Bush joined Congress in signing the ‘resolution of disapproval’ against OSHA’s controversial ergonomic standard

Two weeks after Congress voted in favor of a repeal of Occupational Safety and Health Administration’s (OSHA) workplace ergonomics rule, President Bush followed suit and signed the repeal into law.

This action is considered a victory for many small businesses and trade organizations that opposed the rule.

“What this means for small businesses is that the ergonomic standard never existed,” says Bill Balek, International Sanitary Supply Association (ISSA) legislative director.

“The signing met our expectations,” Balek says. “The president had indicated he would sign the repeal — it is a welcome move by Bush.”

Organizations like the National Federation of Independent Businesses (NFIB) agree. “This regulation is an unnecessary burden and it got the death it deserved,” says NFIB spokesperson, Ed Frank.

Voting largely along party lines, Congress exercised the Congressional Review Act of 1996 to repeal the standard — this is the first time the act has been used. The act allows Congress to dissolve executive branch rules that it doesn’t support.

The ergonomics rule, which OSHA began researching more than 10 years ago, was recently implemented on January 16, 2001 — four days before the end of the Clinton administration.

Many small businesses believe in self-regulation, and don’t like the idea of the government overseeing their actions.

“First of all, small businesses are very safe workplaces because they often employ friends and family members. They don’t need the heavy hand of Washington stepping in and regulating them,” says Frank.

“This is the most costly regulation ever and it would mean that every small business in America would be micro-managed by Washington,” he adds.

Balek believes that this is a tremendous relief for ISSA members, including jan/san distributors, because the rule was extremely costly. “Especially in this slowing economy, the rule would have dragged down their ability to perform,” he says.

The rule would have covered approximately 102 million workers in general industries at approximately 6.1 million work sites — 90 percent of reported musculolskeletal disorders, or MSDs, come from this sector.

The standard would have required companies to advise workers of possible injury risks. No other action was required until a work-related injury was reported.

OSHA has said the rule would have prevented 4.6 million injuries in the first 10 years, with a total compliance cost of $4.5 billion a year.

Many business groups and organizations, including ISSA, disputed OSHA’s numbers. They estimated the cost at more than $90 billion a year and argued the cost of compliance would lead to business shutdowns.

“We are not opposed to employers actively creating safer work environments; it was the one-size-fits-all methodology that OSHA was pursuing that we didn’t agree with,” says Balek.

The rule was set to go into effect on October 15, 2001.

— Kari Strobel

Procter & Gamble Cuts Are No Surprise
The Procter & Gamble Co., Cincinnati, recently announced that it is slashing 9,600 jobs worldwide — about 9 percent of its workforce. Approximately 40 percent of the cuts will take place in the United States, but it is unclear where the remaining 60 percent will be eliminated.

Procter & Gamble had 110,000 employees worldwide until its layoff of 7,800 people in 1999, which was part of its five-year plan to gradually decrease jobs. It has been forced to rein in payroll expenses due to excessive price increases, rising raw material costs and economic declines in some of its markets.

The company employs 36,000 people in Europe — about 6,000 are based in the United Kingdom. However, it could not specify the number of European jobs it will have to cut.

Supreme Court Stands Up For Clean Air
The U.S. Supreme Court has refused to hear three cases challenging the U.S. Environmental Protection Agency’s (EPA) authority to regulate nitrogen oxide emission rules on interstate air pollution.

The Supreme Court declined to hear the appeals filed by Appalachian Power Co., the state of Michigan and the state of Ohio.

This action followed the Supreme Court’s unanimous ruling that the federal government doesn’t have to consider the financial costs of meeting clean air standards when creating new regulations.

The court rejected industry arguments that the health benefits of cleaner air must be balanced against the costs of compliance.

In 1997, President Bill Clinton announced new health-based air standards for smog and soot pollutants. The EPA estimated that the revised standards would protect an estimated 130 million Americans, including 35 million children who suffer from respiratory illnesses due to poor air quality.

