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Mr. Chairman and Distinguished Members of the Subcommittee:
I am pleased to be here with you today to discuss my Fiscal Year 2000
request for appropriations for the Department of Labor.
My request for appropriations for FY 2000 builds on the successes of the
past six years. Under the leadership of President Clinton, the American people
are enjoying the first budget surplus in 30 years. This Administration has
presided over the longest peacetime economic expansion in our history. Over 18
million new jobs have been added. Wages are rising at more than twice the rate
of inflation. Welfare rolls are down, while home ownership is up. Unemployment
is at its lowest peacetime rate in over 40 years.
HELPING WORKING FAMILIES MANAGE CHANGE
Though the economy is strong, the dynamic forces of technology,
globalization, and competition are sending changes through the workplace. Large
firms, which provided stable employment, and a stable climate for regulation
and enforcement, are now complemented by a dynamic world of small and
medium-sized business startups, often in new lines of industry. Many new jobs
are in these smaller firms, and many new workers now work in them. We must help
working families as they attempt to adapt to these changes.
ADDRESSING WORKERS' PROBLEMS STRATEGICALLY
Against this backdrop we are preparing for the challenges of the 21st
century. I believe that government must be fiscally responsible as well as
dedicated to giving people the tools they need to succeed. With this in mind, I
have set three strategic goals for the Department of Labor: promoting a
prepared workforce, a secure workforce, and quality workplaces. Those
overriding goals are based on underlying values opportunity
and responsibility, community and family, justice and fair play. Let me
explain.
A Prepared Workforce - My budget request reflects one of
the President's top priorities: investing in education and training to ensure
that every American has the schooling and the skills to succeed in the
increasingly competitive global economy. The Workforce Investment Act (WIA),
incorporating the President's principles of job training reform, expands the
One Stop system of streamlined service delivery to job seekers and employers,
empowers customers with the resources and information to select training that
meets their need through Individual Training Accounts and "Consumer
Reports" on training provider performance, and authorizes Youth
Opportunity Grants, to help boost employment among young people living in high
poverty urban and rural areas. WIA was a bipartisan effort and enjoys continued
bipartisan support. It requires that all States be fully operational by July 1,
2000. It is essential that adequate funding, as proposed in my FY 2000 budget
request, be provided to assure States' and local communities' success in
implementing this key reform.
In the new economy, and on the edge of a new century, education cannot end
with a high school diploma, or even with a college degree. Now, education must
mean lifelong learning and continued development of new skills.
A Secure Workforce We receive thousands
of letters from people who discover after they retire that they do not have the
retirement benefits they expected. This is one reason I believe it is critical
that we step up our efforts to ensure that all Americans are economically
secure after they retire. Employment-based pension and health benefits are the
foundation of family security.
I am troubled by the fact that only about one-half of all full-time workers
in the private sector have pension coverage. Three-quarters of workers in small
businesses are not covered by a pension plan. Increasing access to our private
pension system and assuring that private pensions, health care, and other
employee benefits are secure and properly administered are among my most
important priorities and are addressed by this budget. Several initiatives have
been designed to achieve significant progress in helping to promote an
economically secure workforce, such as safeguarding pensions and health care
plans which I will describe in more detail later in my statement.
Finally, a secure workforce requires a fair minimum wage. Today, a full-time
minimum wage worker earns approximately $10,700 $2,900 below
the poverty level for a family of three. In the midst of the greatest peacetime
expansion in the Nation's history, this is unacceptable. A hard day's work
deserves a fair day's pay. We must raise the minimum wage by $1 an hour over
the next two years. I hope that we can work in a bipartisan fashion to enact
this legislation.
Quality Workplaces My third goal is to
guarantee every working American a safe and healthful workplace with equal
opportunity for all. If an employer's practices threaten workers' safety and
health, discriminate on the basis of gender, race, color, national origin,
religion, veterans' status, or disability, or deprive workers of fair wages,
then tough enforcement becomes a necessity. Our ultimate goal, however, is
compliance with employment laws. My emphasis is to ensure an appropriate
balance of fair and consistent enforcement, compliance assistance, training and
cooperative partnerships. I am also committed to improving working conditions
at home and abroad by aggressively working toward the elimination of abusive
child labor and by promoting international core labor standards, which I
believe will enhance economic growth and stability abroad.
GAPS BETWEEN SKILLED AND UNSKILLED WORKERS STILL
EXIST
As I mentioned earlier unemployment is at its lowest
level in a generation. Be they young or old, women or men
many more Americans who want a job can find one. That's good news for working
families.
However, the continuation of a large gap in employment and earnings between
less-skilled under-educated workers and the rest of the labor force is
well-documented, and must be addressed if America aspires to be a Nation where
hard work is rewarded fairly.
The Administration has instituted policies that have helped to begin
narrowing this gap, but more remains to be done.
In addition to the wage gap, research shows that there are continuing gaps
in other important aspects of workers' lives in training,
benefits, and working conditions.
Not that long ago, some policy and program analysts held that non-wage
benefits and working conditions acted as a leveling influence on wage gaps.
