OSHA Inspects Another Member

By Larry Marler


Recently OSHA issued penalties to a CSA member as a result of an inspection done earlier this year. The fines are a whopping $23,000!

The purpose of this article is not to embarrass the business, but to provide a clear idea to our readers and members about the potentially high cost of non-compliance.

The listed violations are as follows:

Hazard Assessment Program unavailable

Failure to require proper Personal Protection Equipment (PPE)

Allowing sawdust and cobwebs to accumulate around electrical equipment

Improperly arranged exit routes

Unsanitary conditions in restrooms and washing facilities

Fire extinguisher violations

Improper operation of forklifts, carrying loads too high

Guards on rotating shafts and belts missing, etc.

You can draw on various resources to avoid these fines and to stay in compliance with OSHA. CSA is here to help. We offer free inspections to help find and fix potential violations at your place of business. To find out more about these free audits or to schedule one, please contact CSA at 678-674-1860.

CSA Introduces New Cost-Saving Health Insurance Program

By: Jim Moody, CAE
CSA President
When we’ve asked members about the challenges you face (aside from the global economic issues we can’t solve), we’ve consistently heard from you that health insurance is one of the biggest thorns in your side.

The federal government is working on that issue, but I don’t put a lot of hope in their efforts. I suspect that at the end of the day, health insurance will still be incredibly expensive for small business, and that the pressure for you to provide coverage for your employees will be intense.

While I’m not ready to say we’ve solved problem that has confounded experts and the government for many years, I am happy to say we have found an option that may present some ideas you haven’t explored previously.

For more than a year, CSA has been diligently looking at a variety of options to allow you to provide health insurance benefits without breaking the bank. That search ended last month when the Board voted to endorse a program by Association Health Programs out of Overland Park, KS.

This company is essentially an independent agency with the ability to write policies from a variety of companies, including all the big names. But this is where the similarity to traditional programs ends.

Rather than looking for the best group rate, Association Health Programs starts with individual plans. These are typically less expensive than group plans, and there are some other benefits as well. For instance, the plans are portable, meaning if the employee loses his job, he can keep his health insurance as long as he’s willing to pay the premium himself (and you don’t have to worry about administering COBRA benefits). Also, the policy can’t be cancelled for any reason (group plans can be cancelled). It may also allow you to tailor coverage to the individual’s situation for the best combination of price and coverage, which may be different from employee to employee.

One downside is that in some states (Georgia is one), insurance companies can choose not to write initial coverage for some individuals. (Alabama is a different story – everyone with an Alabama residence or an employer in Alabama is guaranteed coverage through a state risk pool.) When there are employees who can’t be insured individually, a group plan must remain. The goal then becomes to make the group as small as legally possible and cover everyone else as an individual.

As you might guess, this approach can be complicated. On the other hand, the cost savings can be dramatic – 30-40% is not unusual. Each company is different, so the plan has to be tailored for your needs and must take into account the health of your employees. While I can’t promise that everyone will see this kind of savings, the due diligence we’ve done convinces me that this program really will work for many of you. The only way to know is to call Association Health Programs to discuss your specific situation and let them work on quotes for you.

Note that this is not a health savings account that requires lots of administration nor is it some fly-by-night option that will fold without notice. The company has been in business for years and has hundreds of thousands of people covered through various plans. That large number gives AHP buying power you can’t find in a “regular” agent, and that is the key to providing lower cost premiums.

We’ll be working hard over the next few months to educate you more about this option. I suspect you are intrigued but have questions, which is reasonable. Feel free to contact me with general questions or call AHP directly to quiz them on how this all works. There’s also a website with more information: http://www.associationpros.com/assoc/csa. You can also call toll-free at (888) 450-3040 for more information.

Again, this may not work for everyone. But it does offer you an option you probably haven’t considered before, and it has the potential to save you a fair amount of money. Now, more than ever, something like this is worth exploring.

Trading Places CSA Style

By: Larry Marler

Trading Places is a new program offered to members who are interested in taking advantage of a training opportunity by swapping your future owner with another company of your choice. The purpose of the swap is allow your future owner to gain different perspectives on the business.

