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New NAM study outlines cost of labor regulations

Associated Industries of Missouri is the sole official designated partner of the National Association of Manufacturers in Missouri.

The National Association of Manufacturers (NAM) released a new study today 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.  

“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. To learn more about the impact of President Obama’s labor agenda on manufacturers, visit their website. For more information and research from the NAM, visit the newly launched Center for Manufacturing Research webpage.

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