Now, we see that benefits and better working conditions tend to be associated
with higher paying jobs in other words the gap in real wages
is actually wider when we include benefits in the calculation. While highly
skilled, educated workers have enjoyed the benefits of economic growth, low
skilled, low wage workers have not kept pace. And so I want to be clear that
workers also experience disparities in other areas safe and
healthful working environments, fair and equal opportunities and in workers'
rights.
My strategic goals of promoting a prepared workforce, a secure workforce and
enabling workers to perform in high quality workplace environments are intended
to help close these gaps.
I believe that the Department's budget request is both innovative and
responsible it takes account of the dramatic changes that
continue to sweep through the economy, and proposes ways to help America's
working families succeed in the new environment. It reflects my priorities to
provide assurance that all workers have the opportunity to find and hold jobs,
under high quality working conditions, with good wages, safe pensions, health
benefits, and opportunities to improve their skills.
For these purposes, the Department's FY 2000 budget proposals total $39.6
billion, of which $13.0 billion is subject to the annual appropriations process
and is now pending, Mr. Chairman, before your Subcommittee. The request for
discretionary programs is $11.6 billion in budget authority, which is $0.6
billion above the FY 1999 level.
FY 2000 BUDGET PROPOSALS CLOSING
THE GAPS
My budget request for FY 2000 proposes several programs and innovations, all
of which are focused upon narrowing or closing the gaps in wages, benefits and
working conditions.
Closing the Skills & Wages
Gap
I am proposing several programs to address the wage gap and advance my goal
to promote a prepared workforce.
Education And Training
Despite the low overall unemployment level, there are still pockets of
Americans who want to work but have difficulty finding new jobs. At the same
time, employers across the country tell me they cannot find qualified workers.
I don't believe we have a worker shortage. Instead, we have a skills shortage.
I believe we must give Americans who want to work the skills to ensure they can
get and keep a decent job.
In Fiscal Year 2000 I propose to make substantial progress toward creating a
21st century reemployment system. My proposal would ensure that we move toward:
(1) helping all dislocated workers who want and need services with resources
for training or to find new jobs; (2) expanding and enhancing the quality of
employment services available for workers receiving UI and other job seekers
who have lost their jobs; and (3) ensuring that any job seeker has access
in person or in the rapidly expanding world of electronic
communication to a core set of employment-related services
through One-Stop Centers. My budget includes an increase of $368 million for a
Universal Reemployment Initiative as a first step toward achieving this goal.
For assistance to Dislocated Workers, I am requesting a
total of $1.6 billion, an increase of $190 million, to provide readjustment
services (including job search assistance), skill training and related services
to help an estimated 858,500 dislocated workers find new jobs as quickly as
possible. This is the initial downpayment on a five-year investment to ensure
that all dislocated workers, who need it, receive assistance.
Included within the $190 million increase is $40 million to provide
dislocated worker training and job placement services in industries and
occupations experiencing skill shortages. Although funding is requested now for
this program, legislation will be proposed to finance it through fees paid by
employers applying for foreign workers through labor certification programs.
Also in FY 2000, I am requesting $53 million for Reemployment
Services Grants to State Employment service agencies. These grants
will provide funds for increased reemployment services to unemployment
insurance claimants to ensure that all unemployed workers who need help to
become reemployed will get the help they need. The increase will target staff
assisted services to insured unemployment claimants, providing early
intervention and immediate referrals to suitable job openings to help them get
jobs faster reducing their period of unemployment and benefit costs. For those
in need, State Employment Service staff will provide customized services
including workshops, job search assistance and screening for referrals to
training or other support services.
I am proposing to continue development of a One Stop Center System,
as authorized by WIA, to transform a fragmented array of employment
and training programs into an integrated service delivery system for adults
seeking to advance their careers. The FY 2000 request is $149 million, which
includes a $65 million set of initiatives to develop new ways to provide
employment-related information through America's Labor Market Information
System an essential part of the One-Stop service delivery
system that is now required in the WIA. Some examples of new ways we intend to
provide services are a "talking" America's Job Bank for the visually
impaired, mobile service centers for rural areas, a 1-800 number providing the
entire customer base of the workforce investment system with information on
public workforce services available at a location most convenient to them, and
continued enhancements in America's Job Bank, America's Talent Bank, and
America's Career InfoNet.
The FY 2000 budget also includes $10 million for the second year of the
joint Labor - Education Learning Anytime, Anywhere Initiative to enhance and
promote learning opportunities outside the usual classroom settings via
computers and other technology for all adult learners.
I am also proposing an additional $10 million for the new America's
Agricultural Labor Network (AgNet). I view this as an important step in
assuring U.S. farmworkers have increased access to jobs, better wages and
working conditions. I see AgNet as a resource for growers to find domestic
farmworkers instead of being reliant on international labor markets. AgNet
would automatically be available through local libraries, unions,
community-based organizations, State Employment Security Agencies and
Department of Agriculture extension offices. Basic job information from AgNet
also would be available in "America's Job Bank."
