Missouri Chamber

Guanxi

mochamber — Thu, 13 Oct 2011 13:54:19 +0000

“Guanxi” is a common word used in the Chinese business world. It translates to “trust,” and building “guanxi” must happen long before any business transaction takes place. In America we call it networking, building relationships, making connections, you scratching my back so I can scratch yours.

Our Missouri Chamber travelers have been working on their “guanxi” this week.

Missouri Chamber travelers see many sides of China

mochamber — Wed, 12 Oct 2011 16:26:45 +0000

China is a country of contrasts. This week, Missouri Chamber travelers have seen the Great Wall, palaces and temples preserved for hundreds of years. At the same time, we’ve seen the signs of China’s race to modernization marked by row upon row of high rise buildings going up in cities like Beijing and Shanghai. To understand the rate at which this country is growing, you need only try to count the building cranes that dot the skyline as far as the eye can see. China must add the urban infrastructure equivalent to Houston, TX, each month for the next 20 years to accommodate the rural to urban migration now underway. As a result of this growth, certain areas of China, like Beijing’s Hutong communities, are vanishing. The Hutong once made up the entire landscape of Beijing, with narrow lanes and passage ways between small houses and courtyards. The Hutong is being leveled so rapidly, in a few short years, this feature of Beijing may be lost forever.

The Missouri Chamber group had an opportunity to experience the Hutong first hand, riding through the streets in rickshaws and visiting a Beijing family for dinner in their Hutong home. Having the opportunity to experience a slice of Chinese life was a priceless part of our China experience.

Ni Hao! The Missouri Chamber has arrived in China!

mochamber — Sun, 09 Oct 2011 19:14:54 +0000

The brave few that made it to the top of the Great Wall of China!

Sixty Missouri Chamber travelers arrived in Beijing, China this week for a nine-day familiarization tour of this fascinating country. Among our group are bankers, journalists, a doctor, legislators, and business executives representing a variety of industries — from greeting cards to railroads. Members of the delegation are from Kansas City, St. Louis, Jefferson City, Joplin, Kirksville and many communities in between. However, for this week, we are simply Missourians enjoying the sites, sounds and tastes of this country of deeply rooted traditions and gaining a better understanding of how China’s growth and evolving culture will continue to impact us back home.

Economic development efforts working in Missouri

mochamber — Fri, 30 Sep 2011 16:14:47 +0000

As Missouri lawmakers brace for another week of economic development discussion in the special legislative session, they can look to past efforts and know their work is paying off for Missourians. It’s been reported that General Motors was considering expansion of its Wentzville plant that would create up to 2,000 new jobs, nearly tripling the plant’s current workforce of 1,200 employees.

“This is economic development at work,” said Daniel P. Mehan, president and CEO of the Missouri Chamber of Commerce and Industry. “This expansion would not only bring 2,000 new jobs for Missouri workers, the economic impact of an expansion this size would be felt across the entire region.”

Last summer, lawmakers worked to pass a valuable tax incentive package targeting auto manufacturers called the Missouri Manufacturing Jobs Act. The Act allows expanding auto manufacturers, to keep a portion of its employee withholding taxes in exchange for investments made by the company. This incentive could come into consideration for major expansions like General Motor’s Wentzville plant.

This summer, lawmakers have been embattled, once again, in the economic development arena.

“When people work, everyone wins,” Mehan said. “As economic activity increases, state revenues increase and that improves Missouri’s ability to invest in education, transportation and other state programs.”

Provisions within the package would be targeted to support creating an international air cargo hub at Lambert International Airport in St. Louis. Other provisions target data centers, an emerging industry that projects more than $12 billion investment over the next three years. Science and technology companies, another high-growth segment of the economy, are also the focus of the jobs plan.

“We need to continually work to make sure Missouri is making the most of every investment,” Mehan said. “That’s why lawmakers are back in Jefferson City. Some would rather stall debate over philosophical differences than get to work and make sure Missouri remains competitive. I hope we can overcome the differences and put these critical tools in place for working Missourians.”

