[House Hearing, 110 Congress]
[From the U.S. Government Publishing Office]
IDENTIFYING LABOR
SOLUTIONS FOR THE
GUAM MILITARY BUILDUP
=======================================================================
OVERSIGHT HEARING
before the
SUBCOMMITTEE ON INSULAR AFFAIRS
of the
COMMITTEE ON NATURAL RESOURCES
U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED TENTH CONGRESS
SECOND SESSION
__________
Tuesday, September 23, 2008
__________
Serial No. 110-87
__________
Printed for the use of the Committee on Natural Resources
Available via the World Wide Web: http://www.gpoaccess.gov/congress/
index.html
or
Committee address: http://resourcescommittee.house.gov
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COMMITTEE ON NATURAL RESOURCES
NICK J. RAHALL, II, West Virginia, Chairman
DON YOUNG, Alaska, Ranking Republican Member
Dale E. Kildee, Michigan Jim Saxton, New Jersey
Eni F.H. Faleomavaega, American Elton Gallegly, California
Samoa John J. Duncan, Jr., Tennessee
Neil Abercrombie, Hawaii Wayne T. Gilchrest, Maryland
Solomon P. Ortiz, Texas Chris Cannon, Utah
Frank Pallone, Jr., New Jersey Thomas G. Tancredo, Colorado
Donna M. Christensen, Virgin Jeff Flake, Arizona
Islands Stevan Pearce, New Mexico
Grace F. Napolitano, California Henry E. Brown, Jr., South
Rush D. Holt, New Jersey Carolina
Raul M. Grijalva, Arizona Luis G. Fortuno, Puerto Rico
Madeleine Z. Bordallo, Guam Cathy McMorris Rodgers, Washington
Jim Costa, California Louie Gohmert, Texas
Dan Boren, Oklahoma Tom Cole, Oklahoma
John P. Sarbanes, Maryland Rob Bishop, Utah
George Miller, California Bill Shuster, Pennsylvania
Edward J. Markey, Massachusetts Bill Sali, Idaho
Peter A. DeFazio, Oregon Doug Lamborn, Colorado
Maurice D. Hinchey, New York Mary Fallin, Oklahoma
Patrick J. Kennedy, Rhode Island Adrian Smith, Nebraska
Ron Kind, Wisconsin Robert J. Wittman, Virginia
Lois Capps, California Steve Scalise, Louisiana
Jay Inslee, Washington
Mark Udall, Colorado
Joe Baca, California
Hilda L. Solis, California
Stephanie Herseth Sandlin, South
Dakota
Heath Shuler, North Carolina
James H. Zoia, Chief of Staff
Rick Healy, Chief Counsel
Christopher N. Fluhr, Republican Staff Director
Lisa Pittman, Republican Chief Counsel
------
SUBCOMMITTEE ON INSULAR AFFAIRS
DONNA M. CHRISTENSEN, Virgin Islands, Chairwoman
LUIS G. FORTUNO, Puerto Rico, Ranking Republican Member
Eni F.H. Faleomavaega, American Elton Gallegly, California
Samoa Jeff Flake, Arizona
Raul M. Grijalva, Arizona Don Young, Alaska, ex officio
Madeleine Z. Bordallo, Guam
Nick J. Rahall, II, West Virginia,
ex officio
------
CONTENTS
----------
Page
Hearing held on Tuesday, September 23, 2008...................... 1
Statement of Members:
Bordallo, Hon. Madeleine Z., a Delegate in Congress from Guam 3
Christensen, Hon. Donna M., a Delegate in Congress from the
Virgin Islands............................................. 1
Prepared statement of.................................... 2
Statement of Witnesses:
Bice, Major General David F., (USMC Retired), Executive
Director, Joint Guam Program Office........................ 33
Prepared statement of.................................... 34
Connelley, Maria S., Director, Guam Department of Labor...... 14
Prepared statement of.................................... 16
Domenech, Douglas W., Acting Deputy Assistant Secretary for
Insular Affairs, U.S. Department of the Interior........... 37
Prepared statement of.................................... 39
Okada, Mary A.Y., President, Guam Community College.......... 25
Prepared statement of.................................... 27
Underwood, Hon. Robert A., Ed.D., Former Member of Congress,
and President, University of Guam.......................... 9
Prepared statement of.................................... 11
Additional materials supplied:
Martinez, James, President, and Hon. John M. Robertson, P.E.,
Chair, Committee on Government and Labor Relations, Guam
Contractors Association, Statement submitted for the record 5
OVERSIGHT HEARING ON ``IDENTIFYING LABOR SOLUTIONS FOR THE GUAM
MILITARY BUILDUP''
----------
Tuesday, September 23, 2008
U.S. House of Representatives
Subcommittee on Insular Affairs
Committee on Natural Resources
Washington, D.C.
----------
The Subcommittee met, pursuant to call, at 2:08 p.m., in
Room 1324, Longworth House Office Building, Hon. Donna
Christensen [Chairwoman of the Subcommittee] Presiding.
Present: Representatives Christensen, Gallegly and
Bordallo.
Mrs. Christensen. Good afternoon, everyone. The oversight
hearing by the Subcommittee on Insular Affairs will come to
order.
The Subcommittee is meeting today to hear testimony on
identifying labor solutions for the Guam military buildup.
Under Committee Rule 4(g), the Chairman and the Ranking
Minority Member can make opening statements. However, if there
are no objections, I will also allow the gentlelady from Guam,
Congresswoman Bordallo, to give an opening statement as well.
And I recognize myself for five minutes.
STATEMENT OF THE HON. DONNA M. CHRISTENSEN, A DELEGATE IN
CONGRESS FROM THE VIRGIN ISLANDS
Mrs. Christensen. It is good to see everyone here this
afternoon.
A little more than a year ago, the Subcommittee responded
to a request from our colleague and Delegate from Guam, Ms.
Bordallo, and traveled to the island to conduct an oversight
hearing on the planned military buildup scheduled to occur
within the next decade.
In Congress, one does not know Guam without also knowing
Congresswoman Bordallo. And anyone familiar with the Guam
buildup is aware that Congresswoman Bordallo is fighting for
Guam's interest on all fronts--the island's people, economic
opportunity, preservation of its environment and its culture.
It is because of her concern for Guam's future that the
Subcommittee has taken great interest in this issue, and I
applaud my colleague for her diligence and fortitude.
As many here are aware, the agreements struck between the
United States and the Government of Japan in 2005 would
ultimately result in the relocation of approximately 8,000 U.S.
Marines from Okinawa to Guam. In addition to that number, the
Department of Defense estimates 9,000 more, comprising Marine
families and others to support their new relocation, will be
needed.
The relocation will cost anywhere between $10 billion and
$15 billion. A little more than half of such costs will be
shouldered by the Japanese Government, with the remainder by
the United States. During the August 2007 oversight hearing,
the Joint Guam Program Office's Executive Director, retired
General David Bice, testified that, of the projected 15,000
additional jobs which will be created to execute construction
on Guam, approximately 75 percent, or a little more than
11,000, would need to come from off island. The remaining 4,000
jobs could be filled locally by Guam residents.
Today's hearing focuses on just one piece of the Guam
buildup--labor solutions. We are aware that the Interagency
Group on Insular Areas, led by the Department of the Interior,
has met and established working groups to collaborate with Guam
and that DOD is also active in these meetings.
Even with such partnerships, however, I believe it is still
necessary that the Federal Government bear the greater burden
in helping Guam prepare. We have a responsibility to give the
island community assurances that their interests are also ours.
In terms of the matter before us, I believe it is important
for Guam's residents to know that they will be the first to
fill jobs and that the Federal Government is assisting their
institutions to prepare its residents. Our government should be
instilling confidence that Federal and local laws will be
enforced to ensure that the
H-2 workforce will be there to do the job and not be left
behind--and that nothing we do to meet our country's mission in
Asia and the Pacific comes to the detriment of the island's
community.
This buildup has been characterized as one of the largest
realignment missions in our country's history, and it should
therefore command the attention of all Federal agencies working
together at all levels. I am skeptical that without the full
pledge and collaboration of all Federal agencies, tangible
success for the island will not be realized. I hope that this
hearing offers us optimism that everything which can be done
for Guam and the region is being carried out.
I am pleased that our first panel comprises leaders who are
central to the solutions needed for Guam over the next decade.
We are pleased to welcome back our former colleague,
Congressman Bob Underwood, who is now the President of the
University of Guam; from the Guam Community College, its
President, Mary Okada; and from the Guam Department of Labor,
Director Maria Connelley.
For our second panel we also welcome the Executive Director
of the Joint Guam Program Office, retired General David Bice;
and the Acting Assistant Secretary for Insular Affairs, Mr.
Doug Domenech.
[The prepared statement of Ms. Christensen follows:]
Statement of The Honorable Donna M. Christensen, Chairwoman,
Subcommittee on Insular Affairs
A little more than a year ago, the Subcommittee responded to a
request from our colleague and Delegate from Guam, Ms. Bordallo, and
traveled to the island to conduct an oversight hearing on the planned
military buildup scheduled to occur within the next decade.
In Congress, one does not know Guam without also knowing
Congresswoman Bordallo. And anyone familiar with the Guam buildup, is
aware that Congresswoman Bordallo is fighting for Guam's interests on
all fronts--the island's people, economic opportunity, preservation of
its environment and its culture. It is because of her concern for
Guam's future that the Subcommittee has taken great interest in this
issue and I applaud her for diligence and fortitude.
As many here are aware, an agreement struck between the United
States and the Government of Japan in 2005 would ultimately result in
the relocation of approximately 8,000 U.S. Marines from Okinawa to
Guam. In addition to that number, the Department of Defense estimates
9,000 more comprising Marine families and others to support the new
relocation will be needed.
The relocation will cost anywhere between $10-$15 billion dollars.
A little more than half of such costs will be shouldered by the
Japanese government with the remainder by the United States. During the
August 2007 oversight hearing, the Joint Guam Program Office's
Executive Director, retired General David Bice, testified that of the
projected 15,000 additional jobs which will be created to execute
construction on Guam--approximately 75%, or a little more than 11,000,
would need to come from off-island. The remaining 4,000 jobs could be
filled locally by Guam residents.
Today's hearing focuses on just one piece of the Guam buildup--
labor solutions. We are aware that the Interagency Group on Insular
Areas, led by the Department of the Interior, has met and established
working groups to collaborate with Guam and that DOD is also active in
these meetings.
Even with such partnerships however, I believe it is still
necessary that the Federal government bare the greater burden in
helping Guam prepare. We have a responsibility to give the island
community assurances that their interests are also ours.
In terms of the matter before us, I believe that it is important
for Guam's residents to know that they will be the first to fill jobs
and that the Federal government is assisting their institutions to
prepare its residents. Our government should be instilling confidence
that federal and local laws will be enforced to ensure that the H-2
workforce will be there to do a job and not be left behind. And that
nothing we do to meet our country's mission in Asia and the Pacific
comes to the detriment of the island's community.
This buildup has been characterized as one of the largest
realignment missions in our country's history and it should therefore
command the attention of all federal agencies, working together at all
levels. I am skeptical that without the full pledge and collaboration
of all federal agencies, tangible success for the island will not be
realized. I hope that this hearing offers us optimism that everything
which can be done for Guam and the region is being carried out.
I am pleased that our first panel comprises leaders who are central
to the solutions needed for Guam over the next decade. We welcome back
our former colleague, Congressman Robert Underwood, who is now the
President of the University of Guam; from the Guam Community College,
its President Mary Okada; and from the Guam Department of Labor, its
director Ms. Maria Connelley. For our second panel, we also welcome the
executive director of the Joint Guam Program Office; retired General
David Bice and the Acting Assistant Secretary for Insular Affairs, Mr.
Doug Domenech.
______
Mrs. Christensen. At this time, I would like to recognize
Ms. Bordallo for any opening statement she might have.
STATEMENT OF THE HON. MADELEINE Z. BORDALLO, A DELEGATE IN
CONGRESS FROM THE TERRITORY OF GUAM
Ms. Bordallo. Thank you very much, Madam Chairman; and I
want to thank you for your kind words.
I wish the audience to know that the Chairman of the
Insular Affairs Subcommittee has always been very supportive of
Guam and all of its issues, as well as other representatives of
the U.S. Territories. We are a tight-knit group; and on this
issue, the military buildup, we continue to hold hands and
support each other. I truly appreciate your calling this
hearing to order today, Madam Chairwoman; and I appreciate your
leadership on this matter and standing as a partner with Guam
as we try to ensure that the military buildup is a success for
everyone on our island and in the Marianas and Greater
Micronesian Region. We also want this initiative to be a
success for our partner, the Department of Defense, and for our
national security interests.
Today's hearing addresses one of the major and challenging
issues facing our community as we continue to prepare for the
ongoing military buildup on Guam. I appreciate all of the input
from the witnesses present today, as well as the written
reports that we will be receiving from Governor Felix Camacho,
Speaker Judy Won Pat, members of the Guam legislature and our
mayor's council and other stakeholders in the community.
Our witnesses and others from Guam have put a lot of work
into their plans; and I strongly encourage all of the Federal
agencies, including the Joint Guam Program Office, the Office
of Insular Affairs and the United States Department of Labor,
to be specific and to provide all of the necessary assistance
in order to ensure that military buildup benefits both the
civilian and the military community. And I will repeat that,
that it benefits both the civilian and the military community.
Our primary goal is to provide full employment for the
people of Guam and for those who seek jobs from our region. We
need to continue to build robust training centers and programs
to meet the training needs of those in Guam and in our region
who desire to be gainfully employed to make the buildup a
success and to be a part of this process. If we would gainfully
employ thousands of our Guam residents and our friends in the
CNMI and from Micronesia and Palau, this would be good for Guam
and our region as a whole.
And at this time, I would like to note the presence of
Ambassador George of FSM who is in our audience. Thank you very
much.
Providing jobs and opportunities for workers on Guam and
our region will provide a greater quality of life for everyone.
Here with us this afternoon are two panels of outstanding
witnesses. In our first panel, we have a former Member of the
U.S. Congress, Dr. Robert Underwood; and he is the current
President of the University of Guam. Ms. Maria Connelley,
Director of the Guam Department of Labor; and Ms. Mary Okada,
the President of the Guam Community College. I want to thank
you for traveling all the way to Washington--and I know that
trip--during this final week of legislative session and for
your testimony this afternoon. Your input and leadership on
these matters is greatly appreciated.
Additionally, I look forward to testimony from a friend of
mine, Major General Bice, Executive Director of JGPO, and the
Honorable Doug Domenech, Acting Deputy Assistant Secretary for
Insular Affairs for the Department of the Interior.
I appreciate their leadership on the national level as we
implement strategies for the buildup, and I look forward to the
answers to today's questions about where we stand toward
shaping the workforce and training our people for these jobs.
And I yield back my time.
Mrs. Christensen. Thank you, Congresswoman Bordallo.
Mrs. Christensen. If there are no objections, I would like
to now submit for the record the written testimony of Mr. John
Robertson, Chair of the Committee on Government Relations for
the Guam Contractors Association.
Hearing no objection, so ordered.
[A letter submitted for the record by the Guam Contractors
Association follows:]
GUAM CONTRACTORS ASSOCIATION
718 North Marine Corps Drive Suite 203 Tamuning, Guam 96913-4425
Telephone: (671) 647-4840 Facsimile: (671) 647-4866
Email: [email protected]
Website: www.guamcontractors.org
September 18, 2008
Honorable Donna M Christensen
Chairwoman, Subcommittee on Insular Affairs
Committee on Natural Resources
U.S. House of Representatives
Washington, DC 20515
Regarding:Identifying Labor Solutions for the Guam Military Build-up
Dear Congresswoman Christensen:
Thank you for inviting the Guam Contractors Association to provide
testimony at your Oversight Hearing on 23rd September 2008 in relation
to ``Identifying labor solutions for the Guam military buildup''. Our
written testimony follows. We apologize for not being able to attend
the hearing to provide verbal testimony and that is because of the
great distance from Guam to Washington, DC.
