( January 4, 2012, 21:15 GMT | Official Statement) -- MLex Summary: In a statement, McWane said a Federal Trade Commission complaint filed today that alleges anticompetitive conduct is without "sound factual or legal basis."FOR IMMEDIATE RELEASE
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Statement of McWane, Inc. Regarding the Recent Action by the Federal Trade Commission
(January 4, 2012, Birmingham, AL). McWane, Inc. is deeply disappointed that the U.S. Federal Trade Commission has filed an unjustified civil administrative complaint against our company and other members of the fittings industry. At a time when we are already struggling to save hundreds of American jobs from unfair foreign competition, it is regrettable that the FTC has chosen to pursue a claim that has no sound factual or legal basis.
Almost two years ago the FTC began an examination of McWane's marketing programs as a result, the company believes, of complaints from a foreign competitor. It appears that this importer of products from China, Korea and India claimed that a modest and routine rebate that McWane provided to its loyal customers was somehow anti-competitive. The FTC has also raised questions about the fact that, like almost all other trade associations, the short-lived association for the fittings industry gathered limited, stale, and perfectly proper statistics about the tons of fittings sales in the U.S. All of this is taking place in an industry that remains highly competitive, and while foreign-made fittings continue to flood the market and push the domestic industry closer to extinction.
"We will fight this with every resource at our command, and we will to prevail on behalf of American jobs and our economy," said McWane President G. Ruffner Page. "At a time when we are struggling to survive in the face of unfair foreign competition, it is sad and disappointing to be attacked by an agency of our very own government. The millions of dollars that we will spend vindicating ourselves could have been better spent preserving the jobs of our team members."
McWane's CEO Page went on to say, "We compete fairly and legally in the marketplace, working hard to win business and preserve the jobs of our team members from unfair foreign competition. Our rebate programs provide competitive pricing to our customers, and the sales data gathering by the industry's trade association was conducted ethically and legally, and under supervision of outside counsel."
Similarly, the FTC's allegation that McWane participated in improper information exchanges and price signaling, is flatly wrong. "At no time did anyone from our company collude with a competitor about pricing," said Page. "The only information that DIFRA gathered and distributed was old and aggregated sales volume totals that were limited to a six-month period and submitted on a blind basis to an accounting firm. There was nothing anti-competitive about DIFRA's work, which is the type of data gathering common among all industry associations and is designed to help the members plan production schedules." In fact, during the time period in question prices actually decreased.
This case is yet another example of a regulatory agency unreasonably stretching the boundaries of their enforcement powers in a way that discourages companies from investing in the US and creating jobs. "It is unfortunate that with our economy and the livelihoods of so many Americans in danger, our own government would choose to attack the very people trying to fix these problems," said Page.
As the US Chamber of Commerce recently reported:
"Regulatory uncertainty" is one reason employers are reluctant to hire and we're witnessing a jobless recovery.
The process has lost all balance as Congress has yielded power to the federal agencies without proper accountability, and without taking responsibility for what the agencies are doing in Congress's name.
What's more, the agencies often are not transparent. Unaccountable agencies rarely have to justify decisions they make that harm the livelihoods of millions of Americans because the process does not allow for effective judicial or other independent review of major rules.
Agencies can do this because they do not have to prove their assertions are based on sound fact, science, or economics. Rather, all the agency must do is point to anything in the agency record that rationally supports their assertion, and the courts give the agency deference over the public in deciding the validity of the rule.
http://www.uschamber.com/regulations/about-the-issue.
About McWane Inc.
McWane is the leading manufacturer of ductile iron pipe, valves, hydrants, and fittings, and its products make up the backbone of vital water distribution and wastewater treatment systems throughout North America, dependably providing the U.S. with clean drinking water. McWane is a family-owned business based in Birmingham, Alabama, and recognized as an innovator in protecting the environment as well as the health and safety of our company's 4,200 U.S. team members. The company operates 25 manufacturing plants including 13 iron foundries across the United States, Canada, Australia, and China.
McWane remains committed to American manufacturing. Many other companies in the industry have moved their manufacturing operations overseas at the expense of American jobs and to avoid U.S. environmental and workplace health and safety standards. McWane, however, has invested hundreds of millions of dollars to modernize its U.S. plants and make them safe, efficient, and compliant, preserving thousands of well-paying American jobs and the futures of many communities in the process....