Donal Howell, representing the California Automotive Teachers, has been appointed to CAWA’s Board of Directors. During the appointment process, Mike Mohler, Chair of the Board of Directors, commented: “We are pleased to have Donal as a member of our Board of Directors to participate in our discussions of current and future industry issues”. “We welcome him as the California Automotive Teachers’ representative and look forward to his participation which will assist CAWA in achieving its goals as an effective automotive aftermarket industry organization”, continued Mohler.

Mr. Howell spent 27 years in the automotive industry, 20 years of which were spent as a dealership technician, 2 years as a technician in independent shops, and the past 5 years as a professor of Automotive Technology. He has had multiple accomplishments including Associate of Science degree from General Motors ASEP at Fresno City College; ASE Master Technician and Advanced Level Technician in L1 and L3; California Smog Inspection and Repair licensed; Bureau of Automotive Repair Certified Training Instructor; and Toyota Master Diagnostic Technician. As a community college professor, he sees the need for support from and to the automotive industry. His professional life exemplifies continuous improvement which he passes on to students and others he works with in the industry. He enjoys teaching and learning and looks forward to digging deeper into the causes that CAWA supports.

CAWA is pleased to present our Winter Educational Forum at the beautiful Silverado Resort & Spa in Napa, CA. We will have industry experts share their insight and critical thinking on contemporary topics that affect the automotive parts industry. We will also conduct Association business through our committees and Board of Director's meetings. We hope you and your colleagues can join us in the beautiful Napa Valley!

Here is a preview of our general session:

Electric vehicles will change the automotive maintenance and repair industry significantly, in the not too distant future. Technicians, service centers, manufacturers, suppliers, retailers and other companies need to prepare.

This session begins with an overview on the future of electrification by Brian Cruickshank of Schwartz Advisors, followed by an interactive panel/audience discussion of what needs to be done to embrace this revolution of service and maintenance. Panelists include Jeff Jennings and John Martz of Volvo Cars North America, Mark Ferner of Bridgestone Retail Operations, Fran Labun of DENSO Products and Services Americas, Inc. and Luis Cergueira of Total Energies. The discussion will be moderated by Jennifer Maher, CEO of TechForce.

See registration information here.

There are several new 2022 California employment laws of which employers must be aware of, as they may affect daily business operations, policies and employees. Not only have COVID-19-related laws been updated, but the governor also signed safety, wage enforcement, severance and settlement agreements, and worker classification laws, among others. See the report here. Source: Our Friends at the California Chamber of Commerce

California will reconvene its second year of its two-year 2021-2022 Legislative session on January 3, 2022. Democrats continue to have substantial control of both the Assembly and Senate with a super majority in each. Every constitutional office is also held by a democrat.

Issues that the Legislature will work on in 2022 will be worker protections in light of the continued impact of the corona virus pandemic, electric infrastructure development in order to accommodate an all-electric vehicle fleet mandated for future years, and climate-based regulations for various industries including transportation sectors.

California will have a record 2021-2022 budget surplus (July 1- June 30) expected to be around $31 billion. Governor Gavin Newsom has indicated he will increase one-time investments in infrastructure and education and look at other proposals such as a tax rebate to taxpayers. The Legislature will be moving in to a “temporary” Sacramento building in January located at the corner of 10th and O Streets as the east wing Capitol Annex is torn down and a replacement building – which could cost upwards of a billion dollars - is constructed over the next 4-years to house elected legislative members and their staff, the Governor and Lieutenant Governor. The Capitol Annex was completed for $7.6 million in 1952, when Earl Warren was governor. The old domed Capitol was completed in 1874 at a cost of $2.6 million and still stands. The domed Capitol was modernized — without being demolished — for $72 million and reopened in 1982.

For more details contact CAWA’s legislative advocate, Gary Conover at gary@garyconover.com or 916.233.9655.

Arizona will convene the 2022 legislative session on January 10th, which ushers in the last opportunity for Governor Doug Ducey to enact legacy related policies before his second and final term expires, effectively at the end of the year. The upcoming legislative session will experience a host of challenges, as the Arizona Legislature will have 12 new members, which have resulted from a series of unprecedented departures caused by resignations, indictments and death of incumbent legislators. While both the House and the Senate will continue to have one-vote Republican majorities, the unknown personalities of the new members will likely cause challenges for both Republican and Democratic leaders to manage unity within their respective caucuses.

Employer mandates for the COVID-19 vaccine will be among the most anticipated issues that will likely dominate the Arizona legislative agenda. Governor Ducey has repeatedly stated that his administration remains pro-vaccine and anti-mandate. In addition, Arizona is expected to also focus on voter integrity legislation, lower tax policies, an extension of the existing transportation excise tax in Maricopa County and increased funding for education. Like most states, Arizona will need to debate how to utilize one-time federal funds that resulted from the enactment of the American Rescue Plan Act of 2021.

