Post: Apr. 30, 2020
Cuomo Adds More Metrics to Reopening Strategy
In his daily briefing the Governor reiterated that the State’s reopening will be based on facts and data adding that 30% of hospital and ICU beds must be available after elective surgeries resume and the rate of transmission must be 1.1 or less. We assume he means in a particular region, however, today the Governor announced that certain counties can begin to do elective surgeries.
Read the governor’s Press Release
SBA, Treasury Announce Audits Plans for Certain SBA Loans
“The Paycheck Protection Program is providing critical support to millions of small businesses and tens of millions of hardworking Americans.
“We have noted the large number of companies that have appropriately reevaluated their need for PPP loans and promptly repaid loan funds in response to SBA guidance reminding all borrowers of an important certification required to obtain a PPP loan. To further ensure PPP loans are limited to eligible borrowers, the SBA has decided, in consultation with the Department of the Treasury, that it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application. Regulatory guidance implementing this procedure will be forthcoming.
“We remain fully committed to ensuring that America’s workers and small businesses get the resources they need to get through this challenging time.”
Read the Statement
Liability Reform Proposals Gaining Traction
The NAM has been working with Congress and the White House to secure liability protections necessary for manufacturers to continue producing the personal protective equipment and others supplies our country needs during the COVID-19 response efforts. As more businesses prepare to reopen, Congress must protect those who are trying to do the right thing. Manufacturers’ plan is gaining traction in Congress, with Senate Majority Leader Mitch McConnell (R-KY) saying he will prioritize liability protections when the Senate returns.
Read the NAM’s “Pandemic Liability Policy Recommendations” here.
First Quarter GDP Shows Economy Shrank 4.8%, Few Economists See Quick Rebound from Recession
The U.S. economy shrank at a 4.8% annual rate in the January-March quarter, the government estimated Wednesday, as the coronavirus pandemic shut down much of the country and began triggering a recession that will end the longest expansion on record.
Yet the drop in the first quarter will be only a precursor of a far grimmer report to come on the current April-June period, with business shutdowns and layoffs striking with devastating force. With much of the economy paralyzed, the Congressional Budget Office has estimated that economic activity will plunge this quarter at a 40% annual rate.
Read More from the AP
Meanwhile… Eurozone Economy Contracts at Fastest Pace Ever
First-quarter GDP figures released today revealed the economic effects of the early weeks of lockdown. Output fell by 3.8% in the euro area, compared with the final quarter of 2019, with falls of 5.8% in France and 5.2% in Spain.
Analysts expect data from the second quarter to be even worse, with a series of closely watched economic indicators suggesting the bloc’s economy suffered an unprecedented collapse as businesses across the bloc shut down.
Read More at Yahoo Finance
Fed Sticks To Coronavirus Plan: Zero Rates And QE
With the coronavirus shutdown costing the U.S. economy 24 million jobs, the Fed statement noted “a surge in job losses” and “tremendous human and economic hardship” due to the coronavirus crisis. Policymakers said the health crisis will weigh heavily in the near term and “poses considerable risks to the economic outlook over the medium term.”
The Fed said it will keep rates in the 0%-0.25% range until the “economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.”
Powell said at his post-meeting press conference that the Fed would continue to act “forcefully proactively and aggressively” to try to assure a robust recovery. But he indicated that the road would likely be a long one. “It will take some time” to reach “anything that resembles maximum employment,” he said.
Read More at IBD
Council Webinar: Dealing with Supply Chain Disruption
- Thursday, May 7, 1:00 pm – 2:00 pm
- Cost: No fee to participate – limited to the first 100 registrants.
Please contact abutler@councilofindustry.org for the information.
Dr. Dennis Yu, Associate Professor of Operations & Information Systems and Associate Dean of Graduate Programs & Research will discuss strategies to help your firm manage risk and maintain operational flexibility in you supply chain.
- Definition of supply chain risks
- How to assess supply chain vulnerability
- Key strategies such as mitigation strategies and contingency planning to build a resilient supply chain
Register Here
Post: Apr. 29, 2020
Cuomo Provides More Information On Reopening Strategy
- The State will be using two main data points for reopening, based on facts – if a hospital system in an area exceeds 70% capacity or the rate of transmission of the virus hits 1.1, those are danger signs. Reopening will not happen unless you have rates below these factors.
- Un-PAUSE New York will be based upon a regional analysis with everyone working off the same data points and opening template. We have to take into account many factors including if that region has met the CDC 14-day guidelines, healthcare capacity, how to handle isolation (home vs. hotels), not opening “attractive nuisances” that bring in people from outside that region, and ensuring the regional plan fits in with the overall State and multi-state plan.
- Phase 1 will include construction and manufacturing jobs. These sectors not only employ a lot of people, but also are able to put into place proper precautions.
- Phase two will involve identifying how businesses can incorporate what we have learned. In order to reopen, businesses must plan on how to institute social distancing and testing while operating.
Read the Press Release
New York Forward Reopening Advisory Board
The Governor announced the creation of the New York Forward Reopening Advisory Board of 100 business, community and civic leaders who will work with state officials in developing a reopening plan for the State’s economy.
The members of the Advisory Board are below:
The Governor announced the creation of the New York Forward Reopening Advisory Board of 100 business
Trump Takes Executive Action to Keep Meat-Processing Plants Open
The move is expected to relieve pressure on meatpackers and farmers, who have struggled with food-supply upheavals following pressure from local and state officials to close plants. It is likely to draw fire from unions and worker advocates, who have said such closures are a necessary step to stem the virus’s spread through communities.
The president invoked the Defense Production Act, a Korean War-era law, to keep the facilities open, designating the plants as critical infrastructure under the law. The administration is also planning to take steps to improve safety for employees at the facilities, administration officials said.
Read More in the WSJ
May 18 May Be the Restart Date for America’s Automakers
The ambiguity around the companies’ restart plans has left many automotive suppliers unsure of whether they can legally run their assembly lines or recall workers in preparation of filling orders for customers with plants outside of Michigan, suppliers executives, consultants and attorneys have said.
It’s not going to be as simple as flipping a switch and getting workers back to the factory. Auto manufacturing is a complex, global business, with entire parts and supply chains dependent on factories in other states and other countries.
The car companies have said they will provide protective gear for workers when they return and will try to maintain social-distancing protocols in their plants through measures such as dividers between work stations.
Read More at The Drive
More on Automakers From The Economist: “The World’s Car Giants Need to Move Fast and Break Things”
The industry, already facing a precarious and colossally expensive shift to electric cars, will emerge from the pandemic transformed—not necessarily for the better.
Most carmakers were fitter going into this crisis than the last recession a decade ago. Back then America’s General Motors (gm) and Chrysler entered bankruptcy and needed bail-outs. This time balance-sheets looked stronger, costs had been tamed and firms had restructured to concentrate on profitable businesses. Nothing, though, prepared them for the coronavirus. First China and then the world went into lockdown. Car firms, parts suppliers, showrooms and repair shops shut.
Read More at the Economist
CI Webinar: Return-to-Work Protocols and Best Practices Presented by EmergencyOne
Date: Wednesday, May 6, 2020, 1:00 pm – 2:15 pm
Cost: No fee to participate – limited to the first 100 registrants.
Please contact abutler@councilofindustry.org for the information.
