Flashings

NRCA comments about DOL's data quality initiative

On June 28, NRCA submitted comments to the U.S. Department of Labor (DOL) about its draft data quality guidelines. The guidelines are intended to ensure and maximize the quality, objectivity, utility and integrity of information disseminated by DOL.

NRCA believes DOL's guidelines could be improved to better comply with the Office of Management and Budget's directive to guarantee information used by agencies involved in the federal rulemaking process conforms with scientific and statistical standards.

To read NRCA's comments, visit the Industry News Section of NRCA's Web site, www.nrca.net.

Senate agrees to fight corporate fraud

By a 97-0 vote, the U.S. Senate agreed to establish the Leahy amendment, which is sponsored by Sen. Patrick Leahy (D-Vt.) and pushes to more vigorously fight corporate fraud. The amendment was attached to the accounting reform bill, which is expected to pass the Senate this month.

The Leahy amendment includes provisions to increase sentences for mail and wire fraud and destruction of evidence to a 10-year maximum sentence, lengthen fraud cases' statute of limitations and protect whistleblowers. The amendment would require audit documents to be kept for five years and block violators of securities laws from filing bankruptcy to shield debts and settlements from their victims.

Leahy says: "If you steal a $500 television set, you can go to jail. Apparently, if you steal $500 million from your corporation, pension holders and everyone else, then nothing happens. This [amendment] makes sure something happens."

The Leahy amendment must pass a conference with the U.S. House of Representatives, which passed accounting reform legislation in April. According to The Wall Street Journal, House Republican Party leaders are considering whether they should incorporate Leahy amendment provisions or create their own.

Partnership created to resolve asbestos litigation

Recently, companies and trial lawyers have united in an attempt to resolve the crisis caused by the drastic increase in asbestos litigation. The flood of litigation has forced many companies to file bankruptcy protection, leaving fewer defendants able to pay the claims of those who are seriously ill.

The Asbestos Alliance, a coalition formed by the National Association of Manufacturers and composed of companies, trade associations and third parties, was formed in 2001 and seeks legislation to solve the litigation crisis. The coalition began when companies sought an alliance with lawyers representing the seriously ill.

The Asbestos Alliance is asking Congress to pass a bill that would allow the seriously ill to collect settlements before those who still are healthy. If the bill is passed, asbestos settlements would be prioritized to ensure compensation for the seriously ill.

The coalition's proposed legislation would include medical standards for all asbestos claims and an extended statute of limitations to prevent those exposed to asbestos from filing claims before they become sick. Asbestos-related illnesses can take up to 40 years to develop. Many healthy people exposed to asbestos file claims to meet the statute of limitations.

Although the coalition continues its lobbying campaign, it doesn't anticipate the bill's passage this year. Instead, it will prepare for action with Congress in 2003.

Bethlehem Steel announces it can stay in the game

On July 9, Bethlehem Steel Corp., Bethlehem, Pa., announced it will be able to operate on its own despite having filed a voluntary petition under Chapter 11 of the Federal Bankruptcy Code on Oct. 15, 2001. Professional Roofing reported in "Flashings," December 2001 issue, page 3, that the company filed bankruptcy because of increased steel imports, a slowing economy and decreased consumer demand.

Despite Bethlehem Steel's renewed confidence, the company is continuing joint-venture negotiations for its Sparrows Point, Md., and Burns Harbor, Ind., plants. However, Companhia Siderurgica Nacional, a Brazilian steel manufacturer and potential buyer of the Sparrows Point plant, is involved with other negotiations that reportedly are slowing the Bethlehem Steel joint-venture process.

In addition, the company will restructure by seeking a new labor agreement with United Steelworkers of America; reducing its financial obligations to retirees, deceased retirees' families, and employees receiving pensions or health care; decreasing company-related costs by modifying pension and health-care plans for current employees; and potentially closing or selling underperforming facilities.