The Cutting Edge™ - July 2004

Public Policy

Get Out the Vote By John Satagaj, WMMA® Legislative Counsel, email@jsatlaw.com

Have you considered educating your employees about the impact of various issues on your workplace and motivating them to vote? We know this is not a simple task, but anything we can do to help employees understand we are in this together can only help. Your tax responsibilities are a logical place to start, but also legal costs, environmental costs and health care costs are probably concerns you worry about every day, but that your employees may not connect to the success of the company and the future of their jobs. Any little bit you can do to educate them and to get them out to vote can help.

If you are ambitious, this is a good time to begin organizing a "get-out-the-vote" drive among your employees. In general, corporations are allowed, under federal law, to support or conduct federal voter registration and "get-out-the-vote" drives aimed at their employees under the following guidelines:

• The corporation may not make any communication expressly advocating the election or defeat of any candidate or candidates of a political party as part of the voter registration or "get-out-the-vote" drive.
• The voter registration efforts cannot be coordinated with any candidate or political party.
• The voter registration drive cannot be directed primarily to individuals previously registered with or intending to register with a particular party.
• The "get-out-the-vote" and voter registration services provided by the corporation must be made available without regard to the employees' political preferences.
• Employees conducting voter registration or "get-out-the-vote" drives must not be paid on the basis of the number of individuals registered to support one particular candidate or a political party.

The corporation must notify those receiving information or assistance in writing that these services are being made available without regard to voters' political preferences. There are several places on the Internet to get additional information.

The National Association of Manufacturers (NAM), of which WMMA® is a member, in conjunction with other national organizations, has launched a Make the Difference ... Vote! campaign. It is a program to help you get your employees involved inthe election process.

Send a letter to your employees encouraging them to vote. Send a letter to each employee's home and time it to arrive two or three days before Election Day. Below you will find a sample letter for your use.

Include vote reminders in payroll envelopes or distribute fliers during the last days of the campaign. Stamp your payroll envelopes with such messages as 'Vote!' or 'Your Vote Counts.'

Host candidates' forums at your company's plants. Invite candidates to your plant so employees can ask questions on the issues that concern them. If you host a forum, remember that under federal law you are required to invite opposing sides to participate.

Informed, involved citizenship should not be limited to the election year. Build civic interest throughout the year:

• Host a breakfast, lunch, or dinner, open to all employees, on 'How Government Works' or on legislative issues of interest to your staff. Invite government officials to speak and answer employees' questions.
• Conduct a tour of your plant for elected officials or candidates. Introduce candidates to your employees as you walk them through the facility.
• Display a monthly calendar of events in your area. Include notices of elections, school-board meetings, community forums, town-hall meetings and legislative hearings.
• Inform employees of their legislators voting record on key manufacturing issues.

Sample Letter to Company Employees

Dear :

It's been said that if you want a job done right, you have to do it yourself. When it comes to voting, nothing could be truer. If we want to make sure our elected leaders do as we expect them to do, it's up to each of us to go to the polls and exercise our civic responsibility.

That's why we at (name of company) are proud to be participating in the WMMA®/NAM's Make the Difference ... Vote! campaign. We believe in the democratic process, and encourage our employees to vote in the upcoming election on November 2.

Voting is one of the most important rights and responsibilities we have as U.S. citizens. It is also our best chance to say how we want to be governed. I urge you to make your voice heard by voting on Election Day, Tuesday, Nov. 2, 2004.

Sincerely,


Your Name
Title

P.S. [Insert here any information on special leave that your company plans to offer on Election Day, or information on rides to polling places offered by non-partisan, non-profit organizations.]

International Business Development

Wood Furniture Import Trends By Harold Zassenhaus, WMMA® Export Director zemg@erols.com

Wood Furniture import statistics have been broken down into 11 component parts: bedroom furniture, wood frame upholstered furniture, chairs, furniture parts, office furniture, kitchen cabinets, furniture and parts of rattan, cane or bamboo, chair parts, kitchen furniture (excluding cabinets), furniture for vehicles and other wood furniture. Members can click here to view a series of tables showing three year trends by type, by country, by fastest growing country as well as imports from China by type. Members will need their user name and password to log onto the site. Contact Karen Boyle, WMMA® Headquarters, 215-564-3484, for forgotten user name and password.

