2012 FCA. All Rights Reserved Legislative Update Michael T. Oscar Director of Legislative Affairs FCA International

Transcription

1 2017 Legislative Update Michael T. Oscar Director of Legislative Affairs FCA International

2 2016 Elections 2

3 2016 Election Per exit polls conducted by the Associated Press, about 17 percent of voters in the 2016 election were from small cities or rural areas with 62 percent of them voting for Trump Union Households: Went for Clinton by eight points, that s a 10 point decrease from President Obama s 2012 election and the lowest union support for a democrat in the past 20 years. For the first time since 2000, the Republican Party controls the White House and the U.S. Congress. A total of 469 seats in the U.S. Congress (34 Senate seats and all 435 House seats) were up in 2016 election. U.S. Senate: 52 GOP / 48 Dem U.S. House: 241 GOP / 194 Dem 3

4 2016 Election Moving Forward and Looking Back Today s unprecedented turbulence is seen: in deep political divisions in the U.S. and abroad the strengthened U.S. dollar the faster pace of technological change, mass immigration, terrorism, and climate change. Pause Button: politically correct, globalization, innovation, and millennial impact? 4

5 2016 Election Moving Forward and Looking Back Obama Administration created 15 million new jobs, 4.9 percent unemployment rate, and 74 months of consecutive growth, but more than 1,030 seats: That s the number of spots in state legislatures, governor s mansions, and Congress loss by Democrats during his Administration Democrats hold the governor s office and both legislative chambers in just coastal states: OR, CA, CT, RI, and DE Republicans have the trifecta in 25 states, giving them control of a broad swath of the middle of the country 5

6 2018 Election 2018 is virtually a mirror image of this year's political map, with Democrats defending 25 seats and Republicans eight. 6

7 The Trump Presidency 7

8 The Trump Presidency? What happens now and what mood prevails? With the Trump era, something new has happened and is being tried We are in uncharted territory; what s the course? Big battles with Congress on the horizon, not just with the Democrats, but with Mr. Trump s own party members on the Hill Is the new administration economic nationalists? Is it populist? Democrats are hoping Trump s penchant for deal-making provides a foothold almost any major legislation will need their votes in the Senate The role of social media? 8

9 The Trump Presidency Davis Bacon On April 6, 2017, President Trump told the New York Times that his administration is going to make an announcement in two weeks on Davis Bacon. Per a source, the change will likely be a regulatory change in how prevailing wage is calculated one that s favorable to contractors and less favorable to unions. 9

10 The Trump Presidency - Workforce Development President Trump approved the Keystone Pipeline on Friday, March 31 st. Construction industry is ground zero in the worker shortage. Per the Bureau of Labor Statistics, there are 150,000 unfilled construction jobs across the nation, nearly double the number five years ago. The Associated General Contractors of America found that 73 percent of firms are having a hard time finding qualified workers. Per the firms, their major concerns are: 55% identified worker shortage 41% federal regulations 18% lack of infrastructure investment Average age of a construction equipment operator and highway maintenance worker is

11 The Trump Presidency - Right To Work On February 6, 2017 Missouri became the 28th state to pass a Right to Work law. The law takes effect August 28,

12 Regulatory Reform 12

13 Regulatory Reform The Obama Administration s Midnight Regulation 145 new regulations issued from Election Day until December 31 st 31 of 145 qualify as economically significant, meaning they impose costs of $100 million or more The most aggressive midnight rule maker since the Clinton Administration and imposing $21.7 billion in costs Under the 1996 Congressional Review Act, Congress can kill new regulations on a simple majority vote within 60 working days of being final. Republican Leadership plans to STOP: The Volcker Rule: Banning banks from proprietary trading or making speculative bets Fiduciary Rule: DOL s rule requiring brokers to act in client s interest and not to offer suitable financial products Clean Power Plan Water Rule (WOTUS): EPA issued a rule bringing more waterways under federal control Methane Rule: DOI issued a rule limiting the amount of methane 13

14 EPA Regulatory Action EPA LRRP Ruling: Per the EPA Settlement Agreement, which was amended in September 2012, the proposed rule will be issued by July 1, 2015, unless a determination is made that these activities do not create lead-based paint hazards. Final action no later than 18 months after proposal is published in the Federal Register, approximately January 2017? 14