In FY 2000, I am also requesting $50 million for new Work Incentive
Grants. This is part of the President's comprehensive initiative to
provide economic opportunities for people with disabilities. This will provide
competitive grants to partnerships of organizations in every State, including
organizations of people with disabilities, to help One-Stop Career Centers and
Workforce Investment Boards provide a range of high quality services to
individuals with disabilities to allow them to return to work or obtain
employment.
As another important piece for closing the wages and skills gap, I am
proposing an FY 2000 level of $2.8 billion for the Department's Youth Programs,
a net increase of $68 million above FY 1999.
Included in the request is $1 billion for Youth Activities, authorized by
WIA. This program replaces Job Training Partnership Act Youth Training Grants
and Summer Youth Employment and Training with a single funding stream that
provides local flexibility to support a wide range of activities and services
to prepare disadvantaged youth for academic and employment success, including
summer jobs. An estimated 577,700 participants will be served at the requested
level.
My request also includes $250 million to continue the Youth Opportunity
Grants at the level at which it was funded in FY 1999. These competitive grants
address the special problems of out-of-school youths, especially in
inner-cities and other areas where jobless rates can top 50 percent. The
initiative takes a saturation approach to solving high unemployment, investing
large amounts of resources in high poverty areas to increase educational and
economic opportunity. Grantees will use case managers and job developers to
place and maintain youth in private sector jobs. Education, job training, and
work experience slots will be available for youth not ready for private sector
placement. Related goals include reducing dropout rates, teen pregnancy, and
crime; and increasing enrollment in post-secondary education.
The budget also includes $100 million for a new Right Track
Partnership (RTP) initiative of competitive grants designed to prevent
economically disadvantaged and limited English proficient youth from dropping
out of school and to encourage those who have already dropped out to complete
their high school education. Building innovative partnerships between the
private sector, school districts, and community based organizations, RTP will
provide comprehensive services and economic opportunity to youth in high
poverty areas.
For the Job Corps, I am requesting an increase of $38 million to continue
the operation of 118 existing centers plus an additional 3 new centers
scheduled to be activated in 2000. Increases are requested for post-program
termination and follow-up services, teacher/staff salary increases, and
operating costs of new centers. In addition, funding is requested to complete
the last of four new centers for which construction was initiated with 1998
resources.
The budget includes $110 million (equally divided between DOL and Education)
to complete the final year of Federal funding for the School-to-Work
Initiative. Since 1995, this initiative has made over $1.7 billion available to
States and local communities to build comprehensive systems that link Federal,
State, and local activities to help young people move from high school to
careers or post secondary training and education.
Ensuring a prepared workforce also requires us to continue the work of
welfare reform and that is the reason I have included a request for $1 billion
to continue the Welfare-To-Work jobs initiative. With the
current healthy economy, characterized by low unemployment rates and labor
shortages in some areas, the Nation has unprecedented opportunity to move a
substantial portion of hard-to-serve welfare recipients into unsubsidized
employment with career potential. This is good news. But the hardest work lies
ahead, because those still on the rolls face the biggest challenges to
employment. So, we propose a one-year, $1 billion reauthorization of
Welfare-to-Work that would retain the program's strong focus on long-term,
hard-to-employ recipients. These funds not only help people get jobs
they will help people keep their jobs and move into better jobs by
providing critical job retention and support services. In addition, we need to
focus more on fathers, to ensure that every State helps committed fathers
fulfill their basic obligations to their children on welfare. Many fathers want
to do the right thing, but do not have the skills to earn enough to meet their
child support responsibilities.
The challenge of closing the skills gap is central to this country's ability
to compete in the 21st Century. By closing the skills gap, we can help close
the wage and benefits gap, as well. We
must offer low-skilled workers the opportunities to find and sustain
productive employment with career potential.
For the Bureau of Labor Statistics (BLS), I am requesting
$22 million to improve statistical indicators which are essential to the
development of economic policy and the ability of businesses, labor and
governments to make well informed decisions. This includes resources to augment
the Employment Cost Index (ECI) with an addition of 7,000 establishment units
to its sample. The ECI, as you know, is the Principal Federal Economic
Indicator that provides the nation's most comprehensive measure of changes in
employer costs for all compensation (including wages, salaries and employer
provided benefits).
To expand the application of quality adjustment and accelerate the
introduction of new products for rapidly changing industries in the Producer
Price Index (PPI), extend PPI coverage for the first time in the construction
sector of the economy, to enhance the ongoing expansion of PPI coverage of the
service sector, and to improve our productivity measures, I am requesting $5.1
million.
These funds also include a request for resources to continue the multi-year
Consumer Price Index (CPI) Improvement Initiative effort begun in 1998 to
improve the timeliness and accuracy of the CPI. This is the third year of the
expansion effort to speed the process of updating the expenditure weights in
the CPI Market Basket and to expand the amount of information collected on
prices and characteristics of certain goods and services.
