First, it was the minimum wage. Now, it is the "card check" union organizing initiative. Next, it will be global warming. Labor and environmental issues are now front and center on the Congress docket. As the old saying goes, "the shoe is on the other foot."

For the last couple of Congresses, we have enjoyed the opportunity to present a proactive business agenda. Unfortunately, we were not able to accomplish everything we set out to do. How many times did the House pass an estate tax repeal bill? How many times did the House pass an association health plan bill? How many times did the House consider a tort reform initiative? The answer in all cases is more than we care to count. Why so much unfinished business? We all know the answer to that question, too. The answer is the Senate filibuster. We could never get the sixty votes we needed to overcome a filibuster.

I am not one to go around saying the "sky is falling" when it is not. There is a certain sense of panic in the air as these new labor and environmental issues emerge. But the reality of the situation is not unlike our efforts to pass estate tax relief or product liability relief. Our friends in the House did their job and I am sure the folks that opposed those initiatives had their share of anxiety attacks. But, in the end, for all the fuss, we had little to show for it. There were a lot of times WMMA chose not to whip ourselves into a frenzy over futile efforts.

I think the outcome will be the same now, but with the roles reversed. We will be the folks relying on the filibuster as the momentum killer. Don't get me wrong - some of these initiatives are bad ideas and we need to express our opinions. Secondly, we have to engage in the "care and feeding" of the Senate minority to make sure the filibuster cushion remains safe.

The "card check" initiative is a case in point. By the time you read this, the House will probably have passed it. H.R. 800, the Employee Free Choice Act, amends the National Labor Relations Act to require an employer to recognize a collective bargaining unit if fifty percent of the employees plus one additional employee sign authorization cards, or provide similar authorization, supporting the establishment of the collective bargaining union.

Under current law, an "organizing effort" can petition the National Labor Relations Board (NLRB) to request a secret-ballot election if thirty percent of the employees in an appropriate potential bargaining unit support the petition. This petition, which is normally filed by a union, seeks an election to determine whether employees wish to be represented by a union. It must be supported by the signatures of at least thirty percent of the employees in the bargaining unit being sought. These signatures may be on paper, the "individual authorization card" is the most well-know type. Hence, the organizing campaigns are often referred to as "card check" campaigns. Generally, this designation or ''showing of interest'' contains a statement that the employees want to be represented for collective-bargaining purposes by a specific labor organization. The showing of interest must be signed by each employee and each employee's signature must be dated.

The use of authorization cards has always been a controversial element of union organizing. Employers argue that it is easy to coerce an employee to sign an authorization card and the peer pressure of the public nature of the process makes it difficult for an employee to change his or her mind. There are also well-known techniques for securing authorization cards. In addition to the "fifty percent plus one" mandate, the bill includes a number of other provisions designed to strengthen the hand of organizers. However the mandate is the linchpin to a significant change in labor law.

Representative Robert Andrews (D-NJ), a lead co-sponsor has said: "While most employers are not bad actors, I do believe the current structure of the representation process perpetuates the ability of a few employers to coerce employees without consequence. Restoring workers' free choice, through the Employee Free Choice Act, is the only way to ensure that they have the right to bargain for fair wages and benefits."

In a speech to the National Association of Manufacturers and WMMA members, Vice President Dick Cheney vowed to uphold democracy in America's workplaces by opposing "card check" legislation. "Our Administration rejects any attempt to short-circuit the rights of workers," Cheney said. "We will defend their right to vote yes or no by secret ballot and their right to fair bargaining. H.R. 800 violates these principles, and if it is sent to the President, he will veto the bill."

When the bill does get to the Senate, I know we can expect a filibuster. Those of you who think this legislation is a bad idea, and live in states with Republican Senators, will need to make sure we can sustain the filibuster. You can be sure WMMA will have the information you need to get the message across.

Save the Date: April 10, Noon - 1:30 pm
What: Manufacturing Strategies Webinar
Title: Managing Change in a Continuous Improvement Culture
Cost: FREE for WMMA members
To register for this training session go to imcconsulting.webex.com and register using the password: hzwmma. Once you are approved by the host, you will receive a confirmation email with instructions for joining the session. For additional assistance, contact Miriam Grap at mgrap@consultimc.comor (410) 505-4666 x103.

