(Washington D.C.) - The U.S. House of Representatives has approved a complete overhaul of the federal program to assist workers impacted by globalization.  The Trade and Globalization Assistance Act of 2007 would expand and improve the Trade Adjustment Assistance (TAA) Act of 1962 to help more workers that lose their jobs as a result of global trade.  It was approved by a vote of 264 to 157.

“As we re-establish good trade policy that stands up for U.S. businesses and workers in the global market place, we must also fix the broken Trade Adjustment Assistance Act,” said Rep. Sander Levin.  “Each year, Michigan workers have been placed on waiting lists for training, workers have not received the advanced training they need, and too many have been unable to utilize the health care tax credit.  We can compete in the global economy, but we must have programs that fully support workers displaced by globalization in their transition to new, good paying jobs.

“Earlier this week, I met Michigan residents Robert Nacarrow and Joe Danyko, two workers who lost their jobs as a result of globalization.  Because they were eligible for worker re-training under TAA, Mr. Nacarrow, a former factory worker, is now a Radiology Technician, and Mr. Danyko went back to school to further his engineer degree and is re-employed at a significantly higher salary.  Unfortunately, another Michigander Gary Mosey was not certified for TAA for three years because of the inadequate coverage of service workers and some manufacturing workers.”

The legislation would:

• Expand trade adjustment assistance to cover service workers for the first time.  TAA started in 1962, when trade did not significantly affect service sector jobs.  Today, service sector employees (which make up 80% of the American workforce) are often displaced by trade, yet the program has never been updated to address this. 
• Expand criteria so that more manufacturing workers are covered.  For example, under TAA, workers who lose their jobs because their factory moves to China may not get TAA benefits. Such workers must also show that the factory relocation will result in increased imports to the United States (which may not occur for a variety of reasons, such as the factory always produced for a foreign market).  Also, while current law extends TAA coverage to workers employed “downstream” of a TAA-certified firm (i.e., secondary workers), this coverage is limited to firms impacted by trade with Canada and Mexico. This bill eliminates these short-sighted restrictions.
• Ensure access to better training and improve health care coverage.  The bill doubles the current training funding cap from $220 million to $440 million and increases it to $660 million by 2010.  The increase covers potential increases in the number of eligible workers because of expansion to service workers and more manufacturing workers.  The bill also allows workers to receive benefits for a longer period of time if they are engaged in long-term worker re-training programs.
• Make improvements to the Unemployment Insurance program.  States would be provided financial incentives for reforms designed to: count workers’ most recent wages when determining UI eligibility; end discrimination against part-time workers; allow separations from work for compelling family reasons (such as fleeing domestic violence); and provide extended benefits during approved training for high demand employment.
• Establish “Manufacturing Re-development Zones” to assist entire communities impacted by the manufacturing jobs crisis. The bill includes a package of tax incentives designed to encourage the redevelopment of communities that have suffered substantial reductions in manufacturing employment.  The communities would also be eligible for tax exempt bond financing for new businesses; tax credit bond financing for the cost of redevelopment, including infrastructure improvements; and additional low income housing credits.

A two page summary of the legislation can be found here.

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