Our knowledge of the COVID-19 outbreak is changing daily, and employers are having to respond dynamically. Join Emergency One Urgent Care and Occupational Health to review the Return-to-Work protocols and best practices for integrating employees back into the workforce following prolonged absence during the pandemic.
Alan Glickman, RN, MSN, CNS-FHN, FNP and Jim Devitt, MS, will uncover the following:
- Preparing Your Business for Return-to-Work
- Medical Criteria & Process for Return-to-Work
- Emerging Technologies – COVID-19 and antibody testing
- PPE Best Practices
- Achieving Return-to-Work Via Technology – Telemedicine
Click here to register
“Cybersecurity during COVID-19” Webinar Today
The NAM is hosting a special webinar to discuss the looming cybersecurity threats brought on by COVID-19…and how manufacturers can stay ahead of the curve.
Speakers from PwC include:
- Joe Nocera, Cyber & Privacy Innovation Institute Leader
- Emily Stapf, Principal, Cybersecurity & Privacy
- Harshul Joshi, Principal, Cybersecurity & Privacy
RSVP for Login information
FuzeHub Awards COVID-19 Manufacturing Grants
FuzeHub, the statewide center for the New York Manufacturing Extension Partnership (NY MEP), announced the winners of its COVID-19 Manufacturing Grants initiative, a competitive grant program to accelerate production of ventilators and N95 respirators in New York State. FuzeHub awarded a total of $300,000 in grant funding to four New York manufacturers.
- Precision Valve & Automation (PVA), Cohoes, N.Y., $100,000 to support its production of its PVA PREVENT™ emergency ventilator
- Spiro Devices, Brooklyn, N.Y., $100,000 to accelerate production of its Spiro Wave ventilation device
- Environmental Composites, Utica, N.Y., $50,000 for N95 mask manufacturing
- General Composites, Willsboro, N.Y., $50,000 for N95 mask manufacturing
Read the Story at FuzeHub
Post: Apr. 27, 2020
Cuomo Eyes Construction, Manufacturing for Regional Reopen in New York
Governor Cuomo plans to reopen regions of the state in coordinated phases, starting with the construction and manufacturing industries.
During his daily briefing on Sunday, Cuomo teased an outline for the state’s economic restart plan as New York’s death and hospitalization rates continue to inch downward.
- Phase one will include opening construction and manufacturing functions with low risk.
- Phase two will open certain industries based on priority and risk level. Businesses considered “more essential” with inherent low risks of infection in the workplace and to customers will be prioritized, followed by other businesses considered “less essential” or those that present a higher risk of infection spread. As the infection rate declines, the pace of reopening businesses will be increased.
- The region must not open attractions or businesses that would draw a large number of visitors from outside the local area.
- There will be two weeks in between each phase to monitor the effects of the re-opening and ensure hospitalization and infection rates are not increasing.
- This plan will be implemented with multi-state coordination, especially in downstate New York. The plan will also coordinate the opening of transportation systems, parks, schools, beaches and businesses with special attention on summer activities for downstate, public housing and low-income communities, food banks and child care.
- The phased re-opening will also be based on individual business and industry plans that include new measures to protect employees and consumers, make the physical work space safer and implement processes that lower risk of infection in the business. The state is consulting with local leaders in each region and industry to formulate these plans.
The New York State Division of Budget (DOB) has released the FY 2021 Enacted State Budget Financial Plan
The State is proposing more than $10 billion in budget cuts. The cuts will be in the form of 10% cuts to agency appropriations, and over $8 billion in cuts to Aid to Localities (which includes funding for higher education, K-12 education, and local governments). The specific reductions proposed will be announced in the coming weeks.
“DOB is preparing a detailed plan itemizing the specific appropriations and disbursements that will be reduced or withheld. It expects to transmit the plan to both houses of the Legislature in May, when the Comptroller’s cash-basis report on April results is expected to be available. The Assembly and Senate will then have ten days to adopt, by concurrent resolution, their own plan to close the gap. If no legislative plan is adopted, or if the plan is not adequate to provide for a balanced budget, as determined by DOB, the plan prepared by DOB will take effect immediately.”
The DOB has also released a Preliminary Economic Impact Assessment by the Boston Consulting Group on the effects of the COVID-19 Pandemic on the State Economy.
The Enacted State Budget Financial Plan can be found here
The Preliminary Economic Impact Assessment can be found here.
Empire Center Analysis of the Key elements of the DOB forecast:
- Private sector employment in 2020 is expected to drop by 7.5 percent. Applied to the December 2019 total employment of 8.3 million, that would translate into a loss of about 630,000 jobs—or more than half of the state’s total private sector gain since 2010. In 2021, private employment in the state is expected to start growing again at a rate of 3.1 percent, which would translate into a recovery of 238,000 jobs.
- The S&P 500 stock index, an important indicator of likely change in state capital gains tax receipts, is expected to decline during 2020 by 14.7 percent. (That outlook, translating into very little change from last week’s stock market close, could actually turn out to be decidedly over-optimistic by a factor of three.)
Wages in the state are expected to decrease 7.2 percent during FY 2021, including a 50 percent drop in highly taxed securities industry bonuses, and personal income is projected to drop 2.2 percent in FY 2021 and 1.8 percent in FY 2022, despite a surge in “transfer payments” from the federal government to individuals.
- The unemployment rate is expected to rise from just above 4 percent before the crisis to a FY 2021 average of 11.4 percent, “a level higher than any recorded since the current methodology for calculating the rate was introduced.”
Read More at the Empire Center
Mexico Announces Commitment to Re-Open Automotive Industry
Last night, the Government of Mexico issued this press release announcing a commitment to work closely with the U.S. and Canadian governments to “establish the criteria, guidelines, protocols and conditions that must be observed to move successfully towards the reopening of the productive activities of the automotive industry in North America.”
The press release adds that “this collaborative exercise will serve as a precedent to determine in Mexico the return of other non-essential economic activities.”
Click here for an unofficial English translation
Banks Ready to Submit More PPP Loan Applications Today
The Paycheck Protection Program small business rescue will restart on Monday less than two weeks after its funds were exhausted, replenished with $320 billion in new money that President Donald Trump signed into law Friday.
The Small Business Administration will resume accepting applications at 10:30 a.m., the SBA and the Treasury Department said. The program, which offers loans that can be forgiven if businesses maintain their payroll, has been shut down since April 16, when an initial $350 billion was drained amid huge demand.
Read More at Politico
Meat Processing Plant Shutdowns Spreading
Bloomberg Reports that almost a third of U.S. pork capacity is down, the first big poultry plants closed on Friday and experts are warning that domestic shortages are just weeks away. Brazil, the world’s No. 1 shipper of chicken and beef, saw its first major closure. Key operations are also down in Canada.
While hundreds of plants in the Americas are still running, the staggering acceleration of supply disruptions is now raising questions over global shortfalls. Taken together, the U.S., Brazil and Canada account for about 65% of world meat trade.
A large number of workers, who also live and commute to work together and function and very close quarters on the factory floor have led to some plants becoming virus “hot spots.” Fear of the virus and supplemented unemployment benefits have also led to increased absenteeism among lower wage workers.
