FEDERAL TRADE ACT: CHANGES INCREASE BENEFITS

The Trade and Global Adjustment Assistance Act is designed to assist both employer and employees who have been adversely affected by off-shore competition.  The revisions to this act in 2009 have significantly increased the available benefits.  Congress has instructed the Secretaries  of Labor, Commerce and Agriculture to apply the provisions of the 2009 legislation “with the utmost regard for the interests of workers, firms, communities and farmers petitioning for benefits.”

Major changes in the act revamp the TAA program and reauthorize it through the end of 2010.  They expand coverage to service sector workers and public agencies.  The act also expands training options  including deadlines to enroll, and expands the Trade Readjustment Allowance (TRA cash assistance). It doubles the training funds from $220M to $575M.

Significant differences between the current legislation and the revised legislation of 2009 are outlined in the tables below:

ELIGIBILITY
In the past for workers to be eligible for benefits under the TAA, they had to be engaged in producing an “article” and affected by shifts in production to a country with a specific trade agreement.  Under the new provisions workers for service companies and public agencies are also eligible.  Also workers for any company that has shifted production to any foreign company are eligible.

EDUCATION AND TRAINING

The criteria for training approval are listed in the following table.  The major changes are that incumbent workers who have been adversely affected and part time training are now available.

 

Provision	Current Program	Reauthorization
Criteria for Training Approval	No training paid for incumbent workers Training must be full time 6 Criteria for TAA Funding Training Approval: 1.    No suitable work available 2.    Worker will benefit from appropriate training 3.    Reasonable expectation of re-employment after training. 4.    Training reasonably available to worker. 5.    Worker qualified to obtain and complete training. 6.    Reasonable cost and suitable.	Allows TAA training for an adversely affected incumbent worker. Allows for part-time training but without TRA (cash assistance). No changes on criteria for Training Approval.

 

 

 

There are also significant changes to the allocation of training funds to the states.

 

HEALTH COVERAGE TAX CREDIT

Changes to the health coverage tax benefit have a major impact on eligible employees, as outlined in the table below:

Provision	Current Program	Reauthorization
HCTC	Pays 65% of health coverage premium for eligible workers who have qualified health coverage. Available to workers receiving Re-employment Trade Adjustment Assistance (RTAA) formerly Alternate Trade Adjustment Assistance (ATAA). Enrolled in or on a waiver from training.	Pays 80% of Health Coverage premium. Begins May 2009 - December 2010. Retroactive coverage months behinning after December 31, 2008. Special Rule was added to Section 35 (c) (2) - any eligible coverage month from March 2009 - December 2009 includes an individual break in training over 30 days and is receiving UC who would be eligible for TRA. Remove the requirement that the worker be enrolled in training or receive a waiver in order to be eligible.

TRADE READJUSTMENT ALLOWANCE

Revisions to the Trade Readjustment Allowance also provide significantly improved benefits  for affected workers, as evidenced by the tables below:

Provision	Current Program	Reauthorization
TRA	Employed in a TAA certified firm, 26 weeks, earn at least $30 - 52 weeks preceding the layoff.  60 day waiting - date of filing petition. Add. TRA - 52 weeks. Clock ticking down. Finiancially eligible for a new UI claim, must accept at a lower rate. Earnings deducted from UI benefits.	Removes 60 day waiting period allowing receipt of TRA on or after the certification date. Provides 26 weeks of additional TRA allowing a 91 week period in which the work may collect up to 78 weeks of additional TRA, allowing 13 weeks in which the worker may not receive payments. Possible for a TAA Affected Worker to collect: 26 regular UI payments, 26 Basic TRA payments, 78 weeks of additional (in a 91 week period, in training only), 26 weeks of remedia /prerequisite (in training only) - totaling 156 weeks of cash payments. Can choose between receiving TRA or UI, if filing a subsequent UI claim, resulting in a lower weekly benefit amount (certain criteria apply). Attending training, if working PT, no deduction is made from earnings up to the amount that is equal to the workers TRA cash allowance benefits.

