[House Hearing, 112 Congress]
[From the U.S. Government Publishing Office]
LOWERING THE RATE OF UNEMPLOYMENT FOR THE NATIONAL GUARD
=======================================================================
HEARING
before the
SUBCOMMITTEE ON ECONOMIC OPPORTUNITY
of the
COMMITTEE ON VETERANS' AFFAIRS
U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED TWELFTH CONGRESS
SECOND SESSION
__________
FEBRUARY 2, 2012
__________
Serial No. 112-41
__________
Printed for the use of the Committee on Veterans' Affairs
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COMMITTEE ON VETERANS' AFFAIRS
JEFF MILLER, Florida, Chairman
CLIFF STEARNS, Florida BOB FILNER, California, Ranking
DOUG LAMBORN, Colorado CORRINE BROWN, Florida
GUS M. BILIRAKIS, Florida SILVESTRE REYES, Texas
DAVID P. ROE, Tennessee MICHAEL H. MICHAUD, Maine
MARLIN A. STUTZMAN, Indiana LINDA T. SANCHEZ, California
BILL FLORES, Texas BRUCE L. BRALEY, Iowa
BILL JOHNSON, Ohio JERRY McNERNEY, California
JEFF DENHAM, California JOE DONNELLY, Indiana
JON RUNYAN, New Jersey TIMOTHY J. WALZ, Minnesota
DAN BENISHEK, Michigan JOHN BARROW, Georgia
ANN MARIE BUERKLE, New York RUSS CARNAHAN, Missouri
TIM HUELSKAMP, Kansas
MARK E. AMODEI, Nevada
ROBERT L. TURNER, New York
Helen W. Tolar, Staff Director and Chief Counsel
SUBCOMMITTEE ON ECONOMIC OPPORTUNITY
MARLIN A. STUTZMAN, Indiana, Chairman
GUS M. BILIRAKIS, Florida BRUCE L. BRALEY, Iowa, Ranking
BILL JOHNSON, Ohio LINDA T. SANCHEZ, California
TIM HUELSKAMP, Kansas TIMOTHY J. WALZ, Minnesota
MARK E. AMODEI, Nevada
Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public
hearing records of the Committee on Veterans' Affairs are also
published in electronic form. The printed hearing record remains the
official version. Because electronic submissions are used to prepare
both printed and electronic versions of the hearing record, the process
of converting between various electronic formats may introduce
unintentional errors or omissions. Such occurrences are inherent in the
current publication process and should diminish as the process is
further refined.
C O N T E N T S
__________
February 2, 2012
Page
Lowering the Rate of Unemployment for the National Guard......... 1
OPENING STATEMENTS
Chairman Marlin A. Stutzman...................................... 1
Prepared statement of Chairman Stutzman...................... 49
Hon. Bruce L. Braley, Ranking Republican Member.................. 3
Prepared statement of Congressman Braley..................... 50
WITNESSES
Mr. Theodore (Ted) L. Daywalt, CEO and President VetJobs......... 6
Prepared statement of Mr. Daywalt............................ 50
Ms. Emily DeRocco, President The Manufacturing Institute......... 4
Prepared statement of Ms. DeRocco............................ 52
MG Terry M. Haston, Adjutant General Tennessee National Guard.... 21
Prepared statement of MG Haston.............................. 53
MG Timothy E. Orr, Adjutant General Iowa National Guard.......... 27
Prepared statement of MG Orr................................. 56
BG Margaret Washburn, Assistant Adjutant General, Indiana
National Guard................................................. 23
Prepared statement of BG Washburn............................ 54
BG Marianne Watson, Director, Manpower and Personnel, National
Guard Bureau................................................... 25
Richard (Dick) A. Rue, State Chair, Iowa Employer Support of
Guard and Reserve.............................................. 29
Prepared statement of Mr. Rue................................ 58
Mr. Ronald G. Young, Director, Family and Employer Program and
Policy, U.S. Department of Defense............................. 31
Prepared statement of Mr. Young.............................. 60
Mr. Ismael ``Junior'' Ortiz, Acting Assistant Secretary,
Veterans' Employment and Training Service, U.S. Department of
Labor.......................................................... 40
Prepared statement of Mr. Ortiz.............................. 62
SUBMISSIONS FOR THE RECORD
Reserve Officers Association of the United States and Reserve
Enlisted Association, statement................................ 67
LOWERING THE RATE OF UNEMPLOYMENT FOR THE NATIONAL GUARD
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THURSDAY, FEBRUARY 2, 2012
U.S. House of Representatives,
Committee on Veterans' Affairs,
Subcommittee on Economic Opportunity,
Washington, DC.
The Subcommittee met, pursuant to notice, at 10:23 a.m., in
Room 334, Cannon House Office Building, Hon. Marlin A. Stutzman
[Chairman of the Subcommittee] presiding.
Present: Representatives Stutzman, Bilirakis, Johnson,
Braley, and Sanchez.
OPENING STATEMENT OF CHAIRMAN MARLIN STUTZMAN
Mr. Stutzman. Good morning and welcome to the first
Subcommittee on Economic Opportunity hearing of this session.
I do apologize for the late start. Several of us Members
were at the national prayer breakfast this morning and they let
the President out early and first. And so we came second and by
the time we got through traffic, it took us some time. So I
apologize for that.
But I do want to welcome each of you here and thank you for
your patience, and welcome the Members as well.
Shortly after the end of the Vietnam War, the United States
defense policy changed to transition the National Guard and
reserves from a strategic reserve to an operational reserve.
There were several reasons for doing this ranging from the
perception that a reliance on the reserve components would
lessen the likelihood of military actions in the future to
reducing the cost of our defense forces.
Regardless of those reasons, members of the Guard and
reserves have borne a significant share of the combat since 9/
11. Clearly there are no longer weekend warriors as there once
was.
That also means that employers, especially small
businesses, have experienced labor challenges not seen since
World War II and by and large have supported their employees.
Unfortunately, active-duty call-ups combined with a bad economy
have created historically high unemployment rates among the
guard and the reserves.
Even more unfortunate, you will hear today that some
employers have used what I believe are less than ethical
tactics to terminate members of the Guard and reserves.
As the owner of a small business, I understand the
pressures on employers that the loss of a critical employee
creates. But in the end, the question I always ask is who is
making the greater sacrifice, the employer or the servicemember
who is literally going in harm's way and that member's family
who must cope with all the stresses of a deployment.
You will also hear today from the National Association of
Manufacturing about the over 600,000 manufacturing jobs going
unfilled because of skill shortages. With that kind of
information, we must ask ourselves what are we as a Nation
doing wrong.
For example, taxpayers are providing a generous GI Bill
education and training program and the Department of Education
offers numerous Title 4 financial assistance programs. In many
cases, the states are also offering generous education and
training benefits to members of their states' National Guard as
well as veterans in general.
Additionally, the recently passed Vow to Hire Heroes Act
focuses on renewing the skills of unemployed veterans between
the ages of 35 and 60 by providing up to a year of Montgomery
GI Bill benefits. Veterans also have priority access to all
Department of Labor Workforce Investment Act or WIA programs.
All of these education and benefits programs offer
opportunities to acquire skills needed by today's employers.
So where are we going wrong? Where are the gaps? And I look
forward to some concrete ideas here today to help us. I would
note that none of the government witnesses have made any
suggestions in their written testimony today.
I am pleased to see that manufacturers are increasing their
role as you will hear in today's testimony. And I believe that
increasing initiatives by the employer side of the equation is
an area that offers significant leverage in developing and
matching skills with job vacancies.
In the end, it will likely be up to employers to take
actions at the local level rather than moving jobs overseas. I
know that many companies work with community colleges to
develop skills needed in their company and I suspect that
expanding that model is an area we need to explore further.
Before I yield to the Ranking Member, as everyone knows,
the Transition Assistance Program is an integral part of
transition. In fact, I believe that every one of today's
witnesses mentions TAP in their written testimony.
In preparing for this hearing, the staff asked the
Administration for a briefing on the redesign of the TAP
Program. Unfortunately, that briefing has been delayed pending
a release of a study done for the White House.
While I commend the Administration for doing the study,
delaying its release for whatever reason does not help Congress
or the Administration to get on with revitalizing an important
program and I urge the White House to release the study as soon
as possible.
So, once again, I want to welcome each of you and thank you
for being here, and at this time will recognize the
distinguished Ranking Member, Mr. Braley, for his opening
remarks.
[The prepared statement of Hon. Stutzman appears on p. 49.]
OPENING STATEMENT OF HON. BRUCE L. BRALEY, RANKING DEMOCRATIC
MEMBER
Mr. Braley. Thanks, Mr. Chairman, and thank you for holding
this important hearing.
Because of the unique characteristics of the national guard
and how it impacts the employability of veterans who serve
their country with honor and distinction, I am very pleased
that all of our witnesses have joined us here today. I look
forward to their testimony and want to pay special attention to
two of our witnesses here today from my State of Iowa.
The first is Major General Timothy Orr who is the adjutant
general of the Iowa National Guard and has done a phenomenal
job during the period of time I have served in Congress.
So thank you for being here, General Orr.
And another good friend of mine, Dick Rue, who is the state
chair of the Iowa Employer Support of Guard and Reserve and has
had an extraordinary opportunity to see these issues up close
and personally because of the extensive deployments that our
guard has experienced in the last decade.
One of the things that Chairman Stutzman and I did to try
to get a better understanding of how these issues impact our
country is to hold two field hearings in October, one in
Waterloo, Iowa and one in Fort Wayne, Indiana. And we had great
witnesses at both of these field hearings from employers to
guard members to active-duty members who had been demobilized
and returning to the civilian workforce.
One of the things that was so important that we heard from
them is that some of those servicemembers looking for work
actually felt compelled to de-emphasize their service to their
country because of fears that employers would not want to hire
them.
I think that is a sad reality in our country but one that
deserves our special attention because a lot of that is due to
fear and misinformation. Our responsibility is to clear up that
cloud and do everything we can so that employers recognize the
unique gifts and experience that veterans bring to the
workplace.
I know that because right before I was elected to Congress
I had a legal assistant who was a veteran who served in the
Marine Corps and all the job skills that she brought to work
every day were a reflection of some of the training and
experience she had in her service to our country.
I am also extremely proud of what the State of Iowa has
done and its embrace of the Hire Our Heroes Program.
Shortly after we had our field hearing in Iowa, Mr.
Chairman, there was a hiring our heroes job fair in Des Moines,
Iowa about a month later and a lot of the things that we talk
about here were out in the open giving employers and
prospective employees the opportunity to bridge that gap and
identify those job qualities that veterans bring that are so
critical to employers who want to succeed, dependability,
reliability, critical thinking skills, problem solving skills.
And so I am very, very pleased that we are having this. The
reason why this is so important, we know that over 600,000
members of the national guard and reserve have been mobilized
since the attacks on our country on September 11th of 2001.
Nearly 15,000 members of the Iowa National Guard have served
their country at home and across the world.
And just this past summer, 2,800 members of the Iowa
National Guard returned from deployment to Afghanistan.
I think a lot of times, we spend a lot of time talking
about policy and forget about the human faces that are affected
by those policies.
For me, the importance of what brings us here today was
driven home on a very memorable Friday, the 13th when I was
stranded at the airport in Atlanta, Georgia. My flights were
getting canceled and I saw a young man wearing his red bull's
patch from the Iowa national guard watching with disappointment
as he was trying to get home to his family for a short reprieve
while serving in Afghanistan.
I walked up and introduced myself. His name was Nathan
Rose. He was from Mount Pleasant, Iowa. In his spare time, he
was trying to get an education at the University of Iowa. When
we got to talking, I learned he had been at that airport all
day long trying to get home as his flight was canceled.