Read More at Bloomberg
CDC: Why Forecasting COVID-19 Deaths in the US is Critical
Forecasts of deaths will help inform public health decision-making by projecting the likely impact in coming weeks. Forecasts based on the use of statistical or mathematical models (subsequently referred to as “models”) aim to predict changes in national- and state-level cumulative reported COVID-19 deaths for the next four weeks. Forecasting teams predict numbers of deaths using different types of data (e.g., COVID-19 data, demographic data, mobility data), methods (see below), and estimates for the impacts of interventions (e.g. social distancing, use of face coverings).
See the National Models
Download The State Models
Post: Apr. 23, 2020
House of Representatives Passes a New COVID-19 Relief Package – SBA Issues Updated FAQs
The legislation, which passed the Senate Tuesday, includes $310 billion in funding for the Paycheck Protection Program. The Small Business Administration issued an updated FAQ document today for PPP lenders and borrowers to provide guidance on application submissions, secondary sales of PPP loans and eligibility for businesses with large company ownership.
You can read the FAQ here
4.4 Million More People Filed for Weekly Unemployment Claims
More than 4.4 million Americans filed their first claims for unemployment insurance last week as the U.S. economy bleeds jobs under a lockdown imposed to slow the coronavirus pandemic, the Labor Department reported Thursday.
More than 26 million Americans have applied for their first round of unemployment insurance since March as shuttered businesses began laying off workers. Millions more are believed to have lost their jobs but have been unable to apply for or are disqualified from receiving jobless benefits.
Read More at The Hill
The Composite Purchasing Managers’ Index for the Eurozone Posted a Reading of 13.5 in April – A Reading Below 50 Suggests a Contraction
Europe’s economy nosedived in March, with surveys from the continent’s three largest powers tanking to record lows far worse than anything witnessed even during the depths of the 2008 financial crisis.
Britain’s, France’s, and Germany’s manufacturing and service-sector performances have fallen off a cliff as the coronavirus outbreak shut down economic activity around the world, according to IHS Markit’s closely watched Purchasing Managers’ Index, which surveys business leaders in the economy.
“The dire survey readings will inevitably raise questions about the cost of the lockdown, and how long current containment measures will last,” said Chris Williamson, IHS Markit’s chief business economist.
Read More at Business Insider
Cuomo: New York Antibody Study Estimates 13.9% of Residents Have Had the Coronavirus
The State has completed a statewide antibody testing study in which a random sample of 3,000 New Yorkers were tested for antibodies in 19 counties and 40 localities. Of the individuals tested 13.9% had COVID-19 antibodies, which means they had the virus at one point but have recovered or were asymptomatic.
With more than 19.4 million people residents, according to U.S. Census data, the preliminary results indicate that at least 2.7 million New Yorkers have been infected with Covid-19. The results differed across the state with the largest concentration of positive antibody tests found in New York City at 21.2%. In Long Island, 16.7% of the people tested were positive and in Westchester, where the state’s first major outbreak originated, 11.7% of the tests were positive. The Covid-19 pandemic across the rest of the state is relatively contained with just 3.6% of positive test results.
Those varied results, the Governor said, reinforce the need to take a regional approach to reopening – both within New York State and across the Northeast.
Read More at CNBC
Where, How, and When to get Tested for the Novel Coronavirus in Each County in the Hudson Valley and Catskills
Chronogram has compiled a very helpful list of locations and proceedures for COVID 19 testing.
“With uncertainty regarding the virus in general circulating, confusion around testing guidelines and resources seems to be just as widespread. So, when should you ultimately get tested and where? What symptoms would someone need to be experiencing in order to be tested? We have gathered all the COVID-19 testing information for each county in the Hudson Valley and Catskills and compiled it into this comprehensive list. (Please note the testing centers listed under each county are only the public sites listed by each county. Additional testing locations can be found by calling each county’s coronavirus hotlines, or the state’s at (888) 364-3065).”
Read More at Chronogram
GM Exec: Don’t Expect Factories to Operate Like Before
General Motors is developing “a playbook” to help all its manufacturing sites get ready for whenever they reopen says worker safety executive Jim Glynn, who suggests certain changes will remain long term, such as not running back-to-back shifts. The company is using “visual cues,” masks and temperature checks at its factories that are making ventilators, he says.
Read the Full Story at Chief Executive online
Re-Opening: Greenwald Doherty have Compiled a Summary of Some Legal Issues that Employers Will Want to Keep in Mind as They Resume On-Site Operations
Governments are making plans to re-start the economy and, in some parts of the country, moving forward. Although in most states, shelter-in-place orders are still in effect and most non-essential businesses remain closed, companies are also starting to plan for restarting operations and re-hiring downsized workforces. When business resumes, things will move quickly and companies will need to consider safety issues, legal compliance, staffing concerns, and many other logistical and economic factors.
Below is summary of some legal issues that employers will want to keep in mind as they start to resume on-site operations:
Greenwald Doherty Back to Work Guidance
Post: Apr. 21, 2020
Senate passes $484 Billion Coronavirus Deal
The agreement centers around providing $380 billion for small businesses and also includes $75 billion for hospitals and $25 billion for disease testing. It comes after a brutal conflict between party leaders over how to pass a massive bill with the Senate in recess.
The deal includes an additional $310 billion for the Paycheck Protection Program (PPP), including $60 billion specifically for community banks and smaller lenders, as well as $75 billion for hospitals, $25 billion for testing, and $60 billion for emergency disaster loans and grants, according to a summary obtained by The Hill. Of that testing money, $11 billion will go to states and some will also go to the federal government.
The House is expected to take up the bill on Thursday. President Trump has indicated he will sign it.
Read More at The Hill
Governor Cuomo: Meeting with President Trump “Productive” The Two Leaders “Got a Lot Done.”
According to the Governor the primary topics discussed were testing roles – who should be doing what on testing. The State role will be making decisions on where the tests are being distributed and directing the practices of taking the tests. The State will work with the 300 labs in New York to facilitate the testing process.
The Federal Government’s role will be coordinating with test manufacturers to increase production and managing the supply chain. The chemicals needed for the tests, called reagents, come from other nations and the Federal Government needs to intervene to get the needed reagents to the states.
The Governor and the President came to an agreement about their respective roles and committed to follow through on them.
The Governor has set a goal of testing 40,000 tests per day, which is the maximum capacity of the State’s testing labs running at capacity twenty-four hours a day, seven days a week. Both diagnostic and antibody tests would be produced but the State has not determined how many of each are needed.
The Governor added that it will take a few weeks to get to this level and will be expensive.
Read More at CNN
Cuomo Says He Wants Regional Approach to Reopening New York Economy
The Governor today announced a regional approach to reopening the economy. This will be based upon each region’s COVID-19 facts and circumstances. Different regions of the State have different curves and variations. While we are one State, we have to take into account and understand these variations order to get the economy open as soon as possible.
Factors that will be taken into consideration include hospitalization rates, hospital capacity, infection rate and if the region is on the ascent, descent or on a plateau.
Lieutenant Governor Kathy Hochul will be in charge of the Western New York regional public health and reopening strategy, Former Lieutenant Governor Bob Duffy will coordinate the Finger Lakes Region. There will not be regional committees formed, it will be a coordination between State and local officials and the decision will be data driven.
SBA Update on PPP and EIDL Application Process
SBA advises that “While appropriations have lapsed and new PPP/EIDL applications cannot be accepted, EIDL loans and advances are continuing to process in the order that they were received. There is still no mechanism at this time for checking the status of an EIDL application until it has been processed. When the application is processed, the applicant will be notified.
