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 and 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 workforce for generations to come.

STATEMENT BY ROBERT MCGLOTTEN, ASSOCIATE DIRECTOR OF LEGISLATION, AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL ORGANIZATIONS TO THE SENATE SUBCOMMITTEE ON EMPLOYMENT, POVERTY AND MIGRATORY LABOR ON S. 1312, THE WELFARE REFORM JOBS PROPOSAL

March 6, 1980

In connection with 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 total CETA jobs may well end up at a lower level at a time when the total should be increasing because of higher recession-induced unemployment.

We are also concerned about CETA wage requirements, the 18-month limitation on CETA employment, the undermining of wage and labor

standards and job protections for regular public employees.

The CETA legislation enacted last year is unconscionable in its treatment of CETA workers. It mandates that an average CETA wage nationwide 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

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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 average wage in many jurisdictions is $2,000 or more less than bargained 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.

This means that some public employers will attempt to establish new sub-minimum entry level jobs, such as an Assistant Laborer. Some employers may attempt to reclassify CETA employees to take them out from the protection of collective bargaining agreements.

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 one additional year until September 30, 1979. This serves only to recycle unemployment rather than to create jobs. The Secretary of Labor, however, does have discretion to grant waivers for these 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 delete the provisions requiring a nationwide average CETA wage of $7,200 a year. The AFL-CIO also called for elimination of the 18-month limitations on CETA employment.

We

We also oppose all attempts by employers to use the average wage requirement to undermine prevailing wages and benefits. 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 services.

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 jobs proposal in the future.

Senator NELSON. The next hearing will be next week, Wednesday the 12th, at 9:30, in this hearing room.

[Whereupon, at 11:25 a.m., the hearing was adjourned, subject to reconvening on March 12, 1980, at 9:30 a.m., in the same hearing room.]

YOUTH EMPLOYMENT AND WELFARE REFORM

JOBS, 1980

WEDNESDAY, MARCH 12, 1980

U.S. SENATE,

SUBCOMMITTEE ON EMPLOYMENT, POVERTY,

AND MIGRATORY LABOR,

COMMITTEE ON LABOR AND HUMAN RESOURCES,

Washington, D.C.

The subcommittee met, pursuant to notice, at 9:35 a.m., in room 5110, Dirksen Senate Office Building, Senator Gaylord Nelson (chairman of the subcommittee) presiding.

Present: Senator Nelson.

Senator NELSON. Our first witnesses this morning will be a panel on welfare reform demonstration projects. The witnesses are: Hon. W. W. Dumas, mayor of Baton Rouge. Neil Hurley, director, Lowell, Mass., CETA Consortium. Larry Lockhart, CETA administrator, Union County, N.J., and Marcia Eaton, manager, employment opportunities pilot program, Washington Balance of State CETA program.

STATEMENT OF HON. WOODROW W. DUMAS, MAYOR OF BATON ROUGE, LA.; NEIL HURLEY, DIRECTOR, LOWELL, MASS., CETA CONSORTIUM; AND MARCIA EATON, MANAGER, EMPLOYMENT OPPORTUNITIES PILOT PROGRAM, WASHINGTON BALANCE OF STATE CETA PROGRAM

Mayor DUMAS. Mr. Chairman, I am Mayor Woody Dumas from Baton Rouge, La., the home of Senator Long. I am glad to meet you again.

Senator NELSON. Being a member of the Finance Committee, I was aware of that.

Mayor DUMAS. You and I have met many times over the years. Senator NELSON. Yes, it is nice to have you here again, Mayor. Mr. Lockhart is not here yet.

You may proceed any way you desire. Each of your statements will be printed in full in the record. If you wish to extemporize on them, fine. Proceed however you desire.

Mayor DUMAS. I am going to submit the statement in toto and just take a few parts from it. I would first like to present to the chairman my group here who have been doing a tremendous job in getting this pilot program together.

Mr. Leo Turner, who is director of the CETA program, Marvin Allen, who is the coordinator of the EOPP, who works under Leo, Cleve Taylor, who is the director of intergovernmental relations, Sergeant Desselle, who is here with me today, and Mr. Clay Cottrell from the Department of Labor.