We will continue streamlining and begin a major restructuring of immigration
activities by transferring the Alien Labor Certification Program
from ETA to the Employment Standards Administration (ESA). This effort
is consistent with the recommendations made by the Commission on Immigration
Reform (CIR) as outlined in its report "Becoming An American: Immigration
and Immigrant Policy" in September 1997. In addition to the consolidation,
ESA will reengineer the program to better serve the customers of these programs
while enhancing the Department's ability to effectively protect foreign and
similarly employed U.S. workers.
These programs will help ensure that the workforce of the 21st century is
ready to tackle the challenges ahead. We must prepare our workers to seize the
opportunities presented by the expanding global economy, while at the same time
we must preserve and expand the economic security of working Americans and
their families.
This brings me to my second strategic goal: ensuring a secure workforce. We
know that more Americans are working than ever, and they are bringing home
higher earnings as well. This is real progress. Still
additional challenges lay ahead of us.
Closing the Benefits Gap
As I pointed out earlier, research conducted by the Department of Labor
shows that the disparity in benefits such as health insurance and pension
coverage between low-wage workers and highly skilled workers continues to grow.
Less than half the workforce is covered by an employer-sponsored pension plan.
And the percentage of the workforce covered by private health insurance is
dropping more than one in four workers has no
employer-provided health coverage. Bureau of Labor Statistics research shows
that the decline is even worse for low-wage workers. The wage gap is
increasingly becoming a benefits gap as well.
My budget has several proposals which are designed to address this issue by
providing workers access to information on benefits, such as health care and
pensions, and also for employers, particularly small businesses, to help them
meet the needs of the changing workplace. We can and must do better. We must
protect the benefits earned by so many working Americans, while we also expand
coverage to the many who lack access to these needed programs.
Pension Security and Health Care Initiatives
American workers deserve a secure retirement. Social Security is an integral
part of the retirement equation, and we must do all we can to ensure that the
benefits are there for our children and the generations yet to come. We should
not spend the budget surplus until we save Social Security. The promises made
to our workers and our children must be kept.
But all three legs of the retirement stool must be strong, so we must also
help all Americans save for their retirement. I have long supported pension and
savings education programs. All of you understand the importance of preparing
for retirement.
The American people also understand the need to save, but many simply cannot
afford to do so. In his State of the Union address, the President proposed an
historic initiative using 12 percent of the budget surplus
to establish Universal Savings Accounts to give all Americans the opportunity
to save. These USA Accounts will give every American a share in the wealth of
this Nation, and help all to enjoy a more secure retirement. I am committed to
making USA Accounts a reality this year, and I look forward to working with the
Congress on this essential program.
We must also strengthen and promote the security of the private pension and
health systems. My budget includes $11.8 million over last year for enhanced
pension security and health care initiatives. The Pension and Welfare Benefits
Administration (PWBA
) will provide education and outreach to American workers
and their families to make informed decisions about how to best protect
themselves from being financially overburdened by the cost of day to day
medical expenses or a catastrophic illness. PWBA
has stepped up its efforts in
regulation, enforcement and disclosure especially with respect to the Health
Insurance Portability and Accountability Act of 1996 (HIPAA). PWBA
's role is
also expected to increase with enactment of legislation currently under
consideration by Congress such as the Patients' Bill of Rights and genetic
nondiscrimination legislation.
My request includes an increase of $5.0 million for the final installment of
a multi-year effort to improve reporting and processing of Form 5500 - Annual
Reports on employee benefit plans in the new ERISA Filing Acceptance System
(EFAST). Funding is also included to improve the Internet site, which would
disclose images of the most recent Form 5500 annual reports for approximately
800,000 health and pension plans. The new system which will begin operation in
July, 2000, will improve the quality and accuracy of data, and will speed their
use in safeguarding pensions. These reports provide financial information and
answers to questions designed to highlight possible problem situations
regarding the safeguarding of plan assets.
I am also requesting $2.6 million for PWBA
's Reporting Compliance
Enforcement activities and Customer Services initiatives.
To develop new ERISA data sources on covered employee benefit plans and to
conduct research and policy analysis required to address emerging policy,
legislative and operational issues, my budget includes $1.4 million.
Related to our pension protection initiatives, I am also requesting $1.5
million for the Office of Inspector General. These funds will be used to target
the industry of service providers and seek to prosecute individuals who pillage
pension plans causing financial hardship for workers or retirees.
I have made pension security a top priority especially
for women. Last fall, the President released a report demonstrating that women
rely especially heavily on Social Security and lag in private pensions. In
response, we are proposing two initiatives to help women in their retirement.
First, we will require that pension plans that currently must offer joint and
survivor annuities must now offer options ensuring that a spouse
usually the wife does not experience a steep
decline in pension benefits after the death of the husband. This will not
increase costs to the plan. Instead, the couple can choose to receive a
slightly lower benefit during their lives, in exchange for increased income for
the survivor.
Second, we should require pension plans to count any time used under the
Family and Medical Leave Act toward pension vesting and participation
requirements. This will help ensure that working family members
again, mostly women need not sacrifice their
pension in order to take time off to care for a new baby or seriously ill
relative.
