Legislature Moves to Ax Job-Killing Ergonomics Rule 

Good news! Last week, the Michigan House of Representatives passed a bill by a vote of 69-38 to put an official end to the Michigan Occupational Safety and Health Administration's (MIOSHA) efforts to promulgate a mandatory, one-size-fits-all workplace ergonomics rule on Michigan job providers. 

Senate Bill 20, introduced by State Senator Rick Jones (R-Grand Ledge), codifies the promise made by Governor Snyder in his State of the State Address to "stop the efforts to establish mandatory and overreaching regulations on ergonomics standards that have been discussed for the past few years." Putting an official end to these rules is a top priority for the Michigan Chamber in the 2011-12 Legislative Session. 

We support legislative efforts to prohibit this rule because we believe the proposed rule was far too broad and would have forced businesses of all shapes and sizes - regardless of risk factors and/or history or non-history of ergonomics injuries - to comply with its unclear and vague requirements. Administration of a workplace ergonomics program would cost the private sector an estimated $216 million to $406 million annually, according to a 2000 Heritage Foundation study of similar ergonomics program proposed by OSHA in 2000. 

Furthermore, even without a rule, Michigan has seen a steady reduction in musculoskeletal disorders (MSDs), with MSDs decreasing by 38.8 percent between 1998 and 2004, even better than the 32.3 percent nationwide decline. California is the only other state in the nation to have a mandatory ergonomics rule, and their state's records indicate no consistent progress in reducing ergonomics related injuries. 

We believe every employer has a responsibility to provide its employees with a safe workplace. However, we also agree with the intent of this bill: A better approach to this issue would be to continue to support and encourage voluntary and cooperative efforts between the state and businesses to promote safety in the workplace. 

Senate Bill 20 is just one step away from reaching the Governor's desk, as the Senate needs to take another vote on whether it wishes to concur with the House's changes. We are pleased with the progress the Legislature is making on this proposal and encouraged that the Governor seems ready to sign the bill when it reaches his desk.

Please contact Wendy Block, Director of Health Policy & Human Resources for the Michigan Chamber, if you have any questions at 517/371-7678 or wblock@michamber.com.  

Last week, Chamber lobbyists Tricia Kinley and Wendy Block testified before the Senate Reform, Restructuring, Reinventing Committee on ideas to move Michigan forward.  

 
Focusing on the Michigan Chamber's Agenda for Restoring Michigan's Economic Strength, Kinley and Block highlighted some of the most pressing issues and reforms that our members believe state government should do within the legislative and regulatory arenas to encourage job creation and business growth.

Kinley stressed the importance of eliminating the job-killing Michigan Business Tax and surcharge and indicated that the Chamber is committed to working with the Legislature to find a more competitive alternative. In addition, Kinley stressed the importance of improving Michigan's regulatory climate to improve the state's business climate, including ways to improve the permitting process and prohibit regulations more stringent than federal laws and regulations require.
 
Block went on to stress the importance of implementing meaningful, long-lasting reforms to the structure and cost of state government. In addition, she focused on the importance of reforming Michigan's insolvent and broken unemployment insurance (UI) program to address the over $3.77 billion the state owes to the federal government for its UI program and to keep UI costs affordable for employers and competitive with other states. 
 
We hope that you will take some time to read through their testimony available here. Please email Tricia Kinley or Wendy Block if you have any questions. They may be reached by phone at 517-371-2100.

As part of Governor Snyder's Budget and Tax Reform proposal, the Administration has put forward a tax reform plan that eliminates tax credits that result in losers paying for winners. The Governor's approach is based on fairness and an attempt to get all taxpayers on equal footing in order to create a business climate conducive to all job growth.

While a number of industries would no longer be able to avail themselves of certain tax credits, none have been more outspoken than the film industry - which receives a direct 42% refund of the cost of production in Michigan. That's right, Michigan sends these companies a check to underwrite 42% of their costs. 

The Michigan Chamber supports Governor Snyder's approach to stop using the tax code to pick winners and losers. The Administration has proposed continuing to appropriate $25 million to be used as grants for film production (on top of the $75 million in outstanding refunds the state expects to provide to the industry.) The Michigan Chamber believes Governor Snyder is being very fair and generous. No longer should Michigan-based businesses allow policymakers to levy higher taxes on them only to see Lansing politicians redistribute the money to pet projects. 

Read comments from the Michigan Chamber to The Detroit News.