We did provide verbal testimony at the Oversight Field Hearing on
Guam on 13 August 2007 and our current testimony is similar to what was
provided then.
Workforce Availability. An adequate workforce is not available on
Guam to deal with the massive construction program that is expected to
commence at about third quarter of FY-2010. The Joint Guam Program
Office has projected a need for about 15,000 skilled tradesmen at peak.
Depending on the rate at which contracts are put on the market by
NAVFAC, the demand could go much higher up to say 22,000. In addition
to skilled tradesmen there will be need for professionals including
managers, engineers, supervisors, administrators and accountants. Also,
semiskilled and unskilled laborers will be required. In general, we
believe the numbers of persons required will be sourced from the
following locations:
From Guam. Local citizens and residents should be given priority
treatment in relation to employment. Otherwise, there could be
resentment in the community toward the military buildup with the
possibility of a backlash. To maximize job opportunities for Guam
residents, skilled trades training must be intensified. See further
discussion below. For most semi-skilled and un-skilled positions, there
is generally, sufficient numbers of workers on Guam, with some of these
individuals originating from Micronesia.
From Micronesia. Individuals from the Commonwealth of Northern
Mariana Islands (Saipan, Tinian, Rota), Republic of Palau, Federated
States of Micronesia (Yap, Chuuk, Pohnpei, Kosrae), and the Republic of
the Marshall Islands have special status and can travel freely to Guam
and the U.S. They can and will migrate to Guam for job opportunities
created by the military buildup. Some of these have or will acquire
skills necessary for positions in the skilled work force. Many,
however, lack a working knowledge of the English language and because
of circumstances lack basic employability skills. There are important
cultural differences between the various islanders in spite of the
relatively short distances between them. Many Micronesians currently
live in Guam and have already joined the workforce after training.
Micronesians merit special attention and not only because of their
special status in relationship with the United States. Those that
become employed will be an asset for the community for years to come.
Those that move to Guam that are unable to find jobs could become a
strain on the Guam economy and local society.
From CONUS. Mainland based contractors that take contracts on Guam
will normally supply key management, engineering and administrative
personnel from their home base. Guam based contractors will likely
recruit key personnel from the mainland through affiliated companies or
by other means. Some tradesmen from Guam that migrated to CONUS during
the period of a prolonged weak economy in search of better paying jobs
can be expected to return to reunite with their families. Skilled
tradesmen from CONUS are not expected to take temporary jobs in large
numbers and for the following reasons: From past experience, it is
known that top quality skilled tradesmen will not travel that far from
home and family even for higher wages. There are no tax incentives such
as for overseas employment and Guam wages are not attractive. Those
CONUS based tradesmen that take jobs on Guam normally do not adapt well
and tend to return home within a few months time. The construction
market in CONUS is expected to rebound within the next year or two and
there is even now a shortage of skilled construction workers. Skilled
tradesmen that might choose to take jobs in Guam would have to be
replaced by H-2B workers in CONUS.
From Japan. Because of the financial contribution by the Japanese
government to the cost of relocating elements of the Marine Corps from
Okinawa to Guam, many contracts will no doubt be won by Japanese
contractors. Like American firms, the Japanese contractors can be
expected to supply key management, engineering and administrative
personnel from their home base. When working abroad, Japanese firms
tend to utilize skilled workers from other Asian countries such as the
Philippines, Thailand and India.
From Asia. Construction contractors on Guam, whether local or CONUS
based, traditionally use skilled tradesmen from Asia to fill jobs that
cannot be filled by local Guam personnel. This has been so since the
end of World War II. The Philippines has usually been the first choice
because of proximity, language and their ability to meld into the Guam
life style and community. The contractors should be allowed to select
the source of their skilled workforce.
Development of a Skilled Workforce on Guam. As many persons as
possible from Guam and neighboring islands must be brought into the
workforce for the military buildup. As of this date, not enough is
being done locally by either the government or the private sector to
develop a skilled workforce on Guam. This is due to a lack of funding.
Taking into account that training for skilled trades requires on
average four years, the need for greater action is now. There follows,
discussion of institutions most involved in training activities on
Guam.
The University of Guam has programs in place to prepare individuals
for careers in business administration, accounting and other fields
adaptable to the engineering-construction industry as well other
industries that will expand as result of the military buildup. The UOG
has initiated a 2-year pre-engineering program in conjunction with the
University of Iowa that can prove most helpful in preparing individuals
for careers in engineering.
Guam Community College has primary responsibility in the territory
of Guam for secondary and postsecondary career and technical education
programs. These programs are pertinent to the engineering-construction
industry as well as industry and commerce in general. GCC has technical
education programs for governmental agencies, the hotel and restaurant
industry, auto mechanics as well as some construction skilled trades.
The Guam Contractors Association has maintained a strong relationship
with the GCC for many years for the provision of trades training. There
was a sharp drop in the number of trainees in the late 1990's and early
2000's as result of the economic situation and a shift in focus by
GCC's leadership at the time. With the change in key leadership last
year (i.e., new President and two Vice Presidents), the relationship is
now recharged and an MOU is soon to be signed between the GCC, the GCA
and the GCA Trades Academy laying the groundwork for a joint effort in
training of a local workforce in skilled trades for construction and
related fields.
The GCA Trades Academy was established as a separate non-profit
institution of learning by the Guam Contractors Association in 2006 and
has in place all necessary licenses and certifications for its purpose.
First classes started in October of the same year and it has been in
continuous operation since then. It now has about 100 participants. The
GCA initiative is designed specifically for developing a skilled
construction workforce on Guam in line with what many local chapters of
the Associated Builders and Contractors on the mainland are doing.
Contractors Associations have learned that training from within the
industry produces better results for skilled trades than state
sponsored junior colleges. A few key matters of interest:
The Guam Contractors Association has had training and
apprenticeship as a primary focus for more than 30 years and it is
accredited by the U.S. Department of Labor. Training had previously
been conducted exclusively at GCC. In the late 1990's and early 2000's
there was a reduction in training activity as result of the economic
situation on Guam and a change in focus at GCC. The relationship is now
back on track as mentioned above.
Training at the GCA Trades Academy is based on curricula of the
Contren Learning Series as developed by NCCER--National Center for
Education and Research. It is recognized by the U.S. Department of
Labor and other agencies as being the best program available for
construction trades. It is used extensively in CONUS by open-shop and
some union trades training centers. Credits are transferrable from one
training center to another. Those completing the course are placed on a
national register for job placement anywhere in the United States.
The GCA Trades Academy is following the example of contractor
associations across America by setting up certified training programs
that are taught by construction professionals within a construction
environment. Such training centers in CONUS are generally funded by
school districts or by federal and local governments.
Participants in the GCA Trades Academy training program are
generally hired by a local contractor after completion of training in
the basics including safety in the work place. In fact, the academy is
able to guarantee jobs to all those with interest in construction as a
career and are willing to apply themselves to learning.
The Board of Trustees is intent on working in close cooperation
with the University of Guam, Guam Community College and the Guam Public
School System in carrying out common objectives toward developing a
genuine Guam workforce.
The GCA Trades Academy has begun reaching out to Micronesians
living on Guam and on the outer islands. For example, the Trades
Academy is assisting other public and private sector groups in Saipan,
Rota, Pohnpei and other islands in establishing a trades academy
patterned after the one on Guam.
The GCA Trades Academy has reached out to the Department of Youth
Affairs, the Department of Corrections and Drug Court to offer training
to those ready for rehabilitation.
The GCA Trades Academy could increase its student population from
200 to 500 almost overnight if necessary funding was in place. Rapid
growth is dependent on adequate financial support. Because training for
most trades requires four years, the time to take this training
seriously is now.
Center for Micronesian Empowerment. On Guam, the Trades Academy is
cooperating with the Center for Micronesian Empowerment (CME) to draw
Micronesians into the workforce. The CME is assisting these individuals
in becoming established on Guam and becoming acclimated to the local
culture. It is providing training in English as a second language and
is teaching employability skills. The CME is a private sector non-
profit Guam based organization supported by the Guam Chamber of
Commerce and a number of local businesses. It is focused not only on
construction trades but also employment opportunities in the
hospitality industry.
Funding for Workforce Development. A funding stream for the GCA
Trades Academy and its students in the program is not yet mature,
although it has proven to be economically viable. As indicated earlier,
it could reach out to more trainees with a more robust funding stream.
Startup costs for the GCA Trades Academy have been by contributions
from GCA member firms and some local businesses. Likewise, most tuition
and related expense has been paid by the individual student or his or
her employer.
The Guam Department of Labor has sponsored some students using
Workforce Investment Act funds but only for those that are first time
job seekers or those that have become displaced. This funding source
amounting to $180,000 is ongoing but may not be fully utilized because
of lack of participants.
Citibank has provided a $30,000 grant for six scholarships over the
current year. The Guam Chamber of Commerce has also set up a
scholarship fund with the Trades Academy.
Grant funding has been provided to the GCA Trades Academy through
the Guam Community College for some training equipment and simulators.
Guam has for a number of years had a Manpower Development Fund
(MDF) that has as its source of revenue, 70% of registration fees paid
primarily by construction contractors, to the Guam Department of Labor
for the processing of nonimmigrant alien temporary worker visa
requests. The remaining 30% is retained by the Guam DOL for
administration of the program. The MDF money is passed through the
Department of Administration, as approved by the Guam Legislature, to
the Guam Community College. The use of these funds is strictly limited
to apprenticeship training and does not include pre-apprentice training
or other forms of craft training. As of this date, none of the MDF
dollars has been made available to the GCA Trades Academy for
construction trades training. That is expected to change with the new
closer working relationship between the GCC and the GCA Trades Academy.
The GCC has agreed to provide financial support for some apprentices
using the MDF.
It is important to note that Apprenticeship Training programs were
very popular during earlier times with both employers and trainees. The
current generation of young adults are not as willing as their
predecessors to make an early commitment to a career choice. Employers
are not as eager to indenture apprentices absent the long term
commitment. For that reason, the U.S. Department of Labor is
considering a change in its policies. Meanwhile, The NCCER offers a
certificate for those completing its training courses that can be used
for attaining journey person status. This change in approach is working
in CONUS and Guam from the standpoint of workforce development but has
limits with regard to public funding.
The GCA Trades Academy is in need of further financial support to
accomplish its mission within the short timeframe of the military
buildup. Note again that WIA funds and Manpower Development Funds are
restricted. Funds with fewer restrictions could be used for pre-
apprenticeship training and other craft training that is needed.
Assistance from the federal government might best be accomplished by
supporting grant opportunities through the Guam Community College for
use by the GCA Trades Academy.
Related Concerns. There are other important concerns related to the
need for an expanded workforce on Guam.
Visa Quota. This was a concern last year but is now resolved with
the removal of Guam and CNMI from the U.S. quota on H1 and H2 visas. It
will be in effect for 5 years starting in June 2009.
Security. There is concern that nonimmigrant temporary workers from
Asia must not be a security risk before entering Guam. That has been
addressed with the military and a solution has been found.
Unions. Guam is a right to work territory. The GCA is opposed to
the entry of construction trade unions into Guam to represent the
workforce. Wage rates will increase over the next few years and the GCA
is working with the Guam DOL to ensure that happens but in a way to not
negatively impact the fragile local economy.
Camp Accommodation. Guam contractors prefer to provide camp
accommodation for their nonimmigrant alien temporary workers. Some
additional ``Olympic Village'' style temporary worker camps may be
necessary for the large number of workers expected to be on Guam for
the military buildup. Such facilities could be designed for later use
as schools, affordable housing or other. This will require cooperation
between local and federal government officials.
Specifications for Worker Camps. Construction contracts developed
by NAVFAC for MILCON projects should include strict requirements for
worker accommodation. Camps must conform to OSHA and other regulations
and should include a cafeteria, a clinic, a convenience store,
recreational and other facilities to avoid overtaxing existing similar
facilities on Guam.
Compliance Issues. There have been compliance difficulties in the
past on Guam when using non-immigrant alien labor. Guam's principal
contractors want there to be a level playing field with all
participants playing by the rules.
Senior Level Personnel. Management, engineering, administrative and
supervisory personnel brought to Guam from the U.S. and elsewhere will
have requirements beyond those of the workers. This is especially true
since they will in many cases be engaged on family accompanied status.
They will require higher level accommodation, medical facilities,
schools and other services not now available in adequate supply. Some
of these facilities could be made available by the private sector
through encouragement of some kind. Because of timing, the federal
government may need to incur some upfront cost with the idea of selling
the facilities when major military construction is done. Some local
private school officials might be persuaded to expand in the near term
to accommodate the temporary surge.
Medical. Guam Memorial Hospital is the only hospital that serves
the civilian community on Guam. It is currently not JHACO certified and
is in need of upgrades. This matter needs urgent attention in order to
not deter senior managers and engineers from living and working on
Guam.
Trusting the foregoing discussion proves helpful to you during your
deliberations concerning this important subject.
Sincerely,
Guam Contractors Association
James Martinez John M Robertson PE
President Chair, Committee on Government &
Labor Relations
Copy:
Honorable Madeleine Bordallo
Honorable Felix Camacho, Governor of Guam
Mr. David Bice, Executive Director, Joint Guam Program Office
CAPT Paul Fuligni, Commander, NAVFAC Marianas
Ms. Maria Connelley, Director, Guam Department of Labor
Dr. Robert Underwood, President University of Guam
Ms. Mary Okada, President Guam Community College
Dr. Bert Johnston, Director GCA Trades Academy
Dr. Narissa Bretania-Schaffer, Superintendent Guam Public School System
______
A few words concerning the authors:
James Martinez was born and raised on Guam. He has managed the Guam
Contractors Association since 2001, first with title of Executive
Director and now President. Under his leadership, the association has
grown from 197 to 356 corporate members. He strengthened the
relationship with the Associated Builders and Contractors to the point
that the GCA is now the Guam Chapter of that national organization. He
was instrumental in establishment of the GCA Trades Academy and became
the first NCCER master trainer on Guam. He is responsible for the GCA
Apprenticeship program.
John M Robertson PE is from Houston, Texas and came to Guam in 1999
as general manager of a multinational contracting organization. When
that firm closed their Guam operation, he remained and formed two firms
of his own. AmOrient Contracting Inc is a general contractor managing
design and construction of military projects. AmOrient Engineering
performs planning and engineering services for the military. He has
been on the GCA Board of Directors since 1999. He was president for two
years. He is the current Chairman of the Committee on Government and
Labor Relations. He was instrumental in establishing the GCA Trades
Academy and is its current Chairman, Board of Trustees. He is also on
the Board of Directors for the Guam Post, Society of American Military
Engineers.
______
Mrs. Christensen. I would now like to call up our first
panel of witnesses: Congressman Robert Underwood, President of
the University of Guam; Ms. Maria Connelley, Director of the
Guam Department of Labor; and the President of the Guam
Community College, Ms. Mary Okada.
The Chair would like to remind witnesses that your written
statement will be submitted for the hearing record, and the
timing lights on the table will indicate when your time is
concluded.
Mrs. Christensen. I now recognize Congressman Underwood to
testify for five minutes.