For PPP, borrowers must contact their lender for updates on their specific loan application. Applications approved by the lender and electronically submitted to SBA prior to the lapse in appropriations on Thursday were authorized (essentially instantly upon successful submission), and the bank must close and disburse the loan within 10 days of that authorization.”
National Association of Manufacturers Releases “American Renewal Action Plan.”
A plan for response, recovery and renewal—focused on the responsibilities, contributions and needs of manufacturers.
Over the weekend, in response to a White House request for immediate feedback from members of the Great American Economic Revival Task Force, NAM shared this plan with the White House Manufacturing Industry Group members, as well as administration officials. It has been shared with congressional offices as well and expect it will guide future legislation.
Many of the recommendations are based on the input from NAM’s association partners,
Manufacturers have mobilized to respond to the unprecedented COVID-19 pandemic in ways unseen in modern history. We developed this plan knowing manufacturers possess a unique perspective on the current situation and are critical to ensuring America emerges stronger than ever.
You can read the action plan here.
Essential Factories Provide Lessons on Safety
Factories producing Charmin toilet paper and Totino’s pizza rolls are operating under safety measures that could be emulated by factories that have yet to reopen. “What will the new world actually look like after we make the decision to open up society again?” says Jay Timmons, president of the National Association of Manufacturers.
Read the Full Story at National Public Radio
Earth Day 2020 Pandemic side-effects offer glimpse of alternative future on Earth Day’s 50th Anniversary
The skies are clearing of pollution, wildlife is returning to newly clear waters, a host of flights have been scrapped and crude oil is so worthless that the industry would have to pay you to take it off their hands – a few months ago, environmentalists could only dream of such a scenario as the 50th anniversary of Earth Day hove into view.
But this disorientingly green new reality is causing little cheer given the cause is the coronavirus pandemic that has ravaged much of the world.
Read More at the Guardian
Post: Apr. 16, 2020
Trump Announces Guidelines to ‘Open Up’ U.S. Economy, Ease Coronavirus Restrictions – Leaves Much to States
The White House proposed a list of six metrics states should “satisfy before preceding to a phased opening.” They include:
- A decline in influenza-like illnesses reported within a 14-day period and a downward trajectory of covid-like cases reported within a 14-day period;
- A decline in documented cases of COVID-19 within a two-week period or a decline in the share of coronavirus tests that come back positive, if test volume increases or remains flat; and
- Hospitals within a jurisdiction should have the capacity to treat all patients without “crisis care” and there should be a “robust testing program in place for at-risk health care workers” including tests for COVID-19 immunity.
If states meet these criteria, the guidelines suggest a three-phased approach to reopening the economy.
Read More at Marketwatch
Governor Cuomo Extends PAUSE to May 15th and Offers More Insight on the Phased Reopening of the Economy
The Governor announced that his New York on PAUSE efforts would be extended until May 15. He also expanded on his proposal to do a phased-in reopening of the economy. The phased-in reopening will not just be which businesses reopen, but what percentage of their workforce will be allowed to return to work. The plan calls for a rise from 25%, 50%, and 75% over an unspecified time. The Chart below contains the 3 slides re-open the Governor shared during his April 16th briefing.
NY Reopen chart 04162020
Jobless Claims Up by 5.2 Million, Totaling 22 Million in 4 weeks
An additional 5.2 million people filed initial unemployment claims last week, which brings the four-week total of initial unemployment claims to about 22 million. This effectively wipes out job gains for nearly the past decade.
Read More at The Wall Street Journal
NY Fed Supplemental Survey Report for April 2020 – Business Report Extensive Fallout from Coronavirus
Supplemental questions in the April 2020 Empire State Manufacturing Survey and Business Leaders Survey focused on effects that the coronavirus pandemic has had on various aspects of business.
“Businesses were asked how concerned they were about their ability to deal with a variety of financial metrics over the next month. A slight majority of manufacturers and a sizable majority of service firms indicated that they were very concerned about maintaining adequate cash flow, and roughly half were very concerned about collecting payables from customers. Also fairly high on the list of concerns were the longer-term issues of maintaining solvency and incurring excessive debt. In open-ended comments, many businesses indicated that they could weather the pandemic and related shutdown for a month or two, but would be increasingly concerned if it took significantly longer for business to return to something close to normal.”
See the Survey Results
Small Business Loan Program Out of Money Amid Impasse Over New Funds – Both PPP and EIDL Run Dry
The Treasury Department and Small Business Administration (SBA) have tapped the entirety of funding allotted for the Paycheck Protection Program (PPP), which offers forgivable loans to small businesses intended to keep workers on the payroll and small firms from going under.
“The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time,” the SBA said in a statement Thursday morning.
The SBA also said that the $10 billion Congress appropriated for Economic Injury Disaster Loans had dried up. The program was meant to get fast cash to businesses, providing them with a $10,000 advance within just a few days of application for loans of up to $2 million.
Read More at the Hill
N.Y. AG files Suit Over US Labor Dept. Paid-Leave Rule
New York Attorney General Letitia James has filed a lawsuit over a US Labor Department rule that lets employers reject paid sick leave and emergency family leave if they conclude that no work is available for employees, even if the workers are eligible for such leave. James alleges that the rule conflicts with provisions of the Families First Coronavirus Response Act.
Read the Full Story at The Hill
China’s GDP shrank 6.8% year-over-year in the first three months of 2020, the first quarterly decline since at least 1992
China on Friday reported a 6.8% year-over-year contraction in its economy for the first three months of the year—the first quarterly decline in gross domestic product since official record-keeping began in 1992 and likely the first since Mao Zedong’s death in 1976, economists said.
The fall was even steeper compared with the previous quarter: a 9.8% pullback as the coronavirus that first emerged in the central Chinese city of Wuhan spread across the country and around the world, delivering an economic blow unprecedented in modern times.
In the manufacturing sector official data released Friday showed industrial production down just 1.1% in March compared with last year. Other metrics, such as daily power production and coal consumption, have regained all or most of last year’s levels.
Read More in the WSJ
Post: Apr. 15, 2020
Aides Expect Schumer, Mnuchin to Reach Deal on Coronavirus Relief
The deal could lead to legislation being passed quickly through the Senate on Thursday, and through the House no later than early next week.
Democrats say that Mnuchin, who is spearheading negotiations for Republicans, is open to a deal even though Senate Majority Leader Mitch McConnell (R-Ky.) doesn’t show much interest in negotiating with Schumer and Speaker Nancy Pelosi (D-Calif.).
Mnuchin, speaking at the White House on Monday, said legislation should focus on small-business programs and that other issues such as funding for state governments and hospitals should be dealt with separately — though he also expressed a willingness to work with Congress on getting money to various needs.
Read More at the Hill
Trump’s New Advisory Group on Reopening Economy Includes Tim Cook, Mark Cuban, Jerry Jones, NAM’s Jay Timmons
President Donald Trump said Tuesday that he’s enlisting advisers from nearly all sectors of American commerce, the medical field and elected office to help shape his plans to reopen the coronavirus-battered economy.
