Obama urged to turn successful state job program national

Obama urged to turn successful state job program national

By Tony Pugh | McClatchy Newspapers


WASHINGTON — As job losses continue to slow the nation's economic recovery, labor experts and economists are urging Congress and the Obama administration to boost funding for a little-known program that 17 states are using to avert layoffs and keep workers in their jobs.

Mass layoffs of 50 or more employees claimed 278,000 jobs in the third quarter alone, according to new government data. All the laid-off workers were idled for at least a month and only one-third of their employers expected any of them to be recalled.

In the face of continuing business slowdowns, however, thousands of employers are forgoing layoffs and taking advantage of state "work-sharing" programs in which they cut the hours of full-time workers, who then recoup a portion of their lost wages — usually 50 to 60 percent — from unemployment insurance benefits.

The rules vary by state, but work sharing typically helps reimburse employees for wage reductions ranging from 10 to 60 percent.

For example, an employer that needs to cut 20 percent of its full-time work force could do so through layoffs. If those laid-off workers earned an average of $500 a week, they probably could expect roughly $250 a week in unemployment benefits.

However, if instead of layoffs those workers' hours were cut by 20 percent through the work-sharing program, they'd each earn $400 a week. They'd also be eligible for the program's jobless benefits, which would make up about half of that $100 wage cut, or $50. With this approach, the worker's earnings would be roughly $450 a week, a 10 percent cut instead of a 50 percent cut.

Employees like the program, which is sometimes called "short-time compensation," because the wage reductions are absorbed equally among workers, avoiding the stress and income loss of layoffs. Employers like it because they can reduce payroll and retain experienced workers and don't have to pay to recruit, hire and train new workers when the economy improves.

more...

http://www.mcclatchydc.com/227/story/78720.html

I was wondering why the US wasn't, but, well, I guess some have! Its a decent idea because it maintain production levels at the same cost.

Work-sharing programs are available in Arizona, Arkansas, California, Connecticut, Florida, Iowa, Kansas, New York state, Maryland, Massachusetts, Minnesota, Missouri, Oregon, Rhode Island, Texas, Vermont and Washington state. Their popularity has skyrocketed since the economy tanked in December 2007.

http://www.mcclatchydc.com/227/story/78720.html

that is socialist commie stuff (in their view)

Businesses basically get their employees' salaries subsidized by the government instead of having to make layoffs.

Businesses basically get their employees' salaries subsidized by the government instead of having to make layoffs.

including yesterday's news on Afghanistran. How about you give the man a slight break and see what happens?

It keeps them happy. :rofl: