labor lawAdivision of labor law center

On April 23, the U.S. Department of Labor announced grants to train workers in Missouri and Connecticut totaling almost $2 million.

A $1.7 million employment grant was awarded to the state of Missouri to provide training assistance for workers who lost their jobs as a result of several recent mass layoffs. The mass layoffs included:

• Chrysler LLC in Fenton, Missouri
• Integram St. Louis Seating in Pacific, Missouri
• Yushin USA Ltd. in Kirksville, Missouri

“This $1.7 million grant will provide these Missourians with employment services to help in starting a new career in a growing industry,” said U.S. Secretary of Labor Elaine L. Chao.

All workers impacted by these layoffs have been certified for Trade Adjustment Assistance (TAA). TAA is a federal program that can provide additional benefits, beyond the normal unemployment insurance payments, to workers affected by mass layoffs or plant closures. Under TAA, workers can receive unemployment benefits for a year or more. In addition, TAA offers workers training in new skills to help them secure jobs in a different market sector, including tuition and benefits. In some cases, laid-off workers who earn less at their new job qualify for partial payments through TAA for up to 18 additional months, even while they are working.

The Missouri training grant is awarded to the Missouri Division of Workforce Development and will provide workers with services not covered under the TAA program. The grant will be used to provide a menu of services to workers, including assessment, career counseling and case management. Services and benefits already available to these workers under TAA may include training, job search allowances, relocation allowances and a health coverage tax credit, among others.

This grant benefits an area that has been hard-hit in recent months by various layoffs and plant closures. On Nov. 2, 2007, Chrysler LLC announced that it would be eliminating the second shift at its Fenton, Mo., plant, affecting approximately 1,078 workers.

This change triggered a domino-effect as Chrysler’s suppliers responded to changing market conditions.

On the heels of that announcement, Chrysler suppliers Integram St. Louis Seating announced that they would lay off 326 workers. Then Yushin USA Ltd. announced that they would be laying off about 100 workers.

Of the total announced, $958,608 will be released initially. Additional funding up to $1.7 million will be made available as the state demonstrates a continued need to serve workers affected by these layoffs.

On the same day, the U.S. Department of Labor announced a $250,000 Regional Innovation Grant to assist the state of Connecticut in developing regional talent development strategies. These plans will specifically focus on increasing the technical and engineering skills of Connecticut workers. The project covers the eastern Connecticut region, as well as Worcester County in Massachusetts and Washington County in Rhode Island.

“Eastern Connecticut is working across state boundaries to ensure area workers have opportunities to build the kinds of technical skills that are in demand,” said acting Assistant Secretary for Employment and Training Brent R. Orrell. “The $250,000 this grant provides will help bring together business and education leaders to address skills shortages and establish plans for long-term talent development.”

The grant goes to the Eastern Connecticut Workforce Investment Board. It will be implemented by the newly formed Engineering and Technical Skills Task Force.

Members of the Skills Task Force will collaborate with area educational partners to analyze the region’s capacity to offer engineering and technical skills training programs and issue recommendations to address existing and emerging skills gaps.

Normally, when a grant such as this identifies employer needs and a plan to train workers, it is followed by a larger training grant, such as the one in Missouri.

The project also will support plans to increase the number of engineering degree programs, and strengthen connections between employers and potential workers through internship and apprenticeship programs.

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