STATEMENT OF THE HONORABLE ROBERT A. UNDERWOOD, ED.D., FORMER
MEMBER OF CONGRESS, PRESIDENT, UNIVERSITY OF GUAM
Mr. Underwood. Hafa adai and good afternoon to you, Madam
Chairman, and our representative, Madam Bordallo; and I
appreciate the opportunity to present my testimony on behalf of
the University of Guam.
As we all know and as you have outlined, the decade of the
2010s will bring enormous changes to Guam, enormous challenges
to Guam. We are going to see anywhere from 10 to 15 billion
dollars expended, millions of square feet of office floor space
constructed. Most of the people of Guam see this as a welcome
opportunity. Many are opposed to it. And all are concerned that
we have the opportunity to fully participate in the economy
that will come with this new buildup.
There will be a different economy of Guam in the decade of
the 2010s. The challenge before us today is the need for labor.
To date, most of the attention about labor has been focused on
the need for construction trades and technical fields. In
anticipation of the perhaps 15,000 construction jobs that are
needed, we have seen many ideas: the lifting of H-2 caps,
Department of Labor programs. The Guam Community College has
been strongly involved. And everyone kind of agrees that it is
important that these needs be met locally and regionally first
before we bring in workers from foreign or even U.S. mainland
sources. Collectively these efforts and a ``local first''
policy, as outlined by you, Madam Chair, is something that we
all endorse and merit your support.
But I believe we must look at Guam's labor needs in a much
larger framework. The anticipated buildup will not only bring
thousands of new workers, but it will bring in hundreds of
professionals, people who will be working in a wide variety of
fields, from engineering, to construction management, to
accountants. There will be nurses, need for nurses, teachers,
environmental specialists, technologists at all different
levels, all requiring university level training.
As the President of the only baccalaureate and master's
degree granting program institution in Micronesia, I know there
is only one place that has an apprenticeship program for
professionals, and that place is the University of Guam. So
while we talk about apprenticeship programs for workers, I
don't think we are thinking about apprenticeship programs for
those who are working in the professional fields.
We are not sure of the number of professionals that we need
for the coming new economy. Based on discussions with fellow
educators and government planners and corporate representatives
and military officials, we have some preliminary numbers. We
know we need 60 new nurses, 200 new teachers, 50 business
managers every year for the next decade. This will respond
directly to the changed circumstances. We also know that there
will be the need for 50 environmental specialists, 20 planners,
130 technologists and 5 biologists for the Government of Guam
alone.
The numbers are preliminary and based on projected
population growth. We don't know what the U.S. corporations
that will be coming into Guam and what level of professionals
they will bring to the island. But we do know that we need
attention to this; and so, in conjunction with the need for
professionals in the new economy, I ask for four specific
things:
First, we ask Congress to help us by expanding the analysis
of future labor needs to include the needs for professionals
and degree holders. We request that a specific study by the
Government Accountability Office of professional needs for Guam
and the region will help us prepare for the future and, more
importantly, prepare our young people for the future. This
report must review the demands of the new economy of the 2010s,
taking into account public and private sectors and existing
Federal policy on the funding and hiring of professionals in
Federal contracts.
Second, we ask the Congress for balance in the allocation
of resources for training the labor force of the 2010s. We do
not know what the appropriate balance is between investing in
the training for trades and technical fields and for those who
need degrees. There are many complicated issues to address.
But, as we sit here today, there is no balance whatsoever. The
University of Guam needs resources to meet the challenges of
the new economy, and we ask that existing and new training
programs be given the flexibility to address the needs for
professionals and that all Federal efforts be required to
specifically address how professional needs in the new economy
of Guam will be met as a result of massive Federal spending.
Third, Guam is a very special place ecologically. The
anticipated changes for an island 220 square miles in size will
create enormous challenges. We want to preserve our corral
reefs, our unique plants and trees and special connection to
the land. We do not want to be at some future date the subject
of a cleanup process that we can avoid through careful planning
today. And we ask the Federal Government to work with the
university in environmental science and marine biology to
develop the solutions necessary for the protection of the
environment.
Last, we ask that the military look to the university to
meet the specialized and professional needs of their personnel.
Currently, we are not given this opportunity on military bases
because of the region-wide contracting arrangement of
educational services by the Department of Defense. We are
available for Guam military facilities and personnel, and we
can work together to fashion a curriculum which will promote
joint learning experiences that will strengthen civilian-
military relationships.
As Guam rides the roller coaster of the new economy as we
look into the decade of the 2010s, most of the construction
jobs will ramp up very quickly and just as quickly ramp down.
But the need for professionals will be stable, because you will
need the professionals to sustain the new infrastructure and to
provide needed services. If we don't provide those
opportunities for local people or people in the region, it
means that there will be another group of people, of newcomers.
We won't be able to have a sustainable economy, an economy that
builds strong civilian-military relationships, and we won't be
able to sustain a healthy social economic structure on Guam.
Our future depends upon this balance. We ask that you
consider it. We ask that you strongly consider the idea and the
notion of bringing balance to these resources that are applied
to Guam.
Thank you very much.
Mrs. Christensen. Thank you, Congressman Underwood; and
thank you for broadening the picture of the employment needs
and the training needs for this military buildup.
[The prepared statement of Mr. Underwood follows:]
Statement of Robert Underwood, President, University of Guam
Hafa Adai and Good Morning Madam Chair and Members of the Committee
I am Robert Underwood, President of the University of Guam, and I
am testifying on behalf of my home institution on ``Identifying Labor
Solutions for the Guam Military Buildup.'' I thank the Subcommittee on
Insular Affairs and the leadership of Congresswoman Christensen for
addressing this very important issue for Guam.
The next decade, the 2010s will bring enormous changes to Guam and
we know that it will be a time of tremendous opportunity and
significant challenges. Guam will witness the arrival of as many as
20,000 military personnel and dependents plus another 20,000
individuals who will be working in the new economy that Guam will have.
We know that $10-15 billion will be expended and an unknown millions of
square feet of floor space will be constructed. The anticipated scale
of the change is so enormous that even the Department of Defense,
America's largest bureaucracy, cannot manage the changes within its
existing units. Special units, special legislation, special purpose
entities and special arrangements have been established and more are
being contemplated as the build up is implemented.
The people of Guam will have many new employment opportunities, the
island's infrastructure will be taxed beyond its current capacity. The
land will be paved over and turned over. The subsurface water resources
will be explored and exploited. Even the utilization of the air space
above us is being reconfigured to accommodate dramatic increases in
military traffic. Many people welcome the opportunities that these
changes will bring. Some are afraid of the changes that will occur. All
are concerned that the challenges will not be met and the opportunities
will not be fairly distributed to the people of Guam. It is clear that
we need special effort, special plans and special arrangements to
ensure a successful transition to the new economy. These plans must
simultaneously protect the land, enhance the quality of life and
provide new opportunities for our young people. The 2010s will shape
the nature of the society and economy of Guam for the balance of this
century.
The challenge before us today is the need for labor. To date, most
of the attention about labor has been focused on the need to train for
the construction trades and related technical fields. In anticipation
of the need for 15,000 (perhaps more) construction workers, federal
caps on H-2 workers for Guam have been lifted by Congress and federal
funding will be directed towards workforce development programs and
increased resources for institutions like the Guam Community College,
the Guam Department of Labor and private efforts like the Guam
Construction Trades Academy. Everyone acknowledges that it is important
that these needs be met locally and regionally first before we bring in
workers from foreign or even U.S. mainland sources. Collectively, these
efforts and a ``local first'' policy merit your support.
But I believe that we must look at Guam's labor needs in a much
larger framework. The anticipated build up will not only require
thousands of new workers in the trades, it will require hundreds of
professionals and managers in a wide variety of fields. The pace of the
build up, the challenge to the environment, the growth of the
population require new professionals to work in the educational, health
care, social welfare and environmental regulatory infrastructure of the
island. This is in addition to the accountants, engineers, construction
managers and information technology professionals who will be needed to
manage the build up and sustain the new infrastructure for the
foreseeable future. But unlike the construction trades and technical
fields, there are few federally resourced apprenticeship programs for
professional fields and little legislation is being contemplated in
helping an insular area take advantage of these opportunities.
As the President of the only baccalaureate and master's degree
granting institution in Micronesia, I know where the majority of the
apprenticeship programs for professionals lie. They are located on the
campus that I now oversee. The University of Guam, through our 35
majors and 15 masters represents the island's major institutional
effort to train the professionals who will provide the capacity needed
both before and after the buildup.
We are not sure of the exact numbers of professionals needed for
the coming new economy. Based on extensive discussions with fellow
educators, government planners, corporate representatives and military
officials, we have some preliminary numbers. For example, we know that
we will need 60 nurses, 200 teachers and 50 business managers every
year for the next decade. This will respond directly to the changed
circumstances, the new economy and the need to replace an aging
professional workforce. The University can currently keep pace with
perhaps 50% of these needs. Within five years, we also know that we
will need 25 special education teachers, 5 vocational rehab
professionals, 50 environmental specialists, 20 planners and 130
technologists and 5 biologists for the Government of Guam alone. We
understand that the federal government will be hiring 40 environmental
specialists in the next few years.
These numbers are preliminary and are based more on projected
population increases rather than the specific demands of the new
economy. We know that the U.S. based corporations will bring in
hundreds of managerial, administrative and engineering personnel to
fulfill contract obligations. We believe that many if not most of these
positions could be filled by local talent. Unlike the case of the
construction trades and the need for imported labor, no one is
forcefully advocating a policy to ``hire local'' or provide resources
to train local residents to fill these positions. We do not propose a
specific policy in this regard. But we do ask for four things that will
help us respond to the military build in a way that builds up all of
Guam, expands opportunities and enhances our lives as islanders and
Americans:
1. First, we ask the Congress to help us by expanding the analysis
of future labor needs to include the need for professionals and degree
holders. We request that a specific study by the Government
Accountability Office of professional needs for Guam and the region
will help us prepare for the future and, more importantly, prepare our
young people for the future. This report must review the demands of the
new economy of the 2010's taking into account public and private
sectors and existing federal policy on the funding of and hiring of
professionals in federal contracts.
2. Second, we ask the Congress for ``balance'' in the allocation
of resources for training the labor force of the 2010s. We do not know
what the appropriate balance is between investing in the training for
trades and technical fields and for degree programs. There are many
complicated issues to address. Currently, there is little attention to
training opportunities for professional fields. Today, there is clearly
no balance whatsoever. The University of Guam needs resources to meet
the challenges of the new economy. We ask that existing and new
training programs be given the flexibility to address the needs for
professionals and that all federal efforts be required to specifically
address how professional needs will be met in Guam as a result of
massive federal spending. We need to get started now, as it takes four
years or more to train these critically needed professionals.
3. Third, Guam is a very special place ecologically. The
anticipated changes for an island 220 square miles in size will create
enormous environmental challenges. We want to preserve our impressive
coral reefs, unique plants and trees and special connection to the
land. We do not want at some future date to be the subject of a clean
up process that we can avoid through careful planning today. We ask
that the federal government work with the University in environmental
science and marine biology to develop the solutions necessary for the
protection of the environment.
4. Fourth, we ask that the military look to the University to meet
the specialized and professional education needs of their personnel.
Currently, we are not given this opportunity on military bases because
of the region wide contracting arrangement of educational services by
the Department of Defense. We are available for Guam military
facilities and personnel and we can work together to fashion a
curriculum that will promote joint learning experiences that will
strengthen civilian-military relationships.
As Guam rides the economic and social roller coaster of 2010s, the
pattern of labor needs is clear. The construction jobs will rise
quickly at the beginning of the next decade and almost as quickly
decline before the end of the decade. The number of jobs that will be
needed on a permanent basis in the new economy will be only a small
fraction of that needed to build up the infrastructure. While we must
ensure that the people of Guam should be given every opportunity to
take these positions, the overwhelming majority of these jobs will
leave the island.
On the other hand, the professional positions that are needed will
be of longer duration and offer more permanent opportunities for the
people of Guam. The professional positions will be the backbone for a
new and stronger economy in which the people of the island are full
participants and will have taken full advantage of the opportunities.
They will teach, they will nurse, they will manage the environment,
they will plan the economy, they will manage new businesses and they
will provide the basis for a healthy and robust economic and social
structure. But they can only do so if they are trained and educated and
if they are given the opportunity to enter expanded and new university-
level programs. If they are not given this opportunity locally, they
will leave the island and they may still become accountants and nurses
and engineers. Unfortunately, they will likely practice these
professions elsewhere as newcomers take up these opportunities in Guam.
There can be no alternative. An economy which is based on bringing
in workers from foreign sources and importing professionals from the
outside on a short-term basis can be legitimately defended, but is
inefficient and unsustainable. However, if we know in advance that we
can do something today that will ensure the fair distribution of
opportunities in the next decade while we build a strong military-
civilian relationship, then we must act. I trust that we will act in
partnership and provide these professional opportunities for the people
of Guam.
Si Yu'os ma'ase' put I atension-miyu. Thank you very much.
I am prepared to answer any questions you may have.
______
Mrs. Christensen. The Chairwoman now recognizes Ms.
Connelley to testify for five minutes.
STATEMENT OF MARIA S. CONNELLEY, DIRECTOR,
GUAM DEPARTMENT OF LABOR
Ms. Connelley. Thank you for this opportunity to appear
before you to present my testimony on identifying solutions for
the Guam military buildup.
Limitations of the labor pool and the cost to develop
specialized skills to meet the needs of the impending growth
have prompted Guam's Civilian Military Task Force Labor
Subcommittee, led by the Guam Department of Labor, to adopt
strategies for which to provide strategic guidance. Efforts by
GDL, the Guam Department of Labor--and I would like to list
them now:
Strategic planning and partnership at the national level
with the Interagency Group on Insular Areas and the Federal
regional council in San Francisco with the formal mechanism for
coordinating the activities of the numerous Federal agencies
with programs for the island.
Second, within the last year and a half, we have seen so
many on-site visits by Federal agencies, from USDOL, DOI,
USDOE, EEOC, HHS, OSD, Naval Audit, DOD, OEA, Navy--to name a
few.
And, third, USDOL and DOI office of Insular Affairs
providing technical assistance and training in developing a
clear workforce strategy to achieve goals and actionable
strategies. We have been collaborating and cross planning,
insular partnership.
During the 8th Micronesian Chief Executives Summit held in
CNMI in November of 2007, the chief executives passed a
resolution to establish the Regional Workforce Development
Council, which was tasked with developing a 5-year regional
workforce plan and holding strategic planning and
implementation sessions biannually within the Micronesian
Islands. Leveraging local, Federal, private funds in support of
administrative and travel needs for RWDC are priority areas to
ensure that the chief executives' workforce initiatives are
accomplished.
In September, 2008, last week, on behalf of the RWDC, the
Guam Department of Labor submitted a proposal for Federal grant
funding through the regional innovation grant. The purpose is
to undertake strategic action planning to maximize
opportunities and minimize challenges posed by recent regional
economic shock, including upheaval in partner economies--
tourism and garment industry declines--and planned military
expansion on Guam.
The Guam Department of Labor has taken an active role in
providing peer-to-peer training to our neighboring island
jurisdiction. At the request of the U.S. Department of Labor
ETA, Guam used its data capturing infrastructure to create an
integrated workforce system for the CNMI. We are also in the
process of providing technical assistance and training, doing
the same thing for the Republic of Palau.
Alien labor. With impending military growth, the Department
has seen a significant increase in the number of H2B
applications. Efforts continue to streamline the processing of
H2B applications and strengthen collaborative efforts with
Federal labor enforcement entities located on Guam, such as the
FBI, the U.S. Customs and Border Patrol, U.S. Citizenship and
Immigration Service.