If you are interested in hosting an "exchange dealer" at your site, or if you are a future owner who would like to gain experience at another yard, contact Larry Marler at larrymarler@gocsa.com.

We will create a list of interested members and share that with those who contact us to find a host yard. . CSA's role will be to make the connection between those seeking training and new perspectives and those who are willing to share their knowledge. It will be up to the two parties to work out the details regarding the swap

Help us make this a great program by getting involved now. Tomorrow will be here sooner than you think.

Coverage with Pennsylvania Lumbermens

Are you insured by Pennsylvania Lumbermens? If so, you’ll want to make sure you’ve notified PLM that you want to be part of CSA’s safety group. By being a part of that group, you become eligible for a dividend of up to 10% of your premium. There is no risk to you – either you earn a dividend, or you don’t, but in no case would you owe more premium or fees to PLM. The dividend is based on the ratio of losses in the group to premium paid by the group.

If you are not insured by PLM, you might want to consider asking them for a quote the next time your Property and Casualty insurance is up for review. They are CSA’s endorsed carrier, and we encourage members to take advantage of this dividend program. PLM is marketed through local independent agents. You can learn more about the dividend program here. To find an agent near you who can write PLM coverage, click here.

Pennsylvania Lumbermens Mutual Insurance Company

One Commerce Square

2005 Market Street, Suite 1200

Philadelphia, PA 19103-7008

Main: 800.752.1895

Fax: 215.625.9097

Dream Again

CSA is partnering with lumber dealer associations nationwide in an effort to promote home ownership, construction and remodeling. As published in the March 20, 2009, Random Lengths report, the following positive market conditions illustrate why we believe that now is the perfect time for the American public to DREAM AGAIN.

1. Affordability of both homes and building materials are now at an all-time high
2. Existing home sales are rising
3. There is an abundant supply of homes from which buyers can choose
4. There are some amazing incentive programs now available federally and through various local and state governments
5. Interest rates are at all-time lows

We believe lumber dealers and suppliers can play a vital part in educating the public that now would be a terrific time to build a new home, buy a home that is on the market, or finally build that long-desired room addition or garage.

> An electronic version of the DREAM AGAIN poster for reproduction
> Sample editorials that you can personalize and send to your local paper
> Sample display advertisements for local newspapers and publications
> Sample bill-stuffers that can be copied, cut, and used with invoices.
> Suggestions on how to have the posters printed

CSA is providing your company with this free DREAM AGAIN kit. Included in the kit are:

Starting May 15, and running through the summer of 2009, the campaign will be nationwide and anticipates that every local lumber yard and their suppliers will take part in just a small way. Because we have dealer-members and associate- members in every significant city in the United States, we corporately possess amazing public relations strength if we all act together towards the same end.

It is our hope that each of you will participate by doing the following in your local communities:

> Print and display the poster in your stores and in your cities
> Personalize the editorial and/or display ads for use in your local newspapers and publications
> Print, cut, and include the statement stuffers in all your mailings over the summer
> Consider placing the poster or display ad on billboards or advertising on buses, benches, etc.

As your association we will, of course, be available to help you with this promotion. Professional printers can create full-color posters using the electronic files that are available with the DREAM AGAIN kit. Posters can be printed and mounted on foam boards for under $40.00 at Kinko’s at http://fedex.com/us/office/.

Sincerely,

Jim Moody, President
Construction Suppliers Association

Position Available: Crack Heads and Felons Please Apply

Jim Moody
CSA President

One of the many enjoyable aspects of my job is serving as the head of our self-insured worker’s compensation fund. But this week, my enthusiasm has been sapped by a settlement mediation for a claim that should never have happened.

Back when things were blowing and going, one of our member companies hired a fellow without really putting too much thought into it. No interview with senior leadership. No background check. Just needed a warm body to do manual labor, and that’s exactly what they got.

Unfortunately, the new employee had some baggage. He was a three-time convicted felon. He had been a crack user for four years. He had two previous back injuries resulting in worker’s comp settlements. He failed two grades in school and never went beyond 9th grade. By his own admission, he was illiterate. Not long after he was hired (surprise, surprise), he injured his back.

