In short, it appears that there are serious problems in providing information about the Trade Adjustment Assistance program. I am forwarding the reports which I have received to the Department of Labor, requesting that they take new steps to work with the States to improve the information available to the public concerning this program. Hon. ELVER B. STAATS, SUBCOMMITTEE ON TRADE, U.S. HOUSE OF REPRESENTATIVES Comptroller General, General Accounting Office, Washington, D.C. DEAR MR. STAATS: On March 31, the Subcommittee on Trade will begin the first in a series of hearings on the effectiveness of the Trade Adjustment Assistance program (press release enclosed). Our first day of hearings will concentrate on proposals to allow workers an additional year in which to determine the impact of imports on their job loss, and to apply for benefits. As you can see from the enclosed hearing on this subject which the Subcommittee held last year, the Federal agencies involved did not know why some 20,000 workers had applied after their eligibility cutoff date. Spokesmen for various labor union organizations claimed one reason for the late filing was that State Unemployment Compensation Offices were not well informed about the program. Therefore, I would appreciate receiving, prior to the March 31 hearing, a letter report on a sampling of State unemployment offices in order to ascertain whether the staffs are familiar with the program, whether literature is available for persons entering the State offices who are interested in the program, and whether there is reasonable knowledge of the program so that routine questions can be answered. This should not be a major study. Therefore, I would appreciate GAO regional staff, in at least 10 or more States, to make a one-time unannounced visit to State unemployment offices. Ideally, the GAO personnel should not identify themselves, but simply see if literature is available, ask the receptionists/caseworkers at the State offices whether there is any form of help for people who have suffered a job loss in cases where they think that "imports are part of the problem." In short, I would like a quick, very short report on the type of response given to a citizen walking into a State Unemployment Compensation Office who is asking for information about compensation for lay-offs due to imports. I do not want to receive any Department of Labor comments or comments from the States on this inquiry. If you feel it is unfair to identify the States selected for this very limited sampling, the letter report can simply use arabic numerals to list the States. I apologize for the very short notice on this request, but as the new Chairman of the Subcommittee, I have not had time to prepare fully for these hearings. Again, thank you for your assistance in this matter, and your expeditious attention shall be greatly appreciated. Sincerely yours, CHARLES A. VANIK, Chairman. In implementing the Trade Act of 1974, Labor issued a handbook entitled "Adjustment Assistance for workers under the Trade Act of 1974", Handbook Number 315. Part B. Chapter IV of the Handbook states that the Employment Service is responsible for providing information to workers, employers, and other interested parties pertaining to their rights and potential eligibility and benefits under the Trade Act, as well as providing general information concerning the petition filing process. Furthermore, the Employment Service is to provide workers with a petition form supplied by the National office. The Employment Service will give advice, information, and technical assistance to workers or their representatives when preparing a petition. In addition, Chapter IV states that the pre-certification period between the filing of a petition and issuance of a certification can be the most productive period for a local Employment Service office in preparing for the operation of an effective adjustment assistance program. A maximum of $750 per petition is available from Labor for pre-certification activities. According to Chapter IV, local offices should use this period to ensure familiarity with the act and the details of the worker adjustment assistance program, to conduct training programs for staff and to begin to identify potentially eligible workers. Prefiling of applications should be encouraged where convenient or necessary to assure promptness or preservation of rights. Training needs surveys should also be initiated and labor market information updated and correlated with the needs of the potential worker group. Due to criticism of Labor's outreach program for potential Trade Act recipients in the past, two changes are under way. Posters depicting the trade import problem which may be affecting UI claimants have just recently been printed and are awaiting distribution to local UI offices. Secondly, there will be a test study to see if it is beneficial to distribute a leaflet to UI claimants unemployed from impacted or potentially impacted industries. These leaflets will explain the potential benefits available under the Trade Act of 1974 and will contain a worker petition application. Attached are copies of the four documents made available to the various States by the Employment and Training Administration. The leaflet entitled "If Imports Cost You Your Job . . ." is to be made available in Spanish. Worker Adjustment Assistance A new law provides special income protection for workers who lose their jobs or whose hours of work and wages are reduced as a result of trade with other countries. Under the Trade Act of 1974, workers whose employment is adversely affected by increased imports may apply for Worker Adjustment Assistance. This includes trade readjustment allowances that provide weekly income for them to live on while they are unemployed or on reduced schedules and a variety of help in preparing for and