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Kry that the American

Trade Union meer is soσέτας του τη στng whh the National Adance of Bזי

I was a member.

The AFLO 100% after reviewing the premife Nina A are of Businessmen, endorse tensor agreed to cooperate with it.

Two of the principal reasres fre he singer of the AFL-CIO

executive counci are:

First, we considered it agram that would bring mto the workforce uremicmed rectile and on some nemployed people who had previously been res bered emplate

e.

The program wonid bring these reclete the workforce, make of them tax producers in place of tax earers, and in fulfilling the policy of the US. Government as stated Triman Adminwhation that of a full employment of the American workforce. Further we could bring these unemplomed recple into the workforce without reducing the standards or conditions of employment negotiated into the agreements between the trade union movement and the employers of America.

It would provide these workers with the states of a regular Employee: job security and conditions of employment guaranteed by the provisions of a collective bargaining agreement identificaon with all the other new hires: and the same opportunity for ndeancement or upgrading according to the seniority they accrue

osud periods of time.

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Secondly, the trade union movement felt that the business commomody was recognizing its responsibility to find jobs for citizens, tously had been denied the opportunity of employment bos changing the remurements for entry level jobs within the industry dding additional training for what deficiencies he or she Let me give you an example of what I mean, which should aplain better than any other way that I can think of. A few

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Tears ago, when Federal Judge, Otto Kerner, was Governor of Cinois, he appointed a broad based committee of citizens of Illinois to make a study to find out what it would take to provide full mployment for the workforce of Illinois.

This committee was chaired by Frank Cassell of Inland Steel. Among others serving on the committee was the present Secretary of Labor, George Shultz, and a senior vice president of the Nation's argest airline whose general offices are in Chicago.

I also served on the committee.

During the committee discussions, I was told by the senior ice president for industrial relations of this airline that it was the policy of the airline to only hire new employees who had finished gh school, as any employee hired should have educational ability to advance up the ladder to all of the positions in the airline's work force.

You can readily see that this policy would have automatically disenfranchised practically all of those that we refer to as the card core.

This same airline today is participating in the program of the National Alliance of Businessmen. It has reduced its qualifications for new hires so that opportunities are being found for the hard core. To the best of my knowledge, the program is proving successful, but it does require additional training on the part of the company that would have been or not even been available just a short

me ago.

This employer, the Nation's largest airline, can be multiplied rmany times over by other employers that are now voluntarily cooperating with the National Alliance for Businessmen and are Participating in hiring the hard core, and who I don't think would have hired any if it had not been for this commitment of the teasiness community.

The American Trade Union Movement does support this endeavor of the National Alliance of Businessmen and all other endeavors * find jobs, while protecting the provisions of collective bargainng agreements, that go towards fulfilling the stated policy of the I'nited States that of full employment.

In closing, allow me to thank you for the opportunity of presentng the position of the AFL-CIO, as expressed by its executive council.

Senator CRANSTON. First I would like to express my appreciation 'f the National Alliance of Businessmen in trying to make this fort succeed. It is important that the business community be volved, and business has devoted time and money and executive Cositions to this work.

It is obviously most laudable.

The concepts of involving the business community in new ways of providing employment for the disadvantaged, and better jobs for those people on a voluntary basis, is a great one, and I hope What we can make it work.

I have some real questions as to what has been happening so far, and I think a major problem is that we don't really know exactly what has been happening in an overall sense.

40-963 0-70-pt. 4-3

Money has been obligated and spent for a number of different programs, or jobs, and we on this committee need to understand and explore just what has been happening, what the expenditures have achieved in terms of the program objectives.

Two administrations have been involved in this, one in its origins, and one now in the implementation, and many decisions made by the prior administration obviously have thus far had considerable effect upon what this administration has been able to accomplish. So we are really looking at the overall problem, and not being critical of one administration or the other in seeking to understand what is happening and what remedies may be in order.

The present administration has made some promises, which I think were rather extravagant, in terms of what would accomplished in this program. These claims became quite important because, about 1 year ago, at a time when Senator Nelson and I and other members of this subcommittee and the Congress generally did battle with the Labor Department to prevent the abrupt and arbitrary closure of 59 job corps centers we failed in that effort some very deep commitments were made by this administration in regard to the JOBS program, looking to this as a substitute for what had been undertaken through the Job Corps.

17,500 enrollees were put out of the Job Corps at that time and one of our questions is did the JOBS program take up the slack and provide substitute opportunities for those people?

I think we have to measure the accomplishments partly against those promises of a year ago. We must explore how large a role and what role of this kind of a private program, subsidized in part by the Federal Government, should play in future manpower

efforts.

We have, obviously, great difficulties, and you have great difficulties trying to make it work at a time of rising unemployment when even highly skilled people are out of work.

We have in my State, highly trained executives and engineers out in the streets because of cut backs in Defense and Aerospace, and how a program like this can work, when you have a million more unemployed now than we had a year ago is, of course, a very great question.

I want to thank the chairman and the staff of this committee for the very fine work they did in preparing the staff study of the JOBS program, making material available to us for study prior to these hearings.

