CMTA | Legislative Weekly

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December 14, 2001

CMTA Helps EDD Kick-Off Work Sharing Campaign

CMTA along with other employer and organized labor representatives joined Michael Bernick, Director, Employment Development Department (EDD) on December 12 at a Press Conference in Los Angeles to help kick-off the work sharing campaign. The purpose of the campaign is to educate employers about an alternative to layoffs during the current economic slowdown.

The California Work Sharing program was established in 1978 and was the first in the nation. According to EDD, there are 1400 employers currently using the program and providing benefits to over 108,000 employees. Even though work sharing has been around for over 20 years, it is still a relative unknown program to many employers and employees. That is why EDD is implementing the new campaign to educate those employers who may not be aware of the program existence.

While the number of employers utilizing Work Sharing has increased significantly over the past year, there are still a lot of California employers for whom Work Sharing might be an attractive option. This little used program is particularly well suited to help employers who want to keep their quality workforce intact during challenging economic times because it can help them avoid the expense of recruiting and training new employees when conditions improve. The program assists employers in retaining their trained staff by shortening work hours and allowing these employees to receive Unemployment Insurance benefits to supplement their reduced wages. Another positive aspect of the program is that it is more equitable than layoffs, which place the burden of economic adjustment for an entire business on a relative few employees.

CMTA supports the program because work sharing can help both employers and employees during difficult economic times. It is a voluntary program that provides employers with a significant amount of flexibility in setting up and managing the program. Further information about Work Sharing can be obtained from the EDD’s Web Site: www.edd.ca.gov.

Trade Promotion Authority Passes US House by One Vote, Industry Asks for Quick Senate Passage

The United States House of Representatives this week passed H.R. 3005, the Trade Promotion Authority bill, by a 214-213 vote. The bill would effectively allow the Bush Administration to negotiate new trade agreements with other nations. It appears that a very concerted last minute business community effort might have been the reason for the one-vote victory.

“This vote, though very close, represents the triumph of hope and confidence in America’s economy over fear and doubt about our ability to compete – and to lead – in the global marketplace,” said NAM Executive Vice President Mike Baroody. “TPA is one of the most important pieces of legislation in years, not just for the United States, but also the world, which needs our leadership in the movement toward trade liberalization.”

Baroody praised House Ways & Means Chairman Bill Thomas, as well as original co-sponsors Reps. Cal Dooley, Bill Jefferson and John Tanner, for their vision and perseverance in promoting their bill despite formidable opposition and frequent mischaracterization.

"Manufacturers have so much to gain from free trade policies, hopefully we get quick passage in the U.S. Senate and start to negotiate more trade agreements in the global marketplace," said CMTA president Jack M. Stewart. "The U.S. is party to only three of the 130 free trade agreements. From computer chips to tortilla chips, it's time for us to make the world market a consumer of our products."

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