Apprenticeship and pre-apprenticeship training. In 2004,
the first Workforce Investment Act Apprenticeship Training
Pilot Program partnership began with the Guam shipyard and the
Guam Port Authority and has since invested nearly $1.4 million
in workforce funding to participant salaries, benefits and
educational assistance.
Guam has also expanded its apprenticeship training through
partnership with the Guam Hotel and Restaurant Association, the
Guam Waters Works and the Guam Contractors Association Trades
Academy. Through Federal subsidies, the Department also
supports on-the-job training and work experience programs with
the private sector.
Guam Registered Apprenticeship Program. In 2006, the Guam
Registered Apprenticeship Program was created through local law
for the purpose of authorizing the Department of Labor to
contract with businesses on a formalized apprenticeship
training system that offers tax incentives in exchange for
hiring and training individuals in demand-driven occupations.
To date, the Guam Department of Labor has worked with employers
to train 41 apprentices and certify more than $1.2 million in
tax rebates.
Next, Youth Initiative, Learning Continuum. Partnering with
the Guam Public School System, the Department of labor
established the Passport to Careers, a year-round learning
continuum program designed to take youth through a pipeline
system, preparing them for more structured training and
providing them with employability skills to meet the needs of
employers. This program provides the opportunity for Guam's
youth to participate in the job market identified by the power
of e3 within the construction trades, allied health, education
and business technology.
1,655 GPSS students participated in the Passport to Careers
program. 164,363 completed hours in the world of work at a cost
of 973,000 of WIA funds.
Incumbent training. The Governor of Guam also recognizes
the need to develop the skills of employees currently in the
workforce who provide critical services to the local community.
Efforts are under way to revitalize the former Guam Joint
Training Board, a collaborative entity of Federal and local
government human resources personnel. This board would be
tasked with leveraging resources and assisting the Government
of Guam agencies with ascertaining their manpower and human
resources needs.
Dislocated worker. The Department has formed a partnership
with the Airman and Family Readiness Center, Andersen Air Force
Base, Guam, to apply Federal funding under the dislocated
workers program to train veterans and military spouses through
the One Stop Career Center. From 2006 to present, 98 military
spouses received service at the One Stop Career Center and over
$106,000 tuition fee paid to the Guam Community College and
University of Guam for retraining.
Accountability. Internal controls and accountability have
also remained a priority at the Department. At the direction of
Governor Camacho in 2005, the Agency for Human Resources
Development and its Federal grant funding was reorganized under
the purview of the Guam Department of Labor. Since the
realignment and transformation, the Guam Department of Labor
reduced disallowed program costs by 99 percent and was taken
off high-risk grantee status by the Guam Department of Labor.
The Guam Department of Labor also continues to receive
consistent increases in Workforce Investment Act funding, from
$3.4 million in program year 2004 to $5.2 million in program
year 2007.
Data Consortium/Workgroup. Guam and the insular areas
suffers from a lack of current, consistent and regularly
maintained data needed to make sound decisions relating to
labor market and economic development trends. Efforts to
address this critical need include the Department of Labor's
involvement in a tri-agency partnership with the Bureau of
Statistics and Plans and University of Guam and data collection
in programs such as the HIES report, the 2010 Census project
preparation, the Civilian Labor Force Survey and the 2008
Micronesian Survey.
In conclusion, Madam Chairwoman, this is an overview of the
activities of the Guam Department of Labor. We recognize that
our commitment must be demonstrated at all levels, Federal,
regional and local. We recognize that in order for current and
future workforce to reap the benefits of the military buildup,
we must look at the temporary foreign workers to fill the
immediate labor needs while developing apprenticeships,
internships and on-the-job training in demand occupations.
I thank you for the opportunity to testify before this
distinguished body today to share Guam's labor solutions and
respectfully request your support as we pursue Federal
resources to augment the specialized training required of our
workforce to meet the demands.
The Guam Department of Labor for fiscal year 2010 OMB
request outlines the $23.2 million in apprenticeship funding
and talent development that--
Mrs. Christensen. Ms. Connelley, I need you to wrap up.
Ms. Connelley. We thank you in advance.
Mrs. Christensen. Thank you. We did give you a little extra
time. But thank you for your testimony.
[The prepared statement of Ms. Connelley follows:]
Statement of Maria S. Connelley, Director, Guam Department of Labor
Good Morning Madam Chairwoman, distinguished members of the Sub-
Committee, ladies and gentlemen. Thank you for this esteemed
opportunity to appear before you to present my testimony on identifying
solutions for the Guam military buildup.
It is no secret that Guam is on the cusp of unprecedented growth.
The anticipated realignment of military personnel and their dependents
from Okinawa to Guam, coupled with the infrastructure needed to support
both the civilian and military community is viewed as the single
largest expansion the island has experienced since World War II. A
recent transportation study estimates Guam's current population of
173,000 to grow by 47,000 or approximately 27% in the next five years.
For an island that spans 30 miles long by 8 miles wide, it is not
difficult to imagine both the opportunities and challenges the military
build up poses now and for years to come. Of paramount concern is
Guam's capacity to meet the labor demands of such growth. The island's
current workforce is 60,110 and the unemployment rate as of September
2007 is 8.3%. It is estimated anywhere from 10,000 to 20,000 additional
workers are needed to fill the skilled labor force in the construction
industry alone. Utilizing the island's current workforce, Guam is only
able to fill 10-15% of this demand. Limitations of the labor pool and
the cost to develop specialized skills to meet the needs of the
impending growth have prompted the CMTF Labor Subcommittee, led by Guam
Department of Labor (GDOL), to adopt strategies, which provide
strategic guidance, and resources to strengthen and sustain the
viability of Guam's local workforce.
We recognize, however, that our goals cannot be achieved alone.
What is required is a collaborative effort and strengthened
partnerships at the federal, regional and local level. Mirroring the
national strategic direction of U.S. Department of Labor, Employment &
Training Administration (USDOL ETA), GDOL adopted the power of E3
(Education, Employment and Economic Development) into its workforce
development mission. In an effort to address the needs of the military
and the civilian population in this expansion, Guam Governor Felix
Camacho issued Executive Order No. 2006-10 establishing the Civilian
Military Task Force (CMTF). The CMTF is comprised of representatives
from the local government, military, and private sector all of whom are
part of developing an integrated comprehensive master plan. Eleven (11)
Sub-Committees have been established under the CMTF and they are Health
and Social Services, Public Safety, Education, Economic Development,
Labor, Environment, Ports & Customs, Infrastructure, Natural Resources,
Housing, and Social/Cultural.
Efforts by GDOL and the CMTF have resulted in the following:
Established partnership at the national level with the
Interagency Group on Insular Affairs (IGIA)
Quarterly meetings with the Federal Regional Council
(FRC) to include USDOL Employment and Training Administration
On-Site visits by regional representatives from U.S.
Office of Federal Contracts Compliance Programs, Equal Employment
Opportunity Commission (EEOC), U.S. Citizenship and Immigration
Service, State Department, Bureau of Apprenticeship Training and U.S.
Department of Education
Improved working relationship with USDOL ETA Region Six
In 2004, Guam received approval from Region VI of the U.S. DOLETA
to implement its five-year strategic plan to establish apprenticeships
and life-long learning models and the shifting of existing workforce
training dollars from soft skills to training in demand-driven
industries.
Collaboration and Cross Planning:
Insular Partnerships:
Opportunities for collaboration and joint planning have increased
due to the dynamic growth agenda. The discussions and various meetings
have prompted collaboration and cross-planning teams to begin drafting
strategies and work plans to address the growth agenda. The cross
planning provides a much needed opportunity to maximize resources
across partners and programs both public and private that are essential
for carrying out the vision. The challenge for the people of Guam, as
well as the residents of the neighboring islands in the Commonwealth of
the Northern Marianas, the Federated States of Micronesia and the
Republic of Palau is how best to translate these unprecedented
opportunities into concrete benefits for our respective communities,
not just during the construction period, but on a sustainable basis
after the military buildup.
Recognizing this growth as mutually beneficial to the region,
Governor Camacho in 2004 called on the Chief Executives in Western
Micronesia to come together to formulate unified policies and
strategies that address current infrastructure capacities, needs and
safeguards. The Western Micronesia Chiefs Executive Summit has since
expanded to include the Federated States of Micronesia (FSM), Republic
of the Marshall Islands (RMI) and others and continues to meet on a bi-
annual basis.
During the 8th, Micronesian Chief Executives Summit held in CNMI in
November 2007, the Chief Executives passed a resolution to establish
the Regional Workforce Development Council (RWDC), which was tasked
with developing a five-year regional workforce plan and holding
strategic planning and implementation sessions biannually within the
Micronesian Islands. Leveraging local/federal/private funds in support
of administrative and travel needs for RWDC are priority areas to
ensure that the Chief Executives' workforce initiatives are
accomplished.
The RWDC involves representatives from Education, Employment and
Economic Development to carry out the vision of the Micronesian Chief
Executives for Workforce Development in the Region. The first RWDC
meeting held on January 28 & 29th was designed to facilitate
communications among all members and stakeholders within the region
that lead to an ongoing effort for improved regional workforce
development planning and implementation.
In June 2008, on behalf of the RWDC, GDOL submitted a proposal for
federal grant funding through the Regional Innovation Grant for such
purposes. The purpose is to undertake strategic action planning to
maximize opportunities and minimize challenges posed by recent regional
economic shocks, including upheaval in partner economies (tourism and
garment industry declines) and planned military expansion on Guam.
USDOL ETA's vision to strengthen our regional communities through a
WIRED framework launched the ``Peer-to-Peer Technical Assistance
Training'' for the Pacific Jurisdiction with Region VI. Region VI
embarked on the opportunity to promote efficiency by identifying staff
within the region to provide training and technical assistance in areas
demonstrated as a best practice. The probability of success is greater
when utilizing best practices among regional communities given that the
uniqueness, culture, and challenges in workforce issues that are common
throughout the jurisdiction. An example of a successful outcome of this
peer-to-peer training was the 2006 deployment of a mirrored version of
the Guam Workforce System with the Commonwealth of the Northern Mariana
Islands (CNMI) now known as CNMI Workforce System. In May of 2007,
USDOL ETA Region VI accepted CNMI's first ever WIASRD report, a
reflection of CNMI's commitment to accountability.
In FY2006, Palau received a budget cut in WIA dollars resulting in
the delay of deploying the system for their island. With the success of
CNMI's report, the desire to move the same system to Palau was placed
as a priority for both U.S. Department of Labor Region VI and Guam. In
line with our State Plan, Guam in conjunction with Region VI,
identified funds in their statewide monies and funded this much needed
project.
Local partnerships
Education, economic development and employment partnerships remain
the catalyst for all our programs and initiatives. By shifting the
emphasis of workforce training from soft skills to vocational
opportunities in demand-driven industries, GDOL has been able to
establish programs based on the true demands of the labor market.
Guam's priorities, as outlined in the USDOL ETA approved strategic
plan include:
Enhancing Guam's One-Stop Career Center program delivery
for employers, employees and career strategies
Establish a fully integrated workforce investment system
Adopting and integrating the proposed workforce learning
continuum as the framework for the Power of E3
Collaboration with businesses and other non-governmental
entities
Life Long Learning
Using these priorities, GDOL has since developed and continue to
administer the following programs:
Alien Labor
Alien Labor Processing and Certification Division (ALPCD)
The ALPCD continues to streamline its efforts in the processing of
H2B applications on Guam. With impending military growth, ALPCD has
seen a significant increase in the number of the H2B applications.
Strengthening collaborative efforts between the U.S. Citizenship and
Immigration Service (USCIS), provides opportunity for GDOL to
streamline processes and improve enforcement efforts in complying with
local and federal mandates. The following page represents the total
number of number of H2B on Guam to include occupations and
miscellaneous statistics:
[GRAPHIC] [TIFF OMITTED] 44613.001
.epsWorkforce Development and Training
Apprenticeships and Pre-apprenticeships
Well before the announcement of military realignment plans for
Guam, the island recognized the need to diversify industries, promote
economic development and increase the skilled workforce. In 2004, the
first Workforce Investment Act apprenticeship training pilot program
partnership began with the Guam Shipyard and Guam Power Authority. In
line with the vision of USDOL ETA for supporting demand driven
occupations, apprenticeship training continues to be a key workforce
training model in Guam's state plan and plans of work. Since inception,
nearly $1.4 million in WIA funding has been invested in participant
salaries, benefits and educational assistance.
Guam has also expanded its apprenticeship training through
partnerships with the Guam Hotel and Restaurant Association, the Guam
Contractors Association and the Guam Trades Academy. Through federal
subsidies, GDOL also supports on-the job training and work experience
programs with the private sector.
On July 12, 2007, the U.S. DOLETA issued Training and Employment
Guidance Letter (TEGL) 2-07 listing 13 states including Guam that
continue to leverage Workforce Investment Act funds to support
Apprenticeship Training.
Guam Registered Apprenticeship Program
Public Law 28-142 was signed into law on July 18, 2006 by Governor
Felix Camacho. This law outlines an act to add a new Chapter 44 to
Division 3 of Title 22 Guam Code Annotated to create a Guam Registered
Apprentice Program (GRAP) and to authorize the GDOL to contract with
businesses pursuant to U.S. Department of Labor, Bureau of
Apprenticeship and Training Program Standards, and to provide employer
incentives for the development of a skilled workforce.
The intended purpose and objectives of the law and these Rules and
Regulations is to establish the best possible method for developing
employee skills through a formalized apprenticeship training system
that is proven cost effective, goal oriented, and designed to meet the
specific skill needs of the employer. The local mandate is in place to
encourage businesses to receive tax incentives in exchange for hiring
and training individuals in demand-driven occupations. The law also
appoints the GDOL as the agency charged with formulating and
administering program regulations. To date the following statistics are
provided:
[GRAPHIC] [TIFF OMITTED] 44613.002
.eps Youth Initiative--Learning Continuum
Passport-to-Careers: Passports-to-Careers is the youth umbrella
program led by the Guam Public School System (GPSS), Curriculum &
Instruction staff taking the lead, OSCC partners are diligently
coordinating and developing the ``Passport-to-Careers'' program to
bring approximately 500 high school students into the work place for
career exploration activities. On 7 July 2005, vocational education
students reported to private/public sector employers based on industry
clusters. Participants were afforded the opportunity to career
explorations similar or related to their vocational education classroom
environment. After summer employment, students return to the
classrooms, and encouraged to continue their vocational education
career path. Through the youth Passport to Careers program, the
pipeline for youth to enter into more structured training with
certification is available. Youth who enter the Passport to Careers are
afforded an opportunity to be exposed to the workplace in demand driven
occupations such as construction, Information Technology, Allied
Health, Education and others.
The year round learning continuum takes a youth through a pipeline
system, preparing them for more structured training and providing them
with employability skills to meet the needs of employers. The goal of
PTC is to prepare high school students in the Career Path with skills
and competencies to enter the workforce. This program provides the
opportunity for Guam's youth to participate in the job market
identified by the power of e3 within the: Construction Trades, Allied
Health, and Business Technology industries.
[GRAPHIC] [TIFF OMITTED] 44613.003
.eps One Stop Career Center
Guam's One-Stop Career Center (OSCC) continues to provide job
seekers; students and employers access a convenient, reliable, up-to-
date broad range of coordinated employment, training and educational
services, program information, services and resources through a full
service One-Stop Career Center System and a network of satellite sites
to improve employment outcomes.
[GRAPHIC] [TIFF OMITTED] 44613.004
.epsIn April 2005, the Guam Department of Labor launched their
website providing resources to our customers via the internet. In July
2005, the GDOL launched their on-line job bank resulting to an increase
of on-line customers. As of June 2008, the GDOL has received a total of
11,781 on-line job applications.
