New Study Outlines Cost of Labor Regulations

Washington, D.C. – The National Association of Manufacturers (NAM), Texas Association of Business (TAB) and Texas Association of Manufacturers (TAM) have released a new study that outlines the destructive legacy this administration’s relentless labor regulatory agenda will leave for manufacturers, their employees and the communities in which they live.

Regulations on issues such as contractor blacklisting, employee overtime, silica, union elections and injury and illness reporting will not only result in hundreds of millions of hours of paperwork, but will also come at a price tag of more than $80 billion in compliance costs over the next 10 years.

“This kind of financial burden hinders job growth,” said Cathy DeWitt, TAB Vice President of Governmental Affairs. “Manufacturing is a source of good paying jobs in Texas and growing the manufacturing sector should be a priority. These policies will not foster that growth.”

“The federal government’s recent labor regulations are redundant, expensive and represent yet another example of overreach that makes it harder for manufacturers to grow and create jobs said Tony Bennett, president and CEO of the Texas Association of Manufacturers. “Instead of encouraging investment and economic growth, stifling regulations like these set back our efforts to get Americans back to work.”

“It has been troubling to watch regulation after regulation with major economic costs come from this administration,” said NAM Senior Vice President of Policy and Government Relations Aric Newhouse. “These regulations are making it harder for manufacturers to continue to create jobs and economic opportunity. It is becoming clear that the administration is dismissing the real-world costs while manufacturers are losing valuable hours and money spent complying with these regulations. This study demonstrates the true impact of regulations that are duplicative, complicated and burdensome.

“We understand the need for reasonable regulations and take pride in creating safe workplaces with opportunities for all, but this increasing stream of burdens is not a balanced approach that we need to succeed. Manufacturers want to spend their time and resources hiring new workers or investing in life-improving products, but the billions being spent complying with burdensome regulations makes that goal increasingly difficult to achieve.”

According to the study, recent labor regulations from the administration will cost the following over the next 10 years:

1. $81.6 billion in compliance costs
2. 155,700 lost jobs
3. 411 million hours of paperwork

Key findings include the following:

1. The pace of labor rulemaking in the waning months of the Obama presidency will easily exceed that of the previous three two-term presidencies.
2. On average, the Obama administration’s Department of Labor finalized nearly twice as many major labor regulations per year than the previous four administrations.

To read the study, click here.

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Manufacturers in Texas account for more than 14.5 percent of the total output in the state – more than $238 billion in 2014 – and manufacturers employ more than 866,000 Texans in jobs that pay an average compensation of more than $79,000 a year. Representing more than 500 large and small companies from every manufacturing sector, the Texas Association of Manufacturers actively promotes manufacturers’ interests and priorities from the State Capitol to Washington, DC. TAM is the front line defense against state and federal legislative, regulatory, tax and energy policy overreach that could threaten the manufacturers’ positive growth. Likewise, TAM proactively pursues policy that enhances its members’ ability to grow jobs and to remain domestically and globally competitive.

The National Association of Manufacturers (NAM) is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12 million men and women, contributes $2.17 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the National Association of Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.

As the state chamber of commerce, the Texas Association of Business is the most influential and dominant voice for public policy issues affecting business in Texas. Through proven results-oriented advocacy and member services, TAB develops a climate in Texas which enables more than 4,000 business members and their 600,000+ employees to operate efficiently and profitably, thus creating new jobs. TAB is proud to be the official state partner of the National Association of Manufacturers.