When our last flight option to Iowa disappeared, I told him
I was flying to Chicago and renting a car and I invited him to
join me and he did. We had more flights canceled and it ended
up I dropped him off at his place in North Liberty, Iowa at
2:30 in the morning and then drove back to Davenport.
And I wish every Member of Congress could have had a
similar experience because we spent the whole drive from
Chicago to Iowa talking about his hopes, his dreams, and his
future. And if we have people like Nathan Rose out on our front
lines protecting us, then we have a solemn duty to them to do
everything we can by not just slapping them on the back and
telling them good job but actually helping them find a good
job.
And with that, I will yield back.
[The prepared statement of Hon. Braley appears on p. 50.]
Mr. Stutzman. Thank you, Mr. Braley.
And at this time, I want to welcome our first panel to the
table and we are looking forward to your testimony.
And with us today is Ms. Emily DeRocco and she is
representing the National Association of Manufacturers and Mr.
Ted Daywalt, CEO of VetJobs.com.
And we welcome both of you and your written testimony will
be made part of the record.
And we will start with you, Ms. DeRocco, for five minutes.
You are recognized at this time.
STATEMENTS OF EMILY DEROCCO, PRESIDENT, THE MANUFACTURING
INSTITUTE; THEODORE L. DAYWALT, CEO AND PRESIDENT, VETJOBS
STATEMENT OF EMILY DEROCCO
Ms. DeRocco. Thank you so much, Mr. Chairman and Members of
the Subcommittee, for the opportunity to join you this morning.
My name is Emily DeRocco and I am president of the
Manufacturing Institute which is the nonprofit affiliate of the
National Association of Manufacturers.
Our mission is to serve the Nation's manufacturers through
solutions and services focused on education, workforce
development, and innovation acceleration.
You know, over the past few months, manufacturing has
enjoyed something of a national spotlight, hasn't it?
Organizations all across Washington from the White House to the
Congress, thinks tanks and government agencies have been
discussing the manufacturing industry and what America must do
to maintain and grow its manufacturing base.
Well, manufacturing is certainly deserving of this
recognition because it is the industry that is truly vital to
our economic security. Manufacturing, for example, is the
leader in generating wealth from overseas, contributing 57
percent of the total value of U.S. exports.
Of course, manufacturing also plays a very vital role in
our national security, building the equipment and machines and
armor that equip and protect our servicemen and women around
the world.
The American public understands how important manufacturing
is to our country. Each year, we conduct a public perception
survey to understand how Americans feel about manufacturing
jobs and careers.
Not only do they believe that manufacturing is critical to
our economic and national security, but when given a choice of
what industry they would like to create 1,000 new jobs in their
community, their number one choice is manufacturing.
But while manufacturing enjoys the support of policymakers
and the public, our manufacturing companies face a serious
challenge. They are unable to find workers with the right
education and skills to contribute to their operations.
In a survey that we just completed at the end of last year,
over 80 percent of manufacturers reported a moderate to serious
skill shortage in skilled production, 80 percent. Nearly 75
percent of manufacturers say that this shortage has negatively
impacted their ability to expand operations. That means create
the jobs that our country so desperately needs.
Perhaps most alarming, though, is that because much of the
current workforce is quickly approaching retirement, over two-
thirds of manufacturers expect this situation to get worse in
the next three to 5 years.
So this has led to the situation that the chairman
referenced where 5 percent of all jobs in manufacturing are
unfilled because companies cannot find the qualified workers.
In real terms, that translates to 600,000 unfilled jobs.
So those are some frightening results and make clear the
threat that a lack of a skilled workforce poses to
manufacturers.
At the same time, it is widely accepted that the skills
obtained in the military from personal effectiveness attributes
such as integrity and professionalism to more technically
defined skills such as process design and development are in
abundance among separating military personnel.
However, it has traditionally been a real challenge to
directly align the skills developed during military service to
the skill requirements in the private sector.
In addition, we found that the services offered through the
transition assistance programs vary base by base, command by
command. And traditionally the military has focused more on
retention than on helping individuals transition out. Those
times have changed, but that means we have two problems.
The Transition Assistance Program has been inconsistent and
often outdated in its attempt to help transitioning military
personnel. At the same time, manufacturers want access to those
highly skilled potential members of our workforce.
Fortunately we now have a new system that will help with
both of these challenges. The Manufacturing Institute has
created with a company called Futures an on-line platform that
is called the U.S. manufacturing pipeline.
It will provide the information for separating military to
learn about careers and jobs available in advanced
manufacturing. It will locate the schools, the community
colleges that can fill any educational skills gaps that they
might have and it will find all available jobs and
manufacturers in every region of this country. For
manufacturers it will be the single place to find the skilled
workers they need to close the skills gap.
The pipeline platform has been up and running for a very
short period of time, just a couple of months, and no
significant marketing campaign has been conducted. Over 35,000
servicemen and women are now using their site for their career
and employment exploration. This is entirely through peer to
peer and viral marketing. But that number is set to increase
dramatically.
We understand the Defense Department is preparing a major
marketing campaign to reach over one million armed forces,
reserve and national guard personnel and encourage them to sign
up in the Heroes to Hire Program.
Our U.S. manufacturing pipeline and the Heroes to Hire
platform are being integrated and our manufacturers will have
access to all of those returning reserve and guard. And this is
fantastic news.
Assuming we are successful with this group of servicemen,
we look forward very quickly to working with the transition
assistance programs for each of the services to reach all
active-duty personnel who are nearing their transition date
offering manufacturing jobs as an immediate career opportunity
for all men and women who have served in uniform.
I am very excited about the fact that we are very close to
having the national talent solution for manufacturing in this
country. Our manufacturers need the skilled workforce to
compete. Our separating military need good jobs and our country
needs manufacturing to ensure this is another great American
century.
Thank you and I look forward to your questions.
[The prepared statement of Emily DeRocco appears on p. 52.]
Mr. Stutzman. Thank you very much.
Mr. Daywalt, we will recognize you for 5 minutes.
STATEMENT OF THEODORE L. DAYWALT
Mr. Daywalt. Good morning, Chairman, Members and staff of
the Subcommittee.
Allow me to start by saying I am a very strong proponent of
an operational national guard and reserve. Having an
operational national guard and reserve makes the United States
strong on the international stage, but the use of the national
guard needs to be done in such a way so as to permit the
component members to maintain a continuum of civilian
employment so they can support their families.
The data I see indicates a rise in the unemployment veteran
rate is a direct result of a DoD call-up policy implemented in
January of 2007. The call-up policy which has resulted in
multiple call-ups for many component members has caused many
employers to not want to hire members of the national guard
which has led to the high unemployment rate in young veterans.
The military and by extension the national guard is a young
person's occupation. Studies by the Society of Human Resource
Management and Workforce Management indicate that due to the
perceived constant activation in the national guard upwards of
65 percent of employers will not now hire as a new employee an
active member of the national guard.
At VetJobs, we find that if a veteran has totally separated
from the military, retired, or is a wounded warrior, they are
for the most part finding employment, but that conclusion is
supported in the BLS charts in my written testimony.
Now, this is not to say some veterans transitioning off
active duty are not having difficulties in this tough economy.
One can always find an exception. But with an overall
unemployment rate of only 7.7 percent in December, it is
obvious that most veterans are finding jobs.
What concerns me greatly is as DoD downsizes the active-
duty forces, the younger members of the national guard will be
facing another problem, competing with the downsized military
personnel for civilian jobs.
Put yourself in the position of an employer. A
transitioning veteran applies to your company. They have all
the skill sets you want. They have the training you want and
they have no further obligation to the military. You have a
great candidate that will work for your company full time.
You also have a candidate from the national guard who has
the same skill sets, but you have been reading in the press
that the national guard candidate may get called up. The
national guard candidate will also want time off so they can
attend military schools which are a part of their continuum of
military service. And the national guard candidate may be
subject to short call-ups by the state governor to handle state
emergencies.
As a civilian employer, who are you going to hire?
Obviously the candidate who has no further military
obligations. Understand that when it comes to a workforce,
employers are risk averse.
I predict and I fear that the bottom line for the young
veteran unemployment which has been hovering in the low to mid
30 percent range throughout the latter half of 2011 may go as
high as 50 percent if nothing is done to alleviate this
situation.
Now, I would like to make it real clear that the only way
that we can be absolutely certain about the conclusions I drew
in my written testimony is to have BLS to ask follow-up
questions as to whether a military respondent is in the
national guard and the reserve or whatever. They just dump them
all into one pot.
To be honest, if I had been on active duty faced with the
same challenges our leaders at DoD faced during the war, I
would have probably made the same decisions, but I would have
admitted that it is causing issues and I would have worked to
alleviate some of the problems rather than just ignore them or
pretend that they do not exist.
When at war, needing troops, irrespective of the source,
trumps personal problems. The old adage that the needs of the
service comes first is well known by all military.
From a business point of view, one must understand that
companies have a fiduciary responsibility to their shareholders
to run an efficient and profitable operation, but they cannot
do that if they cannot count on the ability of their most vital
asset, their human capital.
While for a businessperson this is common sense, those
making the decisions as to how to utilize the national guard
seem to have missed what corporate America is saying about
extended call-ups. They will not support having their employees
gone for long periods of time.
I am very glad that we are now at the point where many,
although not all, key decision makers recognize that there is a
problem. We cannot go back and correct the past, but we can
move forward and work together to fix the problems.
Our military personnel are the best in the world and
civilian employers recognize that and want their skills, their
security clearances, their leadership and everything that a
military candidate brings to the companies. For the most part,
the military candidate is in demand so long as the employer can
count on having the employee available.
While there is no silver bullet for solving the
unemployment problem in the national guard, a combination of
policy changes and utilizing existing public sector resources
will go a long way towards assisting those members in the
national guard who need employment assistance.
In my written testimony, I review 11 ideas that may help
improve the unemployment problem facing the national guard.
Businesspeople understand that without a strong military,
their businesses could not exist as a foreign power would want
to take their business. The United States had to learn this the
hard way in the 1930s when we disarmed post World War I.
Those who will not protect what they have are subject to
losing what they have and as the Latin phrase si vis pacem,
para bellum so aptly points out to have peace, prepare for war.
A more balanced way to utilize the national guard needs to
be found.
Thank you for your time, Chairman.
[The prepared statement of Theodore L. Daywalt appears on
p. 50.]
Mr. Stutzman. Thank you.
I found some very interesting points in both of your
testimony and I will begin the questioning.
Both of you mentioned the soft skills, integrity, character
traits that our men and women learn in the military.
I think that is an easier sell to employers, but if
employers are looking for hard skills for manufacturing, what
are they looking for exactly?
I mean, first of all, we know the type of character that
our men and women do have once they served in the military, of
course, but what about some of the hard skills and the type of
manufacturing that employers might be looking for particularly?
Ms. DeRocco. Manufacturers, as I am sure all Members of the
Subcommittee realize, have been evolving over the course of the
last 10 or 15 years as they have gone lean to be competitive in
the global marketplace and, quite frankly, infused significant
technology in their business processes. All of this has been to
the benefit of the manufacturers and their competitiveness.
But also at a time when a significant number of low skill
routinized jobs moved off our shores, there was, in fact, a 12
percent increase in the number of jobs requiring a more highly
educated and skilled workforce necessary for the value added
manufacturing we do in the U.S. today. That meant that there
was a disconnect in what the educational system and the
workforce system were delivering to manufacturers.
We have spent the last 3 years at the institute actually
creating and deploying a system of nationally portable industry
recognized credentials that validate the learning standards and
learning content in high-end production technicians, machining,
precision machining and metal forming, welding and technology
skills that are required in every manufacturing job across 14
sectors in our manufacturing economy.
