labor lawAdivision of labor law center

There’s so much good news about employment opportunities in Delaware lately, that it’s easy to believe the state is immune from the layoffs that plague other areas. If only it were true.

Unfortunately, the state of Delaware recently received official notification that DaimlerChrysler will reduce production at the Newark Assembly Plant. The plant currently produces the Dodge Durango and Chrysler Aspen. The company plans to reduce the plant’s staff immediately, by closing down one shift.

Even worse, the company plans to “idle” the plant. That means that the company will not allocate any new projects to the plant. That usually means that it’s only a matter of time until the plant closes entirely, depending upon how well the plant’s current products sell. The auto manufacturer made the announcement from their corporate headquarters in Detroit.

DaimlerChrysler’s Newark Assembly Plant currently employs approximately 1950 full-time workers and contributes a total economic impact of nearly $819 million to the state’s economy.

When DaimlerChrysler first posed plans for restructuring late last year, the Delaware Economic Development Office (DEDO) got involved. The DEDO held meetings with all stakeholders to develop an “innovative, responsible plan” to address the struggling company’s business needs.

“We are pleased that DaimlerChrysler has demonstrated its commitment to Delaware by maintaining production of the Dodge Durango and Chrysler Aspen,” said Judy McKinney-Cherry, Director of the Delaware Economic Development Office. “We view this as an opportunity to assist DaimlerChrysler in their profitability. The current plan to idle the plant in 2009 provides us time to work with the company on new models and flexibility. We will be working closely with DaimlerChrysler on strategies to bring the plant back to full production in coming years.”

The Delaware Economic Development Office has already approached the U.S. Economic Development Administration regarding federal monies that may be available to benefit the Newark region as a whole.

The state of Delaware plans to work side-by-side with DaimlerChrysler during this transition and have launched a rapid response strategy to assist displaced workers.

The United States Labor Department has initiated a program by the name of Workforce Innovation in Regional Economic Development (WIRED). This program aims to improve economy by training the workforce in troubled areas.

In the first phase of WIRED, $195 million has been distributed in thirteen regions throughout America. In the second phase, another $65 million will be distributed, based on a competition involving state governors.

Recently, WIRED has made plans to inject up to $5 million in a Delaware unemployment grant. These funds would be utilized to train the workers in Northern Delaware, including Gary and Merrillville. This region has had poor economic performance and high unemployment for the past several years. The region will receive an initial $500,000 as a gift, for the training of workers. After a regional implementation plan has been formulated, the rest of the amount will be disbursed.

At the announcement of the above-mentioned grant for Delaware, U. S. Secretary of Labor Elaine Chao said, “Investing in area workforces through this collaborative approach will boost entire regions’ economic vitality. This regional economic development strategy transcends political boundaries to better leverage a region’s assets to help workers succeed in the 21st century worldwide economy.”

In a recent speech, Assistant U.S. Secretary of Labor for Employment and Training Emily DeRocco said, “Strong regional economies that are built on maximizing talent and innovation will be crucial to the nation’s success in the global economy.” This has been the principle that WIRED’s policies are based on, and they have been very successful in achieving their goals, so far.

Regions included in the most recent round of WIRED grants include portions of Puerto Rico, Northern Alabama, Northern Indiana, the Delaware Valley Tri-State Area, Southeastern Michigan, Appalachian Ohio, the Rio Grande Valley in Texas Southern Tennessee, Southwestern Connecticut, Southwestern Delaware, Southeastern Wisconsin, the Wasatch Range in Utah, Northern California and the Arkansas/Mississippi Delta.

By law, work-related accidents are recorded on the Delaware OSHA 300 form, which must be posted in the workplace beginning on February 1, 2007. The forms must remain posted in a prominent place until April 30, 2007. 

