Thursday, November 13th, 2014

As Renewal Season Ramps Up, SPI Offers an Easy Answer to Heavy Healthcare Questions

By SPI: The Plastics Industry Trade Association

The leaves are turning and the climate is changing, the amount of time available for actual work is decreasing and the forecast seems to vary on a day-to-day basis, swinging from sunny skies and short sleeves to slickers or scarves at a moment’s notice.

That’s right: it’s renewal season!

A recent study released by Arthur J. Gallagher & Co. the 2014 Benefits Strategy and Benchmarking Survey, found that U.S. employers’ biggest overall challenge is controlling benefit costs. Among employers surveyed, 63% reported that their benefit expenses account for 20% or more of their total compensation spend. The same study found that 98% of employers are committed to providing some form of employee healthcare benefits for the future. Subsidizing employee healthcare is a key element of any employer’s value proposition.

As such, employers considering their 2015 healthcare offerings are facing an environment with potentially higher costs and complex considerations when determining the right path forward. The manufacturing renaissance in America continues, but for companies to unleash their true growth potential they need to be able to spend less time tabulating the tangible and intangible pros, cons and costs of their employee benefit programs and more time innovating, exporting, investing and hiring.

Like any other sector the plastics industry has these same concerns about healthcare. Luckily, SPI listened and last April launched SPI HealthLink, a private exchange platform specific to SPI members. “The first step in the success of any healthcare plan is to recognize the issues that need to be addressed,” said SPI President and CEO William R. Carteaux. “Where SPI HealthLink stands out as such an attractive option for employers is in its ability to create a predictable solution that is both time and cost efficient.”SPI Health Link Logo2-4C

Private exchanges have emerged as an increasingly popular solution to the questions companies have about healthcare, with data collected by JD Power & Associates showing that 47 percent of businesses intend to adopt one. With SPI HealthLink you get more predictable costs, increased efficiency and streamlined administrative processes, and your employees get to pick benefits as unique as the plastic products and materials their companies manufacture, process, mold and recycle.

It’s easy to see how it becomes wasteful for a company to offer the same plan to a 65-year-old employee that it does to a 20-year-old employee. Operating from a defined contribution (DC) rather than defined benefit approach, SPI HealthLink abandons the one-size-fits-all model of traditional health plans that causes misaligned employee coverage.

With SPI HealthLink, employees choose the coverage that meets their individual needs across a wide range of insurance solutions. That means your employees are better protected and more invested in the benefit dollars your company spends on them.

SPI HealthLink allows employers to allocate fixed dollars to their employees so they can purchase the insurance they need, transforming the budgeting process into an array of concrete predictions instead of a parade of maybes. And all the while, as administered by international services firm Arthur J. Gallagher & Co., HealthLink can eliminate members’ administrative burden and help them get back to growing their business.

SPI members interested in learning more about HealthLink can click here, or call the SPI HealthLink hotline at (844)413-5871 to speak with a live representative from Gallagher. Whether you’re looking for new options or already have a plan in place, understanding the value of SPI HealthLink could be meaningful to helping your organization achieve greater organizational goals such as enhanced employee engagement and productivity.

Friday, November 7th, 2014

NYC Should Abandon Regressive Bag Tax, Join SPI, APBA to Fight Litter

Given the sky-high cost of living in New York, among the highest in the country, the average consumer doesn’t have a lot of money to spare. This is particularly true in the outer boroughs, which are home to some of the poorest congressional districts in the country. So it’s disappointing that the Big Apple is the latest metropolis to contemplate misguided legislation to tax plastic grocery bags in an attempt to address litter.

Recycled plastic bags imagePlastic bag taxes are inherently regressive, doing the most damage to the people who can least afford it. Supporters often cry that these taxes are minimal and the average citizen buying groceries should be able to afford them, but in a city where 1 in 5 people lives below the poverty line, that’s naïve, insensitive and presumptuous; these taxes can be crippling for those at the bottom of the economic spectrum, who simply are doing their best to put food on the table for their families.

Moreover, New York City (NYC) has a higher percentage of non-car owning citizens than any other city in America, making plastic bags a logical and convenient choice for the city’s many residents, who get by riding buses, taking trains and walking. The plastic bag’s popularity with urban dwellers stretches back to its origins in the mid-1960s, when suburban dwellers preferred paper bags that could stand up in the trunks of their cars. Urbanites opted for plastic bags instead, since they have handles, are lighter, can hold 1000 times their weight and are reused. New Yorkers should be allowed to continue to enjoy these benefits without having to pay for the privilege.

The market economics of NYC’s grocery stores also are uniquely suited to include plastic bags, as the city isn’t dotted with big chain establishments but with tiny, owner-operated bodegas, delis, multipurpose shops and other small businesses. A bag tax could squeeze local store owners as much as it squeezes average New Yorkers.