These modest proposals will help ensure that millions of older Americans,
especially women, can live in dignity.
Mr. Chairman, as you, and many others on the Committee know so well, too
many Americans have no access to a private pension. That is why we are
proposing measures to increase coverage and portability. We want to improve the
rules so that more employees can take their pension benefits with them when
they change jobs. We should make it easier for small businesses to establish
pension plans, especially plans that give workers predictable, guaranteed
pensions. Finally, we want to enhance the private pension rules to help keep
employees' pensions safe. These and other measures can widen access to the
private pension system and make it more secure. That is a goal we can all
support, and I will do all I can to see that these proposals are enacted in
this Congress.
One of my top priorities involves ensuring access to health care for
millions of Americans with disabilities. Last year, we established the
Presidential Task Force on Employment of Adults with Disabilities, which I
chair. Our Task Force has already made tremendous progress in bringing together
government agencies and identifying real solutions to help people with
disabilities find real jobs. But we must do more. Mr. Chairman, the President
and I strongly support the notion that millions of Americans with disabilities
can and want to work, yet cannot afford to give up their health care to do so.
We should break down the barriers keeping these Americans out of the workforce.
No one should be forced to choose between keeping his or her health care and
taking a job.
Like many on this Committee and across the Nation, I am also concerned about
the quality of health care. American workers and their families deserve the
world's best health care. The managed care system has dramatically altered the
delivery of health care in America, coupling lower expense with an emphasis on
promoting health instead of merely treating illness. We all believe in cutting
costs, but not at the expense of quality. Within the Department, we are
developing regulations ensuring fair treatment for people when employer health
plans deny or delay promised benefits. But many important patient protections
can only be achieved by improving Federal law. That is why the President and I
are committed to a strong and enforceable Patients' Bill of Rights. I look
forward to working on this vital issue with this Congress.
Other Security Initiatives
To make sure we leave no one behind, the President's budget includes an
initiative to strengthen the Unemployment Insurance (UI)
safety net to make the program more accessible to unemployed workers, assure
the availability of benefits in the event of an economic downturn and improve
State administrative operations. In addition, we want to have further
discussions with stakeholders and the Congress to develop broader bipartisan
reforms to the unemployment compensation system, consistent with budgetary
constraints. Our goals are to expand coverage and eligibility for benefits,
streamline employer tax filing and reduce tax burden where possible, emphasize
reemployment, guard against abuse, and improve administration.
For the Unemployment Trust Fund (UTF), I am requesting increases of $71
million to invest in integrity activities such as benefit
payment control, screening for eligibility for benefits, and field tax audits.
These functions are vital for benefit payment accuracy, detection of
overpayments (fraud and non-fraud), and collection of non-paid and under paid
State taxes. Failure to provide an evenhanded, accurate and fair UI program
results in losses in State tax funds, increased fraud, and error.
The Wage Record Initiative, for which I am requesting $40
million, will fund State Employment Security Agencies for the one time cost to
increase computer capacity to accurately report needed information for each
worker for the National Directory of New Hires. This initiative will permit the
Social Security Administration to verify names and social security numbers and
thus improve the usefulness of the data for Social Security and child support
enforcement purposes.
To assist ETA in the efforts to preserve the integrity of the Unemployment
Insurance Trust Funds, I am also requesting $1.2 million for the Office of
Inspector General. These resources will support high impact criminal
investigations to target and investigate schemes that might otherwise defraud
the UI program.
And, we are proposing consolidation and reform of Trade Adjustment
Assistance (TAA) and the NAFTA-Transitional Adjustment
Assistance (NAFTA/TAA) programs and extension through
September 30, 2001. The reforms will extend TAA eligibility to those who lose
their jobs because of shifts in production abroad similar to
the current provision for workers who lose their jobs because of shifts in
production to Canada or Mexico. The reforms will also increase the cap on
training expenditures, harmonize the existing requirements linking training and
income support, and provide supportive services as needed.
Closing The Gap In Working Conditions
My final strategic goal is fostering quality workplaces that are safe,
healthy and fair to help close the gap in working conditions. All American
workers deserve safe worksites, healthy working conditions and fair pay. The
benefits of these workplace enhancements flow to employers, too. Quality
workplaces reduce turnover, which increases productivity. Employers see the
results on the bottom line. So ensuring high-quality workplaces isn't just the
right thing to do, it's in an employer's own best self-interest as well. I am
also committed to improving working conditions abroad by aggressively working
to eliminate abusive child labor and by promoting international core labor
standards.
Low-wage workers often work in demanding jobs that are accompanied by
difficult and sometimes dangerous working conditions. The risk of lost-time
injury in low-paying jobs is higher than in jobs held by highly skilled wage
earners with good fringe benefits. To help close this gap, I am focusing the
Department of Labor's emphasis on enforcement and compliance assistance to
ensure conformity with our regulatory programs.
