The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“WORKER RETRAINING INCENTIVE ACT OF 2002” mentioning the U.S. Dept of Labor was published in the Extensions of Remarks section on pages E176-E177 on Feb. 15, 2002.
The publication is reproduced in full below:
WORKER RETRAINING INCENTIVE ACT OF 2002
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HON. JOHN ELIAS BALDACCI
of maine
in the house of representatives
Thursday, February 14, 2002
Mr. BALDACCI. Mr. Speaker, America's workers are facing tremendous pressures. Import competition continues to erode vital industries that are the economic foundation of communities across the country. At the same time, new jobs are increasingly hard to come by in the midst of a recession, especially jobs with good wages.
The Trade Adjustment Assistance Program was designed to help workers who are caught up in these forces and lose their jobs. It provides assistance so that these workers may seek training to gain new skills, and launch themselves onto a more stable and prosperous career path. This program serves a wonderful purpose: it helps people to help themselves. It is not a handout, but rather a helping hand for anyone who had had a tough break, and wants to take charge of their future. Providing training opportunities is the best way to educate our work force, and help assure them better jobs and better lives.
Unfortunately, retraining is not always as attractive as it should be. The job placement rate for retrained TAA recipients is only 79 percent. The wage for those who do find jobs is only 81 percent of their previous salary in the first year. Under these circumstances, it is hard to convince a displaced worker that he or she is better off investing in a retraining program when getting a job in a new field appears to be a gamble, and a gamble with a low reward at that.
The shame of this situation is that the long-term prospects for retrained workers are much better than initial outcomes would make it appear. While the Department of Labor does not compile systematic data on job outcomes, state placement agents say that both wages and job stability are greatly enhanced within two to three years of retraining. What workers need is a bridge across that initial rocky period when wages are low and job placement is uncertain. That bridge leads to a better future, if only we can help them cross it.
This bill would create that bridge. It would implement an income tax credit equal to the Social Security payroll tax--OASDI--for both employers and employees, after workers have completed training through TAA. Both employees and the companies that hire them could claim the credit for the first year of employment for any worker whose salary is below $60,000.
This bill would provide a crucial incentive for companies to hire retrained workers. Tying the income tax credit to the amount of the payroll tax makes the cost savings easily identifiable and attractive to businesses. At the same time, workers would get a badly needed salary supplement. This bill would make the prospect of retraining much more attractive for someone who has lost his or her job: they would know that businesses would be looking to hire them, and at a salary that is worth seeking.
I have always believed that the surest way to help our workers, and to help our economy, is to give people the best possible opportunity to compete and improve their lives. This bill helps businesses to invest in people, and helps people to invest in themselves.
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