Statements on Introduced Bills and Joint Resolutions

Floor Speech

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS -- (Senate - August 07, 2009)

By Mr. REED:

S. 1646. A bill to keep Americans working by strengthening and expanding short-time compensation programs that provide employers with an alternative to layoffs; to the Committee on Finance.

Mr. REED. Mr. President, today I am introducing the Keep Americans Working Act, legislation to strengthen and expand work share programs to keep Americans working and provide employers with an alternative to layoffs.

This legislation allows employers to reduce the hours of their workers for some period of time and for the workers to receive proportionate unemployment benefits for those reduced hours to lessen the impact on them and their families.

While 17 States, including Rhode Island, are using their resources to provide work share, these programs remain largely underutilized. Indeed, work share is simply not available in 2/3 of States.

In Rhode Island, the number of employees participating in the program has more than tripled this past year to 8,000 workers, in comparison to the year prior. It has also been highly successful. For instance, I recently visited Hope Global in Cumberland, Rhode Island, which has participated in Rhode Island's WorkShare program. At this company, I listened to an employee who worked there with her husband, and they benefitted from this program. She said, point blank: Without it, we would have lost our health care and we would have lost our home.

Other states with work share programs have also experienced an extraordinary increase in participation.

But given Rhode Island's 12.4 percent unemployment rate--the second highest in the country--we can stem even more job loss with this legislation. Specifically, the Keep Americans Working Act provides states with temporary federal financing for 100 percent of work share benefits paid to workers for up to 26 weeks. Employers have to certify that maintenance of health and retirement benefits is not affected by participation in the program. This financing program is available for 2 years.

It also includes important limitations to ensure that taxpayer dollars are provided only when appropriate safeguards are in place. To hold employers accountable, states can assess penalties on employers that break the rules, including those who do not act in good faith to retain participating employees. In addition, to aid States in this effort, the Department of Labor would establish an oversight and monitoring process for state agencies to ensure that participating employers comply with the terms of the written plan approved by the state agency.

Given that State labor agencies are already doing more with less, this legislation also provides for administrative funding, and for those States that are trying to get work share programs off the ground, it provides start-up grants.

It is a win-win for all.

First, work share 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.

Secondly, work share allows businesses to retain skilled workers, temporarily cut costs, and maintain employee morale.

Thirdly, it keeps people working with their health insurance and retirement benefits. This means parents can continue to pay their mortgages and their bills and provide for their families.

This legislation will help stem the tide of joblessness, providing workers, businesses, and communities with the resources to stay afloat while we work our way through these tough economic times.

I urge my colleagues to join me in supporting this important legislation.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

There being no objection, the text of the bill was ordered to be printed in the Record, as follows:

S. 1646

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By Mr. REED (for himself, Mr. Durbin, Mr. Schumer, Mrs. Boxer, Mr. Lautenberg, Mr. Levin, Ms. Stabenow, Mr. Whitehouse, Mr. Kerry, Mr. Menendez, Mr. Cardin, Mr. Brown, Mr. Begich, Mr. Burris, and Mr. Franken):

S. 1647. A bill to provide for additional emergency unemployment compensation, and for other purposes; to the Committee on Finance.

Mr. REED. Mr. President, today I am introducing the Assistance for Unemployed Workers Extension Act, legislation to extend unemployment insurance benefits so people can pay their bills while they look for work. These benefits are set to expire at the end of this year. I am joined in introducing this critical legislation by Senators DURBIN, SCHUMER, BOXER, LAUTENBERG, LEVIN, STABENOW, WHITEHOUSE, KERRY, MENENDEZ, CARDIN, BROWN, BEGICH, BURRIS, and FRANKEN.

Last fall, I authored the law that provided additional weeks of unemployment insurance for individuals exhausting their benefits. Among other provisions to help stimulate the economy, create jobs, and help the unemployed, the American Recovery and Reinvestment Act extended the termination dates of these unemployment benefits.

Yet, as jobs have become scarcer, we need to do more. My legislation will continue several current-law unemployment compensation programs through 2010.

In addition, it also provides help to those who are getting stuck on unemployment for long periods. Indeed, there is only roughly one job opening for every five job seekers.

The Assistance for Unemployed Workers Extension Act provides 13 additional weeks of unemployment insurance for states like Rhode Island, South Carolina, Oregon, California, Ohio, Michigan, and Georgia as well as
other states which have an unemployment rate at or above 8.5 percent.

Without this legislation, over half a million workers are expected to exhaust their benefits by the end of September, and another 1.5 million are estimated to run out of coverage by the end of the year. This is an extraordinary number of Americans that will face life without a paycheck or an unemployment check during the worst economy since the Great Depression.

While all states are suffering during these very difficult times, my own State of Rhode Island has been hit especially hard, saddled with the second highest unemployment rate and a recession that hit earlier than in any other State.

More than 1,500 Rhode Islanders have exhausted their unemployment insurance benefits this year. By November, another 3,300 unemployed Rhode Islanders will also exhaust their benefits. This is about 150 people each week.

Providing basic support for those who are out-of-work through no fault of their own assures Americans can provide for their families and keep a roof over their heads, stemming the tide of foreclosures and the deterioration of neighborhoods.

As has been the case with past extensions, I look forward to working on a bipartisan basis to pass this legislation. It is critical that we provide help to the growing ranks of the unemployed.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

There being no objection, the text of the bill was ordered to be printed in the Record, as follows:

S. 1647

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