members of this committee that selected samples of disappointing JOBS contract performance are not reflective of the overall good work being done nationwide by thousands of NAB companies, both contract and noncontract.

I should point out that NAB does not negotiate JOBS contracts for employers nor monitor their performance. It is our task to persuade employers to hire and train the unskilled, inexperienced and disadvantaged workers who for years have been rejected as unemployable.

As representatives of the American business community we believe that any cases in which a contractor or subcontractor has not performed contracted services should be exposed and corrected.

I am sure, however, that the members of this committee will agree with me that this can and should be done in a way which does not do a disservice to the hundreds of thousands of disadvantaged individuals who have received valuable opportunities for a better life through this program and to the companies which have hired them.

In conclusion, let me say that we are optimistic about the future of the alliance.

American business has hired more than 300,000 disadvantaged workers under the JOBS program without government financial assistance. The value of the training these workers have received can be conservatively estimated at over $200 million.

In addition, approximately 2,000 executives have been loaned by their companies to work full time on behalf of the JOBS program for periods extending up to 1 year.

A conservative estimate of their salaries would be over $10 million-not even considering the thousands of men and women, who have worked part time on our pledge drives for the JOBS for summer youth employment programs.

The record so far, we believe, is a good one. The vast employment resources of the private sector have been mobilized as never before to solve one of the most pressing problems of our society. NAB is proud of the business community's response and of its willingness to accept and accelerate change.

These thousands of men and women who have worked for the JOBS program are practical people. They do not believe in wasting their time, their money, or that of anyone else. They believe-on the basis of their own first hand experience-- that they are creating hundreds of thousands of opportunities for men and women who never had these opportunities before.

President Johnson proposed the NAB program. President Nixon expanded it. The American labor movement has supported it. And business believes in it.

I want to make it clear that we have had splendid cooperation in the Department of Labor under the previous and the present administration.

Senator NELSON. What is the effect of the increasing unemployment on this program now, in the past few months?

Mr. WILSON. It has had some effect, but, Senator, we have shifted into securing jobs for this type of individual in what we call the service industries.

For example, if you-I don't how it is with you, but as far as I am concerned, I had a typical example of it where I smashed up a fender.

The fixing of a fender and painting it and bending it out is not too difficult a job, but I had to make an appointment to get that fender fixed 6 weeks in advance, and I had to set a certain date, just the same as I set an appointment with my dentist.

In these service jobs, of mechanics, hospital workers, repair men, in the wholesale and retail, trade, finance, insurance, real estate, and all these service type industries, there is a shortage of employees for these jobs.

There is no such thing as unemployment as far as those jobs are concerned.

In the fall we negotiated with the Labor Department the JOBS 70 contract. We developed a consortium agreement for use by the smaller employers; the retailers, or the trade associations.

More than half of the total employment in the United States is in the service area, and is increasing rapidly. Even in the period of economic contraction, industries normally continue to increase in this sector of the economy.

Our emphasis recently has been directed toward the service industries, and we are having success there.

At the present time, contracts are running almost $8 million a week. Let me say something about this. When we realized the complexity of the contract and the fact that 70 percent of all businesses in the United States employees employs less than 250 people, we realize we had to give a more simple type of contract for the small employer.

In the fall, in cooperation with the Labor Department, we negotiated what we call a simplified form of contract called JOBS '70. Also in order to process the large number of contract applications and to service these contracts it was necessary to have a simplified procedure.

The Labor Department was successful in getting the State employment people to furnish representatives to help in connection with the negotiation of these JOBS '70 contracts.

It took time to train their people in the Labor Department; it took time for us to train NAB people. We really have just gotten started in February on these JOBS contracts for smaller employers. These contracts are now being processed. From the evidence that we have at the present time, we think that we have been successful in changing the form of the contract to satisfy the need. This will benefit not only the public, but also it is going to give meaningful jobs to the people in the service industry.

I am not talking about jobs that are not good jobs: I am talking about banks and insurance, real estate, repair, hospitals, universities, the wholesale and retail trades. We are also working through the trade associations, through the chambers of commerce, and we think we are being quite successful.

▼

In answer to your question, sure, increasing unemployment is bound to have some effect as far as the larger companies are concerned, but we find that there are jobs with the smaller employers in quite great numbers.

Senator NELSON. Are the participants in the JOBS program expanding their number of employees under this program or are they contracting the same number as in the past 6 months?