These skill sets are now being deployed in curriculum in
community colleges in 36 states across the country; Indiana and
Iowa being among the leaders in that regard.
On the U.S. Manufacturing Pipeline, the returning reserve
and guard and ultimately active duty military personnel can
translate the skills they have learned in their MOS to the
requirements in the civilian manufacturing labor force.
Whatever gaps they have in those hard technical skills can be
quickly filled now in community college programs of study,
whether the soldier, sailor, airman or marine is working to get
a degree or simply to have the skills and the industry
credentials that will be their immediate passport to
employment.
So, yes, the soft skills are critically important and,
quite frankly, manufacturers are first up at the table to say
we want the separating military personnel because they come
with that work ethic and discipline.
But we are prepared as a Nation now to fill any gaps in
their training to assure that the hard technical skills that
will position them for great jobs in advanced manufacturing,
whether it is in energy or automotive, aerospace or biopharma,
are on their portfolio.
Mr. Stutzman. Okay. Thank you.
Mr. Daywalt, I would ask you if you could describe in
greater detail situations that you have heard about where an
employer lays off a national guardsman under the guise of
economic hardship before they have orders in hand to deploy as
a way around USERRA. You have heard of those situations. Could
you describe that a little bit further?
Mr. Daywalt. Yes, sir. We more than hear about it. We are
the recipient. Every time people get laid off, they call
VetJobs. I will give you an example.
One, Monday, Tuesday, and Wednesday, we had 20 phone calls
from South Carolina. All 20 of them had just been released from
their civilian employers. All 20 just happened to be in the
national guard. And, oh, by the way, on Friday, they announced
that the South Carolina brigade was going to be called up.
Several of the brigades that have come--and understand that
these people are not coming back with unemployment rates high.
You know, right now over there, the Minnesota brigade has 28
percent. Supposedly the Oklahoma brigade has 68 percent
unemployment. They left with those unemployment rates because
people figured out how to get around USERRA. And that is not
right.
Now, the problem is what do you do about. If you make it a
law that as soon as someone--it is announced that they are
called up, nobody will ever hire a member of the national
guard. We have to find a balance in there some place. You have
to give the employers more incentives to want to hire the
person because right now they are seeing them more as a legal
and financial liability than they are as a productive part of
their workforce because of the constant call-ups.
The rules on the employers got changed and they were not
consulted. And a lot of them are kind of upset. You know, you
talk to the vice president or president of Conway Trucking. He
is very vocal about it as well as some others. It happens. It
is unfortunate, but it does happen.
Mr. Stutzman. He is very vocal about other companies that
are----
Mr. Daywalt. Well, he is very vocal about, you know, his
people being called up multiple times and what it is costing
him. He was on a 60 minutes program and talked about how it is
costing their company nearly a half a million dollars to
support their national guards people and they are not being
reimbursed by the government for when that person is taken
away.
Mr. Stutzman. Yes.
Mr. Daywalt. He put it real well in the interview. If you
are going to take my employees away for 30 percent of the time,
cover the 30 percent of my medical cost. You know, they are
businesspeople.
Mr. Stutzman. Yes.
Mr. Daywalt. And they want to support, but they cannot go
broke doing it.
Mr. Stutzman. Right. Right.
Mr. Daywalt. And that is why they target the national guard
more than the reserve and the regulars because the national
guard is also used locally. What we see as a general rule is
that if you are totally separated, you have totally left the
military, you are not having a problem.
Now, some do. They have bad attitudes. You know, I had a
chief that was an ammunition handler living in central Florida
and he was complaining that he could not find in central
Florida an ammunition handling job. And I told him, hey, you
are in the wrong state.
But, you know, for the most part, if they look, there are
jobs out there for them. And that is borne out by the fact that
the unemployment rate is only 7.7 percent last month.
Mr. Stutzman. All right. Thank you.
Mr. Braley.
Mr. Braley. Mr. Daywalt, let's get to that example you just
raised. If the president of this trucking company is concerned
about the government picking up 30 percent of his medical cost,
isn't the smarter answer to require health insurers who have no
insurable risk when somebody is on active-duty employment and
the government is paying for their health care to rebate that
percentage of the premium?
Mr. Daywalt. That is a possibility. I kind of liked what
Lieutenant General Jack Stultz proposed once, that so long as
someone is in the national guard or in the reserve, you give
them and their family complete coverage medically.
Now, this gives the candidate a great bonus to go into an
employer and say ``by the way, you know, 35 percent of your
cost of hiring me is your medical cost, you do not have to pay
that on me.'' It is paid for because I am in the national
guard. That would help.
It is little things like that coupled with other things
that would help. But you are right.
Mr. Braley. No. And I think that is a great solution, too.
But my point is when you hear complaints like this, we cannot
just accept them at face value without pulling the layer back
and looking at the real world solutions because you know that
if that person is on active deployment, there is no longer an
insurable risk to that employer.
Mr. Daywalt. That is right, but there is for the family.
Mr. Braley. So I think we can solve a lot of these
problems, but we have to put our heads together. We have to
work across party lines and come up with practical solutions to
address the concerns that employers raise.
And, Ms. DeRocco, you know, you are preaching to the choir
because as chairman of the Populist Caucus which was founded to
promote economic policies that are going to strengthen and
expand access to the middle class, one of our principal focuses
is on developing a robust national manufacturing strategy to
address a huge problem which is in the past decade, we have
lost 54,000 manufacturers in this country.
Just last week, the National Science Board reported that we
have lost a quarter of our high-tech manufacturers in the last
decade.
Mr. Stutzman and I both come from rural America. I went to
a small high school. I took 4 years of high school shop classes
and all those job skills you described are things I learned in
high school and, yet, you look at the impact our education
policy has on all these issues, most students in small schools
do not even have access to those programs anymore.
And you mentioned the community college system. A lot of
times, that is now an entry point for people to get the skills
that you have described are desperately needed in manufacturing
today and, yet, I think we do a really poor job when we talk
about the importance of education and its relationship to your
lifetime earning capacity which nobody argues with, but helping
prepare people for good paying jobs that are blue collar jobs
many times, but they have much different technical skills
required than when I graduated from high school right after the
Vietnam War ended and you could walk out of my high school,
drive an hour to John Deere in Waterloo and get a job in a
factory, drive 30 minutes to Maytag and Newton and get a job
and drive 30 minutes to Amana Refrigeration and get a job
without any trouble.
And that is not the world these veterans are returning to.
So how do we solve their problem?
Ms. DeRocco. That is true. And I just want to comment that
we are changing the educational pathways in this country to
present from high school to community colleges the opportunity
to gain the academic and applied skills that will position them
for middle class jobs across our economy. That is our whole
intention and that is going to be critical to keeping and
growing manufacturing in this country.
And I very much appreciate the practical solution you have
suggested in response to Ted's anecdote. I have to say in my
prior position, spending 7 years at the U.S. Department of
Labor as the assistant secretary of employment and training
responsible for that workforce investment system, dealing with
employers across all sectors in our economy, and now after 4
years of representing manufacturers who I believe are among the
life blood of this country and among the most patriotic
individuals I have ever had the pleasure and honor of working
for, there is a total disconnect between the way we transition
our military men and women, whether they are reserve, guard or
active duty, out of the military and into civilian jobs.
This is not rocket science and it makes no sense that we
have not been able to make direct connections from the
extraordinary training in the military, the well-defined MOSs,
to a translation to a civilian credential, whether it is in
health care, information technology, manufacturing, or other
sectors, so that they have immediate employment opportunities.
Employers want these people first. I had the former
president of ABC representing construction management firms
across the country call me not 6 months ago and he said he
voluntarily identified with major construction contractors
across America over 1,000 jobs ready to be filled because his
personal mission was to make sure returning veterans had jobs.
He had been able through the systems we have in place, the
workforce investment system, the veterans' employment and
training system, the Transition Assistance Program, he had been
able to find two veterans looking for a job. That is tragic
and, quite frankly, ridiculous.
So industry, in the case of manufacturing, is taking it
upon itself to build the platform that can directly connect
these military men and women top jobs through their e-resume.
They are all online. They all have laptops.
My daughter just returned from Iraq. She had a laptop in
the sands of Iraq. They can put their e-resume online and they
can position themselves for where the jobs are, what their MOS
prepares them for, what civilian credential they could get
immediately with an assessment, and where they could get
employed.
We have to make those connections, and employers are
stepping up to the plate to do it. But the military has to,
too. The rest of the Federal agencies in support of the
military have to and, quite frankly, our surround services like
the insurance companies do as well.
Mr. Braley. I yield back, Mr. Chairman.
Mr. Stutzman. Mr. Johnson, you are recognized.
Mr. Johnson. Ms. DeRocco, you said that TAP is inconsistent
and often outdated. What in your opinion needs to change to
make TAP effective and where can your members help?
Ms. DeRocco. I think it has to be directly on point to
industry, jobs, and careers of today, the 21st century. We have
to provide career awareness and recruitment information to
military men and women regardless of where they are and we have
the capability to do that online.
Industry employment opportunities have to be directly
aligned to the MOS and training that these young men and women
are receiving in the military so that there is an easy,
immediate translation of their MOS prior to their separation to
the jobs available.
They need to be able to search our jobs by zip code to the
place which they want to muster out or to their home territory.
Where do they want to live? What does the job picture look like
there? What skills do I have now that position me for immediate
employment?
And if I need other skills, we are going to connect them
directly to the community college that is going to provide that
for them. So they need the pathways from military to education
to careers and it has to be done on an accelerated basis.
Mr. Johnson. Sure. Another question just popped in my mind.
Do you find merit in the idea that, you know, there are many,
many jobs in the manufacturing sector that require specialized
certifications?
A lot of our veterans come out of the military with
training that far exceeds most certification programs, yet when
they enter the workforce, because they do not have a piece of
paper, they have to go back through that burdensome, onerous
certification process from scratch.
Don't you think we need to build a bridge on those
certification processes so our veterans who are highly skilled
and trained are ready to go to work the day they show up?
Ms. DeRocco. Absolutely. And that is exactly what we are
doing in manufacturing. Our credentials or certifications--for
those who are not intimately familiar with them--are built on
industry's learning standards and content and then you take an
assessment----
Mr. Johnson. Sure.
Ms. Derocco [continuing]. A proficiency assessment. It is
most like a two-part assessment, the theory and the
performance.
Mr. Johnson. Yeah.
Ms. DeRocco. We should now absolutely provide the
assessment online for them to use their military experience and
knowledge to see if they assess to the credential wherever they
are and receive it before they ever set foot back home.
Mr. Johnson. Are you feeding that information to the
Department of Defense?
You know, I am retired Air Force and I cannot speak for
them, but having served in that culture, I was an instructor in
what used to be air training command, now air education and
training command, there was an impetus, there was a
certification awareness as we went through our training for
very specialized skills.
Are you engaged, is your industry engaged with the DoD? Do
you get those certifications at the time the training is
accomplished?
Ms. DeRocco. Absolutely. We have had dozens of meetings
with the individual services, with DoD, and with the White
House, quite frankly. Part of our problem seems to be that no
one just makes the decision to do it. So I might have connected
this morning----
Mr. Johnson. That is too common sensical and you know there
is not an abundance of that here in Washington.
Ms. DeRocco. Yeah. Well, it is a difficult maze for
industry too----
Mr. Johnson. Well, we would like to help with that.
Ms. DeRocco. We would love your help. Thank you.
Mr. Johnson. So to the extent that we can, we would like to
help.
You know, having come through, I have worked in
manufacturing in the private sector, and I know that training
is a large part of their gearing up process when they bring on
new employees.
What is the temperature within the industry as far as
helping to fund some of this training for veterans? Do you
think employers are willing to do that in those cases where
maybe a certification process does not exist or it is not
required but specialized training still is? Do you think
employers are willing to do that?