The amount we’ve paid for that claim is significant, as is the settlement, but the amount is not the important issue here. What’s important is that this claim was set in stone the moment this fellow was hired. The negligence wasn’t on his part for getting injured; it was on the dealer for hiring him in the first place. How useful could this fellow have been as an employee? Did the owner really get a full day’s work for a full day’s pay? How did he affect morale on the yard? What kind of danger did he pose to other workers or the facility itself?

Admittedly, this is an extreme example (though it is no exaggeration). But I really worry about how this industry is going to hire people when the good times return. Many of you (perhaps all of you!) have spent the past year or so paring down your payroll. It’s my impression that you used the opportunity to jettison those who were slackers, unsafe workers, and generally poor employees. You’ve also lost many good folks, but the bad ones are long gone. We might say most of you have a clean slate.

I’ve had some people tell me that there are masses waiting in the wings to come back into the building supply business. I wonder if that’s really the case. The longer we go without a housing recovery (and let’s be honest, while the economy is probably going to start recovering in 2009, we aren’t going to see appreciable increases in new home starts until 2010), the more our best experienced workers get assimilated into other sectors of the economy. I fear that all the good ones have jobs and only the bad ones are ready to come back when you have jobs for them.

As a leader in your business, now is the time to think about how you will hire when new positions are available again. Just as important as the hiring is the orientation, where you have the opportunity to educate the employee about his job and the industry, give him his first taste of corporate culture, and indoctrinate him on safety.

Most of us spend far too little time thinking about these things because we are too busy. Yet, few things are more important in setting us up for success or failure.

I recently attended a seminar with Jim Collins, author of “Good to Great” and “Built to Last.” I’ve written about him before and urge you to read his books. Next week, I’ll discuss some of the things I heard Collins say as it relates to hiring.

Share Your Best Practices on Credit and Collections

CSA is creating an online resource focusing on credit and collections best practices and we need your input.

Please submit samples of your credit and collections best practices including your company's credit philosophy, your procedures for processing credit applications, collections and denial of credit, samples of your credit applications, form letters and other materials you use to provide credit to your customers and to collect the money owed to your company.

All materials will have their identifying information removed before they are added to the resource guide so if you submit materials, your company's name will be removed before it is added to the resources available for download.

Please submit any best practies (procedures, forms, ideas, materials) to the CSA office. You can submit those items electronically to lisagolden@gocsa.com, fax to 770-752-9726 (attn: Lisa Golden) or mail to CSA, 1850 Lake Park Drive, Suite 200, Smyrna, GA 30080.

We hope to hear from you very soon. Your input is very important and it will help us to build the best online credit and collections resource available to the building materials industry.

For more information, please call 678.213.2164.

Spotlight on Member Services: Regulatory Compliance Assistance

One of the many benefits of CSA membership is access to counseling and guidance regarding safety and compliance practices. It is important to pay attention to safety and employment regulations in the workplace, and we are happy to provide on-site assistance in the following areas:
-Environmental regulations
-Occupational hazards and safety
-Minimum wage and salary requirements
-Equal opportunity employment
-Labor regulations and laws
-Department of Transportation regulations by state
-Taxes – sales, fuel, highway use, etc.
-Georgia energy code compliance, both residential and commercial

Please contact Larry Marler (larrymarler@gocsa.com) or Kevin Rodgers (kevinrodgers@gocsa.com) if you have questions on any of these topics or to schedule a safety and compliance appointment.

Make Your Voice Heard

CSA is seeking members who are interested in serving on short-term task forces to help us create new programs and services. We want to increase the value of CSA membership and the best person to tell us what we should be doing and what we can be doing better is YOU.

If you are interested in serving on our newly-formed Education Task Force, please contact Lisa Golden at 678-213-2164 or lisagolden@gocsa.com. Meetings will be short and sweet, lasting one hour or less and will be held via conference call so there's no travel involved. The purpose of the Task Force is to help CSA develop the most relevent seminar and educational information we can. Task Force members will provide ideas and guidance to CSA staff and its work should be complete by mid-July 2009.

Help us expand our ability to serve you. Call or write today!