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Senator NELSON. Our final witness this morning is Mr. Robert McGlotten, associate director, legislative department, AFL-CIO.

STATEMENT OF ROBERT MCGLOTTEN, ASSOCIATE DIRECTOR, LEGISLATIVE DEPARTMENT, AFL-CIO

Mr. McGLOTTEN. Mr. Chairman, I have two very short statements; one which will address itself to the President's proposal on youth initiatives; the other on the welfare jobs proposal.

I would hope that while the record is open, we would be able to submit a more extensive statement addressing itself to some of the other bills that you are concerned about.

Senator NELSON. Would it be possible to have a statement in by the 14th?

Mr. McGLOTTEN. Fine, Mr. Chairman, that's enough time for us. We can have it in by the first of next week.

Senator NELSON. All right. Well, if it's in by next Friday, that's fine.

Mr. McGLOTTEN. Thank you, Mr. Chairman.

The AFL-CIO welcomes this opportunity to appear before this committee. We welcome and support the concept embodied in the administration's new initiative on youth education, employment and training. It is a significant step in the right direction in providing both skills and jobs for young people who are often unemployed because of the lack of education and training.

The program draws on the experience gained by the Youth Employment and Demonstration Projects Act of 1977, which the AFLCIO supported. It also reflects our long-time concern that education and training must involve close collaboration between the education, community, Government, labor, and business.

We are pleased to note that the administration's proposed Youth Act of 1980 retains from the YEDPA law section 442 relating to wages, and section 443 with its prohibitions against displacement of currently employed workers and against substitution for work that would otherwise be performed and with its requirements for notification and consultation with appropriate labor organizations.

We have considerable concern that expectations for the new youth initiative may result in diminished current CETA and YEDPA youth jobs and training programs, because of the current misguided budget-cutting climate. We note that the administration's youth initiative proposal calls for only $50 million in planning money for fiscal 1981 and that the program would not go into effect until fiscal 1982.

We strongly urge that CETA and YEDPA youth jobs and training programs be maintained at least at current levels in fiscal 1980 and fiscal 1981 and until such time as the new youth initiative is fully funded and can be picked up by all the YEDPA slots.

The AFL-CIO believes this, the new administration's youth initiatives will improve education, training, and employment opportunities for disadvantaged youth. The assistance provided for both vocational and basic education will assure students not planning to attend college the same resources and preparation at the secondary level as college-bound students.

We call upon Congress to make certain that vocational and basic education facilities and services will be made available for those

most in need in the intercities and rural areas. Youth employment will be diminished only when those minority young people most affected have access to educational opportunities that provide increased emphasis on academic skills combined with the program of broad technical skill training.

We urge more realistic guidance counseling on vocational opportunities in the middle school years to give students the time to consider entry into previous nontraditional work areas for both men and women. Improved standards for performance for vocational education schools and training can be best realized through support for teacher training, upgrading, and modern equipment. Vocational education can offer young people a practical and realistic insight into the world of work. It should not mean that vocational education students are encouraged to leave school at an early age for low skill, low paying jobs. Work experience can teach vocational students much about labor and collective bargaining, and should not be an excuse to pay subminimum wages or undermine established working conditions.

The AFL-CIO and its affiliates are pledged to work with teachers and business and industry to effectively assist in the education and training of young people, many of whom are the children of our members.

Accordingly, we hope to continue to work with the administration and the Congress in developing the authorizing legislation in assuring sufficient appropriations so that this important new program combined with enhanced vocational and basic education will be effective in reducing youth unemployment, and providing the Nation with a more qualified work force for generations to come. Mr. Chairman, I will address myself now to S. 1312, the welfare jobs proposal.

In connection with the Senate bill S. 1312, the administration's Work and Training Opportunities Act, the jobs part of the administration's welfare reform package, we wish to express some of the concerns of the AFL-CIO.

The welfare reform jobs program is appropriately proposed as an amendment to the Comprehensive Employment and Training Act. While we have a number of issues to raise, we think it is appropriate that this program would be included in the CETA law as a new part E of title II, and put under the direction of the Secretary of Labor.

Welfare reform jobs must be tied in with other employment and training activities of prime sponsors to assure effective and realistic action.

However, it is obvious to us that there is a reshuffling of CETA jobs involved in the welfare reform jobs proposal since 62.5 percent of title II(d) funds will be earmarked for welfare reform jobs. We seriously question a proposal which is going to provide few if any net new jobs. In the present climate of misguided budget cutting, it seems likely that the total CETA jobs may well end up at a lower level at a time when they should be increasing because of higher recession induced unemployment. We also are concerned about CETA wage requirements, the 18-month limitation on CETA employment, the undermining of wage and labor standards, and job protections for regular employees. The CETA legislation enacted

last year is inconscionable in its treatment of CETA workers. It mandates that an average CETA wage nationwide to be no more than $7,200 per year. Areas with wages above the national average can pay more, but those with wages below the national average must pay less. Over one-third of the areas in the Nation must pay CETA wages averaging as low as $6,635 per year, only 10 percent above the Federal Fair Labor Standards Act minimum wage. Only a few areas in the Nation can pay average CETA wages above $9,000 per year.

