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February 13, 2009

Senators express strong support for industry sector-based workforce development in stimulus debate

Sector initiative leaders and their supporters have made a convincing case regarding effectiveness in meeting worker and industry needs

By Jack Mills, Director of the National Network of Sector Partners

In last Friday's debate on the American Recovery and Reinvestment Act bill (H.R.1), six Senators - Max Baucus (D-MT), Tom Harkin (D-IA), Herb Kohl (D-WI ), Patty Murray (D-WA), Debbie Stabenow (D-MI), and Ron Wyden (D-OR) - expressed strong support for industry sector-based workforce development during a colloquy on the floor of the Senate.

Sector initiatives are a proven approach to industry sector-based workforce development. The National Network of Sector Partners (NNSP), a nation-wide association of organizations that operate over 400 sector initiatives and their supporters, has identified four key characteristics of sector initiatives:

  • They focus intensively on a specific industry over a sustained time, customizing solutions for multiple employers in a region.
  • They aim to strengthen economic growth and industry competitiveness, benefiting low-income individuals by creating new pathways into the industry that lead to higher wage jobs.
  • They are led by a workforce intermediary that has a deep understanding of worker and employer issues in an industry.
  • They work to promote systemic change that achieves benefits for the industry, workers, and the community.

As Brownwyn Mauldin's Workforce Developments blog reports, the Senators “discussed the intent of various workforce development-related provisions in the bill, and talked about how they intend for funds to be distributed through the Workforce Investment Act system, and what their priorities are for those funds."

Following are highlights, excerpted from the Congressional Record by Workforce Developments and NNSP, with our emphasis added in blue italics:

Mrs. MURRAY.  First, is it the Senator's understanding that the additional funding provided through the Workforce Investment Act formula grants for adults and dislocated workers will be used predominantly for the direct delivery of services to those who are the most heavily impacted by this recession--the unemployed and the underemployed?

Mr. HARKIN.  Yes, the Senator's understanding is correct. I included a provision in this recovery bill that reinforces the requirement in the WIA to use adult State grant funding to serve certain priority populations, such as those with low incomes or on public assistance. I believe that we should target these funds on the delivery of services to those who have been adversely impacted by our recent economic crisis. I also believe local workforce boards should utilize existing authority to support needs-related payments to help engage individuals in training, if such support is appropriate and effective.

Mrs. MURRAY.  Is it also the Senator’s understanding that the most innovative strategies with proven effectiveness in putting people back to work in high demand occupations, including sector-based and career pathways initiatives that are focused on green jobs, health care and other viable industries, should be utilized to the extent possible in carrying out the delivery of these employment and training services?

Mr. HARKIN.  Absolutely, it is essential that the workforce services provided through this legislation, are delivered through the most effective means possible, ensuring that the unemployed and underemployed are provided with relevant employment and training assistance that will enable them to find good, family sustaining jobs. It is also essential that these programs provide the skills that are relevant to local and regional employers that will help to rebuild our regional and U.S. economies.

And:

Ms. STABENOW.  Is it also the Senator's understanding that the most effective strategies in helping workers maintain and secure new jobs in emerging and viable industries, including the energy efficient and advanced drive train vehicle industry, the biofuels industry, the energy-efficient building, construction, and retrofits industries, and the aerospace industry are those supported by strategic partnerships among State and local workforce boards; institutions of higher education, including community colleges and other training providers; labor organizations; industry; and economic development entities that use sector or cluster-based training approaches for developing job training strategies and career pathway initiatives that lead to economic self-sufficiency?

Mrs. MURRAY.  The Senator from Michigan is correct and makes an important point. Effective strategies for helping workers retool for jobs in viable industries should be informed by the critical stakeholders she noted. It is my hope that when distributing these funds, the Secretary of Labor gives due deference to those eligible entities with strategic partnerships among representatives from the affected industries, labor organizations, workforce investment boards, elected officials, and institutions of higher education, including community colleges and other training providers.

The Senators’ strong support of sector initiatives is further made clear in these sections of the Congressional Record, which NNSP has excerpted and highlighted.

Mrs. MURRAY.  As my friend from Iowa knows, older workers have been particularly devastated by our current economic downturn. A recent Urban Institute publication reported that job loss for older workers is at a 31-year high. Is it the intent of this legislation that older workers will be a key population targeted for services with these additional resources? Is it further the understanding of the chairman that funding under the adult formula grants will focus on serving individuals with multiple barriers to employment, particularly those with low skill levels, to obtain the education, skills training and support services they need to obtain jobs in high demand occupations, particularly in green jobs, healthcare, and other viable industries?

Mr. HARKIN.  The Senator is correct. As chairman of the Labor Appropriations subcommittee, I supported the $120 million in the recovery bill for the senior community service employment program. These funds will support employment and training opportunities for low-income, older Americans. The funds benefit both older Americans hurt by the current economic crisis and community service organizations struggling to keep up with increased demand under decreasing budgets. Individuals with multiple barriers to employment, including older workers, those with low skill levels, and individuals with disabilities, should indeed be an important focus of services for the funding provided to the Department of Labor. Offering these workers, particularly low skilled workers, the tools they need to secure good jobs in new or growing industry sectors can help them enhance their quality of life and achieve economic self-sufficiency as a member of the middle class.