One year later, EPA published a rule requiring 22 states and the District of Columbia by May 2003 to submit plans for eliminating emissions that pollute eastern cities.

SM reported in September that soon after these standards were finalized, the American Trucking Association and a host of industry groups, trade organizations and three states filed a lawsuit to halt implementation of the regulation.

However, the court rejected EPA’s rules on implementing new rules for ground level ozone (smog) and ordered the agency to develop a more “reasonable” interpretation of the law.

Safer Chemical Pilot Program in Golden State
The Janitorial Products Pollution Prevention Project was an 18-month program conducted in Santa Clara County, Calif., designed to reduce the use of hazardous cleaners.

Sponsored by the U.S. Environmental Protection Agency (EPA) and California local government, it found that janitors used a total of 1,140 chemical products that contained approximately 400,000 pounds of toxic materials during the time period.

According to the project’s website:

  • Six out of every 100 janitors in Santa Clara county injure themselves with chemicals every year;
  • 27,000 janitors working in the county experience a total of 1,200 injuries each year;
  • 20 percent of these injuries are serious burns to the eyes and skin; and
  • Medical treatment and lost job times for these chemical injuries is about $750,000 per year.

Through the replacement of highly toxic ingredients with less hazardous ones, the program hopes to decrease annual amounts of hazardous ingredients used, reducing annual injuries.

Expanded Toxic Chemical Data Available
The Environmental Protection Agency (EPA) has made public information on discharges of toxic pollution from seven major industries in the United States.

Chemical wholesalers were among the seven sectors added to the report.

Its 1998 Toxics Release Inventory (TRI) provides information about toxic chemical wastes that are discharged into the air, water and land. The report includes the amount (in pounds) of waste released, the chemical names and names and locations of the facilities releasing such chemicals.

Data is collected only from certain sectors and does not indicate if the releases are legal.

Since chemical reporting began 11 years ago, total toxic discharges have decreased by 45 percent. Waste reductions mean fewer environmental threats to public health and a savings to the industries through more efficient production management.

Debate over Diesel Rule Continues
A coalition of public health, environmental and conservation organizations recently filed papers in the U.S. Court of Appeals for the D.C. Circuit.

The groups oppose attacks — made by the oil refining industry — on the Environmental Protection Agency’s (EPA) regulation requiring large trucks and buses to reduce air pollution.

Filing was spearheaded by the American Lung Association, Environmental Defense, Natural Resources Defense Council, the Sierra Club and the U.S. Public Research Group.

Both the Clinton and Bush administrations approved EPA’s new standard that would require diesel fuel to be 97 percent sulfur-free by 2006.

The EPA recently stated it will move forward to make heavy-duty trucks and buses run cleaner. The EPA will require the sulfur content of highway diesel fuel to be reduced from its current level of 500 parts per million to 15 parts per million.

The new regulation proposes stricter emission standards for heavy-duty trucks, requiring them to be fitted with exhaust controls that are similar to the ones required on passenger cars. Industry groups, such as the National Petrochemical and Refiners Association say the regulation is too strict and criticize the truck provision, saying the technology hasn’t been completely proven. Subsequently, they have sued EPA, challenging the rules.

The American Petroleum Institute (API) estimates that the new sulfur requirements will boost the price of diesel by 15 cents per gallon and could lead to fuel shortages by 2007.

API believes this rule threatens to limit essential diesel supplies to farmers, truckers, bus operators, food distributors, small businesses and other users. The rule puts the nation’s diesel supplies at risk because some refiners may not be able to afford the changes needed to make the ultra-low sulfur fuel that EPA has mandated, according to API.

Supporters of the standard say it will dramatically reduce particle pollution that is responsible for a large number of deaths, hospitalizations and missed workdays by 90 percent. It will also reduce nitrogen oxides — which contribute to asthma attacks, respiratory pain, and reduced lung function — by 95 percent.