According to the Occupational Safety and Health Administration (or OSHA for short) requirements, the logs must be posted in order to inform employees of the safety conditions of their work environment. By posting the log in a prominent place (like a lunchroom, near the time clock, or in some other common employee gathering place), employees are likely to review the log, become aware of potential hazards, and take measures to prevent a similar injury. 

Protecting employees is not the only benefit of the OSHA 300 form. Employers also benefit by increased awareness among employees because the safer employees are on the job, the less days are lost due to work-related injuries. In 2005, OSHA reported more than 1.2 million work days lost because of an accident or illness suffered on the job.

The Delaware Department of Labor mailed 1099-G statements to anyone who received unemployment benefits in 2006, during the month of January. The Department of Labor is also required to submit 1099-G statements to the Delaware Department of Treasury and the IRS. If you received unemployment compensation in 2006, and have not received your 1099-G as of February 15, 2007, you should contact the Delaware Department of Labor immediately. 

When people lose their job, it is easy to forget that Delaware unemployment compensation must be reported as income on federal and state income tax returns. Unemployment income is reported on form 1099-G. 

A 1099-G statement is a report of unemployment benefits (which must be claimed as income on individual tax returns) received in the previous tax year. The 1099-G is also referred to as a “Statement for Recipients of Unemployment Compensation Payments.” Any state and federal taxes already withheld will be reported on the 1099-G, in addition to the total amount of earnings. 

The amount of earnings can be confusing in certain circumstances. Sometimes unemployed workers have been involved in legal actions related to their unemployment compensation. If a judgment was found against the worker, the court may order the worker to pay restitution to the employer. In this case, those restitution amounts may have been deducted from the earnings each month. Additionally, the court can order other deductions, which would come out of monthly payments, as in the case of Friend of the Court payments. 

It can be helpful to contact the IRS if you have questions about your total earnings as reported on the 1099-G and the actual money you received in 2006. These deductions can have an affect on how you report your earnings on your tax return. The IRS can explain the deductions and provide instructions on proper reporting. Additionally, if you are not sure whether your monthly payments reflect deductions other than state and federal tax withholding, contact the IRS for help.

The Delaware Valley recently won a competitive grant of $5 million from the U. S. Dept. of Labor.

Under the WIRED program, the region will use the Delaware unemployment grant to improve the area economy by training workers. “This regional economic development strategy transcends political boundaries to better leverage a region’s assets to help workers succeed in the 21st century worldwide economy,” said Secretary Chao. “Investing in area workforces through this collaborative approach will boost entire regions’ economic vitality.”

The U. S. Department of Labor recently announced that thousands of   Delaware workers would benefit from a grant of more than $65 million. The Workforce Innovation in Regional Economic Development program, also known as WIRED, is an effort by the U.S. Labor Department’s Employment and Training Administration to increase regional economies. WIRED works to integrate economic and workforce development activities and demonstrate that talent development can create economic transformation in regional economies across the United States.

The Delaware workers grant will benefit workers in the Delaware Valley Tri-State Area including Pennsylvania, Delaware and New Jersey. The grant includes an initial award of $500,000. Once a regional implementation blueprint is completed, the region will then have access to an additional $4.5 million grant.

This second generation of WIRED grants benefits a number of regions, including portions of Puerto Rico, Northern Alabama, Northern Delaware, the Delaware Valley Tri-State Area, Southeastern Michigan, Appalachian Ohio, the Rio Grande Valley in Texas Southern Tennessee, Southwestern Connecticut, Southwestern Indiana, Southeastern Wisconsin, the Wasatch Range in Utah, Northern California and the Arkansas/Mississippi Delta.

The WIRED initiative has already demonstrated its success. The first round of WIRED grants in 2005 awarded $195 million to 13 regions. The grants are awarded competitively, involving the state’s governors. An additional 13 regions were awarded $100,000 each to begin talent development plans.

“Strong regional economies that are built on maximizing talent and innovation will be crucial to the nation’s success in the global economy,” said Assistant Secretary of Labor for Employment and Training Emily Stover DeRocco.