Today, the Democratic Caucus officially re-elected Rep. George Miller to chair the House Education and Labor Committee for the 111th Congress.
It is an honor and a privilege to continue to chair the Education and Labor Committee in the next Congress, and I thank my colleagues for their support.
If anything, this historic election reminded us that Americans from all regions, backgrounds and political stripes are united in our shared hopes and aspirations: A quality, affordable education for our children; a good-paying job with decent benefits; and a secure retirement after a lifetime of hard work. In a nation as great as ours, these dreams can – and must – be achieved.
I look forward to working with all members of this committee, the next Congress, and the new administration on a Main Street recovery plan that will revitalize our economy, and toward our larger goal of rebuilding and strengthening America’s middle class. Like President-Elect Obama, I’m confident we can reach this goal by working in a bipartisan way that transcends the politics of the past, and by making sure that our government is open, accountable and engages the public. Moving forward, our committee will also build on our efforts to use innovative strategies to make sure that the voices of Americans around the country are heard here in Washington.
I also know that no one is more excited about the opportunities before us than Senator Ted Kennedy. No one has fought harder for our children, workers and families than Ted, and no one could ask for a better partner in these challenging times. I am thrilled that he has returned to the Senate, and look forward to continuing to work closely with him on the important tasks that lie ahead.
Yesterday's historic election of Senators Barack Obama and Joe Biden as our next President and Vice President was a true victory for every child, student, worker and family in America. I congratulate Senators Obama and Biden, and I look forward to working closely with them to change the direction of our country and get our economy moving forward again.
During the past two years, the Education and Labor Committee has focused on strengthening our nation's middle class – a priority that Senators Obama and Biden clearly share, as demonstrated by their careers and the focus of their historic campaign.
With our country facing the worst economic crisis since the Great Depression and our global leadership at risk, this mission is more important than ever.
In the next Congress, this committee will be dedicated to working with the new Obama-Biden administration and members of both parties of Congress to rescue our economy by rebuilding and strengthening America's middle class. We must get started right away by passing a Main Street recovery plan that will get Americans back to work and provide immediate relief to families and workers struggling with long-term unemployment and depleted state budgets.
We will dedicate ourselves to improving our nation's schools and continue our efforts to make college more affordable and accessible, so that every student has the opportunity to succeed. We are committed to rebuilding our country's roads, bridges and schools, and to green retrofitting and other modern energy programs that will create millions of good-paying jobs and reestablish America's technological leadership.
We will fight to restore workers' rights, so that every American can benefit from economic opportunity. And we will make the preservation and strengthening of retirement savings a priority, so that all Americans can enjoy a secure retirement after a lifetime of hard work.
Today marks a new beginning. Together, we can rescue our economy, restore the promise of the American Dream, and ensure that, in a nation as great as ours, the interests of students, workers, families and retirees are at the heart of our nation's priorities.
The American economy could slip into a deeper recession unless immediate action is taken to stem the tide of rising unemployment and falling family incomes, witnesses told the Committee in a hearing today.
Economists predicted that, based on past recession trends unemployment could soon reach eight percent or higher, and middle-class families’ incomes could drop by more than $2,000 this year.
“It is urgent that we prepare now to take the next steps to rescue the economy by creating jobs, providing immediate relief to the states and small businesses, and by making real investments in energy, technology and education,” Chairman George Miller said. “We must have a plan that speaks directly to the needs of American families and workers today.”
The number of out-of-work Americans has increased by 2.2 million in the last year. They join more than 2 million workers who have been unemployed longer than 27 months. In October, many workers began exhausting their unemployment insurance benefits. By the end of this month, an estimated 775,000 workers will be left without a safety net, and a total of 1.1 million workers will be in the same straits by the end of the year.
In a letter to Chairman Miller released at the hearing, economist Alan Blinder of Princeton University predicted that “unemployment will top out in the 8-8.5 percent range” if the coming recession is as severe as the recessions of 1981-82 and 1973-75. “My worry,” wrote Blinder, “is that we may be heading in that direction.”
“We are clearly in the early stages of a potentially very serious recession that will likely be as deep as anything we have experienced in a generation,” said Ron Blackwell, chief economist of the AFL-CIO. “Just how deep and protracted this recession will be depends on a timely, aggressive and well-focused economic recovery package.”
To help families make ends meet while they look for a new job, the Democratic Congress voted to extend unemployment benefits in early October. Unfortunately, that effort was blocked by Senate Republicans. The Bush administration threatened to veto the extension claiming it would encourage out of work Americans not to find a new job.
“There is nothing enjoyable about being up at night worrying about how you are going to make ends meet,” said Dana Stevens, an unemployed worker from Thorofare, NJ. “For anyone to suggest that receiving unemployment is like getting a free vacation is insulting and degrading to the millions like myself who are desperately trying to get back to work.”
