Rep. Peter Welch on Monday announced his support for legislation that would help Vermont businesses avoid laying off workers by providing federal support for the state’s Short-Time Compensation (STC) program.

At a press conference at Burlington International Airport, Welch highlighted the success of the program, which has saved 2,000 full time-equivalent positions in Vermont, providing assistance to 4,000 Vermonters in 2009 alone. He called on the federal government to fully fund the 17 existing state STC programs and encourage other states to create their own.

Vermont’s STC program encourages businesses to avoid laying-off workers by providing assistance to those whose hours are temporarily reduced. Employees receive unemployment compensation in proportion to hours lost, while businesses are able to maintain a skilled workforce despite economic slowdown. Employers are required to continue providing health and pension benefits, and collective bargaining units must agree to the terms.

“Vermont’s Short-Time Compensation program saves jobs and provides businesses with an additional tool to weather economic downturns. Federal support will not only bolster Vermont’s existing program, it will also reduce the strain on Vermont’s unemployment insurance trust fund,” Welch said. “We must take every step we can to avoid further layoffs even as we work to create new jobs and rebuild our economy.”

Welch was joined at the event by Vermont Labor Commissioner Patricia Moulton-Powden and Associated Industries of Vermont President Sandra Dragon, along with Ethan Allen northeast regional manager Dan Kurzman, Hazelett Strip-Casting Corp. human resources manager Peter Rowan, and Fab-Tech Inc. president and CEO Paul Frascoia, all of whom have successfully used the STC program to save jobs at their businesses.