Oregon OSHA Scraps Vaccine Rule after Supreme Court Ruling

The United States Supreme Court on Jan. 13 blocked enforcement of one of two employer mandates issued by the Biden administration in an effort to slow the spread of COVID.   In an unsigned opinion supported by six justices, the court invalidated an emergency regulation for large employers issued in November 2021 by the Occupational Safety and Health Administration. The mandate compels most employers with more than 100 workers to require them to be vaccinated or submit to regular testing. According to the Jan. 13 opinion, the Biden administration lacks the unilateral authority to impose the mandate. The court noted that OSHA has the authority to enact workplace protections, not broad public health measures, and that the rule went beyond the agency’s powers.   By a five-to-four margin, meanwhile, the court upheld a mandate issued by the secretary of health and human services that requires people who work in health-care facilities that serve Medicare and Medicaid patients to be vaccinated. Chief Justice John Roberts and Justice Brett Kavanaugh joined with the court's three liberal justices to form the majority.   Oregon OSHA’s rules must be “at least as effective” as federal rules. In response to the Supreme Court's decision, OSHA announced Jan. 13 that it "will not move forward with adopting the same or similar standard in Oregon." The agency, instead, "will continue to monitor federal OSHA activities and respond as needed." Feel free to contact Paloma Sparks if you have any questions.

Latest Proposed Heat, Smoke Rules Are Costly, Burdensome

Oregon OSHA has published its latest proposed rules for heat exposure and wildfire smoke, and they continue to pose significant problems for employers. Throughout the process, OBI has urged the agency to consider common-sense rules that ensure worker safety without creating unnecessarily costly and burdensome requirements. We will continue to do so.   Rather than addressing risks caused by work, both rules respond to environmental forces outside of employers’ control. The heat-exposure rules kicks in when the heat index meets or exceeds 80 degrees Fahrenheit and becomes more restrictive as the temperature rises. The wildfire smoke rules applies when the air quality index hits 101 for fine particulates. Both could impose significant and inappropriate costs on employers.   For every hour worked, for example, the heat rules propose to require employers to provide paid breaks lasting up to 15 minutes. This requirement ignores the fact that many employees are assigned tasks based on productivity rather than hours worked. As a result, some employees will simply disregard the break requirement even as OSHA requires employers to enforce it. The proposed wildfire-smoke rules, meanwhile, require employees to use N95 masks in certain conditions despite OBI’s urging that use be voluntary. Such requirements ignore the very different workplaces to which they will apply and expose employers to penalties for employee noncompliance.     While OBI wants to ensure the safety of all workers, we continue to urge OSHA to consider how these rules will affect the ability of businesses to operate. OSHA plans to file the rules for public comment on Feb.1. We will provide additional information for how you can engage.

Dan Rayfield, Julie Fahey Tapped for House Leadership Positions

Rep. Dan Rayfield, D-Corvallis, will almost certainly become Oregon’s next House speaker, replacing Tina Kotek, D-Portland, who announced recently that she would resign from the Legislature Jan. 21 to focus on her gubernatorial campaign. Meanwhile, Rep. Julie Fahey, D-Eugene, is likely to succeed Rep. Barbara Smith Warner, D-Portland, as House majority leader. Smith Warner has relinquished her leadership position but not her House seat. House Democrats announced their selection of Rayfield (right) and Fahey on Jan. 16 following a caucus vote. All 60 House members will choose the speaker and majority leader when they convene in February. Until then, Rep. Paul Holvey, D-Eugene, will serve as speaker. Holvey is the speaker pro tem. Rayfield, co-chair of the Ways and Means Committee, was challenged for the speakership by Rep. Janelle Bynum, D-Happy Valley, according to The Oregonian/OregonLive. He will lead the House at a time of significant turnover among legislative members and leaders. Longtime Senate President Peter Courtney, D-Salem, announced this month that he would not seek re-election, making 2022 his final year in office.

OBI CEO to Join Metro Panel Discussion on Manufacturing

OBI President and CEO Angela Wilhelms (right) will participate in a Jan. 27 Metro Council work session focusing on the importance of manufacturing in Oregon and in the Portland metropolitan area. Angela’s fellow panelists will include Alicia Chapman, CEO of OBI member Willamette Technical Fabricators, and Mike Wilkerson, senior economist with ECONorthwest. The panel will talk with Metro councilors about ECONorthwest’s research on manufacturing in Oregon and the findings of a recently released report it produced for OBI and the Oregon Business Council. Those findings articulate the many benefits of manufacturing to Oregon’s economy and the opportunities that growth in the sector could provide. The panel also will discuss opportunities and challenges facing manufacturing employers in Oregon and the metro area. If you'd like to watch the meeting online, instructions can be found on Metro's website.

Punitive Portland Emissions Tax Loses Steam

Following significant opposition by OBI, the Portland Business Alliance and others, the punitive Clean Air Protection Fee proposed by the Portland Bureau of Planning and Sustainability (BPS) has lost steam. The Portland City Council has not scheduled any action on the proposal, which also has received lukewarm support from air-quality activists.   As you may recall, BPS shifted its focus last year following several months of stakeholder workgroup meetings. It moved away from a per-ton tax on carbon emissions from stationary sources and proposed, instead, the establishment of a $20,000 base fee for facilities that hold designated permits issued by the Department of Environmental Quality (DEQ). Some permit-holders would pay an additional emissions surcharge of $250 per ton for certain pollutants.   BPS’ modified proposal suffered from many problems. Not only do affected facilities pay the state for air-quality permits already, but Portland may lack the authority to tax them further. If such authority does exist, Portland’s Clean Air Protection Fee could serve as a model for other cities eager to adopt ill-designed schemes as a means of raising money.   And the proposal is, indeed, ill-designed, as OBI explained in a November comment letter. No nexus exists between the pollutants the city has identified as problematic and the employers that would pay the tax. Singling out the city’s few remaining manufacturers for extra taxation also would compromise their ability to provide employment, harming the very city residents the proposal purports inaccurately to help. The median wage for manufacturing jobs in Oregon exceeds the median for other industries by 17%.   it appears that further action on the issue would require significant retooling to garner support from stakeholders. OBI will continue to monitor the issue with our partners at the Portland Business Alliance.   Contact Sharla Moffett if you would like more information on the city’s proposal.