Wood furniture imports continued their growth trend in the first quarter of 2004. Every statistically meaningful product category grew at double digit rates for the first three months, with imports of wood frame upholstered furniture racking up the highest percentage gains at 23% over the same period in 2003.

No surprise that China continued to be the largest supplier and one of the fastest growing with shipments totaling $1.2 billion and a growth rate of over 20%. More than ever before, an imported piece of wood furniture is likely to be from China. The US imports 49% of its bedroom furniture from China, 32% of its wood frame upholstered furniture, 32% of its chairs and 52% of its chair parts from China; 25% of its wood kitchen furniture (excluding cabinets) and 31% of wood furniture parts came from China. And, if it does not fit into a customs classification, such as dinning room sets, China supplies 45% of it. Only Canada supplies more wood office furniture and kitchen cabinets.

Imports of Chinese-made wooden bedroom furniture totaled $308 million for the 1st quarter, a healthy increase of 26% over the same period in 2003. However, it is possible that the pending US Department of Commerce dumping ruling accounted for the surge, and bedroom furniture imports will fall off by the 3rd quarter.

While China is the 600 pound gorilla, and growing, there are other supplying nations that are taking market share. Vietnam is of considerable and growing importance. Imports totaled $52 million through March - a 68% increase over the same period in 2003. Bear in mind that as late as 2001, imports from Vietnam amounted to slightly over $12 million --- for the entire year.

Vietnam is a market that many of our members should not ignore. Furniture production is concentrated in one area, they have limited metalworking capabilities, and they are open to source from the US.

Health Insurance Option: Health Savings Accounts - How HSA's Work

By Tim Larkin, Employee Benefits Specialist, CommonWealth Professional Group (CGP), tlarkin@cpgins.com

HSA's or Health Savings Accounts were instituted by congress with the passage of the most recent Medicare Bill. HSA's replace MSA's (Medical Savings Accounts) that had been in place since 1997. MSA's were available to individuals and Sole Proprietors (with no employees) only.

HSA's combine a HIGH DEDUCTIBLE HEALTH PLAN with a savings account (in the form of an annuity) in order to greatly reduce and control health insurance costs. High Deductible Health Plans are defined as plans with a minimum of $1,000 Deductible for an Individual and $2,000 for a Family (most insures have a minimum of $2,000 Individual/$4,000 Family for group plans). Under such a health plan, ALL services fall under the deductible. This includes Office Visits, Diagnostic Testing, Prescription Drugs as well as Hospital and Surgical Benefits. This type of health plan creates an OUT-OF-POCKET expense for employees that they may not have experienced in previous health plans. In order to offset this "Out-of-Pocket" expense, a savings account is established for each employee from which money can be withdrawn to pay for those services that fall within the plan deductible. Contributions to this "Health Savings Account" can be made by the employer (usually with some of the money saved by switching to this type of plan), the employee - which can be done on a pre-tax basis, or by both. Annual contributions to this account are limited to the total amount of the plan deductible. Monies contributed earn interest (approximately 3% to 4%) and withdrawals for "qualified expenses" can be made tax free.

Qualified expenses included Medical, Dental, Vision, Chiropractic Care, Prescription Drugs, etc. Monies withdrawn for non-qualified expenses are considered taxable income and can include an additional 10% penalty. Amounts accumulated but not used are "rolled" into the next year and continue to earn interest. At age 65, withdrawals can be made from your HSA for any reason taxed as regular income.

Regulatory issues and insurance company options vary from state to state. To learn more about HSA's and whether they are right for your business please contact Tim Larkin of CommonWealth Professional Group at tlarkin@cpgins.com or call 888-852-5203.