Missouri Chamber remains hopeful of economic development package

mochamber — Fri, 23 Sep 2011 22:16:28 +0000

The Missouri Chamber continues to push for passage of the broad economic development legislation that has been the focus of the 2011 Special Session.

“We appreciate the extra time the Missouri Legislature is giving to reach resolution on the issue,” said Daniel P. Mehan, Missouri Chamber President and CEO. “We realize it is a controversial issue, but it is time for the legislature to finish what it started. We have never lost hope that the General Assembly would find a way to overcome their differences in the bill.”

Progress now seems to be hung up over sunsets for low income housing and historic preservation funding. On the line are job retention funding, data center incentives, provisions to advance high-tech start-ups, and incentives tied to building an international air cargo hub in and around Lambert Airport.

Ironically, today, China Eastern lands its inaugural cargo flight in St. Louis.

“After years of cultivating a big idea, we now have a real plane landing with real cargo,” said Mike Jones, chairman of Midwest-China Hub. “Next, Missouri must energize its ability to export. More cargo means more flights, and more flights mean more jobs.”

“That goal is directly tied to Missouri lawmakers’ ability to compromise on this legislation,” said Mehan. “We implore the legislature not to let all of the work that has gone into this debate be for nothing.”

For press requests on this release, please contact Karen Buschmann, vice president of communications for the Missouri Chamber, at 573.634.3511 or kbuschmann@mochamber.com.

Employer liability for the Second Injury Fund is growing at an alarming rate

mochamber — Thu, 22 Sep 2011 15:38:26 +0000

More than 100 injured workers are waiting for benefit payments from Missouri’s Second Injury Fund that have been awarded to them under current law, with no promise of when their benefits will be paid. More than 30,000 workers are waiting to have their cases heard through SIF, with no idea when their cases will be resolved. That’s because Missouri’s Second Injury Fund – designed to protect employees who are reinjured on the job – is broke and there is not enough money to pay all benefits.

Revenue flowing into the fund has decreased drastically due to high unemployment and the decline in workers’ compensation premiums, which establishes the base for SIF funding. In 2007, SIF revenue from the 3-percent surcharge totaled $70 million. In 2011, SIF revenue from the 3 percent surcharge totaled $40.4 million. Meanwhile, current expenses are approximately $55 million annually. As a result, over the course of several years, the fund has been sliding toward insolvency. In 2009, Attorney General Chris Koster suspended all settlement offers, which has resulted in a backlog of 30,000 cases.

“Right now, Missouri is just sitting back while cases continue to mount and injured workers go without the benefits awarded them,” said Daniel P. Mehan, president and CEO of the Missouri Chamber of Commerce and Industry. “It’s bad policy and in the end, Missouri employers are going to be holding the bill. But in the meantime, we have injured workers that have been awarded benefits under the law and they are not getting paid. No responsible employer wants to see their workers treated that way.”

Liability on Missouri employers, who are ultimately responsible for the fund by law, is growing at an alarming rate. Two thousand claims were added to the list of pending cases since July, bringing that number to 30,000. It will cost tens of millions of dollars to adjudicate these cases. The unpaid liability to permanent total disability awardees has grown from $4.9 million in July to $7.1 million as of Sept. 1. What’s more, interest on that amount continues to accrue at 10 percent.

Because of inaction by the Missouri Legislature to fix the problems with Missouri’s SIF over the years, Missouri is now in a position where reform alone will not resolve the outstanding liability without additional revenue. The Missouri Chamber has pleaded with lawmakers to address Missouri’s failing Second Injury Fund for several years. Unable to reach legislative resolution, the issue now lies in the hands of the courts. At least two lawsuits have been filed against the SIF, and more are expected.

Over the last decade, claims to the Second Injury Fund have expanded greatly – paying general claims against employers who do not carry workers’ compensation coverage and a broad range of pre-existing conditions.