RE-EMPLOYMENT TRADE ADJUSTMENT ASSISTANCE

Provision	Current Program	Reauthorization
Alternate Trade Adjustment Assistance (ATAA)	ATAA is available to certified group of workers that are re-employed not more than 26 weeks after date of seperation. Must choose between TRA or wage insurance income. Must chose work or training. Cannont earn more than $50,000 per year in a different full-time job. A wage supplement of up to $10,000 over two years is available only to workers age 50 and over.	ATAA to the Re-employment Trade Adjustment Assistance Program (RTAA). Strikes requirement to find work within 26 weeks of lay-off and replaces it with a two year duration of benefits to begin at the sooner of exhaustion of regular UI or re-employment, allowing initial receipt of wage insurance during that two year period. Allows receipt of TRA and move to RTAA but does not allow the worker to return to TRA. Increases the limit on wages in eligible re-employment to $55,000 per year. Age remains the same. Increases wage supplement to $12,000. Allows wage insurance particpants to receive TAA - funded training, employment and case management services, HCTC, job search and relocation allowances. Allows a worker to qualify for wage insurance when working part-time, if employed at least 20 hours per week and participating in approved training.

JOB SEARCH ALLOWANCE AND RELOCATION ALLOWANCE

Previously job search allowances reimbursed 90% of total expenses up to $1250.  The revised bill allows for payment of 100% of the job search expenses up to $1500.  Similarly the former provisions allowed for 90% of relocation expenses up to $1250.  The allowable percentage has been increased to 100% and the cap is now $1500.

Additional changes include the provision that states can utilize an additional 15% of the program funds for administrative services.  These funds can be used to process waivers, collect validating and reporting data and providing reemployment assistance.

Mandates for data collection and monitoring have been expanded.  Petition activity will include more current tracking measures and the data will be incorporated into a single database and made available on a TAA website.

The new act creates three distinct grant programs for communities. These grant programs include general funding for community economic development, a community college and career training grant program and an industry or sector partnership grant program.

Program administration has been significantly changed with the creation of an Office of Trade Adjustment Assistance.

RAPID RESPONSE: CRISIS INTERVENTION FOR BOTH EMPLOYERS AND EMPLOYEES

 “Rapid Response” is a perfect description for a program designed to intervene when a company is contemplating closing a location or laying off employees.  The program is administered by the Bureau of Workforce Development Partnership of the Pennsylvania Department of Labor and Industry.  The Commonwealth of Pennsylvania is recognized by the federal government as a national leader for its Rapid Response program.

Under the conditions of a layoff or closing, the sooner employers and employees begin to manage change, the better chance they have to diminish adverse effects caused by the event.  There are 9 RRCS Field Representatives around the Commonwealth, who are available to help companies cope with these circumstances.

Benefits to the companies receiving these services include:

• Better worker morale & productivity during the transition
• Information about assistance that can help reduce or avoid a layoff
• Help navigating government programs

The improvement in worker morale results from education about and assistance with all of the support programs available to help them to transition to another job..

The assistance available to the company that might avert some of the layoffs includes linking the company to government programs designed to assist with strengthening its market and competitive positions.

One of the major resources available to companies results from the Federal Trade Act of 2009.  This legislation was designed to help companies adjust to significant losses of business due to foreign competition.  Funding sources for this initiative are being reevaluated and apportioned, based partly on the Economic Stimulus Act.

Funds are available for improvements in manufacturing technologies, market research, product development, and workforce retraining.

Employees also are eligible for significant assistance, which the Rapid Response Staff is responsible for facilitating meetings with employers and the affected workers to go over the benefits.  Some of these benefits include:

• Information about federal, state and local job search and placement services, résumé writing help, interviewing tips, help filing for unemployment compensation and applying for financial aid
• Access to numerous PA Career Link resources to help them through retraining or re-employment activities
• Help with community-based support services and health-care options
• Updates on the new resources such as COBRA assistance, extended unemployment, and other Economic Stimulus resources available

Pennsylvania Career Link operators administer the dislocated workers program that assists job seekers with most aspects of finding reemployment, including case management services.

                                     

The Rapid Response Staff also makes sure Dislocated Workers know how to file claims with Pennsylvania Unemployment Compensation of the Department of Labor and Industry (PAUC).

Information pertaining to EBSA -  Employee Benefits Administration of the Department of Labor protects the integrity of pensions, health plans, and other employee benefits.

Dislocated workers are made aware of various healthcare benefits including CHIP for Children and ABC- AdultBasic thru the State of PA.  Currently there are additional benefits through the Stimulus Bill that pays for a significant portion of their COBRA payments. 

Significant support for tuition for retraining is also available.

Trade Adjusted Assistance (TAA) under the Trade Act can greatly increase these benefits to workers who have been laid off as a consequence of their company’s loss of business to foreign competition.  80% of their COBRA costs are paid for.  They might be eligible for 2 years of unemployment while they are in training, and up to $25,000 of training costs can be paid for.  The costs of relocating themselves and their families are also eligible for reimbursement.

