Levin Statement on Senate Failure to Extend Worker Training, Important Trade Programs

December 22, 2010

WASHINGTON, D.C. – Ways and Means Committee Chairman Sander M. Levin (D-MI) issued the following statement today regarding the Senate's failure to act on H.R. 6517, the Omnibus Trade Act of 2010 which provides critical assistance to hundreds of thousands of workers and promotes the competitiveness of American manufacturing. The legislation, which includes important expiring trade provisions, passed the House of Representatives with broad bipartisan support on December 15, 2010.

"Senate Republicans are poised to leave many tens of thousands of workers – unemployed and in training to transition to new careers – high and dry. Senate Republicans are holding up H.R. 6517, which extends the Trade Adjustment Assistance program, the Andean Trade Preferences program and the Generalized System of Preferences program, all which are set to expire at the end of the year. This legislation passed the House with broad bipartisan support, and is supported by the Chamber of Commerce, the National Association of Manufacturers and the AFL-CIO. Failure to pass this bill will have serious adverse consequences for workers, manufacturers and developing countries.

"I am especially concerned about the impact that the failure to pass H.R. 6517 will have on workers eligible for Trade Adjustment Assistance (TAA). TAA helps workers who have lost their jobs as a result of trade get the skills and training they need to compete and succeed in the global marketplace. In 2009, TAA was overhauled in a bipartisan, bicameral effort by myself, Mr. Rangel, Mr. Camp, and Senators Baucus and Grassley. Our reforms expanded TAA eligibility to eliminate nonsensical restrictions that severely restricted eligibility, tripled training funding to address past shortfalls and to promote meaningful retraining, and increased the Health Coverage Tax Credit to 80 percent.

"As a result of these reforms, more than 155,000 additional trade-impacted workers who may not have been certified under the former TAA program became eligible for TAA for Workers benefits and training opportunities. In total, more than 367,000 workers were certified as eligible for TAA support in that timeframe. In FY2010 alone, 227,882 workers took advantage of TAA and participated in the program, receiving case management, training and/or income support.

"Unless the Senate passes H.R. 6517 before the end of the year, these reforms expire with grave consequences for many tens of thousands of trade-affected workers. Most significantly, training funds will be cut from $575 million to $220 million and as was the case before 2009, putting meaningful retraining opportunities, like enrollment in community college, out of reach. States, as was the case prior to the 2009 reforms, will revert to rationing training funds by discouraging training or pushing TAA workers into short-term certification programs. These programs will not provide them the skills needed to get new jobs in growth sectors like health, IT and precision manufacturing and contribute to the economic recovery. It will also mean that services workers, including call center employees whose jobs move offshore, will no longer be eligible for retraining assistance. And it will impact those currently using the TAA program immediately, as the health care benefit drops immediately to 65 percent.

"I am also very troubled by Senate Republicans' willingness to shelve – likely permanently, miscellaneous tariff bill (MTB) provisions in H.R. 6157 that promote the competitiveness of U.S. manufacturers. One report suggests that the H.R. 6517 MTB provisions, along with the MTB provisions enacted into law on a bipartisan basis this summer, support tens of thousands of American jobs, helping to increase U.S. production and expand gross domestic product by billions of dollars. I am also concerned that the Andean Trade Preferences program and the Generalized System of Preferences will expire.

"Senate Republicans' objections are short-sighted and cynical. It's time to put partisan politics aside and pass this important, broadly supported legislation that will help workers, manufacturers and developing countries."

Support for H.R. 6517

AFL-CIO

U.S. Chamber of Commerce

American Manufacturing Trade Action Coalition

American Fiber Manufacturers Association, Inc.

National Council of Textile Organizations

National Textile Association

Coalition for GSP

National Association of Manufacturers (NAM)

National Association of State Workforce Agencies (NASWA)

National Employment Law Project (NELP)

U.S. Governors