MSNBC "The Ed Show" - Transcript

Interview

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For more on that, let‘s go to Rhode Island Senator Jack Reed. He‘s a member of the Senate Banking Committee.

Senator, good to have you with us.

SEN. JACK REED (D), RHODE ISLAND: Thanks, Ed.

SCHULTZ: The framework of this job-saver program, what is this? I mean, if I‘m running a small business instead of laying people off, you mean the government would come in and help me save them?

REED: Absolutely. There‘s a plan that‘s submitted to the state agency to allow employees to take some time off and be compensated by a pro rata share of the unemployment compensation. The employer has to continue benefits, whatever the benefits are, health care or retirement. And it‘s a win, win, win.

First, the employer gets to keep skilled workers and keep morale, keep productivity up. The worker does not have to take unemployment and lose benefits like health care. And the states who are under so much pressure in terms of their unemployment insurance funds don‘t have to pay out all of the unemployment. It‘s just a pro rata share.

(CROSSTALK)

SCHULTZ: Senator, if it works in your state, why is your state sitting at 13 percent unemployment?

REED: Well, as you pointed out, without this program it would be 13.8 percent. This is helping. This is a job retention program, as all--Rich Trumka and everyone else indicated, you indicated, we‘ve got to do more to create jobs, not just retain them. But if we don‘t take this very cost-effective, very--I think very effective step, we‘re going to see more people who are necessarily laid off completely.

SCHULTZ: OK. So, I‘m a small business guy, and instead of laying off some employees I can get a percentage of that. And you‘ll pay for some of their hours on the job.

I get that, and I can see where, you know, you can save some employees from being on the unemployment line. But how do you protect against fraud? I mean, who‘s checking up on these companies? How does it work in your state, how does it work in the 16 other states?

REED: Well, there has to be a plan submitted by the company. And currently, under Rhode Island law. But at the national level, the legislation we‘re proposing first would prohibit companies who have been aggressively laying people off.

This is for those companies that really want to keep their workers at work, at least part time. And second, there would be oversight requirements.

This has worked out extreme well in Rhode Island and, as you point out, 16 other states. There‘s been no significant issues raised with respect to fraud. In fact, there are places I‘ve been to visit where the workers are saying, "This has kept me owning my home. Otherwise, I‘ve lost my home."

SCHULTZ: What kind of money are we talking about? How much money do you think you can get appropriated to this nationally?

REED: Well, we‘re talking about $200 million. But as one of the figures -

· but as I suggest, and as I think it‘s obvious, you know, this is in lieu of paying the full unemployment benefits. So this is an efficient, cost-effective way to deal with the issue of at least retaining some employment.

SCHULTZ: Yes. Well, the one thing is, in small business, there‘s a lot of small businesses that count on other businesses, whether it be in manufacturing or service, and all of a sudden that business is gone. It has a domino effect, and it can have a ripple effect through the economy. I can see where that can help.

Is this going to pass the Senate? Do you think this will get implemented nationally?

REED: Well, we‘re picking up support. My colleague, Senator Murray, just joined us today from Washington, Senator Kerry, others. This is, I hope, going to be part of discussions when the president convenes the jobs summit.

SCHULTZ: You bet. Is the White House with you on this?

REED: We‘re going to push hard. We are pushing ahead, and we hope they will be. And we‘ve had some discussions, and I think this is an idea whose attractiveness and appeal is increasing each day.

SCHULTZ: Senator, good to have you with us tonight. Thank you.

REED: Thanks, Ed.

SCHULTZ: Jack Reed from Rhode Island, with us here on THE ED SHOW.

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