Innovative Controls Cut Costs, Air Pollution
Groveton Paper Board Inc., Groveton, N.H., will install alternative pollution controls at its New Hampshire paper mill that will reduce air pollution four times more than controls required by federal law.

Under a federal rule that becomes effective in April 2002, Groveton would have been required to install a $1 million system to remove emissions of airborne methanol by incineration. However, working in conjunction with the New Hampshire Department of Environmental Services, the company realized the unique characteristics of the plant could work in its favor. It could achieve greater pollution reduction by treating process water at the plant to remove methanol.

This alternative treatment will remove four times the emissions — a reduction by 42 tons per year versus 11 tons from incineration, and reduce 20 tons per year from other hazardous air pollutants. A savings of $825, 000 will also result from the alternative plan.

ISSA European Alliance Finalized with AFIDAMP
The International Sanitary Supply Association (ISSA), Lincolnwood, Ill., has formed an alliance with AFIDAMP, a Milan, Italy-based association for the cleaning and maintenance industry. Under the partnership, both associations will support each other’s programs and membership goals.

Terms of the agreement include: AFIDAMP members will become ISSA members; open access to each other’s websites and directories; AFIDAMP has republishing rights of ISSA publications; and ISSA will encourage Italian members who are not a part of AFIDAMP to join.

The strategic long-range plan for 2001-2003 was developed as a result of recent ISSA board meetings, according to Mark Armitage, ISSA director of European Services, Amsterdam, Netherlands. The ISSA executive director, the ISSA board and the European board of representatives were all involved in this review process.

“Our international activities were one of the four priority areas for specific attention and funding over the next three years,” says Armitage. “Europe and Mexico were featured prominently in our international plans because these are the areas where we have resources to develop programs.”

The agreement became effective in January and will last a minimum of three years.

ISSA Italian companies will benefit from AFIDMAP membership because it offers the same kinds of services ISSA offers, but specifically for the Italian market, says Armitage.

However, the alliance doesn’t just benefit Italian members — it offers opportunities for all interested companies in the jan/san industry.

AFIDAMP’s membership is dominated by manufacturers that export their products for survival, says Armitage. ISSA offers these manufacturers access to the North American market.

Alternately, ISSA members looking to private label for AFIDAMP manufacturers or to export products to Italy through AFIDAMP’s distributors have AFIDAMP to assist them.

ASCR Withdraws From IICRC, Cites New Goals
The Association of Specialists in Cleaning and Restoration (ASCR), Millersville, Md., has sold back its minority shares to the Institute of Inspection, Cleaning and Restoration Certification (IICRC), Vancouver, Wash., and in accordance with IICRC bylaws, its original investment will be returned.

ASCR will also give up its seat on the board with the IICRC.

In 1989, ASCR purchased 500 shares and became a minority shareholder. However, it received no benefits or dividends. Citing more ambitious and educational plans, ASCR thought it would be a quieter and more polite business move to simply pull out, according to Larry Jacobson, ASCR executive director.

According to IICRC, the dividends that it produces for its shareholder associations are directed toward educational programs that benefit certified firms and technicians.

ASCR has formed a C-3 public charity (which permits tax-deductible personal and business contributions) and plans to reinvest the cashing-out profit in other investments, such as government grants in education.

ASCR foresees joining partnerships and alliances with other educational organizations and possibly forming joint ventures with other C-3 organizations.

Both groups say this move is strictly a business matter.

“We’re sorry to see them go, but our doors are always open — they can always come back,” says IICRC president Lee Zimmerman.

S-001 Updated, Reflects Commercial Needs
The Institute of Inspection, Cleaning and Restoration Certification (IICRC), Vancouver, Wash., carpet cleaning standard S-001 — the standard for professional cleaning of carpets and rugs — will soon include commercial standards. Previously, the standard consisted of only residential guidelines.

The addition will create a more comprehensive guideline by addressing the maintenance issues specific to commercial carpet in high traffic areas.