International Labor Standards/Child Labor
We have also targeted abusive and exploitative child labor, both at home and
abroad, through a comprehensive strategy of enforcement, education and
partnership. But we can do more. I believe that in the new global economy, we
have an opportunity to lift millions of people into a worldwide middle class
and a decent standard of living without exploiting children. My FY 2000 budget
proposals attempt to harmonize the Administration's goals of increasing trade
and improving working conditions. Promoting international core labor standards
and improving worldwide enforcement of labor laws is vital to this effort.
Achieving expanded opportunity and security for American workers has become
increasingly dependent upon how effectively the U.S. addresses the
international challenges of economic globalization.
Child Labor
My budget request continues to provide $30 million for grants to enable the
International Labor Organization to expand its work to eliminate abusive child
labor in more countries and industries. This five year initiative, which began
in 1999, will help ensure that goods produced abroad are not made with
exploitative child labor. Senator Harkin, I want to thank you for your active
leadership over the past six years in this important work.
International Labor Standards
I am asking for an additional $35 million in FY 2000 to promote core labor
standards throughout the world. This includes $25 million for a major new
ILO-based multilateral program designed to help developing countries implement
core labor standards and build their own social safety nets.
I am requesting an additional $10 million for DOL to provide technical
assistance on these same issues in support of important U.S. bilateral
relationships. Examples of the sorts of projects we are planning include
training in occupational safety and health, local economic development,
dislocated worker services and social insurance reform.
On the domestic front, ESA's Wage and Hour Division (Wage and Hour) will
continue to pursue and expand our strategy of enforcement, education and
partnerships by requesting an additional $4.25 million for this effort. We have
a special focus on child labor compliance in agriculture, through our
"Operation Salad Bowl" initiative, and the garment industry, through
our "No Sweat" initiative. Wage and Hour is expanding its use of the
"hot goods" remedy to deter those using illegal and abusive child
labor and their customers from violating
the law.
Last summer marked our third annual "Work Safe This Summer"
educational campaign to give child labor compliance information directly to
young workers, parents, educators and employers. We also renewed our "Fair
Harvest/Safe Harvest" campaign, which educates farm workers and their
children about workplace rights, child labor and safety/health hazards in
agricultural employment. And, in December 1998, we added a child labor
component to our "E-Laws" Internet Advisor. Now, young workers,
parents, teachers and employers can log onto the Internet for comprehensive,
easy-to-understand information about child labor protections.
Finally, we have established partnerships with commercial consumers of
agricultural goods. H.J. Heinz, "Newman's Own" and others are working
with us to help prevent abusive child labor. And we work directly with
employers to help them comply with the law.
Safe and Healthful Working Environments
We have made real progress in this area. The rate of occupational injuries
and illnesses is at an all-time low. Thirty years ago Congress passed two
landmark pieces of legislation that together help ensure a safe and healthful
workplace to all working Americans. Since then, the Mine Safety and Health
Administration, working in partnership with the mining community, has made
dramatic improvements in miners' safety and health. Last year, the number of
mining-related deaths was the lowest in history. This is real progress. But one
death, one disability, one case of black lung is one too many. There is still
more to do.
Safety and Health
The Occupational Safety and Health Administration has achieved comparable
results, helping to save millions of American workers from illness and injuries
on the job in industries ranging from construction to manufacturing to service
and retail firms. In the coming year, OSHA will continue its effort to enhance
partnerships with employers. We know that most employers want to do the right
thing, but many need help to do so. I am committed to enhancing our partnership
efforts through compliance assistance, consultation programs, and other
cooperative mechanisms. However, we must retain a strong enforcement capacity
as well, to protect workers against those employers who simply refuse to comply
with the law. And, we will continue our work on a standard to help employers
prevent the onset of debilitating work-related musculoskeletal disorders.
A high priority this year is the development and issuance of a proposed
ergonomics program standard. There were 647,000 lost-workday musculoskeletal
disorders reported in 1996, which accounted for approximately one-third of all
injuries and illnesses that year that resulted in one or more days away from
work. Work-related musculoskeletal disorders account for $1 of every $3 spent
for workers' compensation and cost $15-20 billion in workers' compensation
costs each year. An enormous body of scientific evidence demonstrates a clear
relationship between work and the onset of musculoskeletal disorders. In
addition, many companies are successfully implementing ergonomic programs,
protecting their workers, and achieving significant savings. OSHA has spent the
last several years talking to hundreds of business people who have responded to
problems by implementing successful ergonomic programs in their workplaces.
Clearly, as so many employers, workers and scientists have already learned,
ergonomics programs work. The draft ergonomics proposal OSHA released last
month incorporates the basic features of ergonomics programs already used by
many businesses to reduce their musculoskeletal injuries/illnesses.
I am requesting an increase of $35.1 million for workplace safety and health
programs covering both compliance assistance and targeted enforcement. Included
in my request is $10.5 million to enhance OSHA's compliance assistance
activities by providing staff in every Federal OSHA office that will be
responsible for direct outreach and training assistance to employers, and by
providing for an increase in the number of training grants and expert advisors.