Ms. DeRocco. Absolutely. Most of our employers have tuition
assistance programs and partnerships particularly with their
community colleges. And I think those arrangements can quite
readily be made.
Just as an example, we rolled out in Minneapolis this fall
an accelerated 16-week college program followed by a required
paid internship program for 8 weeks that would lead to instant
employment. And we wondered, are the employers going to line up
with the paid internship----
Mr. Johnson. Sure.
Mr. Derocco [continuing]. If they are able to get these
skilled workers. At all three campuses of both colleges, they
are over-enrolled in students and the employers are lined up
with the paid internships. So I think they are ready to help.
Mr. Johnson. I was going to ask you a question about
offering TAP classes to all veterans, you know, on a voluntary
basis. Having come from the military myself, you know, we
learned to follow instructions on day one. But when you make
anything voluntary, you are basically asking them not to show
up.
It was never voluntary to run the mile and a half. It was
never voluntary to do the required number of situps and
pushups. For their own benefit and the benefits of their
families, I do not think we should make it voluntary for our
active-duty servicemembers to go to the TAP Program because I
think it is such tremendous benefit to them coming out.
I might have other questions. Thanks for giving me
additional time, Mr. Chairman.
Mr. Stutzman. Thank you.
Ms. Sanchez.
Ms. Sanchez. Thank you, Mr. Chairman.
I am going to start with Mr. Daywalt. You offered many
suggestions in your written testimony to improve the national
guard unemployment rate. And I want to sort of focus in on this
large group of national guardsmen who are a group in need of
trying to find ways to help them overcome some of these hurdles
to employment.
I want to focus on a subset of that group which is actually
female veterans because I think they may experience some unique
possibilities of overcoming additional obstacles other than the
fact that they are simply national guard, serving in the
National Guard.
And I want to talk specifically about the fact that this
age group tends to be a group that may include mothers or
future mothers. And sometimes that in and of itself is a
barrier to employment for women.
Do you think it is reasonable to suggest that a young
female National Guard member may face even greater obstacles
when attempting to find a job because of those two factors
combined?
Mr. Daywalt. On a case-by-case basis, yes, they probably
have more things that they have to face. To what Ms. DeRocco
was saying about a platform, a system that matches people up,
that already exists out there. You have over 20 military
employment sites, job boards, VetJobs. You have military hire
and you have corporate gray and a whole bunch of others that
already do that. It is in the civilian sector.
And there are job boards out there just for women. And the
civilian sector, the private sector identifies the need pretty
fast and they can move quick. And many of us identified the
fact that the people are not getting help when they needed it
when they came out. Many have said that TAP is broken and I
will let others make that decision. But that is VetJobs is
there.
And to the women, especially if it is a single mother, you
know, maybe it is because I am an old fart, but I just cannot
imagine being a single mother, being in the guard, trying to
get a job, and raising a child or two or three children all at
the same time. I mean, my hat goes off to them. But----
Ms. Sanchez. Well, I have to tell you I am the mother of a
2\1/2\ year old and I travel bi-coastally with my son to do
this job which is more than a, you know, 40 hour a week job.
And I have a respect for single mothers who do that. I think
that they are superwomen----
Mr. Daywalt. Oh, yes, they are.
Ms. Sanchez [continuing]. In every sense of the word. But
what I am trying to focus in on, and this is something that
kind of gets lost in the shuffle, you talked about the higher
unemployment rate for National Guard members than the general
unemployment rate in many of these states.
And I am wondering if there has been an effort to try to
extrapolate what that rate might be based on gender because I
suspect, and this is just a suspicion on my part, that for
young female National Guard members, that unemployment rate is
probably even higher than it is for the general guard member
population.
Mr. Daywalt. About 2 weeks ago, I remember seeing a press
article that addressed that and it did say, and I am sure they
got the information from BLS, that female veterans have a
higher unemployment than male veterans.
Ms. Sanchez. Right. And I suspect because they face these
additional obstacles.
And the reason why I mention that is in my home State of
California, there was a bill that passed in 2004 which would
essentially create a voucher system by which child care
vouchers would be available to veterans seeking employment and
it would be a way to try to help ease the cost of child care
and, you know, provide that.
And we are, you know, budgetly challenged in California, so
the funding has not necessarily been there. But, thinking of
these practical solutions, and it seems to me that that type of
concept of helping with some of those barriers to employment
such as reliable and affordable child care, might be something
that we could do to reduce that.
Mr. Daywalt. When I get on the phone and counsel with a
single mother, I generally try to point them to more forward
thinking companies that are labeled as an employer of choice.
And that is something that the Herman Group puts out.
One thing that is in there is--and it is a fact that so
many companies now do offer child care on the premises in order
to bring qualified employees. And that is a smart employer that
does that and we try to steer them towards some of the
companies that do stuff like that.
The trouble is that it is not always apparent who offers
that and who does not. And that is where VetJobs and some of
the other military sites become the intermediary because we
know these companies.
And someone comes to me and I would say, you know, you
would really do well at UPS. You know, they need secretaries or
they need this or they need a manager. And, by the way, they
have child care on the premises. A lot of the hospitals, a lot
of health care have gone to that. It is the only way they can
draw nurses and the health care people that they need. They
start offering child care and that is an ideal spot. But they
do not always know that that is out there.
Ms. Sanchez. Right.
Mr. Daywalt. So that is where we come in and try to----
Ms. Sanchez. And my suspicion would be that employers who
would offer that generally are of a certain size and many small
businesses are excluded from that because it is very----
Mr. Daywalt. Very difficult for companies under 150, oh,
yeah, very difficult.
Ms. Sanchez [continuing]. Expensive. If the chairman will
indulge me for just one last quick question.
Ms. DeRocco, you mentioned continuing efforts to partner
with community colleges to help get the skills that veterans
need in order to go into the skilled manufacturing sector.
The district that I represent is very working class, urban.
And one of the things is they would like to get those skills,
but the cost is a barrier for them. And so I am intrigued when
you talked about the paid internships and I am sort of
envisioning something where employers who have a need for
skilled employees who have the soft skills of reliability and
folks that will do what they are told.
Is it crazy to think that maybe there might be some kind of
way to structure something that is almost like an
apprenticeship system where employers would sort of finance the
acquiring of those skills and they would be working in the
meantime while they are trying to complete those programs?
Ms. DeRocco. Very insightful. A couple of points. One, we
actually are beginning with Laney College in the Bay area of
California with the integration of these educational pathways
that are competency-based pathways to jobs in manufacturing
because of the high concentration of small machining companies
in that area which will offer extraordinary jobs.
We spend about $18 billion a year in this country on
workforce investment, workforce development, another $800
billion in public education. What we are doing is actually just
directing a very small percentage of those funds to building
the educational pathways in high school and community colleges
that result in credentials that have value in the workplace and
labor market.
So to date, there has never been a question about money
available to have the educational pathways in place. All
Federal aid programs cover any cost associated with the
individual credentials.
And in every instance, employers are driving the
educational reform by being full partners as faculty,
curriculum development advisors, paid internships, mentors, and
even the equipment and requirements for the educational pathway
to be successful.
So, yes, we are highly encouraging much stronger business-
education partnerships. Actually, it is the only way we are
going to change education in this country.
Ms. Sanchez. Great. Thank you.
And I thank the chairman.
Mr. Stutzman. Mr. Bilirakis.
Mr. Bilirakis. Thank you, Mr. Chairman. I appreciate it.
Thanks for calling this very important hearing. Thanks for
making this issue of hiring veterans a top priority of this
committee. Appreciate it very much.
Ms. DeRocco, I have a couple questions. What type of
relationship do nonmembers typically have with the local
workforce investment boards and DVOP and LVERs in particular
whose entire job is to match local veterans with openings in
your member companies?
Ms. DeRocco. I am actually really sorry to say having been
inside government and responsible for the WIA system that most
employers have not seen the value proposition of engaging with
the workforce investment system. It has not been focused on
skills and jobs on demand. It has not engaged active employers
in the way I think it was envisioned in the original
legislation.
It is now up for reauthorization. Perhaps that can be
fixed. And as a result, we could fix their service delivery
system which is those one-stop career centers around the
country, where the DVOPs and LVERs actually sit. The system is
just not something that most employers engage in.
We have a disconnect between the employing part of our
market and the workforce development part of the market in
communities all across this country.
Mr. Bilirakis. We have to work on fixing that. I look
forward to working with you on that.
Have you had any conversations with Veterans' Employment
and Training Services about having them advertise the U.S.
manufacturing pipeline?
Ms. DeRocco. Not to date. We will, however. In Minneapolis
which is one of our test sites for the Accelerated Fast Track
Program to credentials, we have engaged the workforce system
there as a strong partner. We wanted to see if that worked.
We also tested U.S. Manufacturing Pipeline in credentialing
with the national career readiness certificate at Fort Bragg.
And the community college, the workforce system, and the Fort
Bragg command all were helpful.
So this is our process, unfortunately, of taking it on
local area by local area, command by command to get the strong
partnership in place. If we could get some momentum behind that
nationally, it would go much more quickly.
And I do know the Federal agencies responsible, but I
believe we are getting faster action working on the ground
right now.
Mr. Bilirakis. A third question and this will be my final
question until the next round, but have you been participating
in these jobs fairs? I am having one partnering with the U.S.
Chamber of Commerce this month in my district.
Ms. DeRocco. We are. We actually alert our manufacturers
about every job fair that we are made aware of so that they
have the opportunity to participate. We had a lot at the recent
Iowa job fair, I know, because I got reports back of hires.
Mr. Bilirakis. Have they been successful with the
manufacturers hiring?
Ms. DeRocco. Yes. Job fairs like job boards, there are lots
and lots and lots of them. So I think it is an individual
decision on the part of the manufacturer, the extent to which
that is how they are going to recruit and find personnel.
We actually think we found a faster track that will change
their recruitment and hiring strategies because they can do it
directly aligned to their HR database and have a single source
to go to to find our returning reserve, guard, and active duty.
Mr. Bilirakis. Thank you very much. I yield back, Mr.
Chairman.
Mr. Stutzman. Okay. Thank you.
I just have a couple of quick follow-up questions. Ms.
DeRocco, how many members do you have in your association and
do any of them offer any TAP programs of any sort on their own?
Ms. DeRocco. There are about 12,000 members of the National
Association of Manufacturers. The institute serves both NAM
members and all manufacturers in the U.S. There are 286,000
manufacturing enterprises representing 12 million employees.
And, yes, many members like GE, I would cite, have really
extraordinary internal programs to recruit and train former
military. GE focuses particularly in the officer corps,
recruiting officers for a lifetime career if they so choose in
the many divisions of the global giant GE.
But it is, as I think Congresswoman Sanchez mentioned, this
is easier for large companies to have that kind of internal HR
strategies that are directly filling gaps in employment and
training for the military. For the large number of our members
and for manufacturers, these are small to mid cap companies.
And we felt strongly that we needed a national HR strategy,
like the U.S. Manufacturing Pipeline and the most critical part
of that to get on the ground immediately was targeted
recruitment of our military.
Mr. Stutzman. And could you describe the 600,000 jobs
roughly, can you describe what kind of jobs are those and what
type of training, education levels would be needed for those
jobs? I know it is a broad question.
Ms. DeRocco. The vast majority of those jobs are in what we
call skilled production. And the high demand jobs in skilled
production are primarily in precision machining, metal forming,
high-end welding or materials joining as it is now called, and
integrated systems technology that drives production systems.
So they are high skilled and using high-end technology in large
measure.
Mr. Stutzman. So most of those jobs would need more than
just a high school education?
