House Education And Labor Committee Advances Courtney Priorities On Workforce Development And Employee Ownership
Statement
This week, the House Education and Labor Committee voted to advance two bills during a legislative markup session that include several provisions championed by Rep. Joe Courtney (CT-02): the Workforce Innovation and Opportunity Act of 2022 (WIOA) (H.R. 7309) and the Protecting America's Retirement Security Act (H.R. 7310). WIOA would update and strengthen America's workforce development system at a time when many Americans are seeking new high-skill, high-pay job opportunities--and while many employers are looking to fill these positions. The Protecting America's Retirement Security Act would help more workers and families plan and save for a secure retirement, in part by including Rep. Courtney's bill to increase the number of employee-owned businesses in the U.S.: the WORK Act.
Passage in committee markup represents a significant legislative milestone on the way towards a final vote on both bills.
"Both of these bills come at a critical point in our nation's economic recovery," said Rep. Courtney. "We've got more Americans right now than any time in recent history that are looking to earn new skills and start new careers, and we've got employers in eastern Connecticut champing at the bit to hire on new talent into high-skill, high-pay careers, while simultaneously our own job skills training programs--like EWIB's manufacturing pipeline--are bursting at the seams with interest. On the other end of the labor market, there's a lot more we can do to help American workers and families feel more secure as they end their careers and look forward to retirement. Both of the bills we advanced from the Education and Labor Committee speak directly to these pressing issues. WIOA would finally reinvest in our country's workforce training programs like EWIB so that they can expand to meet rising demand, and the Retirement Security Act includes my bill to help more interested businesses transition over to employee-owned models like ESOPs, which have already proved to be successful in eastern Connecticut at local manufacturers like Web Industries in Dayville. Glad that we moved these bills forward in committee this week, and I'm ready to keep working to make them final."
WIOA is the backbone of America's workforce development system, and provides funding for training and career services that help people across the U.S. earn new career skills, and help employers secure a qualified workforce. WIOA includes funding for job training for adults, dislocated workers, and America's youth. WIOA has had immense success in eastern Connecticut--the Eastern Connecticut Workforce Investment Board (EWIB), which operates the nationally renowned Manufacturing Pipeline Initiative (MPI), is mandated and funded through WIOA. The MPI has exceeded all expectations, has been recognized by the U.S. Department of Labor (DOL) as a job training program to be emulated nationwide, and in December celebrated the 2000th career placement of a pipeline graduate.
The federal authorization for WIOA expired under President Trump in 2020, and since then federal investment in workforce development has decreased markedly. In eastern Connecticut, EWIB and other skills training programs report an increase in demand for these programs--there are more job opportunities for new careers in shipbuilding, manufacturing, and other sectors than in years. WIOA would provide programs like EWIB and others with resources to expand skills training opportunities to more Americans. The bill:
Fully funds WIOA programs by authorizing $74 billion over six years, which would allow the workforce system to serve one million workers by 2028;
Expand summer and year-round jobs programs for youth;
Strengthens the quality of the Jobs Corps program;
Codifies partnerships between employers and community colleges to provide high-quality job training;
Strengthens industry and sector partnerships to better meet the needs of both job seekers and employers;
Establishes a permanent Department of Labor program to help individuals released from incarceration transition back to employment
The Protecting America's Retirement Security Act would help more workers and families plan and save for a secure retirement by strengthening America's retirement security system. The bill includes Rep. Courtney's Worker Ownership, Readiness and Knowledge (WORK) Act, which would help increase America's number of employee-owned businesses operating under Employee Stock Ownership Plans, or ESOPs.
ESOP businesses are proven to have better retention, higher wages, and stronger retirement benefits for their workers, as well as high employee engagement and satisfaction. A 2018 survey found that ESOP workers have more than twice the average retirement of Americans. Rep. Courtney's bill would create an Employee Ownership and Participation Initiative at the U.S. Department of Labor to provide technical assistance to those looking to start new employee-owned businesses or to transition their current business models, and to encourage employee participation.
Eastern Connecticut already has one business operating a successful ESOP model--Web Industries in Dayville, a small, 100% employee-owned business that provides manufacturing services for several industries including home care, science and aerospace, and health care. During the pandemic, Web Industries re-tooled their operations to manufacture COVID-19 test kits. Courtney visited Web Industries in March.
Rep. Courtney spoke more about the bipartisan WORK Act and ESOPs during yesterday's markup--click here to watch.
Rep. Courtney's WORK Act is officially included in H.R. 7310, the Protecting America's Retirement Security Act. The bill:
Helps 401(k) participants better understand the fees they pay on retirement investments;
Expands opportunities for workers, particularly recent college graduates, to develop financial literacy skills that are critical for saving for retirement;
Establishes spousal protections in 401(k) plans;
Increases opportunities for workers to be part of their employer's retirement plan;
Boosts employee ownership programs through the Department of Labor;
Provides incentives to encourage workers to build emergency savings
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