"New Beginnings: Trade Program Tools for a New, Flatter World" eta EMPLOYMENT AND TRAINING ADMINISTRATION UNITED STATES DEPARTMENT OF LABOR

Topics to Be Covered Acronyms: Speaking the Language of Trade Purpose of the Program Petition / Application Process Secondary Workers Rapid Response and TAA Integration with WIA and Wagner-Peyser Trade Adjustment Assistance (TAA) Benefits Trade Readjustment Assistance (TRA) Benefits ATAA Program TAA for Farmers and Fishermen HCTC TAA for Firms

Acronyms: Speaking the Language of Trade ATAA = Alternative Trade Adjustment Assistance PBGC = Pension & Benefit Guarantee Corporation DOL = U.S. Department of Labor DTAA = Division of Trade Adjustment Assistance HCTC = Health Coverage Tax Credit RR = Rapid Response TAA = Trade Adjustment Assistance TRA = Trade Readjustment Assistance UI = Unemployment Insurance WIA = Workforce Investment Act

Purpose of the Trade Program for Workers Why are we here? Purpose of the Trade Program for Workers

Why Are We Here? Purpose of the Trade Program for Workers To enable the rapid reemployment of individuals, who became unemployed (or experience a reduction of hours and wages) as a result of increased imports, in suitable employment. The TAA program provides for reemployment services and allowances for eligible individuals. These services include training, job search and relocation assistance and income support payments. The program is, in short, an attempt to offset the harm of free trade on workers whose jobs are lost to foreign competition by assisting them in finding new employment in high growth, high demand occupations. All workers for whom a petition is filed, whether or not it is certified, are considered to be Dislocated Workers under the WIA program.

Application Process Group Eligibility Requirements Petition Process Application Process Group Eligibility Requirements

How does the TAA petition process work? Layoff (or notice thereof) occurs Rapid Response initiated by State Petition is filed with DOL and the Governor on behalf of the workers by: Group of 3 or more workers Official of recognized union or other representative Official of the employer/firm One-Stop operators or partners State dislocated worker unit DOL (DTAA) investigates and issues a decision Denials may be appealed

Criteria for Primary Certification Group 1 Section (a)(2)(A) all of the following must be satisfied: A. a significant number or proportion of the workers in such workers' firm, or an appropriate subdivision of the firm, have become totally or partially separated, or are threatened to become totally or partially separated; B. the sales or production, or both, of such firm or subdivision have decreased absolutely; and C. increased imports of articles like or directly competitive with articles produced by such firm or subdivision have contributed importantly to such workers' separation or threat of separation and to the decline in sales or production of such firm or subdivision; or

Criteria for Primary Certification Group 2 II. Section (a)(2)(B) both of the following must be satisfied: A. a significant number or proportion of the workers in such workers' firm, or an appropriate subdivision of the firm, have become totally or partially separated, or are threatened to become totally or partially separated; B. there has been a shift in production by such workers' firm or subdivision to a foreign country of articles like or directly competitive with articles which are produced by such firm or subdivision; and C. One of the following must be satisfied: 1. the country to which the workers' firm has shifted production of the articles is a party to a free trade agreement with the United States; 2. the country to which the workers' firm has shifted production of the articles is a beneficiary country under the Andean Trade Preference Act, African Growth and Opportunity Act, or the Caribbean Basin Economic Recovery Act; or 3. there has been or is likely to be an increase in imports of articles that are like or directly competitive with articles which are or were produced by such firm or subdivision.

Criteria for Secondary Certification Upstream Workers at primary firm must be certified Separations (or threat) at supplier firm must exist In addition, one of the following must be true: Component parts accounted for at least 20% of upstream firm’s production or sales Loss of business contributed importantly to workers’ actual or threatened separation

Criteria for Secondary Certification Downstream Workers at a firm that performs additional, value-added production processes directly for a firm producing articles that were basis of TAA certification Downstream production can include final assembly or finishing Separations (or threat) at secondary firm Loss of business with primary firm must have contributed importantly to separations of secondary workers Applies only to primary certifications based on increased imports from or shift in production to Canada or Mexico

