Aid May Grow for
Laid-Off Workers
Service Jobs Lost To Global Trade Are Focus of
Bills
By Lori Montgomery
Washington Post Staff Writer
Monday,
July 23, 2007; A01
As part of their campaign to soothe an anxious middle class, congressional
Democrats are preparing legislation that would significantly expand federal aid
to the most obvious victims of the global economy: workers whose jobs move
offshore or are lost to foreign imports.
Under a Senate bill to be introduced today, computer programmers, call-center
staffers and other service-sector workers who make up the vast majority of the
nation's workforce would for the first time be eligible for a generous package
of income, health and retraining benefits currently reserved for manufacturing
workers who lose their jobs to international trade.
Democrats say the expansion of the Trade Adjustment Assistance (TAA) program
would begin to reweave the social safety net for the 21st century, as advances
permit more industries to take advantage of cheap foreign labor -- even for
skilled, white-collar work. By providing special compensation to more of
globalization's losers and retraining them for stable jobs at home, they say, an
expanded program could begin to ease the resentment and insecurity arising from
the new economy.
A similar bill is nearing completion in the House, and Democrats hope to
approve the expansion before the program expires Sept. 30. Trade Adjustment
Assistance typically gets strong bipartisan support; Sen. Olympia J. Snowe (R-Maine) is co-sponsoring the bill with Sen. Max Baucus (D-Mont.).
But this year, rancorous politics have developed around broader trade issues,
threatening the proposed expansion and, potentially, the program's survival.
"This is not going to be a slam-dunk," said Howard Rosen, executive director
of the nonprofit Trade Adjustment Assistance Coalition.
The program, established as part of the Trade Expansion Act of 1962, is the
nation's primary source of aid to workers who lose their jobs to foreign
competition. Laid-off manufacturing workers must demonstrate to the Labor
Department that they lost their jobs because of foreign imports or a decision to
shift production to a U.S. trading partner subject to a free-trade
agreement.
If their applications are approved, workers can receive two years of benefits
on top of state unemployment payments, which typically last six months. The
benefits include income support payments, job training, job search and
relocation assistance, and a tax credit that covers 65 percent of monthly
health-insurance premiums. Workers over 50 who take a new job at lower pay are
eligible for wage insurance, which makes up half the difference between their
old salary and the new one, up to a maximum of $5,000 a year, for two years.
Last year, the Labor Department approved 1,400 petitions covering about
400,000 workers, according to a recent study by the Government Accountability Office, though fewer than 100,000
workers sought and received benefits. The agency denied 800 petitions, mainly
because the workers did not produce "an article" and hence fulfill the basic
definition of a manufacturing worker. Most of the denials involved two
industries, the GAO said: business services such as computer programming and
airport-related services such as aircraft maintenance.
"Trade Adjustment Assistance was created in the 1960s, but today's workers
live in a different world," Baucus, the bill's chief author and chairman of the
Senate Finance Committee, said in a written statement. "TAA should
be flexible enough to respond to workers' needs regardless of what they do or
where challenges are coming from."
Baucus's proposal, in addition to extending benefits to service workers,
would eliminate the rule that reserves benefits for jobs lost to U.S. trading
partners. Help would be available for any worker whose job moves anywhere
overseas. The bill also would streamline the application process for hard-hit
industries, allowing the Labor Department to certify workers industry-wide.
The bill also would improve some benefits while making them easier to claim.
The health-insurance tax credit would be increased to cover 85 percent of
monthly premiums, making maintaining health coverage more affordable. And
workers as young as 40 would be eligible for up to $6,000 a year in wage
insurance if they accept new jobs at lower pay.
All told, the changes would double spending on the program, which cost the
government just under $1 billion last year.
Republicans as well as Democrats have long called for an overhaul of Trade
Adjustment Assistance. President Bush has praised the program and promised to improve it.
But the politics of trade have been complicated since Democrats took control of
Congress with the help of many candidates who campaigned against further trade
liberalization.
In the past, Trade Adjustment Assistance has been renewed alongside
legislation granting the president fast-track authority to negotiate trade deals
without congressional interference. But Bush's fast-track authority expired in
June, and House Democrats have made it clear that they do not intend to restore
it.
In addition, many Republicans feel scalded by Democratic delays on free-trade
deals that the Bush administration has negotiated with Peru and Panama. Those agreements, and more politically divisive agreements
with South Korea and Colombia, have not been brought to a vote since a deal to move
them forward was made in May.
Now, even some Republican champions of Trade Adjustment Assistance say they
are reluctant to sign on to its renewal unless Democrats reconsider their
opposition to fast-track authority.
"Frankly, TAA is a very integral part of our efforts to reduce barriers and
expand trade . . . and my view is they ought to go together," said Sen. Charles E. Grassley (R-Iowa), the senior Republican on the
Finance Committee.
The Bush administration was actively working on a reauthorization proposal
for Trade Adjustment Assistance when fast-track expired, the program's advocates
said. Now, the administration appears to have backed off to recalibrate its
strategy.
Last week, White House spokesman Tony Fratto declined to comment on the Democratic proposals for
expansion, except to question their cost and the wisdom of covering service
workers. With those job losses, he said, "it becomes impossible to draw lines
that show the displacement is owing to trade."
Some TAA advocates worry that, in this hostile atmosphere, two months is too
little time to pass legislation to extend the program and double its size.
Others are confident that even disgruntled Republicans will be reluctant to
abandon the chief source of federal aid for victims of globalization.
"The results of the last election, the polling, everything as we move into
the next election cycle continues to indicate significant angst, frustration and
anger from working people around these issues," said Bruce G. Herman, executive
director of the National Employment Law Project, which promotes the rights of
low-wage workers. "Trade-impacted workers are not concentrated in blue states or
blue districts. They're in everybody's district."
© 2007 The
Washington Post Company