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 ... from the AFSCME Legislative Report

AFSCME Scores Another Anti-Privatization Victory as House Panel Approves Expansion of Trade Adjustment Assistance and Unemployment Insurance Programs

Republicans' anti-worker public worker amendments rejected, ODJFS union members affected

Oct. 30, 2007 - A House committee approved landmark legislation expanding the federal program providing retraining assistance to workers dislocated as a result of the nation's trade policies and modernizing the unemployment insurance program.

The bill's cumulative effect is to significantly bolster the state delivery systems for the Trade Adjustment Assistance (TAA) and Unemployment Insurance (UI) programs while also expanding access to both programs.

Three Republicans supported the final bill.

The TAA section of the Trade and Globalization Assistance Act of 2007 (TGAA) expands eligibility for TAA benefits and training to service sector workers, including public sector workers, and increases training funds from $220 million to $440 million, with additional increases in future years.

The legislation also provides increased resources for state agencies to conduct eligibility determinations and provide employment services, including $12.5 million for each state to maintain a stable staff to conduct important outreach activities.

It further makes clear that eligibility decisions and employment services, which are provided with new funds available under the bill, must be conducted by state employees.

Republicans offered two amendments aimed at public sector workers.

The first, to remove the public staffing requirement, failed on a roll call vote with all Committee Democrats and Rep. Phil English (R-PA) voting against it.

The second amendment, removing public sector workers from eligibility for the TAA program, was defeated on a voice vote.

The UI reforms in the legislation also are extremely significant. The bill provides financial incentives to states to modify their programs to make it easier for low-wage, part-time, and women workers to receive UI benefits.

It provides annual distributions for five years of an additional $100 million each year to the states to strengthen their UI and employment services delivery systems which have been weakened by decades of stagnant funding and cuts.

Labor Department Secretary Elaine Chao laid out the Administration's opposition in a letter detailing numerous objections to various provisions in the bill.