Mr. WILSON. I think, from the information that was just given me by Mr. Hamilton, that from December 1969 to March 1970, our monthly employment rate declined from 28,000 a month to 21,500

a month.

However, the number of companies hiring increased from 12,177 in November to 14,114 in March, and contract companies increased from 1,189 in November to 1,643 in March, which shows that the shift is over from some of the large companies, and we are getting a great number of smaller companies into the program.

Senator NELSON. But the total initial hires has gone from 29,000 a month to 21,000. You have a breakdown by the ne month, do you, that would show any trend?

Mr. WILSON. We don't have them here but we will provide it for you, sir.

Senator NELSON. We would appreciate that.

Do you have a breakdown on the increasing employment in the service industries? Do you have a breakdown on employment there that would show that increase?

Mr. HAMILTON. Senator, one thing that the system, the information system, as it was originally developed never contemplated was the degree, or the detail required as far as Congress was concerned, namely, the standard industrial code.

As a result, we are not able to identify by company characteristics what actually is the type of company that we have within the program, particularly as far as the volunteer program is concerned. Therefore, we are not able to produce that information based on type of business or type of industry.

Senator NELSON. I have a whole list of substantial corporations in a list here, which I won't recite, that have substantially reduced their number in the program.

Is that continuing, especially in the field of industrial production? Mr. WILSON. In the larger companies, there has been a certain amount of that all over the country, and so it has affected us somewhat. What we have done is simply shift our emphasis in securing these jobs for the disadvantaged to the smaller employer, and the service industries, and as long as you have some type of whatever you want to call it, whether you call it a mini recession or what kind of recession, or what it is, there has been a certain amount of cut back.

(The information referred to follows:)

a.

An increased campaign on tally card submission.

b. An improvement in the rate of return of tally cards as a result of the change to quarterly reporting. Follow-up through the Social Security Administration.

c.

more than one contract, while consortium contracts include more than one company.

Mr. WILSON. However, I would like to point out one thing of utmost importance in connection with these cutbacks. One of the things that is a very valuable right that comes through hiring is the fact that he receives his seniority and he receives the right to be called back before anyone else is put in that job.

I saw a television program the other day, in connection with the cutback, of a young man who was reciting the fact that he felt badly because he was stuck in his room. He had hung around the pool room before he had gotten a job under the JOBS programthis was actually nothing we had anything to do with. He said he was sitting around his room playing his records, and he was keeping away from the pool room because he did not want to get in trouble, but he said, I hope that I get called soon.

There is the key, because this condition is not going to last forever, and he has that right to be recalled, and has a job just the same as anybody else in industry, which is a very valuable and important right so far as his dignity and self-respect is concerned, and they all know it.

Senator NELSON. Do you have any total objective in the total number of hires which you are seeking to reach, a level which you are seeking to reach?

Mr. WILSON. We have a goal.

Goals were set, originally by President Johnson. Goals were set by President Nixon and I think rightly so. We particularly don't like this numbers game. It gets us into trouble, and we don't particularly like the numbers, but you have got to have some incentive, and you have got to have something to say, but this battle of the numbers is a pain in the neck. It is to me, anyway.

Let me say this, that our goal is to have 338,000 on board by June 30, 1970, and 614,000 by June of 1971.

Senator NELSON. Does anybody else have anything they wish to comment about?

Mr. WILSON. Mr. Siemiller has a statement to make, if I am all through. I am kind of lucky, if I got through. This is a new experience for me. I was in the House the other day, and now I am getting it here. But Mr. Siemiller is more able to do it than I am, because he has been through this mill several times.

He has a statement to make, if we could put it in the record. Senator NELSON. Senator Cranston, did you have any questions? Senator CRANSTON. Perhaps we should hear from Siemiller first. Senator NELSON. Mr. Siemiller.

It is a pleasure to have you back, under somewhat different circumstances that you were here a year or so ago.

Mr. SIEMILLER. Senator Nelson, let me assure you it is a pleasure to be here under these circumstances, not having a group of people out of work wanting to negotiate an agreement and unable to do so for various reasons.

I had my reasons why. I don't think anybody agreed with me, but this is nice this time.

My name is P. P. H. Roy Siemiller. At the present time I am working for the AFL-CIO in a liaison capacity with the National Alliance of Businessmen. Prior to accepting this assignment I served