Ms. DeRocco. Absolutely. Over three-quarters of jobs in
manufacturing and, quite frankly, according to BLS, this
translates across the economy to 75 percent of the jobs in the
21st century economy require some post secondary education, not
necessarily a 4-year degree, which is why we have channeled our
efforts to the 2-year community college programs.
Mr. Stutzman. Okay. Thank you.
Do any other Members have any other questions?
Mr. Braley. Well, Mr. Chairman, I just want to put a human
face on the superwomen that my friend from California was
talking about.
I did a higher education forum at the University of
Northern Iowa and one of our witnesses was this young woman who
was a member of the Iowa National Guard. She is attending
Hawkeye Community College to get her 2-year AA degree. She
plans to go on to the University of Iowa to get her medical
degree and become a pediatrician.
And these are the faces of the people we are talking about
today.
Ms. DeRocco. So if we could convince her to go into
Hawkeye's manufacturing programs, she could then get her
engineering degree because these are pathways to engineering
programs. But congratulations. We love those faces.
Mr. Stutzman. Mr. Johnson.
Mr. Johnson. I do have one follow-on question. You know, I
made the transition from active duty then as a small business
owner myself and then into corporate America as an executive.
And a global manufacturing firm took a chance on me and they
confessed later that they did take a chance because there was
some trepidation by the executive leadership team.
Military, I mean, we are talking here about skills,
manufacturing skills, but there are, you know, military
officers that come off of active duty. They need a place to go
to work also.
Ms. DeRocco. Absolutely.
Mr. Johnson. And I think there is a perception in corporate
America that retired military officers step out with a
discipline, a mission focus, and it can be intimidating to some
people the ability to produce results, to make decisions, to
want to see things get accomplished.
How do we encourage the manufacturing community to embrace
that kind of ``let's get the ball rolling'' and ``let's do
something and not talk about something forever?'' You know what
I am saying? Am I clear?
Ms. DeRocco. Yes. In several regards, let me say I think we
are the only industry sector which has actually been doing it.
We have boots on the ground in 36 States building educational
programs for these jobs and we are answering that call.
Secondly, I am just so surprised to hear what you said
because the attributes you articulated are exactly what I hear
manufacturing executives say are the number one attributes of
the employees they seek and that, in this global economy, it is
exactly those capabilities that are going to be their
comparative and competitive advantage to continue to win.
So manufacturers have been under siege as globalization has
had its impacts broadly. They have leaned their business. They
have infused technology. They have met every challenge. And
today their challenge is the leadership with exactly those
attributes. I think it is a match made in heaven.
Mr. Johnson. Yes. Well, I do, too. And let me be clear. I
did not mean the CEOs and the boards. But if you are sitting on
the executive team----
Ms. DeRocco. Uh-huh.
Mr. Johnson [continuing]. And you hire a new executive team
member and all of a sudden, you see him screaming by you
because he is getting things done, that can create a friction
within a corporation that takes a while to settle down because
our retired veterans, they are about results and they are
committed. They are dedicated. They are there on time. They
stay late. They have the people skills and the leadership
skills.
There is no training ground in the world----
Ms. DeRocco. That is better.
Mr. Johnson [continuing]. Like our military for producing
those kinds of skill sets. And some people are intimidated by
that.
Ms. DeRocco. Let's bring it on. I think that is our
competitive advantage.
Mr. Johnson. I am with you.
Mr. Stutzman. Any further questions?
[No response.]
Mr. Stutzman. Mr. Daywalt and Ms. DeRocco, thank you very
much for your testimony, for what you do as well, and I look
forward to working with you in the future. So you are
dismissed.
And at this time, I want to welcome to the table our second
panel. And this panel is composed of Adjutant General of the
Tennessee National Guard, Major General Terry Haston; the
Adjutant General of the Iowa National Guard, Major General
Timothy Orr; the Assistant Adjutant General of the Indiana
National Guard, Brigadier General Margaret Washburn; and also
we have Brigadier General Marianne Watson from the National
Guard Bureau; Mr. Dick Rue from the Iowa Committee of the
Employer Support of Guard and Reserve; and, finally, Mr. Ronald
Young, the director of the Family and Employer Program and
Policy for the U.S. Department of Defense.
So we have a large panel here. I want to thank each of you
for being here and especially to those from out of State,
Tennessee, Indiana especially, and also Iowa. We want to
welcome each of you and especially as you are on the front line
of this particular issue. And I look forward to your testimony.
And we will recognize you for five minutes. So let's begin
with General Haston. Haston or Haston?
General Haston.
Mr. Stutzman. Haston. All right. I apologize.
General Haston. That is okay, sir.
STATEMENTS OF TERRY M. HASTON, ADJUTANT GENERAL, TENNESSEE
NATIONAL GUARD; TIMOTHY E. ORR, ADJUTANT GENERAL, IOWA NATIONAL
GUARD; MARGARET WASHBURN, ASSISTANT ADJUTANT GENERAL, INDIANA
NATIONAL GUARD; MARIANNE WATSON, DIRECTOR, MANPOWER AND
PERSONNEL, NATIONAL GUARD BUREAU; RICHARD A. RUE, STATE CHAIR,
IOWA EMPLOYER SUPPORT OF GUARD AND RESERVE; RONALD G. YOUNG,
DIRECTOR, FAMILY AND EMPLOYER PROGRAM AND POLICY, U.S.
DEPARTMENT OF DEFENSE
STATEMENT OF TERRY M. HASTON
General Haston. Chairman Stutzman, Ranking Member Braley,
and distinguished Members of the Subcommittee, I am honored to
appear before you today on behalf of the more than 14,000 men
and women serving in the Tennessee Army and Air National Guard.
And I would like to begin by expressing my sincere
appreciation for the outstanding support of this Subcommittee.
Since the tragic attacks on our homeland on September the
11th, 2001, more than 27,000 brave Tennessee national guard
soldiers and airmen have deployed both at home and abroad
protecting the freedoms that we all enjoy.
These men and women of the volunteer state have answered
the call of this Nation without hesitation or reservation. Most
return home after defending this great Nation and resume their
civilian lifestyle left, renewing relationships with families
and friends, and returning to their civilian workplace, but all
too often they may return to an uncertain future.
This issue of soldiers and airmen facing unemployment in
the civilian sector is paramount in our concerns for the well-
being of our troops.
In Tennessee, about 20 to 25 percent of our national guard
strength is either unemployed or underemployed with about 3.5
percent of those identified as full-time students. This
compares to an 8.7 percent unemployment rate for Tennessee as a
whole.
We owe these volunteers our very best efforts in helping
them gain employment. But to effectively combat this problem,
we have to know the enemy. We have to look beyond the reported
numbers that may, in fact, demonstrate a false positive.
To understand the magnitude of the problem, we have to
determine an accurate number of guard members who are actively
seeking employment. We also have to determine if their
deployment caused them to be unemployed or were they unemployed
before deploying.
In Tennessee, we continually encourage the unit commanders
and leadership to identify these individuals to assist in how
we can help them. Simply, we must know what the true objectives
are before we can attack it.
In Tennessee, we are striving to identify those true
objectives. In conjunction with our Employer Support of the
Guard and Reserve, we are conducting employment assistance
workshops about once each month. The three-day event provides
one-on-one career counseling addressing issues such as writing
an effective resume, guidance, and preparing for and how to
conduct an interview.
On the final day, employers such as FedEx, Verizon
Wireless, Hospital Corporations of America, Dollar General,
AT&T, and a multitude of other employers are on hand to
interview the prospective employees.
Hopefully through this process the employers will find and
hire quality guard members that brings a great deal to the
table offering that employer a motivated, disciplined, drug-
free asset with the training and potential for leadership in
their company.
We have sponsored or supported 18 job fairs in the past 17
months with 415 participants. Of those participants, 111 have
responded to inquiries and 37 percent of the respondents have
found employment.
This program along with your yellow ribbon initiatives,
unemployment counseling, and soldier out-processing upon their
return, and our outstanding relationships with the Tennessee
Department of Labor are all positive steps in reducing the
number of unemployed guard members in Tennessee.
I have often heard it said that our soldiers and airmen of
our national guard are the best America has to offer. These men
and women are willing to put their lives on hold without
hesitation, with reservation, walk away from family, community,
and their civilian occupation to defend and protect this great
Nation. We owe them no less than our very best.
Sir, thank you for allowing me to address the Subcommittee
today and I look forward to your questions.
[The prepared statement of Terry M. Haston appears on p.
53.]
Mr. Stutzman. Thank you.
General Washburn.
STATEMENT OF MARGARET WASHBURN
General Washburn. Chairman Stutzman and honorable Members
of the Subcommittee, on behalf of Major General R. Martin
Umbarger, the adjutant general of Indiana, I am honored to
appear before you today to represent our 14,314 Army and Air
National Guard servicemembers.
I would like to also begin by expressing my sincere
appreciation to the Subcommittee for its tremendous support
over the past several years and for your concern with the well-
being of the outstanding men and women serving in our Nation's
national guard.
Indiana faces the challenge of unemployment and
underemployment for our guardsmen. Indiana has deployed over
17,693 servicemembers since 9/11.
Based on the Department of Defense civilian employment
information database, it is estimated that nationally 20
percent of returning national guard soldiers and airmen are
unemployed.
The current rate of unemployed Indiana national guard
members is roughly 23 percent which is over twice the current
state rate of 9 percent unemployment. Thus, we estimate that
roughly 3,300 Indiana guardsmen and women are unemployed.
As we conduct more detailed analysis, we find these numbers
slightly skewed by the number of servicemembers just completing
high school or currently enrolled in higher education.
Further, in Indiana, we also choose to track and assist
unemployed spouses. When identified, believing that getting at
least one of the family members employed significantly improves
overall servicemember household well-being and readiness.
In 2009, Major General Umbarger created the Indiana
National Guard Employment Coordination Program. The objectives
of this program are to identify, track, and reduce the
unemployment within the Indiana national guard.
These objectives are accomplished by working directly with
each unemployed servicemember to increase their marketability,
collaborate with Indiana employers for the hiring of our
members, and quality assurance checks with these businesses on
the servicemembers they have already hired.
Direct hands-on assistance includes resume writing, active
job search training, interview skills, and job preparedness
training. Developing a servicemember's marketability includes
education, skills training, vocational rehabilitation, and even
near-term financial assistance for such things as reliable
transportation to their new employment.
Our Employment Coordination Program works individually with
each identified servicemember throughout all phases of the
deployment cycle. We actually define a servicemember's needs
while the servicemember is still in theater and are present at
the demobilization station when the servicemember returns so
that we may initiate actions required to improve their
marketability or educational needs.
We have now placed over 1,000 servicemembers and spouses in
jobs. Some of these jobs are active-duty operational support,
temporary positions, and a combination of education with part-
time employment.
The Employment Coordination Program has also assisted in
completion of 2,443 resumes, has 484 job openings currently
posted, and submitted 2,050 job applications.
Another initiative is the Indiana national guard business
partnership. We currently have over 125 businesses involved in
this partnership which includes a reciprocal support process
designed to provide both the employer and the employee with
resources and assets to complete successful hiring and
sustained job performance. We have placed 172 servicemembers in
jobs with these 125 businesses.
Another initiative is Major General Umbarger's executive
business meetings. These monthly meetings give key business and
community leaders a greater understanding of the national guard
experience and what our servicemembers have to offer to the
state workforce. These leaders are encouraged to consider a
veteran for any open position, especially those returning from
deployment and those negatively impacted due to economic
challenges in their local communities.
Our adjutant general has created a state level staff
position, the J9 civil military affairs directorate. This
directorate brings all support programs including family
programs, yellow ribbon reintegration, Employer Support of the
Guard and Reserve, transition assistance advisors, and the
Employment Coordination Program under one supervisor.