Arizona will experience another significant budget surplus; latest estimates are over $1 billion. However, the Arizona Legislature lost a court battle at the end of the 2021 legislative session over the budget process, as legislative leaders were inappropriately loading up budget bills with unrelated provisions in order to secure the necessary votes to enact a state budget. The courts ruled against this process, citing the Arizona Constitution’s single subject rule. Without the mechanism to load up the budget bills, the typical political exchanges will need to be accomplished separately, which will force an unusual level of trust between leadership and rank-and-file legislators. As such, it is expected that the 2022 legislative session will likely extend past the mid-April target for adjournment, likely going through June.

Arizona will remain an anti-regulatory state, as both Governor Ducey and the Republican leadership in both the House and Senate remain focused on opposing burdensome regulations that would hinder economic recovery. Political factors to be watch for will be the highly contested gubernatorial primaries for both Republicans and Democrats as well as the US Senate race. As Republican candidates are forced to the right, Democratic candidates are equally pressured towards more progressive policies. As is typically the case, as the campaign rhetoric of marquee races heats up there will likely be encroachment into the legislative debate.

For more details contact CAWA’s legislative advocate, Stuart Goodman at sgoodman@goodmanschwartz.com or 602.617.5708.

The Nevada legislature is not in session in 2022 and will reconvene in January 2023. For more details, contact CAWA’s legislative advocate, Gabrielle McGregor at gabriele@theferrarogroup.com or 205.765.5679.

Starting January 1, Arizona’s minimum wage will be going up, but that doesn’t necessarily mean a lot of people will be getting a raise. Arizona’s new minimum wage starting on the first day of 2022 will be $12.80 an hour. The state’s minimum wage has gone up every year since 2017 after voters approved Proposition 206 in the 2016 election. After initially moving the minimum wage up to $12 an hour, the law requires wages to go up with inflation each year. See more here. Source: Phoenix Business Journal

On December 16, 2021, California’s Occupational Safety and Health Standards Board (the “Standards Board”) adopted its second set of proposed revisions to the Division of Occupational Safety and Health’s (Cal/OSHA) COVID-19 Emergency Temporary Standards (the “2nd Revised ETS”). The 2nd Revised ETS will take effect on January 14, 2022. Until then, the current ETS, which was adopted on June 17, 2021, remains in effect. In addition, shortly after the Standards Board meeting, Governor Newsom issued a surprise executive order waiving usual regulatory limits to clear the way for a potential third re-adoption that could run through December 2022. Learn More. Source: Littler

While major steel producers are investing millions to increase electrical steel production capacity, the rapid growth of the hybrid and electric vehicle (EV) segment could potentially cause material demand to outpace supply through 2025.

As the automotive industry battles the semiconductor shortages, which have prevented the production of 9.3 million units to date, the rapid expansion in growth of EV sales raises questions about the future availability of sufficient electrical steel needed to produce electric motors to meet the electrification targets set by regulators and OEMs around the globe. Several major steel producers have announced investments in new xEV steel capacity over the next three to five years, but will this be sufficient to meet the specific grade and regional requirements of the xEV market?

See more details here. Source: IHS Markit

CAWA is excited to launch a monthly social media alert program to make it easier for you, our members, to engage and spread the word!

Every month, CAWA will send an email out with an easy one-step button to share that month's post directly to your Facebook, Twitter and LinkedIn accounts. This will not only help our engagement, but will increase reach for important issues and events that impact our industry. Every like, tweet and share helps!

Keep an eye out for our articles to share! If you haven't done so already, make sure to like us on Facebook, follow us on Twitter or join our CAWA LinkedIn group! For details contact programs@cawa.org or click the social media icons at the bottom of this newsletter.

Salaries are rising. Candidates are weighing multiple offers. Companies are losing candidates even after they’ve accepted an offer. All of those things are happening against the backdrop of a pandemic that lowered workforce participation. Candidates have been in the driver’s seat in this hiring environment, and experts don’t expect that to change in 2022. In fact, many indicators suggest the challenges could get more difficult due to shifting demographics and other factors. For more details see here. Source: Sacramento Business Journal

Tell your company’s HR Department (or the person in charge of hiring your associates) that CAWA has an industry specific job board. We created the job board and participate in conjunction with the Auto Care Association, MEMA, SEMA and ASA to name a few national associations. So, your job opening would be viewed by a great number of candidates given the exposure, through not only CAWA distribution, but the other industry association’s communications vehicles, as well.

See https://www.cawa.org/Jobs for details.