Join your colleagues in an online workshop and discussion of how today's successful leaders support their company's drive for continuous improvement.

The role of today's change agent is becoming a science. No longer will a manager just give orders and wait for them to be followed. Directing change requires new skills like empowering employees to accept responsibilities which for years, were reserved solely for management.

Continuous Improvement is a necessary business strategy in today's environment and webinar participants will explore the skills necessary to make change happen and techniques to sustain the changes once found to be of value. Participants will learn to assess the benefits and learn to celebrate as they are realized.

Consider the following 10 basic costs when considering international outsourcing.

1. Landed Cost. Unit cost is what most people concentrate on when they think of outsourcing. However, unit cost is just one of the pieces completing the total cost equation. Think landed cost instead and factor in such costs as transportation, customs and duties, brokerage services (both at origin and destination), banking fees, financing, and insurance. Also, factor in shipping delays that could add direct and indirect costs, like expedited freight charges, to meet the target delivery date.
2. Product Quality. Quality needs to be defined so that both the supplier and buyer understand and are in agreement. This is especially true when dealing with a partner in a far away country with different customs, perceptions and perhaps, objectives.
3. Logistics Capability. A good supply chain management company/freight forwarder and customs house broker are critical to the journey. It is important to have the flexibility with service providers to quickly implement alternate plans, in case the primary plan or transportation lane becomes unavailable. Time is money and the greater the distance, the greater the chance for hiccups. Hope for the best but, together with your supply chain manager, plan for the worst.
4. Location. The proximity of a country may make it a more attractive. Besides the point made above, proximity leads to benefits like doing business in the same, or close, time zones.
5. Trade Regulations. There are many governmental regulations that can enhance or detract from the ease of doing business with a given country of origin. There are also government incentives provided to local manufacturers that can sweeten the potential deal. Before any sourcing decision is made, it is important to carefully evaluate all trade incentives or restrictions carefully. In much the same manner, it is also essential to be familiar with documentation requirements for U.S. customs clearance.
6. Finances. Any discussion of buying and selling would be incomplete without evaluating the financial aspect, in addition to looking at the landed cost of goods. What terms can be negotiated? What is the risk with a given manufacturer? Is more insurance required to source from a supplier in China versus India or Brazil? Can your excellent credit with your domestic bank be leveraged to benefit the suppliers' financial picture, resulting in less risk and cost to the buyer? How will the increased transport time - resulting in tied up inventory - affect your cash-to-cash cycle?
7. Time to Market/Responsiveness of Supplier. Time to market is becoming an increasingly critical factor in sourcing decisions. If one's competitor has product available more quickly, the result could be lost market share and more importantly, lost revenue. It is important your supplier is receptive to, and able to accommodate, change. Perhaps the product needs to be tweaked slightly, or sales are exceeding expectations and production needs to be ramped up. Is the supplier in a position to do this?
8. Value Added Services. Are there additional services available at origin to add value to the product while cutting down on time/costs to do so at home? Does the supplier guarantee they will pack the freight to ensure it arrives intact at destination?
9. Communication/IT Capabilities. How will you know what has shipped? Is your supplier a real-time, internet-savvy, information-sharing partner? Or will you be waiting for documents typed on an IBM Selectric to be pouched over in a DHL envelope? Open dialogue and communication is imperative between the supplier and buyer. Late, missing, or inaccurate documents can cause delays of customs clearance and ultimately, delivery to destination. E-mail and good old phone calls, can go a long way to supply chain efficiency.
10. Human Toll. Lastly, companies should keep in mind that there is a real human effort to visit and work with suppliers overseas, particularly the cost of time away from the office and family. Travel fatigue, jet lag and the stress of dealing with unfamiliar cultures should not be underestimated when sourcing internationally.