The panel of advisers, whom Trump said he will consult by phone, will operate separately from the White House task force that’s leading the administration’s public health strategy to contain and mitigate the pandemic, though there is expected to be some overlap. “The Great American Economic Revival Industry Groups”, include more than 50 executives and leaders from agricultural, defense and financial service industries, as well as leaders from unions, professional sports, think tanks and more.
NAM President Jay Timmons on being named to the Commission: “Over the past three years, manufacturers have produced impressive gains in investment, job creation and wage growth here in the United States. As the nation prepares to move from relief to recovery and bringing our $22 trillion economy out of its ‘induced coma,’ I look forward to working with the Great American Economic Revival Industry Groups, including the 44 NAM member companies that were also named, to drive this next phase of American renewal, while putting the health and well-being of the American people first. Ultimately, manufacturers, the backbone of this economy, want to be able to invest, grow and hire—right where we left off.”
Read About the Industry Groups at Marketwatch
Read More from NAM
SBA has Provided the Council of Industry With the Following Updates on the Status of PPP and EIDL.
PPP UPDATE
In NYS, 40,975 PPP loans have been approved for $11,737,950,918. Nationally, over 1 million loans have been approved for nearly $250 billion. For the most current and accurate information about PPP, please continue to visit our website at www.sba.gov/PPP. The Treasury Department page also contains updated helpful FAQ’s at https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses.
Updated FAQ: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf
EIDL UPDATE
There have been a lot of questions about the status of applications for the EIDL program and Advance. If you have a confirmation number for their application from the streamlined portal that went live on 3/29, but have not received any updates yet, you do not need to contact the customer service number. SBA assures us that your application is still in process, and they are being processed in the order that they were received.
Greenwald Doherty Update on the Payroll Protection Program (PPP)
Businesses are rushing to take advantage of the assistance provided by the CARES Act. While many have already submitted applications for PPP loans, others are wondering if they are eligible for the loan. SBA’s most recent guidance (found here) contains valuable insight into the PPP loan program and clarifies a few important questions.
The laws are changing rapidly in the current pandemic/crisis. Therefore, the legal issues discussed here are subject to constant change. It is best to consult with your counsel concerning any specific legal advice you may have.
Greenwald Doherty Update on the Payroll Protection Program Q&A 04142020
DOL Publishes Fourth Round of FAQs on Paid Leave Law: Reinforces Position on Shelter-in-Place and Isolation Orders, Reasons for Paid Sick Leave
After giving employers a day off from addressing new information concerning the federal Families First Coronavirus Response Act (FFCRA), the DOL released 20 new Q&As concerning employer obligations and employee rights under the new paid sick leave (EPSL) and paid FMLA leave (FMLA+) law. New questions and answers start at #60, with some minor revisions to earlier Q&As.
The full set of Q&As can be found here.
Survey: Virus Will Prompt Examination of Supply Chains
One of the impacts of the coronavirus crisis will be closer examination of supply chains and manufacturing site selection, according to a survey of chief financial offers by PwC. “The question will be, what happens in two years when it is business as usual?” says Omer Abdullah of The Smart Cube, a procurement analytics company.
Read the Full Story at Supply Chain Dive
Post: Apr. 8, 2020
Smart Cash Flow Forecasting
Our Friends and Associate Members PKF O’Connor Davies write that financial executives and managers use cash flow forecasting as a tool to manage their business and project investment rates of return. In a “normal” business environment, often they run forecasts quarterly or annually and operating history is often a good guide. But in a “COVID-19 World,” cash becomes dear and there’s a domino effect.
In addition, many executives are finding it difficult to forecast the duration of this crisis and its tail. As financial professionals know, revenue under accrual accounting does not necessarily translate into cash. And of course, an organization has more control over when it times its payments than when its customers pay.
Read More
EEOC Directs Employers to Watch for Bias Amid Pandemic
As the coronavirus pandemic continues, the US Equal Employment Opportunity Commission has warned employers to prevent and correct discrimination, harassment or intimidation against Asian Americans or employees of Asian descent. Title VII of the Civil Rights Act of 1964 protects against this type of improper treatment.
Full Story: HR Dive
Why You Need to Take the Long View on Wages, Benefits
Many companies need to take steps to cut costs, but now is not the time for knee-jerk responses and short-sighted plans for compensation, says Amanda Wethington of Korn Ferry. Consider staff rotations, deferring salary increases, providing mental health support and making employee safety a top priority.
Full Story: SmartBrief/Leadership
Congress, Fed to Support Small Business Program
Treasury Secretary Steven Mnuchin asked Congress to add $250 billion to a small business coronavirus program that has been flooded with loan applications, The Washington Post (subscription) reports.
“President Trump said banks have processed $70 billion in taxpayer-backed loans for 250,000 small businesses since Friday, as companies seek emergency help to deal with the enormous business disruption caused by the pandemic.”
“Republicans will try to advance the matter through Congress immediately. Senate Majority Leader Mitch McConnell (R-Ky.) said he hoped to pass the cash infusion through the Senate on Thursday.”
In related news, the Federal Reserve will help finance loans through the small business lending program, The Wall Street Journal (subscription) reports.
“The move will free up financial firms to make more loans guaranteed by the Small Business Administration’s Payroll Protection Program, part of a $2.2 trillion economic relief package President Trump signed last month.”
“The Fed said that to facilitate more lending to small businesses, it would establish a facility that offers term financing backed by PPP loans. It said additional details would be announced later this week.”
Treasury Issues FAQs for PPP
Treasury’s Frequently Asked Questions for the Payroll Protection Program offer some guidance to applicants and lenders alike.
Paycheck-Protection-Program-Frequenty-Asked-Questions
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Government and Businesses Turn Attention to Eventual Reopening of $22 Trillion U.S. Economy
Once social distancing slows coronavirus pandemic, tough questions follow over how to get the nation back to work: ‘It isn’t like a light switch on and off’
With some preliminary signs that infections from the virus are slowing, the whole nation is hopeful to get back to business as soon as possible. But a host of questions arise: Under what conditions should people be allowed back to work and stay-at-home orders be lifted? How will people at work be monitored for reinfection or antibodies to prevent a resurgence of the deadly virus? Does it all happen at once or is it staggered? Who is in charge of the effort?
New York, the state hit hardest by the pandemic, is looking to join with New Jersey and Connecticut on a unified reopening approach. “We cannot restart life as we knew it without testing,” Democratic New York Gov. Andrew Cuomo tweeted Tuesday.
Democratic Gov. Phil Murphy of New Jersey, which has the second-most Covid-19 deaths, said the resumption of economic activity would be “slow and careful, because the last thing we’re going to need is going too quickly.… That’s the equivalent, I think, of throwing gasoline on the fire.”
Read More at WSJ (subscription)
Plans to Reopen Economy Depend on Testing
Bloomberg Reports The White House is developing plans to get the U.S. economy back in action that depend on testing far more Americans for the coronavirus than has been possible to date, according to people familiar with the matter.
The effort would likely begin in smaller cities and towns in states that haven’t yet been heavily hit by the virus. Cities such as New York, Detroit, New Orleans and other places the president has described as “hot spots” would remain shuttered.
The administration sees rapid and widespread testing as a crucial step, one person familiar with the matter said, allowing public health authorities to better identify infected people, including those who don’t show symptoms, and isolate them from healthy people who could go about their businesses.
