USDOL Proposes New Regulations; Labor and Others Move to Block Adoption

On December 20 the U.S. Department of Labor published proposed WIA regulations amending the rules that have governed the WIA system since its enactment. There is considerable concern in the system about the timing of this action, as a number of the proposed changes were part of the Department's legislative proposals that were not adopted by the prior Congress and would appear to be less acceptable to the new Congress.

Of particular concern to labor, the proposed rules make a direct attack on the Wagner-Peyser Act and the merit staff requirement, which would allow for privatization of the work-search and other critical Wagner-Peyser functions.

High Road Network members should also be concerned by the section of the notice accompanying the regulations inviting comment on a possible revision to the current "two or more representatives" interpretation. While this change, which would remove the requirement for a minimum of two labor representatives on state and local WIBs, is not yet in the proposal, the notice appears to be a mechanism to change this provision, thus reducing the already low presence of worker representatives on boards. Comments on this issue or other aspects of the regulations are due by February 20.

The AFL-CIO, its affiliates, and others, are working to to secure a rider to the FY 2007 CR/Appropriations bill that would preclude the Department of Labor from issuing final regulations, not only on WIA and Wagner-Peyser, but also on the Trade Adjustment Act (proposed TAA regulations were published in the fall). Copies of letters from the federation and other groups, including Congressional authorizing committees can be viewed here.

Read Workforce Investment Act Amendments; Proposed Rule

Read AFL-CIO Comments on Proposed Regulation

Senate Passes Stalled Workforce Legislation

In a surprise maneuver right before Congress recessed for the 4th of July Holiday, the Senate passed its version of the reauthorization of the Workforce Investment Act (S. 1021).  There were key differences between the House of Representatives’ version of the reauthorization of the bill and what the Senate passed on July 3.  The Senate, for example, maintained separate funding streams for investments in worker training but does allow 100% transferability between the adult and dislocated worker funding streams.  The House and the Administration want to collapse the funding streams and bundle Workforce Investment Act resources into block grants to the states, eliminating a dedicated stream of training resources for America’s unemployed workers. 

The Senate bill does not include controversial language that would exempt faith-based organizations from discrimination laws that prohibit hiring based on a worker’s religion; the Administration and the House support allowing federally-funded organizations to discriminate in hiring based on religion.  Senator Kennedy (D-MA) calls that provision a “poison pill” and seeks agreement before convening a Conference Committee that it will not be included in the bill’s final version.  Major obstacles lie ahead that will likely challenge potential passage in this session of Congress.

Bush Administration FY2007 Budget Calls for Cuts and Consolidation in Workforce Programs

The President's recently announced FY 2007 budget calls for some sweeping changes in the Workforce Investment Act (WIA) system, diverting the funding for the eliminated Employment Service and WIA programs (for unemployed workers, disadvantaged adults, youth) to pay for individual Career Advancement Accounts (CAAs). The proposed consolidation of programs and proposals for streamlining the administration of workforce investment programs would have profound impact on the operation of workforce investment boards. The AFL-CIO has done an analysis of the budget proposal, or you may want to chose to review the budget proposals from the materials posted by the Department of Labor.