[GRAPHIC] [TIFF OMITTED] 44613.005
.eps Incumbent Training--Talent Development
The government of Guam also recognizes the need to develop the
skills of employees currently in the workforce who provide critical
services to the local community. Efforts are underway to revitalize the
former Guam Joint Training Board, a collaborative entity of federal and
local government human resource personnel. This Board would be tasked
with leverage resources and assist the government of Guam agencies with
ascertaining their manpower and human resource needs for the military
build-up.
As a result of this meeting, the focus expanded to include various
critical needs of government of Guam agencies. After conducting a
manpower/human resource needs assessment, the group was divided into
subcommittees comprised of:
Talent Development Subcommittee
Standards for Employment Subcommittee
Apprenticeship Subcommittee
Dislocated Worker Training:
A review of current WIA law and regulations indicates that there is
limited local policy guidance on serving returning military service
members (non-retirees) or military spouses as dislocated workers; and
this population may be served with the WIA Adult Formula Grant funds in
accordance with the requirements of that program. Unlike the WIA Adult
Program, however, the WIA Dislocated Worker Formula Grant Program has
basic eligibility criteria that must be met for a participant to be
considered a dislocated worker. The Jobs for Veterans Act (PL 107-288)
provides an emphasis on serving by establishing a priority of service
for veterans and certain spouses in all employment and training
programs, administered by the U.S. Department of Labor.
The WIA Dislocated Worker Formula Grant Program is one of the
affected programs, and guidance was issued in September 2003 Training
and Employment Guidance Letter (TEGL) No. 5-03 explaining how the
veterans' priority of service was to be implemented in all employment
and training programs, in which it was noted, that the veterans'
priority must be applied consistent with programmatic eligibility
standards and other priorities mandated by statute, and thus, in order
to be served in the dislocated worker program, a participant must meet
the statutory eligibility criteria to qualify as a dislocated worker
and then, if the participant is a veteran or a spouse of certain
veterans, must be given priority over dislocated workers who are non-
veterans.
In line with the Dislocated Worker Program intent, GDOL formed a
partnership with the Airman and Family Readiness Center, Andersen Air
Force Base, Guam. The partnership promotes training and development
opportunities to veteran's and military spouses through the One Stop
Career Center. The following statistics are the number of military
spouses that have been served to date:
[GRAPHIC] [TIFF OMITTED] 44613.006
.epsAccountability & Transparency:
SINGLE AUDIT REPORTS--OVERALL REDUCTION IN DISALLOWED COSTS (FY02-
FY05): 99.82% AT FINAL DETERMINATION ISSUED BY GRANTOR
FY2002-FY2004: In February of 2005, the GDOL took over the
financial administration of the Agency for Human Resources Development
in line with the Governor's Executive Order. The transition of
administrative functions encompass a variety of outstanding issues with
U.S. Department of Labor (federal grantor) specifically responses to
Single Audit Reports for FY2002 thru FY2004.
In 2005 GDOL submitted a response to the Initial Determination
which comprised of $1,479,593.00 in disallowed costs. As a result of
this response the GDOL was able to demonstrate allowable activity
amounting to $239,852.00. In 2006, U.S. Department of Labor issued a
final determination in the amount of $1,239,471.00 in disallowed costs
and a demand for payment was issued. Upon receipt of the final
determination the department issued a ``Notice to Appeal'' and
requested for retesting of documents submitted to the auditor. A result
of this request determined that $614,258.00 previously disallowed was
in fact allowable, a 50.44% in reduction.
FY2005: On April 17, 2007, USDOL ETA issued the Final Determination
resulting in a total amount of $2,240.00 determined as disallowed
costs.
FY2006: On March 31, 2008, USDOL ETA issued the Final Determination
resulting in a total amount of $1,234.00 determined as disallowed
costs.
[GRAPHIC] [TIFF OMITTED] 44613.007
.eps[GRAPHIC] [TIFF OMITTED] 44613.008
.epsAs a result of the milestones achieved and internal fiscal and
data controls in place, GDOL reduced its disallowed costs by 99% for
Fiscal Years 2002-2005 and was taken off high-risk grantee status by
USDOL. The Department also continues to receive consistent increases in
Workforce Investment Act funding, from $3.4M in PY2004 to $5.2M in
PY2007.
Data Consortium/Workgroup:
Guam and the insular areas suffers from a lack of current,
consistent and regularly maintained data, needed to make sound
decisions relating to labor-market and economic development trends.
There is need for a regional data plan to ensure that, ongoing,
regular, consistent, accurate information is collected and shared to
ensure that policy decisions are based on fact, not supposition. In
line with the Workforce Investment Act 2007-2009 State Plan and Plans
of Work (POW) Goal 2, the Labor technical team continues to meet with
other government partners in updating and streamlining data collection
efforts. Several strategies for data collection include a harmonized
data reporting system and a collaborative partnership for consistent
and validated data. Several strategies and upcoming data collection
efforts as follows:
Household & Income Employment Survey (HIES) & Funding
availability
2010 Census project preparation
Civilian Labor Force Survey (CLFS)
2008 Micronesian Survey
Conclusion
With the impending military buildup before us, we are called to
expand our focus and reach beyond our partnership with the federal
government, and into the Pacific region. GDOL continues to play an
active role in the Regional Workforce Development Council, the Civilian
Military Task Force and others. Additionally, we must educate local
employers about ensuring a safe and healthful working environment, fair
treatment and equal rights for employees, and timely compensation for
services rendered. We recognize that in order for our current and
future workforce to reap the benefits of the military buildup, we must
look at temporary foreign workers to fill the immediate labor needs
while developing apprenticeships, internships and on-the-job training
in demand-driven occupations for the future and sustainability of our
island people.
Madam Chairwoman, this is an overview of the activities at the Guam
Department of Labor. I look forward to responding to any questions you
may have.
______
Mrs. Christensen. The Chair now recognizes Ms. Okada for
five minutes.
STATEMENT OF MARY A.Y. OKADA, PRESIDENT,
GUAM COMMUNITY COLLEGE
Ms. Okada. Hafa adai, Congresswoman Christensen,
Congresswoman Bordallo.
Greetings from the island of Guam. It is indeed an honor to
be here this afternoon to provide testimony to the Subcommittee
in identifying labor solutions for the Guam military buildup.
Over a year ago, the Guam Community College submitted
written testimony to the Subcommittee panel on insular affairs
relative to the college's role in preparing Guam for the U.S.
military buildup. After submitting such testimony, we were
fortunate to have the congressional delegation visit our
campus, showing firsthand GCC's current capacity and our
ability to grow our facilities to meet the workforce needs of
Guam.
Since then, the Guam Community College has immersed itself
with several discussions and activities with organizations such
as the Joint Guam Program Office and various subcommittees of
the Civilian Military Task Force.
In addition to these two important organizations, we are
working closely with Guam's business industry as well as our
local government agencies to ensure that the Guam Community
College is able to do its part to provide a well-trained and
educated workforce to meet the island's expanding needs. The
college continues to solidify our relationship with the Guam
Contractors' Association in preparing the workforce for Guam's
construction boom. Both GCA and GCC are looking at the future
of the island's construction business and have plans to recruit
students beginning with our middle school so they gain a better
understanding of what true opportunities are available in the
construction fields. This recruitment and education of our
program opportunities plays a pivotal role in ensuring the
future of our workforce. But our efforts must not stop here. We
are committed to joining forces to educate our residents on the
available opportunities this military buildup will bring to our
territory.
In addition to preparing for Guam's construction boom, as
Guam's only community college that offers comprehensive
programs that lead to an associate's degree or certificate in
over 50 specialized fields of study, we are continuously
identifying the changes needed to current curriculum and
anticipating the establishment of new programs. With the
increase of business partners that will rely on skilled worker,
the college will continue to be responsive to their needs and
the requirements of our growing community. Recipients of these
training programs are widespread, meeting the demands of our
civilian as well as our military communities.
As participants of the Interagency Group on Insular Areas,
the college has been successful in identifying and obtaining
additional resources to support many of our programs. For
instance, the college recently received a college access grant
that will provide educational opportunities for at-risk low-
income students. This will strengthen our commitment in
providing information and services to students for entry into
postsecondary education. This recruitment of at-risk students
into postsecondary education is essential for all phases of the
military buildup--pre-construction, construction and post
construction.
We recognize the importance of training and educating our
residents on Guam so that they are able to compete in the labor
market. Without the increase in this recruitment, we will be
unable to sustain the future labor market needs with the
additional jobs that will be available.
Planning for Guam's future growth, a few weeks ago the
college broke ground on the construction of a new allied health
center that will provide the necessary classroom space for our
allied health programs, while augmenting laboratory space for
our science programs. This new project will help to address
health education for our island. The new center will provide an
additional 24,000 square feet of classroom, laboratory and
office space to the college.
This is the first step in increasing our capacity at the
college. With the completion of this building, the college will
pursue other health occupational programs. Our current capacity
does not allow this expansion of programs without the
additional space.
Most recently, the college obtained another construction
grant to support the expansion learning resources for our
students. Having expansive resources for our students is
critical to success of student learning outcomes, continued
increases in enrollment and retention of current students.
We appreciate the opportunity to provide input and be part
of the solution that addresses Guam's labor shortage. The Guam
Community College continues to be available to participate and
become an active member of the IGIA's working committee that
will allow GCC to assist the IGIA meet the goals and objectives
outlined to address labor issues as a result of this
unprecedented growth.
We thank the Committee for providing Guam Community College
with the opportunity to provide this testimony. We remain
confident that through our collaborative efforts of the Federal
Government, the Government of Guam, the private sector and the
people of Guam, we can make this massive endeavor a success for
Micronesia.
As a unified voice on Guam, we continue to support Governor
Felix P. Camacho's contention that what benefits the U.S.
military must benefit every man, woman and child who calls Guam
home.
Chairwoman Christensen, we invite you to come to the
college and witness the continued growth of the Guam Community
College. Please visit our campus whenever possible to see the
dedication and commitment we have made to ensure the success of
our island. If there is any assistance or support that the Guam
Community College can provide, please feel free in letting me
know. I commit to you our ability to serve as part of the
solution in addressing Guam's labor shortage as a result of
Guam's impending military buildup.
Again, on behalf of the Guam Community College Board of
Trustees, our Board of Governors, faculty, staff,
administrators, but most especially our students, un Dangkolu
na Si Yu'os Ma'ase for providing the Guam Community College
with this opportunity to provide our testimony. We look forward
to working with you for the benefit of our people and the
continued success of our students. Thank you.
Mrs. Christensen. Thank you, Ms. Okada. I look forward to
coming back and seeing the progress you are making. I was
impressed with the first visit.
[The prepared statement of Ms. Okada follows:]
Statement of Mary A.Y. Okada, President, Guam Community College
Hafa Adai Congresswoman Christensen and members of the Subcommittee
on Insular Affairs,
Greetings from the Island of Guam! It is indeed an honor to be here
this afternoon, to provide testimony for the subcommittee in
``Identifying labor solutions for the Guam military build-up.''
Over a year ago, the Guam Community College (GCC) submitted written
testimony to the subcommittee panel on Insular Affairs relative to the
college's role in preparing Guam for the U.S. military buildup. After
submitting such testimony, we were then fortunate to provide a campus
visit to Congresswoman Donna Christiansen and Guam's U.S. Delegate,
Congresswoman Madeleine Bordallo. During the Congressional Delegates
visit to our campus, we were able to show first-hand GCC's current
capacity and our ability to grow our facilities to meet the workforce
development needs of Guam.
Since then, the Guam Community College has immersed itself with
several discussions and activities with organizations such as the Joint
Guam Program Office and various subcommittees of the Civilian Military
Task Force. In addition to these two important organizations, we are
working closely with Guam's business industry as well as our local
government agencies to ensure that the Guam Community College is able
to do its part to provide a well-trained and educated workforce to meet
the island's expanding needs. The college continues to solidify our
partnership with the Guam Contractors' Association (GCA) in preparing
the workforce for Guam's construction boom. Both GCA and GCC are
looking at the future growth of the island's construction business and
have plans to recruit students beginning with our middle school
students to learn what true opportunities are available in the
construction fields. This recruitment and education of our program
opportunities plays a pivotal role in ensuring the future of our
workforce. But our efforts must not stop there. We are committed to
joining forces to educate our residents on the available opportunities
this build up will bring.
In addition to preparing for Guam's construction boom, as Guam's
only community college that offers comprehensive programs that lead to
an associate degree or certificate in over 50 specified fields of
study, we are continuously identifying the changes needed to current
curriculum and anticipating the establishment of new programs. With the
increase of business partners that will rely on skilled workers, the
college will continue to be responsive to their needs and the
requirements of our growing community. Recipients of these training
programs are widespread, meeting the demands of our civilian as well as
military communities.
As participants of the Interagency Group on Insular Areas (IGIA),
the college has been successful in identifying and obtaining additional
resources to support many of the programs. For instance, the college
recently received a College Access Grant that will provide educational
opportunities for at-risk low income students. This will help
strengthen our commitment in providing information and services to
students for entry into postsecondary education.
A few weeks ago, the college broke ground on the construction of a
new Allied Health Center that will provide the necessary classroom
space for our Allied Health Programs, while augmenting laboratory space
for our Science Programs as well. This new project will help to address
health education for our island. The new center will provide an
additional 24,000 square feet of classroom, laboratory, and office
space to the college. This is the first step in increasing our capacity
at the college. With the completion of this building, the college will
pursue other health occupation programs.
Most recently, the college obtained another construction grant to
support learning resources for our students. The resources are critical
to continued increases in enrollment and retention of current students.
We appreciate the opportunity to provide input and to be a part of
the solution that addresses Guam's labor shortage. The Guam Community
College continues to be available to participate and become an active
member of the IGIA's working committee that will allow GCC to assist
the IGIA meet the goals and objectives outlined to address labor issues
as a result of Guam's unprecedented growth.
We thank the committee for providing Guam Community College with
the opportunity to provide this testimony. We remain confident that
through the collaborative efforts of the Federal Government, the
Government of Guam, the private sector, and the people of Guam--we can
make this massive endeavor a success for Micronesia. As a unified voice
for Guam, we continue to support Governor Camacho's contention that
what benefits the U.S. Military must benefit every man, woman and child
who calls Guam home.
Chairwoman Christiansen and members of the Subcommittee on Insular
Affairs, we invite you to witness the growth of the Guam Community
College. I invite you to visit our campus whenever possible, to see the
dedication and commitment that we have made to ensure the success of
our island. If there is any assistance or support the Guam Community
College can provide your committee, please feel free in letting me
know. I commit to you our ability to serve as a part of the solution in
addressing Guam's labor shortage as a result of Guam's impending
military buildup. We look forward to working with you and members of
your subcommittee in developing a wholesome plan that will benefit all
shareholders--more importantly the citizens of Guam and Micronesia.
Again, on behalf of the Guam Community College Board of Trustees,
Board of Governors, faculty, staff, administrators, but most especially
our students. un Dangkolu na Si Yu'os Ma'ase for providing the Guam
Community College with this opportunity to provide our testimony to the
Subcommittee on Insular Affairs. We look forward to working with you
for the benefit of our people and the continued success of our
students.
______
Mrs. Christensen. I now recognize myself for questions; and
I will start with my colleague, Congressman Underwood.
One of your last recommendations had to do with the
military utilizing the University of Guam; and I was wondering,
in the past, has the military ever approached the university
for training or education purposes? Would this be a first?
Mr. Underwood. Well, in the past--and we would have to go
back a couple of decades--the University of Guam was a little
bit more active in its extension services with the military.
Currently, these services, educational services are bidded out
on a region-wide contract that includes services to Japan,
Okinawa and Korea.
