Date: 2011-07-06
Speaker: SHERROD BROWN (democrat)
Chamber: S

WHITEHOUSE. LEAHY. CASEY. and BLUMENTHAL builds on this momentum and encourages States with existing lay off prevention systems to utilize them more frequently and incentivizes States without work sharing to create them. It strengthens the legislation that I authored last Congress by including changes suggested by the business community. States. economists. and other stakeholders. As in past versions. it provides States that have approved programs with temporary Federal financing for 100 percent of work sharing benefits paid to workers. limited to 26 weeks worth of benefits spread out over the course of a year. This financing is available for three years. While the bill is designed to incentivize States to enact permanent laws to create work sharing. the bill also includes provisions to allow States to get work sharing up and running more quickly. Specifically. a State can reach an agreement with the Department of Labor to create a temporary program under which they would receive 50 percent Federal financing. This financing incentive would be available for 2 years. and such States would be eligible for a third year of 100 percent federal funding if they pass a permanent law. In addition. the bill provides flexible grants to State labor agencies at a time when they are doing more with less. States that enact work sharing programs are eligible for grants to improve implementation and administration. and there are also grants for promotion and enrollment. These resources will play a critical role in ensuring that States are efficiently able to inform employers of its benefits. and encourage greater use of work sharing to stave off layoffs. Moreover. as work sharing programs take hold. States will see their unemployment insurance systems less burdened as fewer individuals will need to avail themselves of full unemployment benefits. Simply put. this legislation will help more workers. businesses. and communities stay afloat. while the country works its way through these tough economic times. Moreover. the bill lays a needed foundation to protect businesses and workers from any future recession. It is a winwin for all. First. work sharing helps speed economic recovery. Economist Mark Zandi estimates that temporary financing of work share offers a very high "bang for the buck" of $1.69. That is. every $1 devoted to finance State work share programs results in $1.69 in real GDP. Second. work sharing allows businesses to retain skilled workers. temporarily cut costs. and maintain employee morale. Third. it keeps people working while receiving a share of unemployment benefits to make up for lost wages and retaining health insurance and retirement benefits. This means workers can continue to pay their mortgages and bills. provide for their families. and support businesses in their local communities. Keeping workers attached to the workforce is a key element of ensuring economic growth. This legislation does not reinvent the wheel. it is not a mandate on employers or States. and it is not telling anyone what they must do. Instead. it takes a proven jobssaving initiative. that is increasingly being used by States. and strengthens and expands it. It gives more employers in more States the opportunity to take advantage of its benefits. I urge my colleagues to join us in supporting this important legislation. It is my hope that we can proceed in a bipartisan manner as has been accomplished in the more than 20 States where work sharing has been adopted and take swift action to pass this legislation. Mr. President. I ask unanimous consent that the text of the bill be printed in the RECORD.