It affords these programs a level of unit of effort that
did not exist when they were working independently. The J9
directorate also serves as the community outreach platform
creating new relationships with community resources and
developing increased servicemember and family access to these
resources.
The Indiana national guard also participates in all
Employer Support of the Guard and Reserve activities, the Job
Connection Education Program, job fairs, town hall meetings,
network and social media programs.
Funding and manning are needed to allow these programs to
maintain their success. We believe long-term job placement is
potentially greater with our holistic approach to the
employment process.
Thus, there is a greater value to the national guard
workforce by including education, skills training, and improved
marketability over just submitting a resume.
Our national guardsmen have proven themselves to be ready,
reliable, and accessible here at home and worldwide. Many of
them have answered the call to duty and spent multiple
deployments away from their families and their employers.
The Indiana national guard is working hard to ensure these
heroes return to a lifestyle and family wellness deserving of
the sacrifices they have made. The strength of the Indiana
national guard rests in it citizen soldiers and airmen. The
strength of these citizen soldiers and airmen rests in their
employment and productivity to their communities.
Indiana employers are military and veteran friendly and
many desire to hire our talented, experienced, and reliable
servicemembers. We need to help make that connection possible.
Once again, I thank you for recognizing this issue and
holding this hearing. I look forward to respond to your
questions.
[The prepared statement of Margaret Washburn appears on p.
54.]
Mr. Stutzman. Thank you very much.
General Watson.
STATEMENT OF MARIANNE WATSON
General Watson. Chairman Stutzman, Ranking Member Braley,
distinguished Members of the Subcommittee, I am honored to
appear before you today on behalf of the Chief National Guard
Bureau, General Craig McKinley to represent our 465,000 Army
and Air National Guard servicemembers.
I would like to begin by expressing my sincere appreciation
to the Subcommittee for its tremendous support and your concern
with the well-being of our outstanding men and women.
Our National Guardsmen have proven themselves to be ready,
reliable, and accessible here at home and overseas. Many of
them have had multiple deployments away from families and
employers.
The National Guard Bureau is working hard to offer programs
and initiatives that will improve our unemployment rates, but
there is more work to be done.
We must address lowering the rate of unemployment with
National Guard members. The rate of employed veterans remains
much higher than the national nonveteran average. We estimate
approximately 20 percent of returning National Guard Soldiers
and Airmen are unemployed.
Unfortunately, we are unable to accurately identify
guardsmen who are underemployed, unemployed, or are
transitioning requiring employment and/or educational
assistance. Additional fidelity is needed to validate the
employment status of our servicemembers.
As a pilot, the Army National Guard directorate has placed
a representative at Fort Hood, Fort Bliss, and Camp Shelby to
administer a handwritten employment and outreach questionnaire.
The questionnaire requests employment status, education, and
experience information. Soldiers are provided information on
education, training, and employment options based on their
responses. This is a great initiative, but the process needs to
be automated in order to provide all stakeholders accurate and
accessible information.
Additionally, as early as 2004, the National Guard Bureau
funded a unique resource at each Joint Force Headquarters
titled program support specialist. This individual serves as
the adjutant general's subject matter expert regarding local
issues with employers of air and army national guard members.
While initially focused on specific employer support issues
and complaint resolution, the duties of the program support
specialist expanded to include employment facilitation.
In addition to coordinating employment opportunity events,
program support specialists refer unemployed guardsmen by
connecting them with local resources, the Veterans Affairs, and
the Department of Labor.
Last year, program support specialists participated in over
1,000 yellow ribbon reintegration events nationwide supporting
units returning from deployment by identifying employment
opportunities and providing other requested assistance.
The program support specialists also work closely with our
transition assistance advisors in the state joint force
headquarters to ensure our Guard members are registered with
the Veterans Affairs and can access their VA benefits to
include vocational and job training with the Department of
Labor. Both of these programs are essential to developing and
establishing a community-based program network.
With multiple brigade deployments over the past several
years, the National Guard implemented a pilot program in Texas
called the Job Connection Education Program which specializes
in one-on-one education, training, job search services that
enhance National Guard members' abilities to obtain and retain
employment.
The strength of the JCEP is individual case management.
Servicemembers and spouses complete an on-line registration
process and participate in a one-on-one orientation and
assessment with their case manager who assists them with
identifying fields of interest and resume development. This
assistance takes the form of job skills training, workshops,
and job search support that exposes them to jobs offered by
over 480 established business partners.
To date, the Texas National Guard has placed over 900
Soldier and family members in full-time jobs. Case management
is key to connecting servicemembers to employment.
Another program, the Guard Apprenticeship Program
Initiative, otherwise known as GAPI, is a partnership with the
Department of Labor and the Department of Veterans Affairs that
continues to build relationships with employers and colleges to
facilitate civilian apprenticeship and employment opportunities
for National Guard members.
The key to GAPI are the 107 army military occupational
specialties that translate directly to civilian occupational
qualification requirements. Maryland is a pilot state where
Guardsmen have been hired in the Independent Electrical
Contractors Chesapeake Apprenticeship Program earning wages
starting at $18.00 per hour with full medical benefits.
By the end of their 5-year commitment, they will earn a
higher salary than their peers as well as earning their
national certification as journeymen electricians. Maryland
currently has six servicemembers participating in this program,
so this program is just getting started.
Another very successful program that is being used in the
State of Georgia is Drive the Guard. This program is a
collective effort with the Commercial Driver Training
Foundation which links guardsmen with training and
certification programs in their communities.
Once completed the Guardsman has a career in the truck
driving industry. Applicants earn their commercial driver's
license through a commercial driver's training federation
certified school. Financing is arranged and a pre-hire letter
is negotiated with a partnering trucking company before the
training begins.
Upon completion of the training, the Soldier has a job in
the trucking industry with a salary of around 40K per year.
In order to identify servicemembers requiring employment
assistance, the National Guard recommends modifying the DD-214.
Recommendations include requiring a veteran to decline or opt
out by checking a box if they do not desire their information
to be shared with the Department of Labor and/or Department of
Veterans Affairs.
Additionally, we ask that the DD-214 require a personal e-
mail address and cell phone number for a more viable method to
contact the veteran and enhance the ability of authorized
providers to reach out and provide services.
These informational enhancements will facilitate transition
and support outreach to veterans by the Department of Labor and
the Department of Veterans Affairs. This is another method to
identifying and contact veterans requiring employment
assistance.
We owe our national guard sustainable long-term employment
solutions. Guardsmen have leadership experience, are mission
focused, team players, and have the necessary skills and
training employers are looking for. These attributes make them
outstanding employees.
In order for our Guardsmen to reach their full employment
potential, we strongly recommend a triangular approach with a
formalized relationship established between the National Guard
Bureau, the Department of Labor, and the Veterans Affairs.
This triad would coordinate the necessary case managers at
the local level to ensure necessary assistance for national
guardsmen in the areas of education benefits, training
opportunities, and employment.
All three agencies have resources in the states. However,
their efforts must be synchronized at the local level.
Identifying transitioning and currently unemployed
servicemembers and case management is critical to our national
goals and objectives.
Thanks again and I look forward to your questions.
Mr. Stutzman. Thank you.
General Orr.
STATEMENT OF TIMOTHY E. ORR
General Orr. Mr. Chairman, Ranking Member Braley,
distinguished Members of the Subcommittee, it is a great
privilege to be here today to represent the 9,400 soldiers and
airmen of the Iowa national guard in this important discussion.
Thank you for the opportunity to testify on this topic and
to provide you with a perspective on the State of Iowa's
initiatives to address this important issue.
First, let me begin by saying that Iowa is unique in many
ways. Thankfully our state and region currently have lower
unemployment rates than those seen in other parts of the
country. The employers in our state are military and veteran
friendly and we enjoy incredible support from our business and
communities.
The level of cooperation between our employment and
education partners includes the Employer Support for the Guard
and Reserve, the Iowa workforce development, Job Connections
Education Program, the Iowa Department of Labor, community
colleges or universities, and the Society of Human Resource
Managers is outstanding.
In addition, Governor Branstad has provided key leadership
to drive employment opportunities for our national guard
members.
While we remain focused on those with unemployment
challenges, we are fortunate to have seen tremendous
improvements in our overall unemployment numbers from those who
have returned from the state's largest deployment since World
War II.
We currently estimate based on data collected during our
deployment out-processing and our reintegration events that the
unemployment rate of our returning warriors fell from a high of
25 percent when they returned in August of 2011 to now a
current rate of just under 10 percent.
Though we still have a lot of work to do, the unemployment
rate in Iowa is at about 5.8. We are happy to see that we are
making a remarkable improvement among our returning warriors.
I truly believe the success that we have seen in this area
is a result of the steps that we took long before the 2,800
members of our brigade combat team deployed to Afghanistan.
Through a series of lunch and learns engagements, town hall
meetings, pre-deployment meetings, and briefings and other
public engagements, we initiated an information awareness
campaign to build support and to deepen the understanding
between the servicemembers and employers regarding the
Uniformed Services Employment and Reemployment Act or USERRA.
In conjunction with ESGR, we initiated a series of employer
boss lists bringing our employers to our annual training sites
and our post deployment training locations to witness firsthand
the importance and the complex work that their citizen soldiers
were doing in preparation to deploy overseas.
I invited Dick Rue, our state ESGR chair, to stand with me
to help answer questions about the rights and responsibilities
of both the employers and the citizen soldiers during our press
conferences when we announced the second brigade deployment.
In Iowa, we know that employers also sacrifice with their
citizen soldiers when they deploy and we work very hard to
acknowledge this through our ESGR engagements and our employer
recognition events.
Opening up our toolbox, we started to look at ESGR, the
National Guard Bureau, and other state and Federal employment
programs designed to assist our returning warriors. One of the
most important steps that we took was to nest our employment
and our education counselors in order to emphasize these areas
during the demobilization process.
Working together, they counseled returning warriors on
employment and education programs and benefits available to
assist with the transition from their active-duty time.
Thanks to the integration, an additional 900 of our
returning warriors indicated their intent to enroll in school
and higher education than prior to deploying.
We screen members as they out-process and we attended all
the yellow ribbon reintegration events to identify those that
were still struggling with employment issues and to link them
up with assistance.
Working with our employment partners, we developed a one-
day course designed to assist our unemployed or underemployed
warriors. We help them write resumes, cover letters that
transition their military experience into meaningful skills.
Through our partnership with the Iowa workforce
development, we placed computer kiosks in our armories to
assist our warriors with finding and applying for job openings.
Last October, we supported with other state and Federal
agencies a veterans' job fair and began posting job openings
targeting veterans on Web sites like the national guard's Jobs
Connection Education Program and employer partnership.
While we still have a lot to do to ensure employment
opportunities for all of our returning warriors, we are making
significant progress. We will continue to work to enhance our
tool kit, to help our warriors like working with our state
legislature to assist with legislation that better aligns the
state licensure requirements with the military specialty skills
and working with our employment and private sector partners to
continue to identify job opportunities for our warriors.
Our Iowa national guard soldiers and airmen continue to be
mission focused and warrior ready. Over 15,000 Iowa national
guard members have served and sacrificed in support of the
ongoing contingency operations here at home and across the
world, many on multiple occasions.
They along with their families and employers have borne a
heavy burden to help ensure our Nation's safety and security.
They did so willingly and ask little in return. Working
together at every level, we have a responsibility to assist
those struggling with unemployment issues related to their
military service.
I greatly appreciate the Subcommittee's work on this issue
and I look forward to your questions on our efforts to help our
returning warriors. Thank you.
[The statement of Timothy E. Orr appears on p. 56.]
Mr. Stutzman. Thank you.
Mr. Rue, you are recognized for 5 minutes.