Read More at Bloomberg
New York Has Developed Antibody Testing Regime
The New York Department of Health has established a COVID-19 antibody testing regimen for use in the state, Governor Cuomo announced Tuesday.
It must be brought up to scale to be an effective tool to determine if persons who already contracted the virus and have recovered have the anti-bodies that can be used on others who currently have the deadly bug.
Cuomo said we must start planning for the post-virus economy and the best way to get there is to continue social distancing, but that depends upon everyone.
Read More at Mid-Hudson News
New York seeks private sector partners to bring rapid COVID-19 testing to scale and accelerate testing capacity.
Businesses interested in working with the state to manufacture these rapid tests on a large scale should contact Empire State Development at 212-803-3100 or COVID19supplies@esd.ny.gov
Companies are Cutting 401(k) Matches Because of the Coronavirus
“We are getting more inquiries from plan sponsors about what their options are,” according to Jerry Patterson, senior vice president of retirement and income solutions at Principal Financial Group. “And in some cases, we are seeing actual action taken to amend plans to reduce or suspend the match. And we expect that, as this goes on, we’ll see more of that. It will come, I think in different degrees from sectors that are being impacted most severely.”
Read More in the Washington Post
Harris Beach Webinar: Update on COVID-19 Labor & Employment Law Issues
Information and legal guidance on how employers should address COVID-19 continues to evolve. Join our complimentary webinar for an overview and Q&A that addresses the latest legislation and legal considerations. Our labor and employment attorneys, with vast experience counseling the private and public sectors, will address:
- Paycheck Protection Program and other relief for employers in the CARES Act
- Unemployment Insurance in the pandemic
- Employers’ FAQ’s on State and Federal leave laws and other COVID-19 issues
April 9, 2020, 8:30 – 10:00 a.m. ET
Register Here
ULSTER COUNTY Webinar to Discuss SBA Loans and Other Financial Resources & Assistance TODAY at noon
County Executive Pat Ryan, President & CEO of Ulster Savings Bank William C. Calderara, and Regional Director of Mid-Hudson Small Business Development Center Arnaldo Sehwerert will deliver information on the SBA Loan Programs
You MUST preregister to attend.
When: Apr 8, 2020 12:00 PM Eastern Time (US and Canada)
Topic: Ulster County Covid-19: Meeting for Businesses
Please click the link below to join the webinar (NOTE: Registration is required)
https://zoom.us/webinar/register/WN_QeiFDx1TSii2Xr7_CYifLQ
Post: Apr. 7, 2020
House, Senate Leaders Agree: Small-Business Loan Program Needs More Funding
The Wall Street Journal Reports that Senate Majority Leader Mitch McConnell (R., Ky.) said he would aim to approve more funding this week for a Paycheck Protection Program that Congress created last month to help firms hit by the coronavirus pandemic.
In a statement, Mr. McConnell said the $350 billion loan program would soon need more funds because of the huge demand for the federal assistance. He said he would work with Senate Minority Leader Chuck Schumer (D., N.Y.) and the Trump administration to approve the funding this week. With lawmakers out of town, Mr. McConnell said he hoped to pass the measure through unanimous consent or a voice vote.
The House Small Business Committee added “Over the first few days, thousands of applications were processed for the program equaling billions of dollars going directly to support our nation’s 30 million small businesses. This demand has made it clear that funds for the Paycheck Protection Program must be replenished. After the Senate moves to approve Treasury Secretary Mnuchin’s request for more funding, the House should move quickly to ensure small businesses can take full advantage of this vital program.”
Officials Struggle to Get Coronavirus-Relief Loans Out the Door
According to The Hill the administration is struggling to work out the kinks of a coronavirus small-business loan program after a chaotic start Friday.
Some banks say they are unable to access Small Business Administration (SBA) platforms, while industry leaders say there are unanswered questions about applying for loans and how to take advantage of them. On Monday, the SBA loan processing platform crashed and was down for hours, preventing lenders from processing any loans, Bloomberg News reported. The system was back up Monday afternoon.
Anecdotally Council Members reported relatively smooth sailing through a process that varied by lending institution. We did hear of one instance of what appeared to be an arbitrary denial of a loan.
Read More at the Hill
OSHA Standards for COVID 19
Temporary Guidance on the enforcement of OSHA’s Respiratory Protection standard:
CI Webinar: OSHA Guidance and Best Practices for COVID-19
- When: Wednesday, April 8, 2020 at 1 pm
- Where: Online webinar
- Cost: No fee to participate
Manufacturers Methodically Hunt for a Cure
The Wall Street Journal reports that an increasing number of drug companies are at work on vaccines and treatments for COVID-19.
More than 140 experimental drug treatment and vaccines for the coronavirus are in development world-wide, most in early stages, including 11 already in clinical trials, according to Informa Pharma Intelligence. Including drugs approved for other diseases, there are 254 clinical trials testing treatments or vaccines for the virus, many spearheaded by universities and government research agencies, with hundreds more trials planned.
Researchers have squeezed timelines that usually total months into weeks or even days. For most treatments and vaccines it will be midsummer before human testing reveals whether they are safe to take, not to mention if they work.
Read More at the WSJ
Haas, Allendale Machinery Looking to Connect Shops to Manufacture Needed Supplies and Equipment
If you’re looking for shops in your area with available machines and production capabilities, or you have such capabilities to offer, Council member Allendale Machinery and Haas want to help you connect. Tell them the type of machining or manufacturing capabilities you’re looking for, and what you’re looking to produce, and they’ll try to connect you with shops offering what you need, so you can work together.
There is no better network of qualified machine shops than the worldwide community of Haas owners.
Connect Here
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“Now this is not the end. It is not even the beginning of the end. but it is, perhaps, the end of the beginning.” Winston Churchill
We were reminded of Churchill’s quote during yesterday’s briefing by Governor Cuomo in which he – cautiously – expressed optimism that New York may have reached the Apex of the pandemic. This coupled with similar stories from Italy, Spain and France put us in mind of Churchill who was speaking of the Allied victory at El Alamein in North Africa and went on to say “Henceforth Hitler’s Nazis will meet equally well armed, and perhaps better armed troops. Hence forth they will have to face in many theatres of war that superiority … which they intended to use as an instrument for convincing all other peoples that all resistance to them was hopeless….”
The war lasted 3 more years. Governor Cuomo as asked for at least 3 more weeks to gain the upper hand on our enemy, the coronavirus. Our sacrifices are real and their full measure will not be known for many years, however, they must be made to ensure victory. Perhaps, if we are able to remain vigilant for these next several weeks, we will look back and say that this was our “Finest hour.”
GM Rallies Manufacturers to Produce Masks
General Motors is recruiting 600 suppliers to manufacture medical face masks and providing them with specifications on the necessary equipment, materials and processes. “In a few days, the company’s seat belt and interior trim experts became experts in manufacturing face masks,” says GM’s Karsten Garbe. GM expects to have 20,000 masks ready for delivery by Wednesday. Once the line is running at full speed, it will be able to produce up to 50,000 masks every day — or up to 1.5 million masks a month, according to GM
Read More at CNBC
Manufacturer Changes Shifts, Deliveries to Protect Workers
Like pretty much every Council of Industry member that remains open as an essential business, California-based electronics manufacturer Green Circuits remains open and has assuaged employee fears by removing shift overlap, changing how deliveries and other visitors access the facility, and communicated in multiple languages to encourage employees to keep coming in. One worker on each shift is dedicated toward cleaning surfaces.