• February 2007 Leading Indicator - The trend status weakened in February. The was not unexpected, although it was disappointing that the sooner this leading indicator starts moving higher, the better we will feel about the strength of the US economy in the second half of 2008.
• US Leading Indicator February 2007 - The US Leading Indicator moved slightly lower to 137.3 in February, according to the Conference Board. The decline was disappointing as we were hoping for a low to develop and signal growth in the US Economy in 2008.
• Purchasing Managers Index - February 2007 - The February 2007 Purchasing Managers Index, as compiled by the Institute for Supply Management, came in at 52.3. This is up significantly from last month's below-50 result. February's index is the highest in four months.
• Manufactured Goods 2007 - The US Census Bureau announced that the combined value of distributive trade sales and manufacturers' shipments for January, adjusted for seasonal and trading-day differences but not for price changes, was estimated at $1,057.8 billion, down 0.7 percent.

I've been following the quest to make Warren County a Foreign Trade Zone for the better part of three years and still don't completely understand all the complexities of this program. But to put it in terms we can all understand, when the county is expected to gain Foreign Trade Zone status this summer, it will make it easier to recruit and retain jobs.

"The government did a survey to determine what companies look for when deciding where to locate," said Craig Pool, a FTZ expert who was in town Thursday and Friday. "And the No. 3 question they ask is do you have a Foreign Trade Zone? Just about any company that's any size that is looking at an area will ask if it's a Foreign Trade Zone."

The Foreign Trade Zone is a federal program aimed at enhancing the competitiveness of US companies engaged in international trade. Nowadays, that's just about every major company.

Companies using FTZ procedures enjoy relief from tariffs and other forms of inventory taxes on goods while they are within FTZ facilities. In short, it's a way to help companies reduce their costs.

Craig explained the FTZ benefits to me by using the example of a vacuum cleaner manufacturer. If this company imports its motors, it has to pay a 5.3 percent duty on those motors. However, the company would have to pay no motor duty if it has FTZ status. For a company that makes 1,000 vacuum cleaners a day, that's a huge savings.

Local businessman Todd Herzog has been spearheading the FTZ project in Warren County and Craig believes the county be approved as early as this June. Todd says this program will be a huge benefit, because there are FTZs in the Nashville and Chattanooga areas, but nowhere in between.

"Nobody in the immediate area has one and that includes Rutherford County," said Todd. "I think this gives us tremendous leverage."

We are all painfully aware of the county's fortunes when it comes to recruiting industry over the past 15 years. Obtaining FTZ status will certainly help our cause.

As many of you know, Wilf Torunski, National Director of WoodLinks, suffered from a bad infection this winter, which led doctors to discover an abcess in the lining of his spinal column. Due to the infection and inflammation, Wilf lost movement in his lower body.

WMMA Board member John Schultz visited with Wilf and his wife Donna at the GF Strong Rehab Center in Vancouver earlier this month, describing his visit as "...a magical, almost Alice-in-Wonderland interlude in my day. Here was Wilf, in a wheel chair, still unable to walk, still with a not-completely-certain prognosis, so everything is completely different, but fortunately nothing has changed! He is progressing mysteriously well, but then, that isn't really mysterious to those of us who know him. He and Donna have their usual boundless energy and enthusiasm..., for WoodLINKS, for healing, for the very-demanding physical therapy, and apparently for any adversities that life might choose to throw at them."

John shared these pictures with WMMA staff of his visit with Wilf and Donna. We know we are not alone in wishing him the best of luck and a speedy recovery.

The woodworking industry and your business face new challenges every day. WIC offers thought-provoking discussions, workshops and other educational forums to better prepare you for today's ever-changing business environment.

The 16th Annual Woodworking Industry Conference will be held April 25-28, 2007 and is the premier forum for education and networking. Attending the WIC '07 at the Renaissance Vinoy Hotel in St. Petersburg, FL, is the right choice for your business.

The room block at the Renaissance Vinoy is sold out! An alternative room block is available at:

Courtyard by Marriott - $195 per night
St. Petersburg Downtown
300 4th Street North
St. Petersburg, FL 33701
Phone: 727-450-6200

Reservations must be booked by 4/2; cancellations must be made five (5) days in advance of first night's stay.

Be sure to mention the Woodworking Industry Conference to receive the special rate.

To read about this year's exciting program, view registration lists and more, visit http://wmma.org/events/wic.cfm.