obtaining new employment. They may be eligible for training, job search, and relocation allowances. The Federal program is administered by the Bureau of International Labor Affairs and the Manpower Administration of the U.S. Department of Labor through State employment security agencies. It became effective on April 3, 1975. If you are unemployed or on a short workweek, you may qualify for the benefits the new program provides. How do you go about getting them? The first step is establishing group eligibility for the workers in your company whose jobs may be affected. To do so, you should petition the Department of Labor for eligibility to apply for benefits. The petition may be filed with the Office of Trade Adjustment Assistance of the Bureau of International Labor Affairs by a group of three or more workers, their union, or authorized representative. You can obtain proper forms from the nearest local office of your State employment security agency; or you can phone (202) 523-6225 or write: U.S. Department of Labor, Bureau of International Labor Affairs, Office of Trade Adjustment Assistance, Washington, D.C. 20210. If it is determined that increased imports have contributed importantly to the job reductions in your company, the affected workers will be certified as eligible to apply for adjustment assistance. The certification will give the date when layoffs or reduced schedules began or threatened to begin. This is called the "'impact date." If you and your fellow workers are dissatisfied with this decision, you may file a petition for review with the U.S. Court of Appeals that has jurisdiction in the area of your place of employment. There are time limits for each step in the process. A determination must be issued within 60 days after a worker petition is filed. Workers have 60 days to appeal the determination. When your group has been certified as eligible to apply for adjustment assistance, the next step is determining your individual eligibility. Your State employment security agency will make this determination. To qualify, you must have been laid off or put on a reduced schedule (defined as 80 percent or less of your average weekly hours and wages of 80 percent or less of your average weekly wage) on or after the impact date and before the date when the certification ends. In addition, during the 52 weeks before your separation or job reduction, you must have worked for at least 26 weeks at wages of $30 or more a week in the same adversely affected firm or an adversely affected subdivision of a firm. How do you apply for adjustment assistance? Go to your nearest State unemployment compensation or employment service office and file a claim for a trade readjustment allowance. If you 1477 meet the qualifying requirements, your claim will be approved. While receiving benefits, you are subject to the same requirements as workers getting regular unemployment insurance benefits under your State law. You must be registered for work, report as requested, and be available for a suitable job. You also have the same appeal rights provided by your State unemployment insurance law. How much will you receive? The regular trade readjustment allowance is 70 percent of your average weekly wage but not more than the national average weekly manufacturing wage. However, other benefits and earnings affect the amount you get. Your weekly payment will be reduced by: (1) 50 percent of the amount you earn during the week; (2) the amount of any unemployment insurance (UI) you are eligible to draw for the week; (3) the amount by which the UI, training allowance, and readjustment allowance payable to you for that week exceed 80 percent of your average weekly wage or 130 percent of the national average weekly manufacturing wage, if less. How long will you be paid? Ordinarily, you may be paid for not more than 52 weeks in a 2-year benefit period. But there are exceptions. You may be paid for up to 26 additional weeks in a 3-year benefit period if • You are completing training you started before the end of the 2-year period. To qualify for this extension, you must apply to your State employment security agency for training during the time limits allowed: within 6 months of either the week for which you first received a readjustment allowance payment or the date when the affected workers in your group were certified as eligible to apply, whichever is later. • You were 60 or older when you were laid off. The number of weeks for which you may be paid is reduced by any weeks for which you receive a trade readjustment payment, regardless of the amount, and also by any weeks for which you receive UI or a training allowance equal to or more than your regular trade readjustment allowance. Would training improve your job prospects? If there are no suitable jobs to be found in your area and you think training would improve your chances of getting a job, discuss your needs and aims with the staff of your local employment service office. They can advise you on the employment outlook for workers with different job skills, help you decide what kind of work is best suited to your aptitudes and interests, and tell you about any training opportunities that may be available at no cost to you. Your plans may include vocational, on-the-job, technical, or professional training. You receive your trade readjustment allowance while you train-unless, without good cause, you refuse suitable training or do not try to make satisfactory progress. Of course, you must also stay within the time limits allowed for payments while you finish training. In addition, you may be eligible for payments to help cover the personal expense of taking training. If the training facility is beyond the normal commuting distance from your home, you may be paid your transportation costs (not exceeding 12 cents a mile) and living expenses (up to $15 a day). |