15 GOP LEADERSHIP: 115 Th Congress Legislative Agenda 15

16 GOP LEADERSHIP: 115 Th Congress Legislative Agenda The Affordable Care Act Conflict in Iraq and Syria Cybersecurity: Encryption will receive renewed attention Energy Bill Immigration Reform Medicare Reform Tax Reform Trade Agreements 16

17 Legislative Update 17

18 2017 FCA Legislative Priorities Multiemployer Pension Reform Opposing Efforts to Modify, Suspend, or Repeal Davis Bacon Act Repeal of the ACA s Cadillac Tax Nation s Infrastructure Investment (Highway Bill) Misclassification of Employees Bid Listing on Federal Construction Projects Government Regulations on our Industry Oil and Gas industry Trade Deals Prompt Payment Public Private Partnerships Identify Grant Opportunities 18

19 Legislative Update Davis Bacon: H.R. 743 / S. 244 The Davis Bacon Repeal Act (Rep. King (R-IA) and Sen. Lee (R-UT) S.195 The Transportation Investment Recalibration to Equality (TIRE) Act (Sen. Flake (R-AZ), legislation that would suspend prevailing wage protections on all federal highway construction contracts. H.R Responsibility in Federal Construction Act (Rep. Gosar (R-AZ), legislation that would make adjustments to the Davis Bacon survey process, which would result in a wage cut for construction workers across the country; impacting all crafts. This legislation would mandate a process that will distort the actual wages and benefits paid to construction workers putting downward pressure on wage determination. Project Labor Agreements (PLA): S.622 / H.R Fair and Open Competition Act (FOCA) passed out of the House Government Oversight Committee President Trump has pledged to spend $1 trillion on U.S. infrastructure and his Administration wants to tap private sector funds for projects. Infrastructure Investment: Roads and bridges Airport infrastructure Water projects Retrofit of public buildings Innovative financing mechanisms (Public-Private Partnerships (P3s)) Energy Development: Hydraulic Fracturing Carbon Capture and Sequestration Technologies Nuclear Energy Renewable Energy Development Incentivize Mechanical Insulation 19

20 Multiemployer Pension Reform On December 14, 2014, Congress passed the Multiemployer Pension Reform Act of 2014 (MEPRA), which contains many of the recommendations put forward in Solutions Not Bailouts. In early May 2017, the National Coordinating Committee for Multiemployer Pension Reform (NCCMP) is expected to introduce a MEP Composite Plan Bill modeling the Kline House Bill from the last Congress. United Parcel Service (UPS) introduced a proposal to raise Pension Benefit Guarantee Corporation (PBGC) premiums by a factor of two or three, along with adding an annual per participant excise tax and an additional $120 per participant, per year on employers, unions, and the participants themselves, which would fund a PBGC buyout of orphan participants from critical and declining plans. Finally, the UPS proposal would add a Federal low interest loan program for declining plans. The NCCMP is working to ameliorate the UPS proposal, which would impact the federal budget due to the low interest loan program, along with prompting tremendous pressure in bargaining units (on both sides) for conversion to defined contribution plans. Mineworkers Protection Act will be dealt with when the Continuing Resolution (CR) expires on April 28th. Composite Plan Design House Ways and Means Chairman Brady lackluster on the issue and his staff is hostile to it. Treasury/IRS approves first MPRA benefit cuts (Iron Worker Plan in Cleveland) Composite Plans could ease benefit cuts process under the restrictive MPRA law 20

21 House Building Trades Caucus Infrastructure Letter to President Trump: On Wednesday, March 1, 2017, Reps. Norcross (D-NJ) and McKinley (R-WV), co-chairs of the Building Trades Caucus, wrote a letter that includes signatures of 13 House members urging President Trump to follow a set of guidelines when rolling out his infrastructure plan. Infrastructure Funding Prevailing Wage Utilizing Existing Apprenticeship Infrastructure Streamlining the Permitting Process Utilizing a Mixture of Traditional and Innovative Funding Mechanisms 21

22 Curtain Wall Trade Tariff On Wednesday, February 8, 2017, U.S. Department of Commerce filed their Final Third Remand Redetermination and maintained their position that Yuanda s curtain wall unit imports are still covered by the AD and CVD orders. It s important to remember that the China tariffs remain in place and currently they range from 49% to 229%, depending on the identity of the Chinese exporter. 22

23 Thank You! 23