October 31, 2007
Contact: Robin Winchell (202) 225-4031
WASHINGTON, D.C. - U.S. Rep. Charlie Melancon (D-LA) voted today in support
of legislation to assist workers who are laid off when their jobs are moved
overseas. The Trade and Globalization Assistance Act (H.R. 3920), which
passed the House with bipartisan support, would overhaul the Trade Adjustment
Assistance (TAA) program, expanding opportunities for job training to
transition workers into 21st century jobs.
"While we can't stop American
companies from moving overseas, we can lessen the blow on working
Louisianians and help them transition into new jobs," said Rep. Melancon. "This legislation will make
sure more American workers, including those in service-sector jobs, have the
tools they need to compete and win in today's rapidly changing global economy."
"And, since losing a job often means
losing health insurance, this bill will help laid-off workers better afford to
continue health coverage for themselves and their families. I am proud to
vote for it, and I will continue to stand with the working people of south Louisiana."
Specifically, the Trade and Globalization Assistance Act
extends TAA job training and health benefits to service workers who lose their
jobs due to global trade and covers more manufacturing workers. It
dramatically improves TAA health care benefits and strengthens job training
benefits so that workers have a real opportunity to strengthen their skills for
good-paying jobs. The bill explicitly prohibits undocumented workers from
receiving any TAA benefits or services.
The Trade and Globalization Assistance Act also creates new
benefits and tax incentives for industries and communities that have
experienced manufacturing job losses, promotes long-needed reforms in
unemployment benefits, and strengthens notification of workers laid off in
plant closing or in mass layoffs.
"As our nation moves forward with expanded
trade, this bill is a first step to ensure that it won't be at the expense of
American workers," said Rep. Melancon.
Extend Trade Adjustment Assistance
to service workers. The bill specifies that
workers who produce services (such as engineers and call center workers), who
are laid off due to trade, are also eligible for Trade Adjustment Assistance.
Some have forecast that 3.3 million service jobs could go overseas by
2015. Current law extends coverage only to workers in the manufacturing
and agricultural sectors.
Expand Trade Adjustment Assistance
to more manufacturing workers.
The bill closes loopholes in current law to ensure that all workers who lose
their job because their factory moves offshore get TAA benefits. The bill
also provides for automatic group certification for workers from industries
injured by trade, as determined by the International Trade Commission, and for
industry-wide certification when several firms in the same industry are
certified within a 6-month period. Under current law, the TAA
certification process is on a firm-by-firm basis. That process can lead to
inconsistent results, with some workers who lose their jobs receiving the TAA
benefits they deserve, while others down the street do not. This provision
attempts to remedy that problem by authorizing the Secretary of Labor to
develop criteria for making industry-wide certifications
Double job training funding &
expand job training support.
The bill authorizes up to $440 million for FY 08, and increases it to $660
million by 2010. This will address training funding shortfalls faced by some
States, cover increases in the number of eligible workers (because of expansion
to service workers and more manufacturing workers), and provide workers in
longer term job training (including college) with an additional 26 weeks of
income support. The bill explicitly prohibits undocumented workers from
receiving any TAA benefits or services.
Incentives to redevelop communities
hit by loss of manufacturing jobs.
The proposal authorizes the designation of manufacturing redevelopment zones,
and provides the work opportunity tax credit for employers hiring individuals
from that area. The communities would be eligible for more than $5 billion in
tax exempt bond financing for new business; $3.6 billion in tax credit bond
financing for the cost of redevelopment; and more low-income housing credits.
Improve health care tax
credit. The Health Care Tax Credit (HCTC)
program offers health insurance assistance to TAA-eligible workers who have
lost their employer-sponsored coverage, but as few as 10 percent of eligible
workers take advantage of the credit because of its cost. This legislation
increases the tax credit to cover 85 percent of the out-of-pocket cost for
private health insurance up from 65 percent; removes administrative barriers to
obtaining coverage; improves coverage of spouses and dependents; and improves
insurance options in markets that lack affordable choices.
Extend Health Care (COBRA) for
Workers Affected by Plant Closures.
The bill would extend the time period that workers can continue their health
coverage at their own expense with their former employer at cheaper group
rates, also known as COBRA. Workers over age 55 who lose their jobs because of
trade and who worked with the same employer for over ten years could pay for
COBRA health coverage until they become Medicare eligible at age 65 or obtain
health care through a subsequent employer. The bill provides all TAA
eligible workers with up to 30 months of COBRA, up from 19 months in current
law.
Reform Unemployment Insurance. The bill rewards States for taking steps to improve
unemployment insurance coverage for low-wage, part-time and other workers.
Unemployed low-wage workers are only one-third as likely to receive
unemployment benefits, but more than twice as likely to be unemployed as higher
wage workers. The bill provides financial incentives for States that: count
workers' most recent wages when determining UI eligibility; end discrimination
against part-time workers; allow separations from work for compelling family
reasons (such as fleeing domestic violence); and provide extended benefits
during approved training for high demand employment.
Strengthen Notices to Workers
Affected by Plant Closures or Mass Layoffs. To minimize the devastating impact of plant closures and
mass layoffs on workers, their families and their communities, the bill ensures
that workers who are about to lose their jobs are given enough notice and
information - increasing, to 90 days from 60, the amount of advance
notice. Nearly two-thirds of mass layoffs and plants closures in 2001 did
not come with the required 60-day notice. [2003 GAO report] The bill
would also require employers to inform workers of benefits and services such as
unemployment compensation and job training and beef up penalties for failing to
provide plant closing notices.
Fully paid for -- by delaying tax
break for foreign interest payments and extending unemployment tax. The bill delays a tax break that was enacted in 2004
but has not gone into effect, for three years (beginning in 2012), that permits
companies to reduce their U.S. taxes by allocating their worldwide interest
between their U.S. and foreign source income in order to gain a higher foreign
tax credit limitation. Not one company currently utilizes this provision.
In addition, the bill extends the current-law unemployment tax (the FUTA
surtax) on employers, which President Bush has also proposed extending.
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