STATEMENT OF RICHARD A. RUE
Mr. Rue. Chairman Stutzman, Ranking Member Braley, and
Members of the Subcommittee, it is a privilege to be here today
to represent the Iowa ESGR team in this important discussion to
maximize employment opportunities for members of the guard and
reserve.
Thank you for the opportunity to testify on this topic and
provide the Iowa ESGR perspective and initiatives to address
this important issue.
The primary mission of Employer Support of the Guard and
Reserve, ESGR, is to promote a culture in which all American
employers support and value the military service of their
employees.
We accomplish this through advocating relevant initiatives,
recognizing outstanding support, increasing awareness of the
law with our employers and our military outreach programs and
resolving conflicts through mediation when requested.
Under our advocate role, in fiscal year 2011, ESGR
educated, provided consultation to, and assisted with
reemployment challenges for employers, national guard members,
and reservists.
The Employment Initiative Program, EIP, was added to our
mission in the fall of 2010 and is designed to facilitate
employment opportunities for unemployed and underemployed
servicemembers and their spouses.
This program is an outgrowth of our ESGR employer and
military outreach programs and is complementary to the current
economic realities of our state and is aligned with our
President's new veterans' employment initiative.
The essence of my written testimony is that in Iowa, we
feel we have made positive advancements towards successfully
lowering the rate of unemployment of our national guard. This
has been accomplished by the effective planning to ensure that
the multiple resources in existence to support the national
guard and employment of national guard and reserve members have
worked in harmony towards this common purpose.
It is easy for varying organizations to work independently
and thus diminish their opportunity for success in achieving
this important common goal.
As a result of our national guard leadership, Major General
Orr and his command staff from the earliest public notification
of pending deployment, all related resource partners worked
together to ensure that planning, execution, and follow-up was
in place to support the needs of the second brigade combat team
recently deployed to Afghanistan.
My written testimony outlines in more detail the support,
resources, and access that the members of the Iowa ESGR
volunteer team received during pre-mobilization, during
deployment, and during post mobilization up to and including
the present.
The key element of our ability to achieve success has been
the communication and cooperation between and among the
multiple resource partners, the Iowa national guard, Iowa ESGR,
and our Iowa employers, and our support organizations, Iowa
workforce development, DoL VETS, and the Job Connection
Education Program, JCEP.
As per my written testimony, this cooperation allowed for
hands-on personal engagement by the Iowa ESGR team with
soldiers for both education and support purposes.
Our enhanced communications and greater efficiencies across
all agencies yield our Employer Assistance Training Program
targeting approximately 400 self-identified unemployed
servicemembers from the second brigade combat team upon their
return.
Information regarding upcoming employment events is
regularly emailed to these unemployed individuals, the command
and staff of the Iowa national guard and reserve units, all
guard and reserve members returning from deployment, and our
Iowa ESGR military outreach volunteers.
Additionally, the support received by all the organizations
I just mentioned was effectively channeled towards Iowa
employers through the pre, during, and post mobilization time
frames via multiple events and touch points throughout the
state.
Now, with the Employment Initiative Program, our associated
partnerships within the state and the continued support of the
Iowa national guard, Iowa ESGR is well prepared to continue our
history of assisting servicemembers and employers to connect
more effectively than ever before.
Thank you.
[The prepared statement of Richard A. Rue appears on p. 58.
Mr. Stutzman. Thank you.
And, finally, Mr. Young, you are recognized.
STATEMENT OF RONALD G. YOUNG
Mr. Young. Chairman Stutzman, Ranking Member Braley, and
distinguished Members of the Committee, thank you for this
invite to appear before you today.
I am the director for Family and Employer Programs and
Policy within the Office of the Assistant Secretary of Defense
for Reserve Affairs. My responsibilities include employer
support of the guard and reserve, ESGR, the Yellow Ribbon
Reintegration Program, and individual and family support
policy.
I welcome the opportunity to provide you an overview of the
support we are providing to guard and reserve members.
First, let me speak to the latest statistics on the
unemployment rate among the reserve component.
The latest status of forces survey shows an overall
unemployment rate of 13 percent. In the junior enlisted ranks,
E1 to E4, the rate is 23 percent.
We take this high unemployment rate very seriously and
later in my testimony, I will speak to the specific actions we
have taken to address this readiness issue.
A key focus in my office is Employer Support of the Guard
and Reserve. Through the network of over 4,800 ESGR volunteers
across the country, ESGR helps to educate servicemembers and
employers about their duties and responsibilities under USERRA,
the Uniformed Services Employment and Reemployment Rights Act.
As we all know, the overwhelming vast majority of employers
greatly support the men and women in uniform and that applies
equally to the reserve component. For the past 40 years, ESGR
has played a role in garnering that employer support and we
recognize employer support through a variety of awards
programs.
This past year, over 4,000 servicemembers nominated their
employers for the prestigious Secretary of Defense Employer
Support Freedom Award. We also had over 45,000 employers sign
statements of support.
Another key aspect of ESGR is our tremendous Ombudsman
Program with over 600 trained USERRA experts across the country
to answer questions, inquiries, and to help resolve conflicts
between employers and their employees or the servicemembers.
Most importantly today let me speak about the initiatives
we have undertaken to assist in reducing the high unemployment
rate within the reserve components.
A year ago, ESGR and the Yellow Ribbon Reintegration
Program launched the Employment Initiative Program, EIP. Our
ESGR committees across the country increased their activities
to address the unique unemployment needs of the reserve
component. I say unique because over 300,000 reserve component
members are not veterans. They do not meet the statutory
definition of having 180 days on active duty and, therefore,
they do not qualify for benefits under the Veterans Affairs or
DoL.
Beginning in March 2011, ESGR assisted the National Chamber
of Commerce in their launching of the mega hiring fairs across
the country. I just received the latest report from the
Chamber. There have been 85 events to date in 42 states
connecting over 84,000 veterans, reserve component members, and
military spouses to employment opportunities with 4,300
different employers. The latest information says that over
7,300 of those folks have gained employment.
In 2012, we will continue this effort and we will have 40
events focused entirely on the reserve component community
where there is high unemployment.
Six weeks ago, on December the 16th, we launched Hero to
Hired, better known as H2H. H2H is a comprehensive,
multifaceted program targeted to support reserve component
servicemembers.
Using lessons learned from over this past year and
successful experiences such as the army reserves, employer
partnership of the armed forces, and some of these programs you
have heard about with the national guard, H2H was developed to
address the employment assistance services and support gaps so
that it could be applied to all members of the reserve
component. H2H contains all the tools a job seeker needs to
find a job.
Today the Yellow Ribbon Reintegration Program and ESGR are
delivering meaningful services to assist guard and reserve
members in transition, reintegration, and finding employment.
On behalf of Yellow Ribbon, ESGR, and its 4,800 volunteers,
I thank you for your continuing support and I look forward to
your questions.
[The statement of Ronald G. Young appears on p. 60.]
Mr. Stutzman. Okay. Thank you to each of you for your
testimony. And I will begin the questions.
I am just going to ask to any of you on the panel, is it
time to make TAP mandatory for all Guard and Reserve units? Any
one of you can answer.
General Watson. All right. It is my professional opinion
that we should provide some form of Transition Assistance
Program, but what we are really looking for, I believe, for the
reserve components is a flexible option in which to get the
information to our servicemembers.
Mr. Stutzman. Any proposals and how do you do that?
General Watson. Right now there are a number of proposals
being discussed that would extend the demobilization time that
a servicemember stays at the demobilization site.
It is my professional opinion that we focus on providing
some information at the demobilization site, not extending the
individual's time at that site.
However, having an on-line program, if you will, that
correlates also with yellow ribbon events so that it is all
nested for a transition program and yellow ribbon events to
identify those individuals who truly need employment and
education assistance.
Mr. Stutzman. How long are guard units in--do they stop
over in Kuwait before they come back to American soil? Do any
of you know?
General Orr. Sir, it depends on where they come, what part
of the theater. What we have seen now that we--you know, I will
speak from the brigade that just came home from Iowa. They
basically move from Afghanistan and it takes about 30 days for
the brigade combat team, about 3,500 members, to get home. They
move from Afghanistan directly to what we call a demobilization
station. In this case, it was Fort McCoy, Wisconsin. And then
we are there from--it can vary from six to fourteen days.
For the second brigade, we were able to get it accomplished
through a coalition effort. In an organized approach, we were
able to get everyone through in six days. That included a
complete medical evaluation, their line of duties input into
the system, but it also, as I talked about in my testimony, it
linked the education and the ESGR. We had them at the demobe
site.
So what was instrumental there was that a soldier would
come through and if they had an employer issue, ESGR could
engage that. If they needed employment, then we captured that
and we provided them with the assistance. If they were thinking
about education and were not sure, we then signed them up with
our education and we linked all the tuition assistance to
include our state program so that they were ready to roll into
college before they ever got to home.
And so that six to fourteen days varies on units, but there
is normally not an interim stop between their theater of
location and the demobilization site.
Mr. Stutzman. So would it be fair to say that with every
site that they are transferring through, if they have six to
fourteen days, are we taking advantage of those six to fourteen
days to use TAP?
General Orr. Is it within the window of time to do that,
yes, sir. The challenge we would have is I think if you tied it
in with again some of the existing programs, the education
support that we get through our education offices, the ESGR,
and our other programs we talked about earlier that are engaged
there, that may be an additional task that could be picked up
and actually applied to those specific soldiers that are
interested or have a need. The window of time at the
demobilization site would support, though, that task.
Mr. Stutzman. About how much time do the other programs
take roughly? Did you say ESGR and you mentioned one other?
General Orr. The education, it really depends on a soldier.
If a soldier comes through and says I have my employment, I
have no issue with my employer, I have a great employer, I have
employment, you know, I am 40 years old, I am done with school,
then it is real easy. They move on and they go to their next
station.
We probably spend most of our time with that group that was
talked about earlier, the 18 to 24-year-olds. In many cases, a
lot of these young soldiers have deployed right out of high
school to basic training and so they have not even started
college yet let alone employment.
So that is the largest group of the population that we
deployed and, yet, we do have others that fall within those
outside regions. And so it is really a by case-by-case basis.
But the goal and intent is to ensure that everyone goes
through there and that we validate the information so that we
know as a state what we have and how do we apply those
resources not only then but once they get home where it really
matters at the 30, 60, and 90-day yellow ribbon events.
Mr. Stutzman. Are those other programs mandatory?
General Orr. Yes, sir. The 30, 60, 90-days yellow ribbon
integration is mandatory and we interject our ESGR, our
education at those each and every time.
So if you come home and you do not want to say anything at
the demobilization site because you just want to get home, then
at 30 days after you have had some time to recoup from the
deployment, we start to find those issues that may surface, and
that includes the health care issues that surface, and then we
adjust accordingly.
Mr. Stutzman. Okay. I would ask of the other two states, is
it the same?
General Haston. Sir, in Tennessee, it is almost the same,
but one of the things that we do is we add a reverse SRP
process at the end. And this is after the units leave the
mobilization station and they come back home.
As General Orr pointed out, a lot of times, soldiers, they
want to get out of the mobilization, get that immediate
reintegration with their families.
But when they are back, we allow a brief integration and
then we take the soldiers and we sit down under a less
pressured, stressful environment and that is where we really
apply the ESGR and the employment process and get a detailed
look at the soldiers and the airmen that are coming back.
We, again, as the 30, 60, 90-day yellow ribbon events, as
we go through, we have stations and have access to all the
different programs that are available. We see that gradually
increase as we get closer to the 90 days. And the problem
decreases, too.
Mr. Stutzman. General Washburn.
General Washburn. In Indiana, sir, our model is along the
lines of what Tennessee does, very similar.
Mr. Stutzman. Okay. All right. Thank you.
Mr. Braley.
