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Oct 7, 2009

There's Money Waiting For North Carolina's Dislocated Workers

There's Money Waiting For North Carolina's Dislocated Workers

Authors: William Schweke, News & Observer By William Schweke Contact: Heather Tyler, 202-408-9788

There is a lot of federal money available to help North Carolinians who have lost their jobs as a result of foreign competition. But if we don’t ask for it, the state won’t get it.

Last year Congress passed and President Bush signed the Federal Trade Promotion Authority Act. The law tried to streamline and expand some forty years of mix-and-match programming that sprouted over time to assist workers adversely affected by global trade. It also sought to bring such programs in line with the federal Workforce Investment Act – one of our nation’s largest sources of support for job search activities and worker training/re-training.

Benefits of the new law are plentiful.

It expands the number of displaced employees who are eligible for assistance to include those who worked for firms that have been adversely impacted by imports as well as off-shore production (including a special program for farmers). Under certain circumstances, the new law also covers employees of firms both up and down stream of the directly effected company – suppliers and assembly shops, for example.

Depending upon training needs, workers could receive income assistance for as long as two years, with another six months possible for those who require remedial education. Many workers could be covered by health insurance through a 65% up-front, refundable tax credit which could be used to cover COBRA payments, for example. Some workers could receive one-time payments of up to $1,200 to offset job search and relocation costs. And, a special program targets workers who are over 50 to ensure that the earning power they’ve built over time isn’t dashed overnight.

Employers, too, could seek reimbursement for up to 50% of on-the-job and customized training for new workers, if they have been displaced by another firm. And, the state could use new federal dollars to coordinate health insurance programs.

Of course, it’s not as simple as it sounds. There is a lot of fine print about exactly who can do exactly what. Not everything is available right away (although North Carolina ’s delegation to Congress should push to speed things up). But the bottom line is that there is money available and we should be going after it.

From 2000 to 2001, the number of North Carolinians impacted by mass layoffs doubled to nearly 45,000. Worse, only about 65% of laid off workers found new jobs in six months or less. And those who did find work were earning only about half of their previous pay (with wages falling from $26,300 to $14,140). In 2002, job loss averaged about 3,000 people per month due to shut downs and workforce reductions. Unfortunately, the picture is not looking brighter. In just the first two months of 2003, firms had already announced that at least 9,000 more people would lose their jobs. That number is sure to climb.

Governor Easley’s budget confirms that North Carolina is facing a revenue shortfall of at least $1.6 billion. And, even though his 2003-04 fiscal proposal would increase state spending by about $700 million, it is actually about $300 million shy of maintaining even the current state service levels.

The combination of continuing job loss and state fiscal concern could be devastating for workers.

The first step in getting the money flowing is for any group of three or more workers, a union representative, an employer, a North Carolina Job Link partner, or other affiliated party to submit a petition to the United States Department of Labor to have a group certified as eligible for trade adjustment assistance. Those who are interested in getting the ball rolling can contact the North Carolina Employment Security Commission for assistance. The Commission is in daily contact with both its federal partners and with front-line employment professionals throughout the state. When a petition is approved, it is the Commission that will contact each displaced worker to let them know about the benefits for which they may qualify and how to access them.

It’s those letters that will link formerly working North Carolina families with the help that’s already waiting for them.

State policymakers, local officials, businesses, unions, and advocates for working people must engage the new law to ensure that North Carolina draws down every possible penny. And we must act with haste.

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William Schweke is the research director for the Corporation for Enterprise Development and is based in the organization’s Durham, NC office.

The Corporation for Enterprise Development is a non-profit organization that creates economic opportunity by helping the poor save, invest, succeed as entrepreneurs, and participate as contributors to and beneficiaries of the economy. By helping individuals and communities harness latent potential, the Corporation for Enterprise Development builds long-term models to help people move from poverty to prosperity while strengthening the overall economy. We identify and research promising ideas; collaborate with the public and private sectors to test them; and help drive the application and adoption of proven concepts.

Established in 1979, the Corporation for Enterprise Development works nationally and internationally through its offices in Washington DC ; Durham, North Carolina ; and San Francisco, California .