Cleaning experts have been working on revisions of the standard since September 2000. The new version will incorporate their recent research and other timely issues.

Katy Poised For Possible Stock Sale; Buyer Unknown
Katy Industries Inc., headquartered in Englewood, Colo., an electrical and maintenance manufacturing company, announced that it is engaged in discussions with a potential purchaser of a substantial equity position in the company.

The deal presently under consideration involves the sale of a minority of the company’s common stock at a premium to the current market price. The investor would also invest directly by buying non-voting convertible preferred stock.

The deal would be subject to shareholder approval and restructuring of Katy’s existing bank debt.

Katy recently stated that there is no assurance that an agreement would be reached or completed and will not provide additional comments until a decision has been reached.

In November, Katy had announced it was exploring the possible sale of the company, however those discussions have been superseded by discussions with the same potential buyer relating to the above-mentioned transaction.

NewsMakers

NPTA Changes to Better Meet Business Needs
Minuteman International Inc., a floor, carpet and lawn-care equipment manufacturer, headquartered in Addison, Ill., reports operating results last year were the best in the company’s 20-year history. Net income for the year rose 13 percent with a 9.7 increase in sales.

Athea Laboratories Inc., a specialty-chemical manufacturer based in Milwaukee, has announced its new sales representative group, Jerry Mitchell Associates. The new group will control sales in eastern Pennsylvania, southern New Jersey and Delaware territories. Jerry Mitchell Assoc. have been involved in chemical sales for more than 30 years, and have spent the last 13 years as an independent sales group.

Pro-Team Inc., Boise, Idaho, owner Larry Shideler has been recently named 2001 Idaho small business person of the year by the U.S. Small Business Administration. The 13-year-old company is a manufacturer of backpack vacuum cleaners for commercial use. Pro-Team was also named as one of the top 25 growing companies by Industry Week magazine.

Datamax Corp., Orlando, Fla., a manufacturer of thermal printing products for bar code labeling, has named National Service Center (NSC) its official on-site service provider for the complete line of Datamax printers. In the future, NSC will provide users with online repair scheduling, parts ordering and e-mail confirmation capabilities.

Karcher & Co., Winnenden, Germany, and Tornado Industries, Chicago, have announced their expansion into the Canadian market. The two companies joined together in July 1999 to offer a comprehensive line of commercial and industrial floor cleaning equipment.

WAXIE Sanitary Supply, San Diego, recently completed its purchase of an 11-acre site in Ontario, Calif., which will replace its current inventory center in San Bernardino, Calif. Construction is set to begin in September 2001 and will be architecturally similar to its Salt Lake City building.

The Procter & Gamble Co., Cincinnati, announced that it has licensed a private technology for improving manufacturing efficiency to an undisclosed company and is exploring licensing opportunities with other companies. The technology is expected to save millions of dollars over the next decade.

The Institute of Inspection, Cleaning and Restoration Certification (IICRC), Vancouver, Wash., recently announced its membership in the Carpet and Rug Institute (CRI), Dalton, Ga. This membership will make IICRC a part of the CRI referral network creating additional channels that will benefit consumers seeking information about certified firms and professional carpet technicians.

Mergers and Acquisitions

Chesapeake Corp., Richmond, Va., a packaging manufacturer, has sold its 5 percent interest in Georgia-Pacific Tissue, a commercial and industrial tissue business, to Georgia-Pacific Corp., Atlanta. Georgia-Pacific Tissue was a joint venture between Georgia-Pacific Corp., and Chesapeake in 1999. The sale of Chesapeake’s interest coincides with Georgia-Pacific’s sale of its commercial and industrial tissue business to Svenska Cellulosa Aktiebolaget (SCA), a Swedish forest industry group.

Athea Laboratories Inc., an international manufacturer of specialty chemicals and nonwoven products, has acquired Matarah Industries Inc., a producer of premoistened towel products. Both companies are headquartered in Milwaukee.




POSTED ON: 4/1/2001