Millions of workers not only lose their jobs during a recession, but household incomes for those with a job also decline on an average of four percent. Jared Bernstein, director of the Living Standards Program at the Economic Policy Institute, said that if past trends repeat themselves this time around, middle-class families’ who earn around $60,000 will see their income fall about $2,500 this year.
“Due to factors regarding job loss, fewer hours, and the slower wage growth driven by the weaker job market, incomes usually fall in recessions,” said Bernstein.
In September, the House of Representatives also approved an economic rescue and job creation package to help head off a deeper recession. It would have created good-paying jobs by investing in new energy technology and infrastructure. The bill would have also provided access to job training and helped working families with grocery and health care bills. Senate Republicans and the Bush administration also opposed this effort.
Many economists say that making infrastructure investments are some of the most effective uses of federal dollars that create jobs in both the short-term and the long-term.
Robert Pollin, a professor of economics at the University of Massachusetts-Amherst, said a $150 billion job creation program will create 2.9 million jobs in the short-term alone.
“In the midst of the severe financial crisis and deepening recession, it is imperative that the federal government take action as soon as possible to counteract the downturn,” said Pollin.
Pollin’s latest research also reveals that infrastructure investment produces a second wave of private sector job creation within two years, pushing the 2.9 million new jobs up to 3.3 million new jobs in a two-year time frame.
To encourage long-term job creation, investments are needed to build the nation’s technological backbone that will help foster growth in the emerging high-tech industry and green economy.
“Advanced networks will allow increased opportunities for the creation of even more highly skilled technology jobs to invent new products and improve existing ones in the vital areas of energy, health care, education, public safety and services,” said Christopher Hansen, president and CEO of AeA. “These are the jobs of the future.”
In December 2006, Rep. George Miller, the new Chairman of the House Education and Labor Committee, announced that the Committee would be dedicated to the mission of strengthening America’s middle class. And over the past two years, the Committee has delivered on its promise. America's students, workers, and families need help more than ever during the current financial crisis, and the Committee will continue its work to strengthen the middle class. Below is an overview of the Committee’s legislative milestones in the 110th Congress.
Affordable colleges » The Committee has enacted three laws that together will make college more affordable and accessible for middle class students, create a more efficient, consumer-friendly, and fair American higher education system, and protect federal student loans from turmoil in the economy.
High quality education » The Committee enacted legislation to strengthen the nation’s premiere early childhood program, giving more young children the skills they need to succeed in school and in life. The Committee also helped enact emergency aid to help Gulf Coast schools and colleges still working to recover from Katrina and Rita. In addition, the Committee took a key step toward improving learning conditions for schoolchildren by passing legislation to help schools modernize their facilities and become more energy-efficient.
A competitive workforce » The Committee has enacted legislation that builds on the principles Democrats first laid out in their “Innovation Agenda – A Commitment to Competitiveness to Keep America Number One.” These new laws will help prepare more Americans for jobs in emerging, high-tech industries that will keep our nation more competitive and create more good-paying jobs here at home.
Fairness in the workplace » During the first 100 hours of the 110th Congress, the House passed the first increase in the minimum wage in ten years. Since then, Committee has passed a series of key measures to strengthen workers’ rights, improve workplace safety, end discriminatory practices that have unfairly eroded workers’ pay and other benefits, and help workers balance demands of work and family.
Retirement security » While roughly 50 million American workers now have 401(k) style retirement plans, studies show that the vast majority of these workers don’t know how much they are paying in fees to the companies that service their 401(k) plans – fees that could be eating away at their retirement savings. The Committee passed legislation to help workers better understand these hidden fees and strengthen their retirement security.
Safe children and youth » The Committee enacted laws to protect America's children and youth, including runaway, homeless and missing children, and to increase penalties when employers violate child labor laws. The House also passed legislation to protect teens in public and private residential programs.
Accountability and responsibility » The Committee conducted oversight over government agencies in its jurisdiction, shining a light on the Bush administration’s failures to safeguard taxpayer dollars used to fund education programs and its efforts to weaken protections for workers. In some cases, the Committee’s investigations paved the way for legislation and spurred the U.S. Department of Justice to pursue a criminal investigation.
By the numbers...» The Committee has held 113 hearings and heard from 683 witnesses in its efforts to grow and strengthen the nation’s middle class. In the next Congress, the Committee will continue to build on this record by working to improve the lives of children, students, workers and families.
The House passed the Paycheck Fairness Act today, by a vote of 247-178. This bill will help end the discriminatory practice of paying a woman less than a man for performing the same job by strengthening the landmark Equal Pay Act and closing the loopholes that have allowed some employers to avoid responsibility for discriminatory pay.
This action comes a year after the House addressed another discriminatory pay issue with the Lilly Ledbetter Fair Pay Act. The House approved that measure last year to rectify a Supreme Court decision that made it harder for workers to pursue pay discrimination claims.