And:

Mrs. MURRAY.  In the workforce provisions under consideration, we provide that training may be provided for jobs in high-demand occupations, through the award of contracts to institutions of higher education, as long as a customer’s choice is not limited. Is it the Senator’s understanding that such training may include the provision of adult basic education or English language education services, as long as these services are provided in connection with a job for which the individual is preparing? Is it the Senator’s further understanding that these services may be provided through community colleges and other high quality public programs that offer postsecondary education and training within a community or region?

Mr. HARKIN.  My colleague is correct. This provision was included in the recovery bill to facilitate the use of funds provided to train individuals in the areas needed in their local community. It would be my expectation that a very significant portion of the funds provided would be spent quickly and effectively in training individuals in health care and other high-demand occupations, as well as emerging ‘‘green’’ industries.

INVESTING IN AMERICA’S WORKERS

Ms. STABENOW.  . . . As Senator MURRAY has rightly stated during conversations on this recovery bill, investing in job creation should be accompanied by investments in workers, an essential component to strengthening our Nation’s productivity and long-term competitiveness. These workers include the increasing number unemployed or underemployed individuals across the country and the thousands of manufacturing workers who have lost their jobs, such as those in the aerospace industry and the automotive industry. In her role as chairman of the Senate Subcommittee on Employment and Workplace Safety, we have worked together to help workers, particularly those in distressed industries, acquire the skills they need to secure family-supporting jobs in viable and emerging industries including the energy efficient and advanced drive train vehicle industry, the biofuels industry, and the energy-efficient building, construction, and retrofits industries. As the Senator knows, my home State of Michigan has experienced major economic dislocations from manufacturing plant closures and industry layoffs. I would like to first ask the esteemed Senator from Washington State if it is her understanding that worker training in these industries would be eligible for consideration by the Secretary of Labor under the national emergency grant and competitive grant funding sections of the workforce provisions of this bill?

Mrs. MURRAY.  Yes, the Senator from Michigan State is correct. It is my understanding that the Secretary of Labor will use these funds to help retool workers who have lost their jobs due to the recession and declining industries, including those in the green- collar industries the Senator mentioned.

Ms. STABENOW.  Is it also the Senator’s understanding that the most effective strategies in helping workers maintain and secure new jobs in emerging and viable industries, including the energy efficient and advanced drive train vehicle industry, the biofuels industry, the energy-efficient building, construction, and retrofits industries, and the aerospace industry are those supported by strategic partnerships among State and local workforce boards; institutions of higher education, including community colleges and other training providers; labor organizations; industry; and economic development entities that use sector or cluster-based training approaches for developing job training strategies and career pathway initiatives that lead to economic self-sufficiency?

Mrs. MURRAY.  The Senator from Michigan is correct and makes an important point. Effective strategies for helping workers retool for jobs in viable industries should be informed by the critical stakeholders she noted. It is my hope that when distributing these funds, the Secretary of Labor gives due deference to those eligible entities with strategic partnerships among representatives from the affected industries, labor organizations, workforce investment boards, elected officials, and institutions of higher education, including community colleges and other training providers.

LONG-TERM CARE

Mr. WYDEN.  . . . I would like to talk about the importance of investing in the long-term care workforce in order to provide good care for seniors and the disabled. Specifically, I would like to discuss the inclusion of longterm care reforms in the health reform bill. Chairman KOHL and I have worked together on the Long-Term Care Worker Recruitment and Investment Demonstration Program Amendment to the American Recovery and Reinvestment Act of 2009 because direct care jobs are a 21st century growth industry. With the aging of the baby boomer generation, this workforce will need to grow substantially if we are to meet the coming demand for both medical and nonmedical support services delivered in the home and in small community residences, as well as in more traditional nursing homes and assisted living facilities. However, today, we are not on track to achieve this goal. . . .

Mr. KOHL.  We already have a shortage of health care workers who are trained and devoted to caring for older Americans and those with disabilities — a fact that is well documented in the report issued by the Institute of Medicine last year. This shortage is one that will only grow more desperate as our country ages rapidly. The United States will not be able to meet the approaching demand for health care and long-term care without a workforce that is prepared for the job. . . . Inadequate training has been found to be a major contributor to high turnover rates among direct care workers, while more training is correlated with better staff recruitment and retention. Equally important, the IOM report recommends that State Medicaid programs increase pay and fringe benefits for direct care workers. Investment in direct care jobs would significantly benefit our economy by providing greater economic opportunity to low income workers, while also strengthening health services for our aging and disabled family members and friends.

And:

Mr. BAUCUS.  I agree with my distinguished colleagues that as we work to reform our health care system it is important to consider how the health care workforce fits into these efforts. Creating a strong, well-trained workforce is a critical part of adequately addressing the needs of older adults and individuals with disabilities. . . . Various studies suggest present and future shortages of paraprofessionals and health care professionals. Effective recruitment and retention strategies are needed. Training programs should be designed that address the competencies required of a 21st century workforce. As part of this effort we also should look at the skills of those currently delivering long term care services. The purpose of health reform is to achieve a high-performing health system. Achieving this goal requires an investment in our health professional and paraprofessional workforce.

Read the full colloquy beginning on page 1796 of the Congressional Record. Once you have opened the document, click on the "Next Page" button at bottom right to read subsequent pages.

Many thanks to Bronwyn Mauldin’s Workforce Developments blog, whose full post on this topic can be found here. Thanks also to the National Center on Education and the Economy and to the California Workforce Association for their contributions.

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