Rapid Response and Trade

Rapid Response and Trade Trade Act of 2002 requires that Rapid Response services be provided in response to every TAA petition received Rapid Response activity is often the source of the Petition for Trade Adjustment Assistance Rapid Response provides overview of TAA and other services available through One-Stops (e.g., counseling, resume writing, assessment, job development, etc.) Early intervention promotes rapid reemployment, allowing workers with marketable skills to immediately move to reemployment Rapid Response services could lead to new employment without the participant ever having to access TAA or TRA

Services and Benefits Available Training, TRA, Job Search, Relocation Trade Participants Services and Benefits Available Training, TRA, Job Search, Relocation

Individual access to TAA… Each worker must apply to the state for their individual eligibility determination There is a 8/16 week deadline that must be met by the participant Eligible participants may receive reemployment services, training, and TRA, if appropriate There is no entitlement to training, only an entitlement to apply Governor is required to make WIA core and intensive services, including reemployment services, available to workers Workers denied eligibility should be offered WIA services through the One-Stop center

What are the benefits/services available to certified workers? Benefits Available Under the Trade Act Training Remedial, Occupational, OJT, Customized Trade Readjustment Allowances (TRA) Relocation Allowances 90% of costs PLUS lump sum up to $1250 Job Search Allowances Costs up to $1250 (can be multiple searches) ATAA Wage Subsidies Health Coverage Tax Credit (HCTC)

What are the benefits/services available to certified workers? Additional Services Governor is Required to Make Available Under WIA Rapid Response Core and Intensive Services (ES & WIA) Support Services (WIA)

What are the training approval criteria? Six Criteria for Training Approval: There is no suitable employment available to the worker. The worker would benefit from training. There is a reasonable expectation of employment following completion. Training is reasonably available to the worker. The worker is qualified to undertake and complete the training. Training is suitable and available at a reasonable cost. There is no entitlement to receive training. All 6 of these criteria must be met before training can be approved. There is also no entitlement to receive a full 104 (130) weeks of training. Primary goal: Get trade-affected workers reemployed quickly Not every worker who comes through the door requires training States must aggressively apply the six approval criteria for TAA training 6 criteria provide the framework of questions that must be answered by assessment. These are not just boxes you check off automatically. My understanding is that they have been weakened by us playing fast and loose with them over the years, but we need to return to applying them in a reasonable manner. Also, participant writes to congress, letter goes to national office, we call and ask what’s going on. Sometime this probably implies- put them in training. We really just need to write a letter explaining the issue and we need to communicate more clearly.

What income support is available to TAA participants? Income support is available to TAA participants for up to 130 weeks through a combination of: Unemployment Insurance (UI): generally available for 26 weeks Basic Trade Readjustment Allowances (TRA): 52 weeks minus weeks of UI received Additional TRA: Up to 52 weeks Remedial TRA: Up to 26 weeks

What are the requirements for receiving income support? Basic TRA Worker must be in TAA-approved training or on a waiver from training by the 8/16 deadline Additional TRA Worker must attend training each week No waivers are permitted Additional TRA is only available for up to 52 consecutive weeks (missing weeks cannot be made up) Remedial TRA May only be paid to remedial education participants While remedial education can take place at any time within the training program, the remedial TRA may only be paid at the end

What are job search and relocation benefits? Job Search Allowance Must be conducted outside commuting area Reimburses 90% of all reasonable expenses, up to $1,250 Can be multiple events Relocation Allowance Must relocate to new job outside commuting area Pays for movement of family, household goods, and other reasonable expenses Pays 90% of moving costs Also provides the equivalent of 3 weeks of wages, up to $1,250 as a lump sum payment

ATAA - Alternative Trade Adjustment Assistance

What is the Alternative TAA (ATAA) program? Program is for workers age 50 and over Worker group must be certified eligible for both TAA and ATAA Worker must be reemployed within 26 weeks from separation “Full time” in new employment as defined by State Law Lesser wage than at separation Receipt of first payment under ATAA voids access to the TAA program