The House is expected to vote today on the Paycheck Fairness Act. The Committee passed the measure on July 24 to help end the discriminatory practice of paying men and women unequally for performing the same job. Loopholes created by courts and weak sanctions in the law have allowed many employers to avoid liability for engaging in gender-based pay discrimination. The bill, which was introduced by Rep. Rosa DeLauro, will strengthen the Equal Pay Act and close the loopholes that have allowed employers to avoid responsibility for discriminatory pay.
Although the wage gap between men and women has narrowed since the passage of the landmark Equal Pay Act in 1963, gender-based wage discrimination remains a problem for women in the U.S. workforce. According to the U.S. Census Bureau, women only make 77 cents for every dollar earned by a man. The Institute of Women’s Policy Research found that this wage disparity will cost women anywhere from $400,000 to $2 million over a lifetime in lost wages.
The Committee passed the Paycheck Fairness Act today to help end the discriminatory practice of paying men and women unequally for performing the same job, by a 26 to 17 vote. The bill, which was introduced by Rep. Rosa DeLauro, will strengthen the Equal Pay Act and close the loopholes that have allowed employers to avoid responsibility for discriminatory pay. Although the wage gap between men and women has narrowed since the passage of the landmark Equal Pay Act in 1963, gender-based wage discrimination remains a significant problem for women in the U.S. workforce. According to the U.S. Census Bureau, women only make 77 cents for every dollar earned by a man. The Institute of Women’s Policy Research concluded that this wage disparity will cost a woman anywhere from $400,000 to $2 million over her lifetime in lost wages.
“This is a historic day in the fight for equal rights for women. If we are serious about closing the gender pay gap, we must get serious about punishing those who would otherwise scoff at the weak sanctions under current law. Any wage gap based on gender is unacceptable, especially during these tough economic times. By allowing wage discrimination to continue, we hold down women and their families while harming the American economy as a whole.” -- Chairman George Miller
“It’s completely unacceptable that women continue to be discriminated against in the workplace, receiving a fraction of the pay of men. We must confront such discrimination head on and ensure that all Americans, regardless of gender, receive an equal paycheck for equal pay for equal work.” -- Rep. Lynn Woolsey, chairwoman of the Subcommittee on Workforce Protections
Today, the national minimum wage increases by 70 cents, from $5.85 per hour to $6.55 per hour. I am proud to say that this is the second of three increases due to take effect under the Fair Minimum Wage Act, enacted by this Democratic Congress and signed into law on May 25, 2007.
The increase in the minimum wage comes at an important time for the millions of Americans struggling to make ends meet. Real incomes have dropped since 2001, while the costs of gasoline, health insurance, and attending college have skyrocketed. With today’s increase, Americans who most urgently need a pay raise will get a badly needed boost.
These pay increases aren’t just about helping workers provide for their families. Unlike tax breaks for the wealthy, the minimum wage increase for American workers will be spent locally, which is good for local businesses, large and small, and good for a struggling economy.
Democrats in Congress have been working to ensure that all Americans are able to share in the benefits provided by their hard work. We will keep working toward those goals in order to help grow and strengthen America’s middle class. So far, Congress has enacted a stimulus package to try to get our economy back on the right track, approved legislation to make college more affordable, and pushed efforts to lower energy and health care costs.
In the wealthiest country in the history of the world, it is an outrage that anyone who works full-time would still wind up in poverty. Democrats will continue to look at solutions that will help all Americans build a better life for themselves and their families.
The U.S. Government Accountability Office (GAO), testified at a hearing today that findings from two separate investigations indicate that the U.S. Department of Labor is failing to effectively enforce the nation’s wage and hour laws. The two investigations found that the Wage and Hour Division of the Labor Department -– the agency responsible for investigating complaints of wage, hour, and child labor violations -– is failing to fully investigate and properly address violations of the law. The GAO calculated that actions initiated by the Department on wage and hour violations have dropped from approximately 47,000 in 1997 to fewer than 30,000 in 2007. Also, the use of fines that punish repeat or egregious offenders declined by nearly 50 percent from 2001 to 2007.
Other findings:
- Thousands of cases may have been mishandled by the agency over the past decade, which may have resulted in workers receiving reduced or no back pay at all. In one case, the GAO uncovered that the Wage and Hour Division dropped investigations when employers refused to pay or claimed no funds to pay back wages, even though the business was still in operation. Although the agency has the ability to take employers to court in order to force recalcitrant employers to issue back pay, the agency refused to do so in most cases.
- Hundreds of cases where the agency did not assign an investigator for more than a year after the initial complaint. It cited one example where a truck driver who was not paid for overtime had to wait for 17 months to be assigned an investigator. The case against the truck driver’s employer was dropped because the agency could no longer locate the truck driver.
The investigations were conducted by the GAO at the request of Chairman George Miller.
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