I think we can agree that the layoff of workers brought on board with the promise of career development to be most unfortunate, and there seems to have been a great deal of such laying off occurring. Failures to provide real jobs and supportive services have the effect of disillusioning young people and others who entered this program with high hopes and then found themselves out in the streets at the end of their efforts.

As you know, Mr. Wilson, the slogan of the NAB JOBS program is "Hire, train and retain."

I assume the emphasis is on the retain, and that the basic principle of the program is that the participants are hired from the day they enter the program.

A program that resulted in people not being hired for jobs would be a violation of the contract, or at least the spirit of the program, would it not?

Mr. WILSON. If they have a contract and don't hire at all, I would assume yes. Except that conditions change; there have been companies that find it is necessary to cut back, and I might point out these are the facts of life in trying to get the people in the mainstream, and if they have their seniority rights, they have the same rights as anybody else.

I mentioned the young man who said, I hope I will be called back soon. We hope this is not going to continue too long, but everyone gets a crack-even with nonunion, most of them have seniority rights, and they move in, and they have a very valuable right.

Senator CRANSTON. To cite an example of the thing that has occurred in some instances that gives grave concern to me, last Friday, after a case had been aired in the newspapers, the Labor Department canceled a $1 million contract involving 19 dry cleaning firms in Dallas. Tex.

They said most of the persons in the program had not been hired by the dry cleaning shops as required in the contract, but were enrolled as students, and were paid out of Federal funds.

This program began in December 1969, and was canceled in May 1970. The program ran 8 months without the trainees having a job. What's your opinion of that sort of operation?

Mr. WILSON. First of all, this is not our job, and I probably should not even comment on it. The task given to us was to find the jobs. We do not have anything to do with the monitoring, or the actual contract itself.

Let me say in connection with this, and I studied very carefully the subcommittee report, and I have a very violent disagreement with some of it. If you want to take this, an urgent program of this type, with all of the complexities in organizing and setting up, you can sit and give me quite a few examples that are bad, but I can also sit here and go from now to next week with all the good ones. I notice in the committee report there is very little said about the goodness of the program, and it is mostly certain deficiencies.

So the thing that disturbed me particularly, and I hope won't happen because we don't look on this as Democratic or Republican. We look on it as a job the business community has been requested to do, and as far as the men who serve in these jobs, Democrats or Republicans, there are many of each, they are trying to dedicate themselves to the job.

If you want to take and hurt this program considerably, which we feel is good, you can do this by citing one or two bad cases. So that the business community says, "What is the use of it, we are going to catch hell anyway, and there is no sense going on with it?" We firmly and sincerely believe and I do because I have been in the program 10 months and I have been with the top businessmen in the United States, I have been with businessmen in all these 131 cities and in my opinion they have been very dedicated to this cause, and I am afraid that if you get into a partisan byplay

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basis by each employer. This gives the number hired, the number terminated and the number on board for each employer.

In addition, we request employers, and we are not always successful, to submit a hire card on each individual trainee hired. This is a contractual requirement under the contract portions of the program, but there is no method of compelling volunteer employers to do it, except by persuasion and exhortation.

As of the end of March, for example, on hire cards, we had 118,000 hire cards from volunteer employers and 59,793 hire cards from contract employers. So, this is 40 percent of the total number of trainees hired in the program.

Now, we can derive from these hire and terminate cards figures the length of time the trainees have been on board. However, these figures are not complete, and they do not comprise a rigid sample. Senator NELSON. The contract employers are required to report, are they not?

Mr. HAMILTON. That is correct.

Senator NELSON. So that represents 100 percent of the contract employers.

Mr. HAMILTON. That is right.

Senator NELSON. And what percentage of the other group, did you say?

Mr. HAMILTON. It is 118,000, so that would be roughly 40 percent. I am sorry no, it won't be 40 percent. It would be roughly one fourth of the total number of hires.

Senator NELSON. On page 3 in the last report, 73 percent that you mention, does that include contract employers as well?

Mr. HAMILTON. I am sorry?

Senator NELSON. The last sentence in the last paragraph on page 3 refers to 73 percent. Is that 73 percent both contract and noncontract employers?

Mr. HAMILTON. That would be all employers submitting their tally cards, as distinct from the hire and termination cards.

Senator NELSON. As distinct from what?

Mr. HAMILTON. This would be 73 percent of all the companies hiring, and submitting the tally card, versus the hire cards which are based on individual trainees.

The tally cards are submitted for the company as a whole, for all of the trainees that they have.

Senator NELSON. So that 73 percent represents both contract and noncontract employers?

Mr. HAMILTON. That is correct, sir.

Mr. WILSON. We believe that they show that we are reaching the target population defined for us under the Government definition of disadvantaged.

We also find that the characteristics of jobs offered do not differ greatly between contract and noncontract hires and the majority are for good jobs, at reasonable wages, with valuable training or work experience, and an opportunity to enter the mainstream of a productive and rewarding life.

In a program as large as ours, there will inevitably be some failures and some disappointments. I am sure it is obvious to the

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