Check Out Oregon Manufacturing Report

If you haven’t had a chance to read the Oregon manufacturing report released by OBI and the Oregon Business Council in November, please check it out. The study, prepared by ECONorthwest, contains information OBI members know well (manufacturing plays a critical role in the state’s economy) as well as information many may not (manufacturing grew as a share of Oregon’s GDP even as it shrank in importance elsewhere).   Among the most notable findings:   Oregon ranks 15th nationally for manufacturing as a share of state GDP. The typical manufacturing job produces $181,000 worth of output, 42% more than in other industries Median earnings of full-time manufacturing workers exceed those in other industries by 17%.  A 10% increase in manufacturing output would boost state and local revenue annually by $800 million.   Continued manufacturing success, however, will require statewide and regional strategies and the re-examination of tax, regulatory and investment policies that both help and hinder the sector’s competitiveness.   To read the report, click here. To review ECONorthwest’s key takeaways, check out its presentation. You also can read an Oregonian op-ed written by OBI President & CEO Angela Wilhelms and OBC President Duncan Wyse.

State Adopts Climate Plan Despite Cost, Complexity

The Environmental Quality Commission (EQC) adopted the Department of Environmental Quality’s (DEQ) Climate Protection Program in December, and implementation began Jan. 1 Although OBI had significant concerns about the program as proposed in August, the final rule adopted by the EQC included several major eleventh-hour changes that make the program more difficult to achieve and compliance more costly for businesses. These unexpected changes include, among others, an increase in the greenhouse gas (GHG) reduction goal from 80% to 90% and a more than 30% increase in the cost of compliance instruments.   Although regulating natural gas and transportation fuel suppliers is the primary focus of the program, the impacts of the regulation will be felt throughout our economy as costs rise for fuel and everyday necessities like groceries. In addition to regulating natural gas and transportation fuel, approximately a dozen Oregon manufacturing and industrial facilities will be directly regulated under the program. No immediate economic impact is expected, since the program’s GHG cap will not begin to decline until 2023. However, regulated entities are initiating plans to determine how they will meet the new complex, stringent requirements and how they will bear the cost increases to their operations.   The climate rule is a product of Gov. Brown’s Executive Order 20-04, which requires more than a dozen state agencies to reduce GHG by 80% below 1990 levels by 2050. OBI has been extremely engaged on both the executive order and the Climate Protection Program through participation on the rules advisory committee and robust public comments at every step in the process. See The Oregonian’s Dec. 16 article on the state’s new climate policy here.

Governor's Office Shares Workforce Plan Details

The governor’s office presented details of its ambitions Future Ready Oregon workforce plan during January’s legislative days. The plan calls for spending $200 million in ARPA and general fund money to expand workforce programs. Given the severe workforce shortage affecting employers across the state, OBI is monitoring the progress of the plan closely.   The proposal includes, among other things:   $35 million for local workforce boards for wrap-around services, career coaching and retraining for those seeking employment $20 million for new and existing apprenticeship programs, including costs for participation $17 million for community colleges career pathways programs that focus on workforce re-entry $95 million for workforce-ready grants tied to programs in the construction, healthcare and manufacturing sectors. The grants will provide tuition assistance and wrap-around services while paying business costs related to training programs and equipment. $10 million for a benefits navigator that provides a single location for people to apply for and access various benefits and programs.

OBI Reschedules Annual Meeting

After much consideration, OBI has postponed its annual meeting. Originally scheduled to take place Feb. 8, the meeting has been moved tentatively to June. It will still take place at the Salem Convention Center, and we will share details as soon as possible. We hope the delay will allow a greater number of members and guests to participate in person. Thank you for your understanding, and we look forward to seeing you in June. In addition to a timely agenda that will cover key policy and political topics, OBI will honor this year’s jobs champion, Brad Hicks, the recently retired president and CEO of The Chamber of Medford and Jackson County, and include a reception where attendees can network with elected officials and fellow business leaders.

Join the Manufacturing Council of Oregon!

OBI recently announced the formation of the Manufacturing Council of Oregon (MCO), the state affiliate of the National Association of Manufacturers. MCO is OBI’s dedicated manufacturing advocacy platform and steering committee and will be a strong voice of our manufacturing and related industries. MCO’s mission is to protect, promote and grow a positive, globally competitive business climate for manufacturing in Oregon.  If you’re interested in joining the Manufacturing Council of Oregon, we encourage you to log in to your OBI membership profile, or create a profile if you don’t have one set up, go to the settings tab, and in your Groups/Interest areas click on “OBI Manufacturing Council of Oregon” to be added.   If you'd like to participate, the next meeting will take place on Thursday, Jan. 27, at 2 p.m. Visit our website for more information on the council or reach out to Scott Bruun with additional questions.

Are you taking full advantage of your OBI membership?

Oregon Business & Industry oregonbusinessindustry.com 1149 Court Street NE Salem, OR 97301 ‌ ‌ ‌