For example, the legally required CETA wage in many jurisdictions is $2,000 more or less than the bargaining wage rate. The hiring of any CETA employee by these jurisdictions would in effect destroy standards that have taken years to build. The problem is nationwide, Mr. Chairman.

This means that some public employers will attempt to establish new subminimum entry level jobs, such as assistant laborer. Some employers may attempt to reclassify CETA employees to take them out from the protection of the collective bargaining agreement. The other severe problem is that the new law limits CETA employment to 18 months for those hired after October 1, 1978.

CETA employees hired before that time are permitted to work 1 additional year until September 30, 1979. This serves only to recycle unemployment rather than to create jobs. The Secretary of Labor, however, does have the discretion to grant waivers for those employees scheduled to be terminated. Such waivers may be granted if the employer can demonstrate that it faces unusually severe hardships in moving CETA workers to regular employment or to private industry payrolls.

At its convention in December of 1979, the AFL-CIO called for amending CETA, to delegate the provision requiring a national average CETA wage of $7,200 a year. The AFL-CIO also called for elimination of the 18-month limitations on CETA employment.

We also oppose all attempts to use the average wage requirement to undermine prevailing wages and benefits. We want prime sponsors to be required to initiate positive programs to transition CETA employees to unsubsidized public and private employment at prevailing rates of pay and working conditions, with safeguards to maintain current levels of public service.

Furthermore, we are urging the Labor Department to safeguard the job rights of all workers who may be adversely affected in the administration of CETA.

The AFL-CIO will be giving further attention and further detailed study to the administration's welfare reform proposal in the future.

Thank you, Mr. Chairman. That concludes my statement. I'll be more than glad to answer any questions.

Senator NELSON. Thank you, Mr. McGlotten. You're going to submit a more detailed statement for the record by next Friday, is that correct?

Mr. McGLOTTEN. Yes, sir. I will have it to you by Wednesday of next week.

Mr. NELSON. Thank you very much. We appreciate your taking the time to come and testify.

[The prepared statement of Mr. McGlotten follows:]

STATEMENT BY ROBERT MCGLOTTEN, ASSOCIATE DIRECTOR OF LEGISLATION AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL ORGANIZATION TO THE SENATE SUBCOMMITTEE ON EMPLOYMENT, POVERTY, AND MIGRATORY LABOR ON YOUTH EMPLOYMENT, TRAINING, AND EDUCATION PROPOSALS

March 6, 1980

We welcome and support the concept embodied in the Administration's new initiative on youth education, employment and training. It is a significant step in the right direction of providing both skills and jobs for young people who are often unemployed because of a lack of education and training.

The program draws on the experience gained from the Youth Employment and Demonstration Projects Act of 1977, which the AFL-CIO supported. It also reflects our long-time concern that education and training must involve close collaboration between the education community, government, labor and business.

We are pleased to note that the Administration's proposed Youth Act of 1980 retains from the YEDPA law Section 442 relating to wages and Section 443 with its prohibitions against displacement of currently employed workers and against substitution for work that would otherwise be performed and with its requirements for notification and consultation with appropriate labor organizations.

We have considerable concern that expectations for the new youth initiative may result in diminished support for current CETA and YEDPA youth jobs and training programs, because of the current misguided budget-cutting climate. We note that the Administration's youth initiative proposal calls for only $50 million in planning money for fiscal 1981 and that the program would not go into effect until fiscal 1982. We strongly urge that CETA and YEDPA youth jobs and training programs be maintained at least at current levels in fiscal 1980 and fiscal 1981 and until such time as the new youth initiative is fully funded and can pick up all of the YEDPA slots.

The AFL-CIO believes this, the new Administration's youth initiative will improve education, training and employment opportunities for disadvantaged youth. The assistance provided for both vocational and basic education will assure students not planning to attend college the same resources and preparation at the secondary level as college-bound students.

We call upon Congress to make certain that vocational and basic educational facilities and services will be made available to those most in need in the inner cities and rural areas. Youth unemployment will be diminished only when those minority young people most affected have access to educational opportunities that provide increased emphasis on academic skills combined with a program of broad technical skill training.

We urge more realistic guidance counselling on vocational opportunities in the middle school years to give students the time to consider entry into previously non-traditional work areas for both men and women. Improved standards of performance for vocational education schools and programs can be best realized through support for teacher training, upgrading and modern equipment.

Vocational education can offer young people a practical and realistic insight into the world of work; it should not mean that vocational education students are encouraged to leave school at an early age for low-skill, low-paid jobs. Work experience can teach vocational education students much about labor and collective bargaining and should not be an excuse to pay subminimum wages or undermine established working conditions.

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