What happens is that the University of Guam would have to
bid for that, instead of looking at the Guam piece separately.
And of course there is another realistic stumbling block as
well, and that is much of these activities are done through
distance education, and the University of Guam hasn't perfected
that in the same way that the University of Maryland and
Central Texas have. But, in any event, what we need is we need
to get our foot in the door.
I have discussed this with General Bice, as well as others.
And they are willing to listen, and I think they have a
sympathetic ear on this particular issue.
I tried to make the case that the Marines and military
personnel on Guam should have access to, you know, local
educational--they do have access, but they should have access
to these services on base as well. And so we look forward to
that partnership.
Mrs. Christensen. Thank you.
And what percentage of the professionals on Guam--the
accountants, nurses, IT professionals and et cetera--are
trained at the University of Guam? And are you prepared, if
given the resources that you speak about, to increase that?
Mr. Underwood. Well, you know, right now I would say--
without a lot of follow-up data, I would say that probably a
third to 40 percent of the professionals on Guam who work in
basic fields in education and nursing and business got their
education from the University of Guam. The recent Chamber of
Commerce asked how many had gone to school at the University of
Guam, and I think about half of the hands went up in the room.
So it is a pretty substantial amount.
But, of course, we are talking about an increased number of
professional positions, hundreds of new positions opening up.
And we can't sustain--even if we existed at the current level,
we would probably be preparing less than a third for the new
positions that are coming up. So that is a source of problems
for us.
Because it is not just a problem for the University of
Guam. I think it is for the entire kind of socioeconomic
structure of the island. And that is if a fair amount--I don't
know what that fair amount is--maybe half--of the existing
professionals are from the island or from the region, then you
help create the basis for, you know, good-paying positions and
people who earn higher salaries than--and you sustain a kind of
a professional class and a middle class for the next
generation. And that is the basis upon which we think
sustainable income, a sustainable economy will be based. So,
you know--of course, in partnership with the Guam Department of
Labor and the Guam Community College with whom we work very
closely and work very well.
But I think it is kind of like the part of the puzzle, the
part of the economic puzzle that hasn't received adequate
attention.
Mrs. Christensen. Thanks. Thank you.
Ms. Connelley, I don't know if Guam is like the Virgin
Islands. In the Virgin Islands, a lot of our residents don't
want to work in certain kinds of jobs. So my question to you
is, are you satisfied that the available workforce on Guam is
getting ready to take advantage of the opportunities that the
pending military buildup will bring? And are there more things
that we can be doing to assist besides finances?
Ms. Connelley. I firmly believe that the people of Guam
right now are, especially those unemployed. The unemployment
rate on Guam is 8.3. So we are after those people who are at
least--the last report was looking--there were about 5,000
people looking for jobs at the time.
But with the recent--what this military buildup is going to
bring is that there will be more jobs for base operation
support and there will be more jobs for the construction
industry. With the very competitive salary and the benefits
that the Federal service contract is now offering and with the
latest salary prevailing wage rate that the U.S. citizenship
and immigration is going to be issuing, I firmly believe that
our local people will be attracted and our local people will be
applying for these jobs and working for the private sector.
Mrs. Christensen. Thank you.
And, Ms. Okada, you mentioned that you are engaged in a
number of collaborations with GAGPO and other government and
business organizations. Are you satisfied with the
collaborative efforts thus far and have they been helpful to
you in your efforts to prepare Guam residents for the
opportunities the buildup would bring?
Ms. Okada. The collaboration we have had with several of
the government agencies has helped us build the framework or
foundation in moving this project forward. The data that we are
lacking is to identify specifically which occupational areas
and how many so that we can plan our growth based on those
projections.
Right now, because we don't have the projections available
to us, we are just taking individual requests for certain types
of training. So until we get specific numbers or a little bit
more planning numbers as far as which occupational numbers that
will give us time to prepare--because some of the curriculum
that we need in some of the areas need to be developed and we
need to get--we need some time to collect that information and
move it forward.
But, yes, the collaboration has been very beneficial for
us, because at least it allows us to talk education at all
levels instead of just focusing on either the vocational
programs in the K-12 environment or postsecondary education.
Mrs. Christensen. Thank you. Thank you.
The Chair now recognizes Ms. Bordallo for her questions.
Ms. Bordallo. Thank you, Madam Chairman. I have a general
question which you touched on, but I would like to elaborate a
little bit more.
Dr. Underwood, you state a goal to partner with the U.S.
military in Guam to establish professional development and
educational courses. Can you elaborate on the nature of this
arrangement and what the program would entail if it developed
at the University of Guam? And are there other similar
partnerships between universities and the Department of Defense
for such professional development programs?
Mr. Underwood. Well, initial discussions have been that,
you know, a big part of the move to Guam is the headquarters of
the third MEF. So that implies that there will be a lot of
training opportunities. Because they all want their skills
upgraded, and they will want the opportunity to do things that
are degree oriented.
We believe that this is an opportune time for the
university to partner with the military to develop unique forms
of curriculum for these kinds of programs. And they could be
masters' level programs. They could be bachelor level programs.
Where we are taking on the issues that are difficult, like how
do you deal with communities that are undergoing rapid change?
What is the responsibility of an officer corps in dealing with
local communities? Just basic leadership training.
We know that the military services have these kinds of
unique contracts with selected universities. So those are the
kinds of things that we think will be innovative and different
that are both tailor made for the Guam experience but also uses
the Guam experience to further train fit officers.
I want to add that this is slightly outside--this is
outside the scope of the basic educational services that Ms.
Christensen asked me about earlier, and that is just the way
that they bid those basic educational services now. We want to
get our foot in the door. But I think that the fact that the
headquarters unit is moving to Guam provides the university
this opportunity.
You know, universities are very flexible units. They can
bring in people. They can create new forms of curriculum. They
can be very responsive. So we look forward and we relish that
opportunity, and I know that many of the people responsible and
with the military buildup have mentioned this. We have even
discussed the possibility of partnering even with one of the
defense universities to provide this level of training or to do
economic analysis of what is going to happen in Guam as a
result of the military buildup. So we are constantly looking
for those opportunities, and I think that General Bice and
others are open to those possibilities. Of course, a little
nudging from you will help a lot.
Ms. Bordallo. So what you are saying, Dr. Underwood, is
that there are similar partnerships between the military and
universities?
Mr. Underwood. Yes, that is correct.
Ms. Bordallo. Finally, has the IGIA Guam Task Force looked
into your proposals for establishing this partnership and
developed any sort of way ahead for its implementation?
Mr. Underwood. To my knowledge, no. But, of course, you
know, that is partially dependent upon the university making
its case as well; and we will do so. So we will continue to
advance this concept and with IGIA and anyone else who will
listen.
Ms. Bordallo. Very good.
Now, another point I have made quite an effort to get
across in meeting with the IGIA, Department of the Interior is
the fact that the MOUs are very important in this buildup. We
are facing a very important election. In a couple of months
there will be a new administration. We want to make sure that
any of the agencies that you are dealing with as president of
the community college, director of labor and the University of
Guam, any of these agencies that you have been meeting with, it
is important that, whatever they promise, that this is carried
on. There is a continuation.
So have any of you had any--I will start with you, Mary.
Have you laid down any proposals between the Federal agencies
and the community college and suggested, are you for the MOUs?
Have you suggested this?
Ms. Okada. We have had discussions about the MOU based on
the last IGIA. However, there has been no documented MOU to my
knowledge on either the Subcommittee on Education; and I don't
believe there is any for labor, either. But we are continuing
to have that discussion with them. Because they recognize the
importance of continuing what efforts we have already started
in collecting the data; and the people that are responsive
right now from the Federal agencies, we have already
established good working relationships with them and we are--it
is important for us to be able to continue that dialogue with
the appropriate members. But we are expanding as far as having
greater dialogues.
The Committee on Education is working a lot better now with
the U.S. Department of Education. Initially, we were under HSS;
and I believe they are working on or there is a proposal to
reposition us.
Ms. Bordallo. I would suggest that you be persistent. If
you don't hear from them, you know, continue to. Because I
think it is very important. I am just afraid that, you know, a
few months down the road new Cabinet people will be appointed;
and they may say, well, this wasn't during our watch.
So, Mary, could you mention on behalf of the Department of
Labor?
Ms. Connelley. Yes, ma'am. Most of the people that we are
working with, the 11 Federal agencies that we are working with
either one way or the other, they have--for example, the
Department of Labor, they are a grantor. So we really don't
need an MOU because we get a formal grant from them.
The Department of--the U.S. Department of Education is
another member, and they provide funding to Guam in the insular
areas, and we are working very closely with them. Because,
again, they are also providing Federal funds under the Pacific
Islands Grant.
Ms. Bordallo. Very good.
Dr. Underwood.
Mr. Underwood. With those agencies that we have specific
grants from, of course we have good relationships and we have
had a number of discussions. But to, I think, your point on the
MOUs, it is absolutely critical, because this provides the
framework for a relationship more so than just the framework
for a particular grant. And that relationship is absolutely
key, especially for an institution like the University of Guam,
which is somewhat unique.
And so, you know, if we are--for example, if we are trying
to create balance between training opportunities for people in
the trades and professions and--trades and people in the
professions, that kind of MOU would go a great way toward
establishing a framework through which future granting
opportunities, future technical assistance opportunities are
provided. And so the MOU is absolutely critical; and I think
that we should work a little bit harder, I mean, you know, on
our end.
I think, you know, there was a little bit of a
misunderstanding of the direction that you wanted to take in
the MOU. I think people are now seeing the very important
wisdom of that, because it is going to provide the framework
for those future opportunities, and it is going to help resolve
transition issues into the next administration. Because those
transition issues, as those of us with a few years of political
experience on this--weeks, months go by and nothing happens and
there is no framework. But if you have the framework in
existence, even the existing bureaucracy, the wheels will
continue to turn, and there won't be lost opportunities. So I
think it is very important.
Ms. Bordallo. I thank you, Dr. Underwood. And I certainly
agree with you.
I wish--I would like to tell the three witnesses that we do
have a memorandum of understanding between MARAD and the port.
So I feel comfortable in that. But for the rest of the
agencies, GovGuam agencies that are involved in this military
buildup, I think it is very important that we try to develop
something very near in the future.
Madam Chair, I have a very important hearing to attend, an
Armed Services meeting; and it has to do with the defense
authorization bill. Guam has many provisions for the military
buildup in it, and I want to make sure that those provisions
are still there. So if you would excuse me for the second
panel. But I will have staff here.
Mrs. Christensen. Certainly. It is very hard. What we will
do is, in the interest of time and some of the schedules have
been changing throughout the day, so I am going to excuse--
thank the panel for their testimony and for their answers to
the questions. We probably have more questions for you which we
will submit in writing, and we would ask that you respond in
writing to those questions.
I would now like to call up the second panel, Major General
David Bice, the Executive Director of the Joint Guam Program
Office, and the Honorable Douglas Domenech, Acting Deputy
Assistant Secretary for Insular Affairs of the Department of
the Interior.
Ms. Christensen. As soon as you are ready, Major General
Bice, you may start your testimony.
STATEMENT OF MAJOR GENERAL DAVID F. BICE (USMC RETIRED),
EXECUTIVE DIRECTOR, JOINT GUAM PROGRAM OFFICE
General Bice. Madam Chair, Congresswoman Bordallo, thank
you very much. I am pleased to appear before you today on
behalf of the Joint Guam Program to share information on
existing potential labor solutions for the Guam military
buildup.
To meet a total civilian and military construction effort
of approximately $2-1/2 billion per year, we estimate between
6,000 to 20,000 off-island workers will be needed on Guam.
These workers will require temporary accommodations. The
Department of Defense is currently estimating the cost for
providing temporary housing for the H visa portion of the
workforce supporting the military construction effort. We plan
to include these costs for these services in each U.S. military
construction appropriation and Government of Japan direct cash
contribution project.
One of the approaches being considered for temporary
construction workforce housing and logistics support is to
place the responsibility for such support on the individual
construction contractors. For such an approach to work, the
Department would partner with the appropriate Federal and Guam
agencies to monitor a compliance with underlying worker health,
safety, security and labor laws and regulations and underlying
contract terms implementing such laws and regulations.
Medical and health care support for the temporary workforce
is also under study. The Department is aware of the challenges
facing Guam's medical and health care community, and we do not
want to add to that situation. Although temporary construction
labor may fulfill the bow wave of construction needs, the
cumulative goal for the Federal and Guam officials, as you
heard, is to create long-term career opportunities for the
populous in the region.
With the training initiatives being implemented by the U.S.
and Guam Departments of Labor, I am confident that skill levels
and earnings potential will rise. A cooperative spirit has been
displayed by relevant Federal and Guam agencies, and we have
established momentum required to achieve success. This
realignment of forces is good for Guam and the surrounding
islands, good for the region and certainly good for the nation.
Thank you for this opportunity to discuss the labor issues
associated with the realignment of forces in Guam, and I thank
you for your continued support to this initiative, and I look
forward to your questions. Thank you.
Mrs. Christensen. Thank you, Major General Bice.
[The prepared statement of General Bice follows:]
Statement of David F. Bice, Executive Director,
Joint Guam Program Office
Chairwoman Christensen and members of the Subcommittee, thank you
for the opportunity to testify on the labor solutions for Guam military
build-up requirements. As the Executive Director for the Joint Guam
Program Office (JGPO), I am responsible for the planning and
integration of the Department of Defense (DoD) infrastructure
capabilities, master plan development, program and budget
synchronization, construction oversight, government and business
coordination, and strategic communications for the realignment of
military forces to Guam.
BACKGROUND
As mentioned in my last testimony to the Subcommittee, the proposed
military build-up on Guam is a key component of the United States
Alliance Transformation and Realignment Agreement (ATARA) with the
Government of Japan (GOJ). As part of this realignment, the U.S. seeks
to increase the flexibility to contend with uncertainty; strengthen
allied roles; build new partnerships; create the capacity to act both
within and across regions; develop rapidly deployable capabilities, and
focus on effective military capabilities
To accomplish the military and political objectives of the ATARA
and military realignment to Guam, both the Department of Defense and
the Department of Labor (DOL) recognize that large numbers of temporary
construction workers will be needed for the military and civil,
construction projects that are to occur between now and 2014. As
documented by the DOL, Guam's current workforce has an insufficient
supply of labor to meet the demands of this temporary surge in
construction activity.
A major enabler in securing the necessary temporary construction
workers needed for the Guam military build-up was the passage of the
Consolidated Natural Resources Act of 2008, Pub. L. 110-229. This Act,
which contains provisions changing the immigration laws of the
Commonwealth of the Northern Marianas Islands (CNMI), waives the cap on
H visas, including the H2B visa used by skilled construction workers,
for Guam and CNMI. This waiver becomes effective with the start of the
transition period, which begins in the first full month, one year after
the passage of the act, or June 1, 2009, and extends through December
31, 2014. An extension of the transition period beyond December 31,
2014 and the associated H visa waiver cap is possible, but only for
CNMI. Once construction efforts commence in Guam in early 2010, DoD and
JGPO will be in a better position to determine if statutory or
regulatory relief is required.
We are grateful to Congress for this visa waiver provision, but may
need to extend the waiver beyond 2014 should program timelines
necessitate.