For targeted enforcement activities, my budget includes increases of $4
million to focus front-line efforts on the most dangerous workplaces and
hazards. Over the past several years, OSHA has undertaken measures to leverage
its resources and utilize information to target firms with the highest
workplace injury rates. With information generated from the data initiative,
OSHA has been able to identify those employers with the worst safety and health
programs and direct resources to those work sites.
I am requesting an increase of $13 million for Mine Safety and Health
programs. This includes $2 million to conduct more frequent dust sampling,
target operator abatement activities, enhance MSHA's ability to maintain and
calibrate sampling and laboratory equipment, and to process the additional dust
samples collected. This proposal builds on FY 1998 and FY 1999 efforts
it is the third year in our program to eliminate black lung disease.
Resources are also included to reduce fatalities among metal and nonmetal
miners. There are more than 11,000 metal and nonmetal mines throughout the
country, ranging from very small sand and gravel operations to large, open pit
copper mines. As a result of the Transportation Equity Act for the 21st Century
and the continued growth of our nation's economy, we have already seen
increased activity in the aggregates industries. The need for more education
and training has never been greater.
More than 20 years ago, when the Mine Act was passed and signed into law,
the Congress and Administration wisely decided that education and training were
critical elements of an effective safety and health program. As a result, we
are now actively engaged in a results-oriented dialogue to come up with final
training rules for the men and women who work in some 10,000 surface nonmetal
mines. We are on course to promulgate these rules that are so critical to our
continued success in protecting miners' safety and health.
Family and Medical Leave (FMLA)
The Family and Medical Leave Act allows workers to take up to 12 weeks of
job-protected, unpaid leave to care for a newborn or adopted child, attend to
their own serious health needs, or care for a seriously ill parent, child or
spouse. The President is proposing to expand FMLA to businesses with 25 or more
employees, and to allow FMLA eligible workers to take up to 24 hours of
additional leave each year to meet family obligations. The budget includes $10
million for the Department to research the impact this law has had on the
American family and how to make leave accessible and affordable for more of
America's working families.
Equal Pay/Civil Rights
We must also step up our efforts to end wage discrimination and expand
employment opportunities for all working men and women. Today working women
earn only about 75 cents on the dollar compared to men. Only part of this gap
can be explained by differences in workers' education, experience, and
occupational characteristics, and the rest appears to reflect persistent
discrimination in pay. That is why the President's budget will invest $4
million for ESA's Office of Federal Contract Compliance Programs (OFCCP) under
the President's Equal Pay Initiative to increase outreach, education, and
technical assistance to Federal contractors. OFCCP will assist contractors by
providing additional tools to assess current pay policies and practices and
make any necessary improvements. OFCCP will partner with the Women's Bureau on
a public education program on pay discrimination.
Let's be clear. This isn't simply a women's issue, it's a family issue.
Today, nearly 3 out of 4 women with children work. And in 10 million families,
women are the primary breadwinners. But it's hard to get by on three-quarters
of a loaf of bread. I would like to thank Senator Harkin for his very important
work in the area of ending wage discrimination. The President and I are
committed to improving the enforcement of wage discrimination laws and
providing research, education, training and outreach on this important issue.
One Stop Services to Workers and Employers:
Crosscutting Initiatives
The Department's FY 2000 budget submission is the product of a new and
rigorous process, driven by an unusually high level of interagency cooperation
throughout the Department. Given the complexities of the challenges now facing
America's working families, I directed agencies to work together to develop,
wherever possible, "crosscutting" initiatives that would bring all
the necessary tools to bear on a problem. As a result, the FY 2000 budget
includes proposals to pilot test several exciting and innovative approaches
more effective alternatives to the ways in which we have
traditionally developed and implemented our programs. By unifying our efforts
into proposals that transcend the traditional individual agency approach, I
anticipate that we will make significant strides forward in our capacity to
help serve the American worker better.
The Department's innovative one-stop system for employment and training,
launched as an experimental program in the first years of this Administration,
has now become a national system that provides one-stop assistance on all
employment and training related needs.
Crosscut: Worker Education and Outreach
For example, I am requesting $6 million to add information services on a
full range of DOL programs and regulatory requirements to the existing
information and outreach currently available to American workers and employers.
DOL will partner with State employment offices to pilot test a network of 50
one-stop walk-in centers for information on the full range of DOL assistance
programs and workplace regulations. The Department would offer information for
workers on employment and training programs, job search and training
opportunities. Employers and individuals seeking employment will have available
in one location, information about compliance assistance, pensions, health
care, safety and health standards, minimum wage requirements, and child labor
rules. No one should leave these centers confused about their rights or
obligations.
Crosscut: Coordinated Compliance Assistance for Business
I am requesting an increase of $2.6 million for a Coordinated
Compliance Assistance for Business program. To meet the needs of the
changing workplace, where more small and medium-sized businesses lack the
resources of many larger businesses, the Office of Small Business Programs
(OSBP) would develop, implement, manage and evaluate the Department's new
Coordinated Compliance Assistance pilot project for small businesses. OSBP
would staff help desks at ten sites in three regions, and would serve as point
of contact for DOL information. Specifically, the pilot program would partner
with Federal agencies, and other organizations such as Small Business
Development Centers, Agricultural Extension Offices, and Manufacturing
Extension Partnership Centers to increase the availability of DOL information
through on-site services in their existing education and assistance facilities.
