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Managing America: Labor

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Week Ending November 2, 2007

H.R.3920 To amend the Trade Act of 1974 to reauthorize trade adjustment assistance, to extend trade adjustment assistance to service workers and firms, and for other purposes.

The bill is based on findings that since January 1001, the US economy has lost nearly 3 million jobs in manufacturing alone, that 7.1 million are unemployed and 1.2 million for 6 months or longer. The ‘findings’ also note that the service industries have suffered due to outsourcing those jobs to foreign countries.

In 1962 Congress passed trade adjustment assistance to provide workers who lose their jobs due to foreign competition with training and support income while in transition to a new job but the program does not cover service workers despite that they make up 80% of the US workforce.

Congress finds that the relationship between foreign trade and labor will be better served by "opening substantial new markets for United States goods, services, and farm products; building a strong framework of rules for international trade to level the playing field for United States workers and businesses in all sectors of the economy; and  helping those affected by globalization overcome its challenges and succeed."

The bill sets standards that trigger Federal adjustment assistance to displaced workers affected by various elements of foreign trade fluctuations and includes 'down stream' producers who add to products such as packaging, assembly, finishing and testing. Employees impacted by trade would be subject to diagnostic testing and use of other assessment tools; and  in-depth interviewing and evaluation to identify employment barriers and appropriate employment goals. Adjustment payments to workers who qualify for unemployment insurance and are in a adjustment training program would be equal to the unemployment insurance minus the amount the worker is already receiving. Some workers can receive $1500 to aid them during a job search.

Should an eligible recipient of trade adjustment aid die, who is qualified under the Pension Benefit Guarantee Corporation, the qualifying family would continue to receive the benefits fro 36 months.

They bill provides $440,000,000 for 2008 and 2009 to assess, counsel, retrain and aid in getting employed. Education at a college must be to obtain a degree or training or complete the same.

"No benefit allowances, training, or other employment services may be provided under this chapter to a worker who is an alien unless the alien is an individual lawfully admitted for permanent residence to the United States, is lawfully present in the United States, or is permanently residing in the United States under color of law"

Trade adjustment is available to impacted workers who are reemployed but are over age 50 and make less than $60,000 yearly, is working full time or is working 20 hours per week while undergoing training educations. The benefits are available for two years after the employee has exhausted unemployment benefits. The payments during that period may not exceed $12,000.

Although the underlying law provides for the collection of overpayments to a beneficiary, the bill provides for a waiver of that collections if it "would cause a financial hardship for the individual (or the individual's household, if applicable) when taking into consideration the income and resources reasonably available to the individual (or household) and other ordinary living expenses of the individual (or household)'."

The bill also allows for trade adjustment payments to firms whose production has decreased 'absolutely'.

Unemployment funds to States come with the caveat that no applicant can be denied benefits if seeking only part time employment or left a job due to compelling family issues such as domestic violence, serious illness of a family member and due to a change in the spouse's employment location. Such individuals would continue to receive unemployment insurance if they are enrolled in job training.

The Secretary of Commerce can designate 23 Manufacturing Redevelopment Zones in areas where the population does not exceed 2 million residents. The provision aims to improve job opportunities in areas hard hit by loss of manufacturers. Spending for that redevelopment will not exceed $150 million per Zone. Bond issues to support Zone redevelopment are to be 95% tax exempt and must not exceed $130 million. Additional low-income housing credits will be made available in the redevelopment Zones.

Sponsor:  Rep. Charles B Rangel (D-NY-15^th)

Vote: Passed the House 264 to 157 October 31, 2007 RC 1025.

Cost to the taxpayers:

Earmark Certification:  

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MORE INFORMATION

Congress makes the following findings:

(1) Since January 2001, the United States economy has lost nearly 3 million jobs in the manufacturing sector alone.

(2) Today, over 7.1 million people in the United States are unemployed, and nearly 1.2 million of those individuals have been unemployed for 6 months or longer.

(3) While the United States manufacturing sector has been the hardest hit by increased unemployment, the United States service sector has also seen declines as jobs have moved to low-cost labor markets, such as China, India, and the Philippines.

(4) Promoting the economic growth and competitiveness of the United States requires--

(A) opening substantial new markets for United States goods, services, and farm products;

(B) building a strong framework of rules for international trade to level the playing field for United States workers and businesses in all sectors of the economy; and

(C) helping those affected by globalization overcome its challenges and succeed.

(5) Congress created the trade adjustment assistance program in 1962 to provide United States workers who lose their jobs because of foreign competition with government-funded training and associated income support to enable such workers to transition to new, good-paying jobs.

(6) Unfortunately, the trade adjustment assistance program has not kept pace with globalization and it is failing to ensure that all workers adversely affected by trade receive the assistance they need and deserve.

(7) Workers in the service sector, who make up approximately 80 percent of the United States workforce, are ineligible for trade adjustment assistance.

(8) Inadequate funding for training leaves many dislocated workers without access to the retraining they need to find good-paying jobs.

(9) Unnecessary, unduly burdensome, and confusing program eligibility rules prevent workers from gaining access to benefits for which they are eligible.

(10) The health coverage tax credit suffers from fundamental flaws and, as a result, the credit is not being used by the vast majority of people who are eligible for it, despite a clear need for access to affordable health care.

(11) To meet the challenges posed by globalization and to preserve the critical role that United States workers play in promoting the strength and prosperity of the United States, the trade adjustment assistance program must be reformed.

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