“The Missouri Chamber strongly disagrees with this policy, but the way the law is written, it will continue to be interpreted in this way. That is why the Missouri Chamber has been so adamant that lawmakers address this issue,” Mehan said.

Section 287.220.1 of the Missouri Revised Statutes states that “If any employee who has a preexisting permanent partial disability whether from compensable injury or otherwise … receives a subsequent compensable injury resulting in additional permanent partial disability … shall be paid out of a special fund known as the second injury fund.”

Legislation to address the fund was blocked in the final days of the 2011 Legislation Session. Unfortunately, Missouri employers will have to wait until 2012 to take another run at making change.

For more information on SIF, please contact Richard Moore, assistant general counsel/director of regulatory affairs for the Missouri Chamber, at 573.634.3511 or rmoore@mochamber.com.

Lawsuit over interpretation of occupational disease further fuels need for legislative fix

mochamber — Thu, 22 Sep 2011 15:32:17 +0000

Employers were recently dealt a blow by the Western District Court of Appeals in a decision involving the legal issue of whether or not occupational diseases are covered exclusively by Missouri Workers’ Compensation Act. The Western District Court of Appeals, in a 7-2 decision, ruled that workers’ compensation does not serve as the exclusive remedy for employees who may contract long-term, repeated exposure diseases, not set forth explicitly in statute.

The Court, in a strange twist, did not address whether an employee was precluded from filing a claim under the Worker’s Compensation Act for repeated exposures of occupational diseases while also filing a simultaneous civil lawsuit for the same issue. This results in uncertainty for employees and employers alike as to what remedy or forum a claim for compensation should be sought. Under this decision, it appears an employee could pursue remedy through the workers’ compensation system and the courts.

“The Missouri Chamber of Commerce and Industry warned of this potential problem during the last legislative session, but the issue was left unresolved,” said Richard AuBuchon, Missouri Chamber general counsel. “This decision brings the issue to a much higher level of concern, and should send an even louder alarm to the Missouri Legislature that the problem needs to be addressed.”

The Missouri Chamber recently warned that 2005 worker’s compensation reforms failed to include the term occupational disease in the exclusive remedy section of the workers’ compensation statute. Instead, the language of the statute now focuses on the term “accident,” implying that only a single isolated event leading to an employee injury can be eligible for workers’ compensation benefits. For decades employees who filed a worker’s compensation claim were precluded from filing a civil lawsuit against the employer for the same injury leading to the worker’s compensation claim. It appears this long-standing rule of law is now gone for long-term, repeat-exposure occupational diseases.

During the 2011 Legislative Session, the Missouri Chamber advocated legislation to include long-term, repeated-exposure claims of occupational diseases in the statute. The legislation was blocked by the Missouri Legislature, through work of trial attorneys wanting more litigation against Missouri employers to garner more legal fees on this issue. More litigation on this issue does nothing to protect employees.

“Increasing litigation delays compensation to employees for injuries or occupational diseases and weakens businesses,” said AuBuchon. “The only people who win by keeping this error in the law are trial attorneys. As lawsuits over this issue continue to mount, it is hurting employers who are already struggling to protect and create jobs.”

The case can be found at: http://www.courts.mo.gov/file.jsp?id=49158.

For more information on this case, please contact Rich AuBuchon, general counsel/legislative affairs for the Missouri Chamber of Commerce and Industry, at 573.634.3511 or raubuchon@mochamber.com.

Welcome to our blog

mochamber — Fri, 02 Sep 2011 18:52:20 +0000

Being an employer in today’s economy is not easy. And as the state’s largest business association, the Missouri Chamber of Commerce and Industry is committed to providing our members the information they need to improve their operations and the economic future of our state.

The Blog for Business is dedicated to sharing legislative updates, success stories and the challenges our nearly 3,000 members face. Stay tuned for timely news on our activities and legislative issues in the Missouri General Assembly.