For example, OSHA would expand the development of education and training
materials, and PWBA
would make available products designed to inform businesses
that offer pensions or health care benefits of the legal requirements of these
benefits.
My request includes an increase of $1.875 million for a cross cutting
initiative we refer to as Technology for Excellent Customer Service
(TECS). The Wage and Hour Division would pilot test a Department-wide
integrated information technology system to provide workers, employers,
including small business, with prompt identification and referral to their
specific requests and areas of need. We would be able to centrally handle and
route a large volume of phone calls seeking information to the appropriate DOL
agency.
Crosscut: Innovative Enforcement
My request includes $1.7 million for Alternative Dispute
Resolution (ADR). While a strong enforcement program is essential to
ensure compliance with our workplace laws, the Department cannot rely entirely
on traditional means to comprehensively enforce the labor laws for which it is
responsible. Innovative methods are being developed for working with employers
to make maximum use of resources. In some cases, alternative methods of dispute
resolution can resolve cases and avoid expensive litigation costs, for example,
ADR can resolve problems with employers by clearing up inadvertent fiduciary
violations in their health and benefit plans. The Department is currently
participating in efforts at the Department of Justice to develop prototype ADR
programs.
Finally, we will work more closely with the Department of Justice to enhance
criminal enforcement by targeting resources on the most serious violators of
the labor laws that we administer.
Crosscut: Strategic Management
In addition to these program proposals that cut across agency lines, I am
also requesting funds for three management crosscuts that are vital to the
successful design, development and operation of all departmental programs. In
FY 2000, I am asking for a total of $41 million to enhance the Department's
efforts in the areas of information technology, financial management, and
performance measurement. These management cross cuts allow the Department to
tackle common problems across agencies in a cohesive and consistent manner.
In the information technology arena, I am requesting several program
increases totaling $30.7 million to ensure that the Department meets the
legislative mandates of the Clinger-Cohen Act, Paperwork Reduction Act,
Computer Security Act, Year 2000 challenge and the Administration's policy on
the management of information resources and technology within the Department.
These resources will allow the Department to meet the increasing demands for
Web Services across program agencies, provide greater electronic access to DOL
information and materials, and continue implementation of the Department's
common IT and Web architecture.
On the increasingly important Y2K issue we expect all DOL
systems to be Year 2000 compliant by the Government-wide deadline of March 31,
1999. The Department has a total of 61 systems considered critical to our
mission to serve American workers. As of February 12, 1999, 52 of these systems
had been renovated or replaced to correct Year 2000 problems.
After the completion of system repairs or replacement, we are requiring each
mission critical system to undergo a rigorous assessment of Year 2000 readiness
performed by independent reviewers, to provide further assurance that the
Department's systems will effectively transition into the next century. This
assessment program, referred to as Independent Verification and Validation
(IV&V), is scheduled to be completed by June 30, 1999.
Notwithstanding our efforts, we recognize the potential that unanticipated
problems or circumstances beyond our control could cause system or operational
failures in the Year 2000. We are developing Business Continuity and
Contingency Plans to ensure the continuation of all mission critical services
and operations and will test these plans during 1999.
The Department has also provided guidance and technical assistance to our
program partners, such as State and local government agencies and private
sector organizations, in preparing for the Year 2000 and ensuring the
uninterrupted delivery of benefits and services to America's workers.
To effectively implement the Government Performance and Results Act
enhancements (GPRA), I am requesting a total of $7.5 million to undertake
initiatives on behalf of several agencies to enable them to increase their
capacity to become results-oriented performance based organizations. I am
requesting resources for several agencies in the areas of performance
measurement development; expanding data capacity to establish baselines and
collect data for the measurement of outcomes; establish procedures for assuring
the validity and reliability of data systems to support performance measurement
effort and the requirement to conduct program evaluation to periodically assess
the effectiveness of programs and strategies to achieve the statutory purpose
of the Department's programs and activities.
In addition, my budget includes several increases totaling $2.8 million to
support Financial Management activities with several agencies. These increases
will enable the Office of Inspector General to meet increased financial
management audit responsibilities, and will help ETA to closeout JTPA grants
timely and accurately.
I am sure you will agree that initiatives related to GPRA implementation,
improvements in financial management and information technology investments are
an integral part of any serious efforts to manage for results.
CONCLUSION
I am delighted to have had this opportunity to discuss my Fiscal Year 2000
budget request with this distinguished panel. The ideas, policies and programs
embodied within this request, I believe, will benefit our country by looking
after our most precious natural resource the lives of our
workers and their families.
I look forward to working with the committee and I thank you for the
opportunity to appear before you. I will be happy to respond to any questions.
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