LABOR ESTIMATES
The Department of Defense recently provided a report to Congress
detailing the status of the Guam Joint Military Master Plan. DoD
estimates there are approximately 5,600 construction workers currently
available in Guam today. Naval Facilities Engineering Command (NAVFAC),
the Department's construction execution agent on Guam, estimates
between 5,000 and 10,000 construction workers are needed to execute
approximately $1B of construction work in place (WIP) per year. NAVFAC
also estimates that between 12,000 and 25,000 construction workers
would be required to execute $2.5B of WIP annually on Guam. Therefore,
an estimated 6,000 to 20,000 off-island workers will be required to
reach the necessary work force strength. The NAVFAC study estimated
that approximately 6,000 workers are expected to migrate to Guam from
the continental United States or Hawaii to support the construction
effort. The remainder would come from either the Commonwealth of the
Northern Mariana Islands, Freely Associated States, or from other
foreign locations as non-immigrant construction workers requiring H2B
visas. Through the State Department and Department of Interior, we have
been working to establish a network of available workers in the Pacific
Territories and States. This database will be provided to industry via
the DOL websites and the industry forums.
LOGISTICS FOR LABOR INFLUX
The significant increase in construction workforce on Guam will
require a temporary increase in accommodations. The development and
ultimate decision regarding the appropriate solution or solutions for
workforce housing and logistics is ongoing, and part of overall program
planning being conducted with industry and the Government of Guam
(GovGuam) stakeholders. Some key factors driving development of
potential solutions include costs, durability, post-construction
(secondary) use of facilities; risk to government and contractors, and
post construction benefits and impacts. DoD is currently estimating the
approximate cost for providing temporary construction workforce
housing. Costs to provide these services will be funded respectively in
each U.S. MILCON appropriations and GoJ Direct Cash Contribution
projects.
One of the approaches being considered for temporary construction
workforce housing/logistical support is to place the responsibility for
such support on the individual construction contractors. The Department
is still evaluating the strengths and weaknesses of this approach from
both a contracts management and a community benefit perspective. The
Department understands that for such an approach to work, the contract
documents, the source selection process, and contract administration
would have to ensure management of large numbers of temporary
construction workers. Additionally, for such an approach to work the
Department would partner with the appropriate Federal and GovGuam
agencies to monitor compliance with applicable worker health, safety,
security and labor laws and regulations, and the contract terms
implementing such laws and regulations.
Other options considered for adequate workforce housing include:
DoD funded workforce housing on DoD property under MILCON
authority, with post-construction (permanent) use for barracks,
training facilities, etc.
DoD funded temporary workforce housing on DoD property as
an overhead cost on large construction contracts. This concept involves
industry building durable temporary facilities as required, and
dismantling worker accommodations after the project is complete.
Privately funded construction and operation of worker
housing on GovGuam property that can subsequently be adopted for public
use (affordable housing). This concept includes partnerships with
GovGuam and private industry to create public/private ventures.
Establishment of logistics contracts to provide durable
temporary worker housing as part of an overall logistics contract that
includes housing, medical, transportation and other services.
No matter what solution or solutions are implemented to address
temporary construction workforce logistics, the Department will partner
with appropriate Federal and Guam authorities to ensure the safety and
security of all temporary construction workforce personnel.
The Department will include enforcement by proper authorities of
appropriate standards to ensure the safety and security of all
transient workers in housing complexes including:
Safe and secure living conditions for transient personnel
A standard-of-living commensurate with U.S. & Guam
housing standards
Suitable physical security and accommodation of cultural
diversity
Medical and healthcare support for the temporary workforce is also
under study. The Department is aware of the challenges facing the Guam
medical and healthcare community, and we are looking for ways to
mitigate and perhaps even improve the situation for all concerned.
TRAINING PROGRAMS
Through the Interagency Task Force meetings co-chaired by JGPO and
the Department of Interior Office of Insular Affairs, the Department of
Labor has been making progress in helping the Guam Department of Labor
prepare the Guam workforce for the opportunities this strategic
realignment brings. The Guam Department of Labor is focused on
preparing the local citizens to meet the long-term career oriented job
opportunities that this strategic initiative offers. These
opportunities include the construction trades and the full range of
professional and service skills typically found in our highly technical
and skilled defense related businesses. DoD endorses this approach and
is aware that the construction program will expand and contract and a
stable, skilled workforce will be needed by the DoD activities on Guam
and accompanying defense industry.
Even as we set a completion target for the construction activities
surrounding the Marine relocation, we expect the demand for skilled
construction workers on Guam, on-base and off, to be significantly
higher than it is today. At the local level, the Guam Community College
has expanded their Construction Trade Program to include a diesel
mechanical course and construction boot camp. It is clear that the
educational institutions on Guam understand the new demand for a full-
fledged labor training and development program and are expanding as
industry needs become more apparent.
Beyond Guam, we do know that we will also be relying on the outer
islands to partake in job opportunities. The Guam Contractor's
Association's Trades Academy, which was officially established in 2006,
is also stepping up to the plate to assist in filling the island need
for skilled labor. The Trades Academy has increased classes within
their four year program that already includes heavy equipment, safety,
carpentry, heating/ventilation/air conditioning and electrical trade's
skills.
The Trades Academy guarantees job placement to all students, even
prior to graduation and has placed students with 45 companies. The
academy also offers credentialed construction skills to under-employed
workers. This is important, given the strong desire by DoD, Guam, and
the insular islands to develop a talent pool that fills enduring job
vacancies that will sustain a healthy economy well beyond the
completion of the strategic realignment.
Temporary foreign labor is not the ultimate focus of the Program's
labor effort. Although temporary construction labor may fulfill the bow
wave of construction needs, the cumulative goal for Federal and Guam
officials is to create long-term career opportunities for the populace
in the region; the kind of job opportunities that raise skill levels
and earning potential.
Recent actions by the U.S. Citizenship and Immigration Service
(USCIS) to raise wage rates for H2B construction workers on Guam will
ultimately benefit Guam as a whole as the economic standard of living
rises for all those in the construction trades. We are confident that
the studies and analysis conducted by USCIS accurately reflect the
economic environment and will bring stabilization to long term labor
costs associated with Guam military buildup construction contracts.
CONCLUSION
This strategic realignment on Guam requires a coordinated effort
among all Federal and Guam agencies. Collectively we have made great
strides in moving in the right direction to solve the many issues we
face. Continued coordinated planning to address temporary construction
workforce housing and logistics issues and enduring-job training
initiatives require participation from various entities to ensure
success. Based upon the cooperative spirit that has been displayed to
date by the relevant Federal and Guam agencies, I am confident that we
have established the momentum required to achieve success within the
desired timeline. I encourage us all to continue to move forward in our
common goal of promoting security in the region.
Thank you for this important opportunity to discuss the labor
issues associated with the realignment of forces on Guam. I also thank
you for your continued support and dedication.
______
Mrs. Christensen. The Chair now recognizes Mr. Domenech for
his testimony.
STATEMENT OF THE HONORABLE DOUGLAS W. DOMENECH, ACTING DEPUTY
ASSISTANT SECRETARY FOR INSULAR AFFAIRS, DEPARTMENT OF THE
INTERIOR
Mr. Domenech. Thank you, Chairwoman Christensen and Madam
Bordallo. It is good to see both of you again. And Secretary
Kempthorne sends his greeting, as usual.
Madam Chair and members of the Subcommittee, thank you for
the opportunity to testify on identifying labor solutions for
the Guam military buildup.
As you know, under the proposed Guam military buildup,
approximately 8,000 U.S. Marines and 9,000 dependents will be
shifted from Okinawa, Japan, to Guam. It is anticipated that
Guam employment will benefit in two ways: first, through the
initial construction-related jobs and, second, through
permanent new defense and nondefense jobs to support the new
military mission.
The more immediate concern, as you know, however, is
finding labor for the construction phase of the buildup between
2010 and 2014. It is estimated that perhaps up to 15,000 people
will be needed for constructing military facilities and another
5,000 to 7,000 for construction in the civilian areas of Guam.
Labor from outside Guam will likely have to be imported.
Contemplating the challenges ahead, it was decided that the
IGIA should establish a Guam Task Force to coordinate the
military buildup issues across all the Federal agencies. The
task force has established five working groups. One of them is
specifically on labor, and that group has been very active.
As you know, the Department of Labor issues regional
innovation grants--they were discussed earlier--the RIG grants
for regional labor planning. The IGIA has encouraged Guam to
apply for such assistance, which they have. The Guam region in
this case--for the purposes of the application, the Guam region
would include, of course, Guam, CNMI, the Marshall Islands,
Micronesia and Palau. When completed, the plan would define the
existing regional workforce supply and skill levels, the kind
of raw data that we need and identify any gaps that would
affect the present and future economy of the region. The plan
would also set out strategies to address those identified
needs. So we are very anxious to have the results of that.
Up to this point, Interior funding has been aimed at
expediting this planning process. In March, the Office of
Insular Affairs provided Guam a technical assistance grant to
aid in the writing of the Guam grant application to the
Department of Labor for the regional plan. OIA and Labor
believe that a solution to Guam's workforce issues can only be
realized through this regional collaboration. So that is the
aim of the plan.
Within the IGIA's Labor Group, discussions of the labor
supply have centered on two main issues, the availability of
United States-eligible labor and the availability of foreign
labor. The massive scale of the Guam military buildup makes the
importation of foreign labor inevitable. For this reason,
Congress included a provision lifting the cap on H visa workers
in Guam. Because there is a large supply of labor in nearby
countries, the labor needs of this immense project should be
met.
Discussion and effort now revolve around the United States-
eligible labor and how to attract such workers to Guam. The
United States-eligible workers, of course, include persons who
are U.S. citizens, United States permanent residents and freely
associated state citizens from the Marshall Islands, Micronesia
and Palau.
The United States-eligible labor and available labor takes
precedence over foreign labor for jobs that will become
available on Guam. Therefore. We are pursuing a mechanism that
requires that employers first advertise the job regionally.
Then only if no qualified U.S.-eligible applicant applies can
the employer apply for a United States visa for a foreign
worker to work on Guam.
Mr. Domenech. While the labor needs are daunting, we
believe that looking to the U.S.-eligible labor first will be a
significant part of the solution. The labor group is discussing
possibilities for outreach to persons living in the 50 States,
as well through the Internet and notices postings to unions and
employers and military for returning veterans.
OIA has specific concern for the United States-eligible
labor in the territories of Guam, CNMI, FSM, the Marshall
Islands, and Palau. Word, of course, is already out in these
jurisdictions that there will be jobs in Guam. The challenge is
to connect that labor on these other islands with other
employers in Guam.
Interior is exploring the establishment of a job match
system to connect potential workers with employers in Guam. In
the Freely Associated States, workers may need further
instruction in English and math, as well as the cultural
differences that they may experience in Guam. In addition,
resumes or job applications need to be developed.
Transportation to and housing in Guam may need to be arranged
as well.
Apprenticeship programs like the ones that have been
discussed earlier are a key factor in this as well. In these
efforts, the Department of the Interior will be seeking to help
the Freely Associated States eliminate difficulties in getting
their workers from their home island to jobs in Guam.
In addition, we have a concern, final concern, that the
workers who are from off-island locations receive comparable
wages and benefits; and we are actively working through both
the IGIA process and with other Federal agencies to raise
awareness on that issue.
Thank you very much.
Mrs. Christensen. Thank you, Deputy Assistant Secretary.
[The prepared statement of Mr. Domenech follows:]
Statement of Douglas Domenech, Acting Deputy Assistant Secretary for
Insular Affairs, U.S. Department of the Interior
Madam Chair and members of the Subcommittee on Insular Affairs,
thank you for the opportunity to testify on the identification of labor
solutions for the Guam military build-up.
LABOR NEEDS
Under the proposed Guam military build-up, approximately 8,000
United States Marines and 9,000 dependents will be shifted from
Okinawa, Japan to Guam. Construction of new defense facilities to
accommodate this influx of personnel is scheduled to start in 2010,
with the relocation to be completed in 2014. The cost of new
infrastructure to be installed could exceed $10 billion.
Guam employment will benefit from the build-up in two stages: (1)
initial facility building and improvements will create a large number
of high-paying construction-related jobs for several years and (2)
permanent new defense and non-defense jobs to support the new military
mission.
Federal civilian payroll in Guam at the end of 2007 numbered 3,610,
of which 3,040 or 84.2 percent were civilian DOD employees. Non-DOD
Federal employees were 570 or 15.8 percent of the total. There is
roughly one civilian employee for every two active duty persons on
Guam. Assuming an addition of about 8,300 Marines and 4,510 active duty
personnel in other military services when the build-up is completed,
the number of active duty personnel would increase from 6,520 today to
19,330 in 2014. Current estimates of new civilian jobs on Guam
resulting from the build-up are as many as 6,000. Given today's total
payroll employment figure of just over 60,000, this would be a 10
percent increase overall in civilian employment after 2014.
Our more immediate concern, however, is finding labor for the
construction phase of the build-up--2010 to 2014. Labor of all skill
levels will need to be secured. It is estimated that 15,000 persons
will be needed for constructing military facilities, and another 5,000
to 7,000 for construction in the civilian areas of Guam. The current
local work force on Guam will not be able to satisfy all of these labor
needs. As a result, some labor from outside of Guam will have to be
imported.
IGIA AND INTERIOR EFFORTS
Contemplating the challenges ahead, it was decided that the
Interagency Group on Insular Areas (IGIA) would establish a Guam Task
Force to coordinate military build-up issues that cross jurisdictional
lines of Federal agencies. Interior and Joint Guam Program Office
(JGPO) are leading the Task Force effort. The Task Force has
established five working groups: Labor, Infrastructure, Environment,
Health and Human Services, and Socio-Economic. The Labor Group has been
playing a prominent role.
U.S. Department of Labor Regional Innovation Grant (RIG) Program
The Department of Labor issues Regional Innovation Grants (RIG) for
regional labor planning. Members of the IGIA have encouraged Guam to
apply for such assistance for use in developing a plan that would
anticipate labor demand and supply for the Guam region. The Guam region
would include Guam, the Commonwealth of the Northern Mariana Islands
(CNMI), the Republic of the Marshall Islands, the Federated States of
Micronesia, and the Republic of Palau. Both U.S. DOL and OIA have
collaborated with Guam on the submission of a RIG application. When
completed, the plan will define the existing regional workforce supply
and skill levels, and identify any gaps that could affect the present
and future economy of the region. The plan will also set out strategies
to address those identified needs.
Up to this point, Interior funding has been aimed at expediting
this planning process. In March 2008, the Office of Insular Affairs
provided Guam a technical assistance grant of $15,000 to aid the
writing of the Guam grant application for U.S. Department of Labor
funds to develop a regional labor plan. IGIA continues to work closely
with U.S. DOL as a regional labor plan is developed.
It should noted that both OIA and Labor believe a complete solution
to Guam's workforce issues can only be realized through regional
collaboration. Regionalism makes sense here for several reasons, chief
among them is the synergy generated by more compact economic
development patterns.
Foreign Labor
Within the IGIA's Labor Group, discussions of the labor supply have
centered on two main issues, availability of United States-eligible
labor and availability of foreign labor. Those who have looked at the
issue closely agree that the massive scale of the Guam military build-
up makes the importation of foreign labor inevitable. For this reason,
Public Law 110-229 included a provision lifting the cap on H visa
workers in Guam (and the CNMI) for a period of five years ending in
2014. Because there is a nearly inexhaustible supply of labor in nearby
Asian countries, the labor needs of this immense project can be met.
United States-Eligible Labor
Discussion and effort now revolve around United States-eligible
labor and how to attract such workers to Guam. United States-eligible
labor includes persons who are United States citizens, United States
permanent residents, and freely associated state citizens. By agreement
in compacts of free association, citizens of the Republic of the
Marshall Islands, the Federated States of Micronesia, and the Republic
of Palau are eligible to live and work in the United States and its
territories. These three island countries are in relatively close
proximity to Guam. Residents of Guam, of course, and residents of the
adjacent CNMI who are United States citizens are also eligible to work
in Guam.