There are a few good ideas in this article at Reuters
Council of Industry Will Host a Series of County Based Manufacturing CEO Online Discussions – Ulster is April 9th
As this crisis continues to unfold the Council of Industry is using all its resources to keep its members up to date with the latest information and resources to keep their employees safe and their businesses operating.
We will host small online discussions manufacturing CEO’s. Harold King will share the latest updates from ESD and our other regional partners and facilitate a conversation with participants. We hope these discussions will also provide our members an opportunity to share common experiences and establish best practices. We would love to hear from you.
If you are an Manufacturing Leader and want to participate contact jhansen@councilofindustry.org to reserve your spot and receive login credentials.
This small group discussion is part of our effort to gather insight into your experiences and provide better assistance.
- Ulster County Thurs 4/9 – 1:00 pm – 2:15 pm
- Dutchess/Columbia Tues 4/14 – 1:00 pm – 2:15 pm
- Orange/Rockland Wed 4/15 – 1:00 pm – 2:15 pm
- Westchester/Putnam Thurs 4/16 – 1:00 pm – 2:15 pm
The Council of Industry is Offering FREE Job Postings to ALL Hudson Valley Manufacturers During the Month of April
While many Council Members and Hudson Valley Manufacturers are being forced to reduce their workforce, others are finding it increasingly difficult to find enough people in key positions. To assist you few that are facing this challenge we are offering free posts on our job board www.HVMfgJobs.com.
All jobs are distributed to over 100 job boards including: Google Jobs, Zip Recruiter, College Job Boards, Hot Jobs, LinkedIn, Glassdoor, etc.
To learn more and to post your job email Johnnieanne Hansen jhansen@councilofindustry.org
Post: Apr. 3, 2020
Paycheck Protection Program Application Process Opens Today
Today Hudson Valley Manufacturers who need financial support during this difficult time can begin applying for loans through the Paycheck Protection Program, the new $349 billion loan program established by the CARES Act. NAM has developed and an overview that will tell you who qualifies and how to apply for PPP loans. For more on other Small Business Administration loan programs and tax incentives, click here. More detailed information for borrowers provided by the Treasury Department can be found here and an application can be found here.
NAM team-created overview
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Fortune Magazine: ‘It’s going to be a mess’
What small businesses applying to the SBA’s Paycheck Protection Program need to know
As small businesses ready to apply for the new Small Business Association’s Payroll Protection Program loans (as part of a $2.2 trillion stimulus package), banks are calling it: they’re not ready for the rollout of the program.
Banks like JPMorgan Chase emailed customers on Thursday evening stating that the bank “will most likely not be able to start accepting applications on Friday, April 3rd as we had hoped.”
Read More In Fortune
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New York Power Authority Offers Relief Program for its Economic Development Power Customers
NYPA is waiving applicable energy and demand rate increases for its economic development power customers that participate in its ReCharge New York, Replacement Power, Expansion Power and Preservation Power programs for the July 1, 2020, to June 30, 2021, rate year. In addition, customers participating in those NYPA power programs are now able to suspend payment to NYPA for up to six months beginning with their April 2020 electric bill. Customers that opt-in to the new relief program can make payment installments over the following 18-months, free from any interest or penalties.
Read More
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DOL Releases FFCRA Regulations
On the surface, the requirement for documentation appears to conflict with the U.S. Centers for Disease Control and Prevention’s (CDC’s) recommendation that employers should not require a positive COVID-19 test result or a health care provider’s note to validate an employee’s illness, qualify for sick leave or be eligible to return to work. Health care provider offices and medical facilities “may be extremely busy and not able to provide such documentation in a timely manner,” the CDC had previously stated.
However, the regulations and recommendation aren’t mutually exclusive, according to Kathy Dudley Helms, an attorney with Ogletree Deakins in Columbia, S.C., because the documentation doesn’t have to take the form of a health care provider’s note.
Read More from SHRM
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Deeper Dive: The Economist Writes “The Trade-offs Required by the Pandemic Will Get Even Harder”
“Imagine two critically ill patients but just one ventilator. That is the choice which could confront hospital staff in New York, Paris and London in the coming weeks, just as it has in Lombardy and Madrid. Triage demands agonising decisions (see Briefing). Medics have to say who will be treated and who must go without: who might live and who will probably die.
The pandemic that is raging across the world heaps one such miserable choice upon another. Should medical resources go to covid-19 patients or those suffering from other diseases? Some unemployment and bankruptcy is a price worth paying, but how much? If extreme social distancing fails to stop the disease, how long should it persist?”
Read More at the Economist
Note: The Economist is making some of its most important coverage of the covid-19 pandemic freely available to readers of The Economist Today, our daily newsletter. To receive it, register here. For more coverage, see our coronavirus hub
Post: Mar. 27, 2020
Manufacturing is Essential
Manufacturers across the Hudson Valley, New York State and the United States are mobilizing to supply desperately needed health care equipment and to keep supplying the essentials for daily life – while at the same time keeping our employees and communities safe. We should all be proud of the efforts we are making to end this pandemic. But we have much more work to do.
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Key Provisions and FAQs from the CARES Act (Fed Stimulus)
The CARES Act COVID-19 relief bill the Senate passed Tuesday night and which the House is expected to pass it today. Our partners at NAM secured some key wins in the legislation, including new federal loans and loan guarantees to help businesses get through this difficult time and tax incentives to aid manufacturers, such as a new credit for companies that retain workers during a temporary closure.
Read a summary of key provisions in the bill here and an FAQ document about the bill here.
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FuzeHub Compiles Useful list of Resources for New York’s Manufacturers.
Our friend (and Associate Member) FuzeHub has put together a very useful list of resources for New York State manufacturers coping with the many issues arising from the coronavirus outbreak.
FuzeHub COVID-19 Resources for Manufacturers
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COVID 19 Related Employment Law Issues Web Conference Essential HR Discussion with Greenwald Doherty
When: Monday, March 30, 2020 at 1 pm
Where: Online webinar/conference call
Cost: No fee to participate
contact abutler@councilofindustry.org for more information.
Register here
Through this discussion with three partners at Greenwald Doherty, participants will learn about best practices for managing the workforce, workplace safety and employer options concerning sick time, FMLA PFL, salary reductions and layoffs.
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China Is Open for Business, but the Post-coronavirus Reboot Looks Slow and Rocky
The Wall Street Journal reports that more than two months after imposing quarantines to counter the coronavirus, China is getting back to work. It is a slow and rocky process, one that rests on the world battling back successfully against the pandemic.
With new infections dwindling, factories are restarting, stores are reopening, and people are venturing outdoors. In some ways, China is where the U.S. and Europe hope to be within weeks or months.
Yet many Chinese factories find demand for their products has evaporated. Consumers in China and elsewhere are reluctant to spend over worries about what they have lost and what lies ahead.
Read More (subscription required)
Post: Mar. 26, 2020
Fed chairman Jerome Powell: ‘There’s nothing fundamentally wrong with our economy’
Joining TODAY for a rare and exclusive live interview, Jerome Powell, chairman of the Federal Reserve, acknowledges that “we may very well be in a recession, but I would point to the difference between this and a normal recession.” He says “there is nothing fundamentally wrong with our economy” and that the Fed will “aggressively and forthrightly” replace normal lending channels for businesses that have temporarily closed due to the pandemic. He says “there can also be a good rebound” and that the Fed is working to “ensure that it is as vigorous as possible,” adding that “the virus is going to dictate the timetable.”