The fact is that supporters of the NYC bag tax are misguided in their attempts to control litter. The issue here is not material; it is behavioral. Plastic bags can and should be recycled. It’s been nearly two decades since we, as a country, had an honest conversation about litter or took the time to educate and empower the next generations of schoolchildren about how to properly dispose of and recycle everything that can be recycled.spi_logo_300x151

SPI: The Plastics Industry Trade Association and the American Progressive Bag Alliance (APBA) share NYC’s concern about litter, and we are ready to have a conversation about how we can eliminate it and close the loop on plastic materials. Recycled materials of all types are valuable to innovators and businessmen and good for businesses, communities and the environment. We oppose bag taxes, which are a regressive, counterproductive and intellectually lazy response to a community and environmental issue that cries out for bold action and long-term commitment.apba logo_2012

We must educate and empower our young people to make a difference. That’s why SPI recently teamed up with JASON Learning, a nonprofit organization managed by the Sea Research Foundation, in partnership with the National Geographic Society, to launch the “Think Outside the Bag!” plastic film and bag recycling contest. By asking students to come up with creative campaigns to increase awareness about recycling flexible plastic films (i.e. dry cleaner bags), product wrapping and traditional plastic grocery bags, the contest aims to make today’s youth tomorrow’s plastic recycling and anti-litter advocates. The APBA also supports A Bag’s Life, a program that helps kids and their communities learn more about recycling plastic bags while giving them the tools they need to host their own recycling events across the country.

Rather than cynically working to reduce consumer access to materials that are convenient and environmentally friendly but arbitrarily declared undesirable, we’re working to build a lasting solution to the problem of litter by helping change consumer behavior now and in the future. The plastics industry, led by SPI and the APBA, is moving the needle on recycling and reducing litter, and we won’t stop until every plastic bag is reused or recovered and every piece of litter eliminated. Instead of merely trying to tax its way out of this problem, NYC can be the leader it always has been and join us in challenging its residents to help put an end to litter once and for all.

Thursday, October 23rd, 2014

Democracy in Action: Fort Collins City Council Repeals Bag Fee Ordinance after Citizen Opposition

On Tuesday the City Council of Fort Collins, CO repealed the city’s bag fee ordinance, following public outcry and a concerted signature-gathering effort conducted by a group called Citizens for Recycling Choices. After the city clerk certified the legitimacy of the signatures, the council could’ve placed the ordinance on next year’s ballot, called a special election to decide the issue or repealed the law outright. Councilmembers chose the last option, scrapping the law in a 6-1 vote.

Fort Collins’ ordinance would’ve required retailers to charge a 5-cent bag fee on all bags defined broadly as “disposable,” which included standard LDPE plastic grocery bags that are 100 percent recyclable and reusable. As reported in The Coloradoan, speaking before Tuesday’s repeal Fort Collins City Councilmember Gino Campana said, “citizens went out and formed an initiative and got enough signatures. That’s enough for me to say repeal this.”

“I believe we can be more innovative than charging a fee for a bag,” Campano added.Recycled plastic bags image

After voting to repeal, the Council reiterated that it would continue to work toward zero waste through increased recycling, a goal shared by SPI and the plastics industry at large. The Fort Collins bag fee, which lasted from the council’s adoption of Ordinance 99 in August to its decision to repeal the same ordinance this week, offers a textbook example for recycling advocates to follow when working to make their voices heard about other misguided bag bans and taxes.

SPI opposes bag bans and fees while supporting zero waste and recycling initiatives and hopes other municipalities will consider more innovative approaches to waste management. SPI also hopes that this successful effort in Fort Collins will galvanize voters, who have the power to correct public misconceptions, help preserve choice in the marketplace and hold their legislators accountable for their actions.

Monday, October 6th, 2014

SPI Supports APBA Referendum on California SB 270

By William R. Carteaux, President and CEO, SPI: The Plastics Industry Trade Association

William R. Carteaux, President and CEO, SPI

William R. Carteaux, President and CEO, SPI

As I mentioned last week in my comments at the 2014 Global Plastics Summit, California recently enacted SB 270, the nation’s only statewide plastic bag ban. SPI: The Plastics Industry Trade Association always has and always will advocate for science and fact-based legislation, but SB 270 does not fit this description. In a press release issued last Tuesday, the American Progressive Bag Alliance (APBA) announced it would take the steps necessary to gather signatures and qualify a referendum to repeal it:

“The approval of SB 270 by the California legislature and Governor Jerry Brown could serve as a case study for what happens when greedy special interests and bad government collide in the policymaking process. 

“Senator Padilla’s bill was never legislation about the environment. It was a back room deal between the grocers and union bosses to scam California consumers out of billions of dollars without providing any public benefit—all under the guise of environmentalism. If this law were allowed to go into effect it would jeopardize thousands of California manufacturing jobs, hurt the environment and fleece consumers for billions so grocery store shareholders and their union partners can line their pockets.”