As a model for the rest of the country, the Pennsylvania Rapid Response initiative is a significant resource for helping companies deal with downsizing issues and dislocated workers to cope with their situations.  It remains to be seen whether the program in collaboration with private companies and the economic and workforce initiatives of the public sector can contribute to economic recovery in Pennsylvania. Will the program achieve its primary mission – to respond rapidly enough to avert job losses and facilitate retention of jobs in Pennsylvania?

BEVERLY RAPP: ESTABLISHING LINKS TO RESOURCES 

“There are a lot of technical elements to my job, but in the end it’s the human element that makes the difference.”  Beverly Rapp has had this focus on serving individuals throughout her professional life, beginning with an early pursuit of the medical field.  Subsequently she has spent 20 years in the workforce and economic development areas.  Her most recent position is providing rapid response coordination services, for the Bureau of Workforce Development Partnership, Pennsylvania Department of Labor & Industry. She covers 11 counties in NW PA, and she is stationed in Erie, PA.

Prior to taking this position, Beverly had extensive workforce and training experience, serving as:

• Career Link Program Supervisor for the Bureau of Workforce Development Partnership, Department of Labor & Industry, Commonwealth of PA.
• Business Services Director – Regional Center for Workforce Excellence @ Erie Career Link
• Computer and Professional Development Instructor Penn State Behrend’s Corporate & Continuing Education and the Smith Education Center.
• Coordinator for Workforce Development  for the  GECAC Employment & Training/Career Link Division
• Executive Admissions Representative for Triangle Tech in Erie, PA

The Rapid Response program is designed ideally to avert layoffs by linking companies with resources that may make it possible for them to retain employees.  Realistically, in this economic environment, Beverly is engaged primarily in intervening in situations where layoffs are imminent or have occurred.

 

A critical component of her job is to identify and anticipate potential layoffs, through her network of agencies and sources.  In the case of larger companies, who plan layoffs of 50 or more employees, the Commonwealth mandates that they report this intention via WARN notice to the Department of Labor and Industry.  She may learn about smaller companies, through her network of employers, co-workers, partners, and other stakeholders. Other sources of information about planned layoffs are unions, Chambers of Commerce and economic development professionals.

 

Beverly’s first response is to conduct a "Fact Finding" meeting, at the impacted company, to gather information about the company and its workforce.  The purpose of this meeting is to inform the company of benefits for which it might be eligible, hopefully to avert a portion of the layoff or help the company to position itself to rehire workers as soon as possible.  The Federal Government has passed the Trade Act designed to help companies who have lost business to foreign competition.  Beverly believes that a large number of businesses within the region qualify for this assistance.  She acts as a liaison to assemble a team of professionals that can assist these companies.

 

Beverly uses a similar approach with employees, usually at a meeting with the dislocated workers as a follow-up to the meeting with management. Beverly explained that most dislocated workers are unfamiliar with aspects of the support system. Some of the topics addressed are:

• Unemployment Compensation
• Job Search Assistance
• Workshops
• Community Resources
• Education and Training Programs
• Health Care Programs

She relates emotionally to the plight of the dislocated workers with whom she works, describing their experience as the “grief curve.”  “I know.  I’ve lost jobs to changes in funding streams.  I know exactly what these employees are going through.”

 

Beverly also perceives a large part of her role to be education and communication.  “It’s the information part, providing linkages to the resources,” Beverly elucidated. Beverly was part of the team who helped in organizing a symposium for dislocated workers in Clarion County.  Everyone in the community pitched in to support the effort.  This event was recognized as a best practice throughout the State, and this type of community outreach is now mandated by the Commonwealth.

 

“My responsibility is to provide a liaison, between labor and management and to build a support team that is appropriate to the needs and opportunities of both.  Our success is measured by jobs retained in the region,” Beverly explained.  She would far prefer to be instrumental in retaining jobs, rather than retraining workers.

 

Unfortunately, in this economic climate, 99% of the people she works with are dislocated workers.  She describes the situation as “I used to apply band-aids.  Now they’re tourniquets.”

 

Beverly acknowledges that the solution to the region’s problems cannot be achieved through workforce initiatives alone.  “It is going to take a series of collaborative efforts.  First there is going to have to be collaboration among employers, who seek to serve common and growing markets.”  Beverly’s vision extends from collaborative efforts in areas of technology, marketing and research & development among private companies to a larger public/private partnership, in which employers fully utilize the available public resources to fuel their economic development.