What are ATAA benefits? 50% of difference between reemployment wages and wages earned at separation Payments received on at least a monthly basis Payments may not last more than 2 years Total payments may not exceed $10,000 Health Coverage Tax Credit (HCTC) Only while receiving ATAA payment Not to exceed 2 years Relocation allowance but not Job Search

HCTC – Health Coverage Tax Credit

What is HCTC? Health Coverage Tax Credit Pays 65% of premium for qualified health insurance plans There are three groups of eligible workers: Eligible TAA Recipients ATAA Participants PBGC Participants Over 55 “Pension Benefit Guarantee Corporation” States report eligible TAA and ATAA recipients to IRS PBGC provides a list of its participants to IRS

Who are eligible TAA and ATAA recipients? Eligible TAA and ATAA recipients include individuals who: Received a TRA payment for any day during the month Would have received a TRA payment for any day during the month, except that they had not exhausted their UI Received an ATAA wage subsidy payment for any day during the month

How is HCTC received? Can be received two ways: End-of-Year Tax Credit Available beginning December 2002 Worker must wait until taxes filed Advance Payment Available beginning August 2003 Monthly payment made to qualified insurance plan Worker makes up 35% of the premium not paid by HCTC each month

“Other” Trade Act Programs TAA for Farmers and Fishermen TAA for Firms

What is the TAA for Farmers and Fishermen program? Administered by U.S. Department of Agriculture (USDA) Certification made by USDA covers all producers of a specific agricultural commodity Participants are eligible for TAA but not TRA Letter of Certification from USDA Copy of the letter from FSA regarding cash payment

What is the TAA for Firms Program? Administered through the Economic Development Administration under the U.S. Department of Commerce Provides financial assistance to manufacturers affected by import competition Cost sharing federal assistance program pays for half the cost of consultants or industry-specific experts for projects that improve a manufacturer's competitiveness Assistance is coordinated through a series of non-profit TAA Centers www.taacenters.org

Integration of the Workforce Investment System

What is ETA’s integrated service strategy? Coordination with WIA is high priority for ETA All Trade participants are “dislocated workers” under WIA Amended Trade Act requires Rapid Response be available to workers as soon as petition is filed Early intervention is a key principle to return workers to the workforce Trade Act requires closer coordination with WIA services “Sense of Congress” that supportive services – such as childcare – be provided through other DOL programs Trade workers depend on placement services delivered by One-Stop partners to obtain reemployment Sessions on promising practices. Arizona – Local Area TAA agreements as innovative way to promote integration and co-enrollment. Also presentations by Maine and Massachusetts on integration and co-enrollment.

What is ETA doing to promote an integrated service strategy? The Department has recently conducted a series of six regional forums for state and regional practitioners to improve services to dislocated workers. Follow-up forums are tentatively planned for Fall 2006: Forums emphasized the importance of utilizing all available resources (TAA, WIA, and other) to provide comprehensive services Reiterated the overall goal of returning workers to sustainable employment as quickly as possible Presented an opportunity for state representatives to ask ETA leaders questions and provide feedback on emerging policies Proposed EMILE system unifies ETA program reporting

Coordination with the One-Stop System Coordination Principles: Sooner versus later – Link Rapid Response with TAA Customer choice – Provide a range of services to workers Leverage resources – Use various funding sources to cover assessment, case management, supportive services and follow-up activity Seamless delivery – Integrate TAA with One-Stop system

Coordination with the One-Stop System Coordination Principles: Active promotion – Increase awareness of services Success is measurable – Measurement guides improvement; change in the Dislocated Worker earnings measure should reduce resistance from locals to co-enroll TAA participants Consistent and accurate information – Enhances performance Partnerships – Increases outcomes through collaboration and coordination

Web Resources TAA for Workers www.doleta.gov/tradeact TAA for Firms www.taacenters.org TAA for Farmers & Fishermen www.fsa.usda.gov/dafp/psd/taa.htm HCTC www.irs.gov/individuals/article/0,,id=109960,00.html

Presenters Tim Theberge – Region 1 theberge.timothy@dol.gov Rosemary Williams-Raysor – Region 2 williams-raysor.rosemary@dol.gov Girardo Lara – Region 5 lara.girardo@dol.gov Elaine Tom – Region 6 tom.elaine@dol.gov