SPI supports the APBA in opposing SB 270 and seeking a referendum. We do not believe that in passing SB 270 California lawmakers acted in the public interest, and we trust that the public will repeal it at the ballot box.

Plastic bags are the smartest, most environmentally-friendly choice at the checkout counter. Ninety percent (90%) of Americans reuse their plastic bags as trashcan liners, pet waste bags, lunch bags, etc., despite the fact that SB 270’s proponents have attempted to brand plastic bags as “single-use.” This is a myth that’s disproven every day in homes across America. When plastic bags outlive their usefulness, they can be recycled: they are 100% recyclable and can be converted into building materials like decking, fencing and playground equipment. Moreover, they consume less than 4% of the water, generate less than 80% of the waste and require less than 70% of the energy necessary to manufacture their paper counterparts. In addition, consumers will be forced to pay at least 10 cents for every paper bag they purchase.

As for the bags that are oil-derived and made in China, which SB 270’s proponents promote, most are made from nonwoven polypropylene, which isn’t recyclable. In addition, cotton grocery bags must be used 131 times before their contribution to global climate change becomes lower than that of a plastic bag used just once. These bags also have been found to contain toxic lead and harbor harmful bacteria.

Further, plastic bags make up less than two percent (2%) of California’s municipal waste stream and just fourth-tenths of a percent (0.4%) of the overall American waste stream. Thus the bill’s environmental impact will be negligible if not nonexistent. Proponents have been forced to acknowledge this, choosing instead to label SB 270 “a good start.” For them, plastic bags are just the beginning, and plastic bottles, cutlery and other materials are now in their crosshairs.

apba logo_2012That is the issue at hand. The lack of science or logic in SB 270 sets a disconcerting precedent for what legislators could do under the guise of environmental stewardship. This should concern the plastics industry at large: unscientific bills supported by special interests could encourage bans on other plastic products. This must be the beginning of a discussion that plastics recyclers, suppliers, manufacturers and processors have about the future of the industry. The APBA has started this conversation, and we hope the entire plastics supply chain chooses to be a part of it.

Wednesday, October 1st, 2014

At GPS, a Positive Outlook for Plastics but Risks Remain

As a manufacturing sector, plastics has outpaced its counterparts in terms of economic growth since the 1980s. The industry looks poised to continue this trend too, as a panel of economic and plastics experts testified this morning at the Global Plastics Summit (GPS) in Chicago, hosted jointly by IHS and SPI: the Plastics Industry Trade Association.

IMG_0190However, risks remain for the plastics industry, most notably the lower levels of productivity that are restraining the pace of economic growth. “That productivity issue represents some real risks,” said David Witte, senior vice president of IHS Chemical, tying the issue to a lack of education on the part of the public regarding the number and type of careers available in the plastics and manufacturing industries. “There’s some really, really good jobs out there that are more trade related and I think we have to start focusing on that shortfall.”

SPI CEO and President Bill Carteaux agreed, noting that the long period of exceptional growth in the plastics industry that has persisted since the 1980s because there were always enough workers to fill openings and keep production high. “That growth caught up with us,” he said. “The next generation of the workforce, that issue is not going to be solved in DC, it’s going to be solved on the local level, going back in to the high schools and educating the teachers and guidance counselors to steer these young people into these great careers.”

Carteaux’s point that local activism, education and regulatory support will be key to maintaining the plastics industry’s success was echoed by the rest of the panel. On a federal level, however, the picture is a bit grimmer, but the priority for plastics is educating officials and the public. “We as an industry broadly have the task to educate people on what we do and we’ve done a lousy job,” said Kurt Barrow, vice president of oil markets and downstream at IHS Energy. “What we’re up against is the NIMBY (not in my back yard) mentality and the environment al lobby that doesn’t understand unless it’s a solar cell on top of a car or bicycle. They’re the minority but they’re very vocal in the political realm, and our job is really to kind of get the government engaged.”

“The best thing the government can do is to stay the heck out of the way,” said panelist Nariman Behravesh, IHS chief economist, summarily. “Let me just leave it at that in the interest of time.”

Barrow warned that the sudden institution of strict regulations that affect plastics could conceivably restrict access, increase costs and, in a word, “throw growth off the rails.” SPI has called for regulatory reform as well, to create an environment in which plastics can not only maintain its current state and operate without costly, ill-advised rules that aren’t based on facts, but also grow even faster than its current rate.IMG_0173

Still, the labor shortage for manufacturers continues to be a growth-limiting restriction. “The regulation side is huge,” Carteaux said when asked for what the greatest threats to plastics were. “But I think the other big issue when you look at the investments in plastics is ‘are we going to have enough people to build it? Are we going to see the capacity to put those facilities up?’”

SPI in particular continues to work to eliminate these risks to the plastics industry with its aforementioned call for reform and its recently launched PlasticsU, a one-stop online warehouse of educational resources for companies seeking to train new and existing workers. Learn more about the manufacturing employment landscape here.