on undeveloped lots of 5,000 square feet or less that are between houses on adjacent waterfront lots. Under the change, those homes can be built as far into the buffer area as the neighboring homes.

u The casino on the Cherokee reservation will double in size under an agreement signed by Gov. Jim Hunt and Leon Jones, chief of the Eastern Band of Cherokee Indians. The agreement also creates a foundation to promote smart growth, environmental protection and preservation of Cherokee culture. The document amends and extends for 30 years a 1994 agreement allowing the Cherokee to open a video poker casino. The agreement must be approved by the U.S. Interior Department.

Names in the News

u Johnston County school Superintendent Jim Causby, a member of the NCCBI Board of Directors, was named superintendent of the year by the N.C. School Boards Association.

u The state community college system presented its highest honors, the I.E. Ready Awards, to Phil Kirk, William F. Simpson and the late George B. Autry. The ceremonies were Nov. 17 in Raleigh. Autry was the founder of the non-profit research group, MDC Inc., and led the Commission on the Future of the Community College System. The commission’s report, published in 1998-1989, has served as the basis for system planning and legislative action ever since. Kirk, president of NCCBI and chairman of the State Board of Education,  chaired the working committees for the successful statewide campaign for $2.75 billion in bonds for schools and roads in 1996 and the highly successful $3.1 billion higher education bonds referendum this year. Kirk also served for five years on the State Board of Community Colleges. Simpson served on the State Board of Community Colleges from 1985 to 1995 and was chair from 1989 to 1993. During his 44-year business career, Simpson owned and operated six successful businesses in retail and restaurants. 

u Lynn D. Minges was appointed executive director of the Division of Tourism, Film and Sports Development in the N.C. Department of Commerce effective Dec. 1. Minges succeeds the retiring Gordon Clapp. Minges has served as deputy director of travel and tourism and director of human resources. A native of Bladen County, Minges is a 1980 graduate of Peace.


u Dennis Patterson, the Associated Press chief government correspondent in Raleigh who has covered the General Assembly for 16 years, resigns to join the staff of the state Auditor Ralph Campbell. Patterson's title will be audit publications coordinator; he will edit audit reports and work with the audit staff to produce consistent and well-written reports. He will also prepare the agency’s annual report, maintain and improve the Internet web site, and act as the first point of contact for media inquiries among other duties. Patterson is a native of Grove City, Pa, and a 1971 graduate of Wake Forest University.

u Wayne McDevitt, Gov. Jim Hunt's chief of staff, is joining the UNC System as vice chancellor for administration and financial affairs at UNC-Asheville. He will start in January. McDevitt is a graduate of UNC-A and his son is a senior there. He has been chief of staff since 1999.

u Jack Claiborne, UNC Charlotte's director of public relations since 1994 who formerly was a reporter and editor at the Charlotte Observer for many years,, will retire as of Dec. 31, but plans to return in January as a part-time writer of speeches and ceremonial scripts. Jeff Lowrance, assistant director of public relations since February 1997, will become interim director, beginning January 1, according to Tom Martz, vice chancellor for development and university relations.

uCong. Howard Coble (R-6th) received the Adam Smith Award from the Springfield, Va.-based National Right to Work Committee. The award, made on behalf of N.C. residents and right-to-work advocates Lewis and Annabelle Fetterman of Clinton, is presented annually to individuals whose efforts advance the right-to-work principle. Previous recipients include Sen. Jesse Helms and former Sen. Lauch Faircloth.