Watch the 12 minute interview
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COVID-19 to hit state budget hard
The state was facing a $7 billion deficit going into the 2020-2021 budget, which is due next week, but with the coronavirus here, the financial shortfall is expected to be even greater.
State Comptroller Thomas DiNapoli, in Kingston on Wednesday, said he expects the short-term state budget dilemma to be more troublesome.
“By April 1st we have to come up with a spending plan for the coming year. That’s a very tall order for the legislature and the governor. These numbers are all speculative, but we have to assume in the short run it’s a worst-case scenario,” he said.
DiNapoli said hopefully by this time next year the state will have rebounded, but for now, we will see “severe economic damage.”
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$2 trillion Emergency Aid Package to Pump Billions into New York Economy
The $2 trillion package agreed upon by the Senate will allocate an initial $40 billion to New York State including funds that will go directly to residents, others to business and still other money for hospitals. The Bill is expected to be approved by the House on Friday Morning and signed into law by President Trump Friday afternoon.
Read More
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Labor Department Employee Paid Sick Leave Resources
As part of the Families First Coronavirus Response Act, the Department of Labor’s Wage and Hour Division has announced the FFCRA’s paid leave mandates will go into effect on April 1, 2020, for companies with fewer than 500 employees. They have also shared fact sheets for how this will affect employees, how it will affect employers and a helpful FAQ sheet for employers. The DOL has also requested that the public submit questions, concerns and recommendations for the implementation of the FFCRA. The NAM plans to submit recommendations, and we encourage you to provide feedback to help shape our suggestions.
This will be one of several COVID 19 Labor related subjects covered in our Webinar with Greenwald Doherty Monday March 31, at 1:00)
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COVID 19 Related Employment Law Issues Web Conference Essential HR Discussion with Greenwald Doherty
- When: Monday, March 30, 2020 at 1 pm
- Where: Online webinar/conference call
- Cost: No fee to participate
Upon Registering your confirmation email will include phone and login information. If you do not receive a confirmation email please contact abutler@councilofindustry.org for the information.
Manufacturers are have a great deal to consider as they deal with providing benefits to their employees during the COVID 19 pandemic. This web conference is designed to help answer many of the questions you have regarding state and federal regulations and the labor and employment laws covering the management of benefits during this crisis. Through this discussion with three partners at Greenwald Doherty, participants will learn about best practices for managing the workforce, workplace safety and employer options concerning sick time, FMLA PFL, salary reductions and layoffs.
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Post: Jul. 24, 2019
By Edward Kowalski, Human Resources Director, Ethan Allen Workforce Solutions, a Council of Industry Associate Member
Both the New York State Human Rights Law and Dignity for All Students Act were expanded last Friday to ban race discrimination based on “natural hair or hairstyles,” including, but not limited to, “braids, locks and twists.” The law, called the CROWN (Creating a Respectful and Open World for Natural Hair) Act, takes effect immediately.
The change bans schools and businesses from having policies on hair that largely impact minorities. Supporters of the expansion say minorities often face discrimination that is cloaked as criticism of their hair texture or style. Black women are reportedly 1.5 times more likely to have reported being sent home from work because of their hair. Staff Line will be reviewing all Client addendums and all employers should review their handbooks and policies to ensure that any grooming policies are compliant and up to date.
Post: Jul. 10, 2019
By Tiffany Latino-Gerlock, Director of Government Relations and Communications at MACNY, The Manufacturers Association & MANY (The Manufacturers Alliance of New York State)
The 2019 Legislative Session wrapped up in Albany at the end of June with a flurry of activity and hundreds of bills passing before lawmakers adjourned for the summer and headed home to their district offices.
Below is an overview report from The Manufacturers Alliance of New York of some of the new measures that state legislators passed this session that may have an impact on your company and its operations. If you have any questions about these bills, or the overall 2019 Legislative Session, please contact Tiffany Latino-Gerlock, Director of Government Relations and Communications at MACNY, The Manufacturers Association & MANY (The Manufacturers Alliance of New York State) at 315-474-4201 ext. 13 or at tiffanylatinog@macny.org.
New Measures:
Permanent Property Tax Cap – a tax cap that places a limit on the growth of school property taxes at two percent or the rate of inflation, whichever is less. MANY has long supported and advocated for a permanent property tax cap.
Expansion of the MWBE Program – legislation that reauthorizes the Minority and Women Owned Business Enterprise (MWBE) program and extends the provisions of law relating to the participation of MWBEs in state contracts for the program to continue. The legislation increases the “Personal Net Worth” cap from $3.5 million to $15 million.
Pay Equity in the Workplace – package of bills that expands the definition of “equal pay for equal work” to prohibit unequal pay based on a protected class for all substantially similar work. It also includes a salary history ban prohibiting employers from asking applicants about their salary history when determining the wages of a prospective employee.
Women on Corporate Boards Study – legislation that requires the department of state, in collaboration with the department of taxation and finance, to conduct a study on the number of women directors who serve on each board of directors of domestic and foreign corporations authorized to do business in NYS.
Small Business Tax Credit – legislation to establish a small business tax credit for a company that employs a disabled person for the duration of six months and who works a minimum of thirty-five hours per week. The amount of credit per hired person shall range between five thousand to twenty-five thousand dollars.
Workforce Development Funding – $750,000 secured in the 2019-20 State Budget for the Manufacturers Intermediary Apprenticeship Program (MIAP) to continue. MANY and Alliance Partners worked hard from the start of budget negotiations to ensure that this funding was included in the final budget.
Climate Leadership and Community Protection Act – legislation that enacts the CLCPA requiring reductions in statewide greenhouse gas emissions to 60% of 1990 levels by 2030 and 15% of 1990 levels by 2050. It also creates the Climate Action Council that will be comprised of various stakeholders, including Energy-Intensive Trade Exposed Industries (EITEs), to help develop a plan on how the state will achieve an 85% reduction in greenhouse gas emissions by 2050. From the beginning of this legislative session, MANY and many of our members strongly advocated for changes to the original proposal to help protect manufacturers and for EITES to have a seat at the table during the scoping plan process. Furthermore, EITEs will be a part of the working transition group that will advise the council on issues for workforce development, training, and energy-efficient measures.
Next Year’s Priorities:
Support – Though we didn’t see the full passage of a bill that MANY has long championed for, which would provide a zero percent tax rate for all manufacturers, we are pleased to report that it advanced in the State Senate, unanimously passing the Budget and Revenue Committee.
Support – Continued and increased funding for the Manufacturers Intermediary Apprenticeship Program (MIAP) to help grow a larger network of registered apprenticeships at companies throughout the Hudson Valley and statewide.
Oppose – Also not approved this session was a bill that would mandate a prevailing wage on almost all construction projects in NYS that receive any state, regional, or local financial support. Earlier in the year, MANY joined a coalition of business, building, affordable housing, construction, health care, and economic development groups to oppose the bill and voice concern with its potential to halt future economic growth. We will continue to track any movement on this proposal.