United States-eligible and available labor takes precedence over
foreign labor for jobs that will become available on Guam. A helpful
approach will be to pursue a mechanism that requires that employers
will first advertise a job regionally. Then, only if there is no
qualified, United States-eligible applicant, can that employer apply
for a United States visa for a foreign worker to work on Guam. While
the labor needs are daunting, we believe that looking to the United
States first will be a significant part of the solution.
Outreach
Part of the problem in attracting United States citizen workers
will be both distance and lack of knowledge of the opportunities that
will be available on Guam. The Labor Group is discussing possibilities
for outreach to persons living in the fifty states by utilizing
internet sites and notices for posting by unions and employers and the
military for returning veterans.
The Office in Insular Affairs has specific concern for United
States-eligible labor in territories of Guam, and the CNMI, and the
freely associated states of the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau. Word is
already out in these jurisdictions that there will be jobs in Guam.
The challenge is to connect the labor in these other island areas
with the employers in Guam. The Department of the Interior is exploring
the establishment of a hands-on job match system--or ``regional labor
exchange''--to enable the matching of potential workers with employers
in Guam. In the freely associated states, many persons may need further
instruction in English and math, and the cultural differences that they
will experience in Guam. Resumes will need to be developed in advance,
so that the job applicant will be ready when the job is announced.
Transportation to Guam and housing in Guam will need to be arranged.
Apprenticeship programs on Guam will be another opportunity available
to persons from Guam and the surrounding islands. These programs will
teach more specialized skills. In these efforts, the Department of the
Interior will be seeking to eliminate difficulties in getting
individual workers from their home islands to jobs and job programs in
Guam.
One concern we have is that workers, both United States-eligible
labor and foreign, will receive comparable wages and benefits. We are
actively working, both through the IGIA process and with other Federal
agencies, to raise awareness of these issues.
______
Mrs. Christensen. The Chair now recognizes Ms. Bordallo for
questions.
Ms. Bordallo. Thank you. Thank you very much for the
opportunity to ask the questions first.
And thank you very much, Secretary Domenech.
General Bice, I have a few questions. I am a proponent for
training programs for local workers on Guam. Training programs,
as Ms. Connelley notes in her testimony, are critical in
ensuring our local workforce has the skills needed to assist in
this buildup.
Now, to that extent, what is the Joint Guam Program Office,
in conjunction with NAVFAC, doing to ensure that local labor
forces will be utilized first before outside workers are
sought? And are local hiring requirements going to be built
into contracts released by NAVFAC?
General Bice. Thank you, Congresswoman Bordallo, for the
question.
Two elements to your question: One is the H Visa process.
As I understand it, before an H Visa is granted, there is
assertion that there is no local, able, willing, and capable
worker ready to fulfill that job; so every job fulfilled by an
H-2B Visa applicant, that there is a process we go through, and
the Guam Department of Labor goes through to determine that
there is no one locally available to fulfill that job. That is
the first thing.
The second thing is that from all the businesses that I
have been in touch with, and in our own situation for the Joint
Guam Program Office, we would rather hire locally first because
that is where expertise is.
So we are looking for local labor talent first. I know that
the businesses are doing the same. They want to hire the local
businesses and local labor to fulfill their requirements. I
think that will continue.
The question you had on the contracts. Currently, with
small businesses, especially in Guam, 40 percent of all
contracts awarded by NAVFAC-Marianas are awarded to small
businesses in Guam. That is a significant number of contracts
to go to local communities there.
So the fact that current contributing awards to small
businesses in Guam, as well as the labor hiring practices, just
from all practicality, the businesses will be looking for local
talent first before they go off island.
Ms. Bordallo. What you are saying is that the local hiring
requirements are being built into the contracts; is that
correct?
General Bice. That is correct.
Ms. Bordallo. Very good.
My second question here to you, General, you stated in your
testimony one of the approaches being considered for temporary
construction workforce housing and logistical support is to
place the responsibility for such support on the individual
construction contractors.
You further state that the Department is investigating
other methods to solve questions about workforce housing for
temporary construction workers.
I am concerned that placing the responsibility of workforce
housing on individual contractors ducks the Federal
Government's role in oversight of the well-being of individuals
supporting their projects.
Now, we have seen this acquisition strategy in Iraq and
Afghanistan fail time after time. When can we expect a final
decision on how the Department will solve the issue of
workforce housing? Moreover, if the Department decides upon a
unified housing strategy, where could we expect to see funding
for this initiative come from?
General Bice. Thank you for that question.
This is one of our most important areas when it comes to
our workforce, ensuring that particularly the H-2B Visa
workers--to assure that they are housed in a safe, secure
manner that meets all of our requirements.
Currently, there is a process in Guam today that assures
that process. I have had my staff go out with the local
Department of Labor inspectors as they go out there and inspect
the facilities in which the workers, temporary workers, H-2B
workers are living; and we are satisfied that that is a good
process. We are going to incorporate that process into our
contract.
So we will judge the capability of the contractor and that
contractor's ability for future contracts based upon their
compliance with meeting these requirements, that is, ensuring
that the workers are housed safe and secure, that they are
taken care of, and all matters of standards are being met. We
will rely on the Department of Labor to provide us those
reports.
We will also go out and spot check to make sure those
standards are upheld.
Ms. Bordallo. Would we need funding for this initiative?
General Bice. As I stated, that will be worked into the
construction cost for each project. We will work that in, and
that will be an overhead cost that will be worked into each
project that we will ask an appropriation for.
Ms. Bordallo. There is one other question, General Bice,
and this concerns me a great deal because I sit as Chair of the
Health Committee on the KPAC Caucus.
There is a concern on Guam that health facilities are
already strained. How can you address health care issues for
guest workers, and is it possible to require contractors to
provide health insurance through Guam providers to ensure that
these health needs are addressed?
General Bice. Currently, we are studying that issue at this
point. Yes, we are going to require contractors to provide
health care to their workforce. They certainly will do it for
the local job sites, first aid clinics and the like there.
What we are looking for is the third level of care. This is
care that would require outpatient clinics. So for x-rays or
blood work or lab work we are evaluating to see what solution
can be provided. Even today in Guam I have a team that is going
around and looking at potential clinics to see how we can use
those capabilities that you already have in Guam and, again,
put that into our contract overhead to provide that funding.
We are also looking at the naval hospital to see if there
is a potential solution there. We have examples around the
world where we use the existing naval hospital to provide some
level of care to workforce. It is not the ideal solution in
Guam, but it is certainly an option to be considered.
We expect to have an answer in the not-too-distant future
on which option we are going to choose there.
Ms. Bordallo. Well, what I am thinking here is, say a large
corporation comes in, wins a bid for contracting, and they
probably have their own insurance from their companies abroad.
What I am concerned about is, would they provide health
insurance through Guam providers?
General Bice. Are you talking about Guam insurance
companies?
Ms. Bordallo. That is correct.
General Bice. I don't know what they would be providing
there, but I do know that we would require them to provide
health care and/or health care insurance. Our concern is Guam
Memorial Hospital and the capacity of Guam Memorial on taking
on additional patient load. In all the briefings that I have
seen and heard from Guam Memorial, they are at max, if not over
capacity, in patient load. So what we are trying to find are
solutions to not exacerbate that problem that they have at Guam
Memorial.
So we are hooking at private clinics on Guam to see if
there are solution sets there and whether, through insurance or
direct cash payments, that medical care can be provided.
Ms. Bordallo. Could we perhaps include providing health
insurance through Guam providers as a preference?
General Bice. Could I take that question and get back to
you on that?
Ms. Bordallo. Yes. All right.
General Bice. Thank you.
Ms. Bordallo. Thank you.
I yield back my time, Madam Chair.
Mrs. Christensen. Thank you, Ms. Bordallo. You didn't leave
me many questions to ask, but I am going to start with this.
Let me start with Deputy Assistant Secretary Domenech. We
appreciate hearing that the members of the IGIA encouraged Guam
to apply for Regional Innovation Grants to develop a plan that
would anticipate labor demand and supply for the Guam region,
and that they have actually applied for some of those grants.
Since the Guam region encompasses CNMI, FSM, as well as the
Republic of Palau, were those respective governments also
consulted to get their input on the plan and how it would
benefit them and their residents?
Mr. Domenech. My understanding of how the grant process
works for the RIG grant is that that consultation is actually
part of the development of the plan. So my understanding--and
we even had an update as we walked in here to the room--is that
Guam has applied for that initial funding from the Department
of Labor; and with initial thumbs up from them--and I think
they analyze it for a month or so--hopefully, they will get the
bigger grant that will develop the regional plan. That is when
the consultation happens.
Mrs. Christensen. OK. Thank you.
You mentioned also that there were a number of challenges
in connecting the labor in these other islands with the
employers in Guam. In this regard, what efforts might the
Department or had the office been taking to eliminate some of
the difficulties in getting the individual worker from their
home island to jobs and job programs on Guam?
Mr. Domenech. That plan is essentially still in
development, but what we envision is using our representatives
out in all those islands to create the kind of database
connection with each of the local islands to connect to their
community college system and university system to facilitate,
essentially, that kind of connection.
Mrs. Christensen. Thank you.
I guess this could be both of you, and it sort of repeats a
question that Congresswoman Bordallo asked, but we just want to
be very clear on it because last year both DOD and DOI
testified before the Subcommittee that Guam's labor pool would
not be sufficient; and we passed legislation placing Guam
outside of the H-2B caps.
Throughout the legislative process we have always been
assured that Guam residents would be looked to first, and then
the U.S. Mainland and the Pacific region, prior to exercising
the authority Congress has authorized with respect to the H-2B
Visa.
So my question is just to reiterate: Can both of you
reiterate your support here today to employ residents from
Guam, the region, and the U.S. mainland, before seeking H-2B
visas?
General Bice. Yes, ma'am. The application for the H Visa
requires the local department of labor to certify that there is
no worker on Guam that is ready, willing, and able to perform
that task. We will follow that process.
Mrs. Christensen. But after you certify that there is no
one on Guam, the U.S. mainland, and the region would also come
before you and seek an H-2B Visa employee?
That is also the assurance that we want to have.
General Bice. Certainly, that the employers will look for--
if they are on Hawaii or the mainland, they will be looking to
see and making advertisements available there. But right now
there are 1,700 H-2B Visa workers on Guam today, so the process
is working to look at Guam first before they go to elsewhere to
look for an H-2B applicant.
Mr. Domenech. That would be our position as well. We
completely support the way you have described it here, Guam
labor first.
Mrs. Christensen. The U.S., the region first, U.S.
citizens, nationals?
Mr. Domenech. U.S.-eligible labor first.
Mrs. Christensen. OK. Thank you.
General Bice, a recently updated GAO report, at least last
week, continues its observation that the local infrastructure
is inadequate to meet the demand required for the buildup, and
that Guam officials remain concerned that the number of workers
needed will strain their services, such as emergency care
medical facilities, housing, and transportation.
In response to Congresswoman Bordallo, you addressed some
of the medical facility issues. Your testimony now reflects
temporary workers in the range of 25,000. That is in addition,
I think, to the number that the GAO may have looked at.
So how is the Federal Government responding to these
concerns raised by both the GAO and Guam? What role do you
expect the local government to play in responding to these new
worker numbers and the GAO concerns?
General Bice. Thank you, Madam Chair, for that question.
We will continue to coordinate with the Government of Guam,
especially the department of labor, as we look at these
requirements. Certainly, we can establish in our contracting
provisions that if there is additional need for workers, that
we ask the contractors to bring them in from off-island.
We know that Guam medical services especially are under
strain for shortages of nurses and doctors, and we do not want
to take away from Guam Memorial Hospital to staff nurses in a
clinic that we establish there. We will consult with the
Government of Guam, and if need be, we will require the
contractor to bring those medical care workers from off-island.
Mrs. Christensen. And housing?
General Bice. We will get the housing for the temporary
workers as we described. We will be monitoring that, especially
for the H-2B Visa workers, and that--we anticipate that we are
going to have to have the construction contractors to build
housing to accommodate those workers.
Mrs. Christensen. Thank you. I have no further questions.
I will recognize Ms. Bordallo if she has any questions.
Ms. Bordallo. Thank you, Madam Chairman. Just to sum up. I
found out I do not have to attend that Armed Services. I guess
we got everything through.
Secretary Domenech, we have emphasized earlier the need for
MOUs as a roadmap for the incoming administration. Is it a
priority of the IGIA to assist in this process, and is the MOU
between MARAD and the Port of Guam a good example for other
Federal agencies?
Mr. Domenech. It certainly could be.
I am not aware of any resistance to your idea of doing the
MOUs. I would, in fact, like to work with your staff to see if
we can't begin the process of detailing exactly how that would
be. I think the Secretary would be very supportive of your idea
of creating some kind of bridge to the next administration that
lays out commitments as much as we can commit to a pathway to
help Guam.
Ms. Bordallo. Yes. There is always the situation where
someone new coming in, it just wouldn't be a priority. We can't
let that happen. This is too big a thing and too many people
involved, and the anticipation and all would be just
devastating.
Mr. Domenech. We have talked with your staff before. This
Secretary, maybe more than any previous one, has been so
focused on helping the ancillary areas that now is the time to
try to get that done.
Ms. Bordallo. He has been very cooperative. I thank him
very much for that.
I have another question for General Bice.
The issue with housing and insurance for H-2B workers can
be addressed through the contracts. However, the burden for
eligible workers from the region, such as FSM and the other
Micronesia areas, will continue to be an issue. They are not
coming in on the same DOD contracts.
How are you going to handle that?
General Bice. Thanks for the question.
We will work with the Government of Guam on that to see
what requirements are needed for the housing. I know the
Governor has asked me specifically to address the H Visa
workers. His main concern was to ensure that they are
accommodated in a safe, secure manner, and they meet the
standards that we all expect people to be living in. So that
has been our focus and our efforts so far.
I will consult with the Government of Guam and the Governor
himself to see what needs to be done, if anything, to
accommodate those workers.
Ms. Bordallo. These contract workers are going to be
looking at benefits. We can't have anything unfair or we are
going to have a real problem. So I think that is an important
issue.
How will we provide funding for this?
General Bice. Well, the workers today, the H Visa workers
today get a housing allowance from the contractors, and their
housing allowance pays for their accommodations. In most cases,
they don't have to build the facility; they contract those
facilities, and that contracted facility is paid for by the
contract itself.
Ms. Bordallo. Yes, I understand that. But what about this
other category?
General Bice. I am not aware of any issue dealing with
housing for the non-H Visa workers. I am not aware of any
problems there, ma'am.
Ms. Bordallo. Well, for Micronesians, for one thing, I know
it is very important, because I know we will be getting a lot
of these people that are interested in working for the buildup.
Have you not discussed it?
General Bice. Certainly, that issue has not been brought to
my attention by the Governor, no, ma'am.
Ms. Bordallo. I think we should put that down as an issue,
because it is going to come up.
General Bice. I will discuss that with him.
Ms. Bordallo. All right.
Madam Chairman, I don't have any further questions. Thank
you very much for the time.
Mrs. Christensen. I thank Ms. Bordallo for her questions,
and I thank the witnesses for their valuable testimony and
their thoughtful answers.
Members of the Subcommittee, as I said earlier, may have
additional questions for the witnesses, and we would ask for
you to respond to these in writing. The hearing record will be
open for 10 days for these responses, as well as any additional
testimony.
Mrs. Christensen. If there is no further business before
the Subcommittee, the Chairman again thanks the members of the
Subcommittee, Ms. Bordallo, and our witnesses.
The Subcommittee stands adjourned.
[Whereupon, at 3:29 p.m., the Subcommittee was adjourned.]