Mr. Braley. Major General Haston, as I sit up here and look
at you sitting with Brigadier General Washburn and Major
General Orr, I am struck by the irony of the fact that in 2
months we will be observing the 150th anniversary of a little
thing that happened in your state at a place called Pittsburgh
Landing that was the first horrific battle of the Civil War.
And a lot of Iowa farm boys and Indiana farm boys met a
bunch of Tennessee farm boys and there are a lot of them buried
there. And they were national guard and militia for the most
part. And for a lot of them, they did not see their homes for
another two to 3 years. And they came back 150 years ago
looking for work. And here we are in 2012 talking about the
same problem.
I got sworn in on January 4th of 2007 as a new Member of
Congress. During that period, the Iowa national guard, as Major
General Orr has testified, was in the middle of the longest
single combat deployment of any unit in Iraq.
I remember so well on Sunday night before Memorial Day that
year 60 Minutes devoted an entire program to something called
fathers, sons, and brothers tracing a 2-year period of
sacrifice by the Iowa national guard. And it was an
extraordinary thing for 60 Minutes to devote a whole hour to
one subject and it won an Emmy.
We forget what an extraordinary burden we have placed on
our guard and reserve units. I think if you look at the opening
of that program, it really captures why we are here today. This
is how that program started.
Rarely has our country asked citizen soldiers to shoulder
so much of the burden of war. One-third of the troops fighting
are national guard and reserve. More than 400,000 soldiers
called away from their civilian lives. And those numbers, as we
know, have grown dramatically since then.
So one of the things I want to hear from all of you is what
lessons have we learned in this last 150 years about how we
address this problem.
And you talked, Major General Orr, about boss lift. And I
had the great pleasure of going to Camp Shelby in Mississippi
with one of those boss lifts and it was extraordinary to see
the reactions of some of those employers who the first time
were getting to experience what so many of their employees had
spent so much of their lives preparing to do.
So I would be interested in your thoughts about how we have
opportunities to shape the perceptions of employers to bridge
this gap of employability that we are here today to talk about.
General Orr. Congressman Braley, I think you would give
this great thought because this is one of a couple challenges
that we constantly deal with as adjutants generals.
You know, I would tell you I think the programs that we
have, and I speak for my State of Iowa, I think we have the
programs that we need. It is the outreach that we have to
continue to do.
And, you know, I look back at the model. We learned over
the last 10 years of a lot of experiences in this last
deployment. I think looking at the combat teams that had gone
before us is what do we have to do in our state to ensure that
we do not experience the 32 percent that Vermont had, you know,
and others have had before us and knowing that the conditions
are different in each state.
I think what we have been able to do is the partnership is
probably the greatest lesson learned. It is to be able to sit
the Federal, the state, the local, the community, the business,
and the national guard down and address this early on from the
deployment perspective before we ever send a soldier and airman
and say what is it that we need to do as a state to
collectively support these men and women.
And granted, you know, there is still going to be gaps at
the end of this, but what we are finding is that business and
industry--a great example is the principal corporation,
financial corporation in Iowa. They recently 2 weeks ago hosted
a program, Hire our Heroes Program on their own. An ESGR
recipient of the Department of the Army's award secretary,
Defense's award felt like they needed to give back. They have
challenged now over 68 Chambers of Commerce in the State of
Iowa to go out and to hire veterans. They have put up $60,000
to put a video out to ensure that the word has.
So I think the lesson learned for us is it is continued
communication, collaboration, and that we have to take the
existing programs that we have and we need to make them work.
And we have to connect that with our soldiers and airmen every
chance that we get.
Mr. Braley. Thank you.
Mr. Rue, I want to talk to you from the employer's
perspective and the ESGR's perspective because I have worked
with a lot of these employers in Iowa and there are large
corporations, some of the largest ones in our state, and there
are smaller companies and mid-sized companies. And they all
have the same dedication of purpose to the objective of finding
work for veterans and keeping them employed.
But I have also discovered, and this came out at some of
the field hearings we had, larger employers as a general rule
have bigger human resources department, they have greater
abilities to try to take some of the translation of MOS
language into the civilian workforce, and put together programs
they use in recruiting, identification of potential employees.
And I guess one of the concerns I have is what are we doing
to help those smaller employers, the single-family businesses
who want to do the right thing but do not know where to look or
how to find a model that helps them address that issue.
Mr. Rue. Well, I think the key factor is engagement and it
is face-to-face engagement. We have 167 volunteers in Iowa
spread almost equally in 12 areas throughout the state. And we
engage all employers, small and large.
And there is also an issue of working in harmony with all
the other resources. You referenced the boss lift. I can get
the employers, but he can get the assets. And we work together
to ensure that those things take place.
And I think you met many of the employers on that boss
lift. And we had large and small alike. We had members from
cities, mayors, other elected officials that attended. And they
are also businesspeople.
So the real key is engagement across the board to your
question.
Mr. Braley. I yield back, Mr. Chairman.
Mr. Stutzman. Thank you.
Mr. Bilirakis.
Mr. Bilirakis. Thank you, Mr. Chairman. I appreciate it.
I am concerned about the unemployment rates of our
guardsmen and our reservists, of course, and I have sponsored
legislation to provide employers with tax credits of up to
$2,000 for their guardsmen or reservist employees called to
active duty.
And then we also with Mr. Walz co-sponsored legislation
which requires TSA to comply with the USERRA requirements.
The question is for the panel, what steps do you take to
inform your servicemembers about their rights under USERRA, and
I know, sir, you addressed that? If anyone wants to address
that issue, I would appreciate it very much.
General Haston. Sir, annually it is a requirement that we
sit down and meet with our servicemembers and we tell them
every year during our required briefings what their rights are.
Our ESGR team across the State of Tennessee goes down to
the troop company battery level and sits down with the members
there and talks to them in terms that they can understand and
not in legal jargon so that servicemember knows what his rights
are.
And then when they have a problem, they come back and
usually it is sorted out before it ever gets to an ombudsman
level.
We have found that our ESGR has really transitioned from a
team that goes out and mediates to a team now that is going out
and helping get our soldiers and our airmen employment.
Mr. Bilirakis. Anyone else?
General Orr. Sir, I think for the mobilization, what has
helped us in the last four to 5 years is the time of
notification to deployment. You know, many cases today, we have
2 years. And so that is important to employers to have a
notification so they can have a little bit of stability and
make a plan.
What we try to do in addition to what General Haston talked
about is on the deployment piece on the front end of this is we
really engage specifically through our ESGR team those soldiers
and airmen that are getting ready to deploy to identify
potential issues and problems.
I think that what is important at the same time on the back
end of it is before they come home, we bring the family members
in and we do a reintegration with the family. And we hit the
family members with the same issues that we talk to the
soldiers.
So there is a coalition collaboration between family
members and the soldier, airmen when they get home from that
piece when we talk about deployment and then all the additional
things we do on the back end.
Mr. Bilirakis. Anyone else?
[No response.]
Mr. Bilirakis. All right. Well, as a follow-up, and I think
it is so important to bring the families in, there is no
question, I appreciate that, do you believe the current level
of restrictions placed on employers by USERRA are making it
harder for national guardsmen and reservists to get jobs? Any
opinions on that?
Mr. Young. Sir, Ron Young. I do not quite honestly. I think
USERRA protects the rights for our servicemembers and it
imposes responsibilities on employers and educating both about
their responsibilities.
And what we find is that the vast majority of employers
abide by the USERRA law and the restrictions. And so I think
USERRA quite honestly since 1994 and all the amendments since
has it just about right now.
Mr. Rue. Sir, I would add as well that I agree with Mr.
Young's comments. I am a businessperson. In my duties as the
state chairman of ESGR for Iowa, I meet hundreds of
businesspeople and I have not seen anyone concerned with the
restrictions. What I find is they are extremely proud to employ
members of our armed services.
Mr. Bilirakis. All right. And, again, we really need your
input on this. And I know this question has been asked already,
but I want to give you another shot at it.
What do you think should be done to make hiring conditions
more favorable for our guardsmen and our reservists?
General Washburn. One of the big things is to make sure
that the employers understand what they are really getting when
they hire someone with a military background or currently in
the military.
It is all about what value and what benefit is there for
them and if we can help them better understand that, and that
is one of the keys that we do with our employer partnership in
Indiana in the Indiana national guard, is to have that two-way
dialogue and to make sure that through closing the loop after
the fact, after the hiring actually takes place, to make sure
that that relationship is still there and that bond is still
strong.
Mr. Bilirakis. Anyone else?
Mr. Young. Mr. Congressman, I would like to offer a couple
points. I believe right now with the different programs in
place, I believe we have a pretty good high-tech solution to
linking employers with servicemembers that need jobs.
As General Watson talked about, she talked about case
management. One of the areas that we are working on, and our
4,800 volunteers help with that, is working the one-on-one
piece.
Our servicemembers need help in taking their military skill
sets and putting them in civilian vernacular. And the ESGR
committees and each of these leaders has instituted programs
within their particular states that is doing just that with the
employee assistance workshops, working with DoL VETS and those
are working very well.
And then they are linking those servicemembers needing jobs
with the Yellow Ribbon Reintegration Program and quite honestly
the numbers look good.
The program down in Texas where over 900 have found jobs,
it is that one-on-one approach. And as I said when I was in
uniform, every servicemember counts. Every one of these
servicemembers counts and it takes some personal attention.
It takes leaders who recognize that people in their squads
do not have jobs. It takes mid level NCOs that understand that
they have a squad to take care of. They took care of them when
they were in theater. Now they need to take care of them when
they are back home.
So it is becoming a peacetime army and getting engaged with
those NCOs and those leaders and watching over their
servicemembers. A marine for life, that type of a scenario.
So thank you very much.
Mr. Bilirakis. Thank you very much.
I yield back, Mr. Chairman. Appreciate it.
Mr. Stutzman. Okay. Thank you.
This question would be directed towards Major General
Haston or Brigadier General Washburn and Major General Orr.
Looking at this chart, we see that there is a direct
correlation between unemployment, weekly pay, and education.
And I know that some states have already done some work within
their own states.
What have you all done or do you have anything in your
states that would provide any additional education to our
guardsmen?
General Haston. Sir, in Tennessee, we 2 years ago started
the Tuition Assistance Program and it is where legislation in
Tennessee provided resources to the military department to
assist with in-state tuition.
The army guard has through its program tuition assistance,
but the air national guard did not. And so these resources that
I get that is allocated that I put in my state budget and that
I present to our state legislator gives us those resources to
do that. And that has been a huge success within our young
members of the Tennessee air national guard.
As state budgets get smaller across the board, we have had
to argue harder for those resources. And the language in the
law allows me as the adjutant general and the commissioner of
the military department to set the parameters of how those
resources are disbursed.
And so what I have done is I have focused that purely on
tuition for soldiers or airmen to get their GED if they did not
have that and to get a bachelor's degree or an associate
degree. It is not provided for officers because by and large
they already have a degree to be an officer or to extended
education such as, you know, master's or doctoral programs. And
that has been a success thus far.
Also, we have worked with some private universities, David
Lipscomb College in Nashville, for example, that has what works
with soldiers to get their GI Bill and then works with private
corporations to get the additional resources to continue their
education, to make up the difference of that.
So across Tennessee working with the board of regents and
the Land Grant University and working within our units and our
education through our J9, we have been pretty successful and
having those opportunities available.
General Orr. Sir, in Iowa, we have a very similar program.
We call it the NGEAP, the National Guard Education Assistance
Program.
I think, you know, in addition to our mobilization soldiers
that also qualify for the Post-9/11 GI Bill and the other
benefits, where these really become significant is for the
young men and women who have not deployed and our air national
guard members that are right along with us.
There is no Federal program for the air members, so, you
know, I am proud to say in Iowa, like many of the states that
have this program, is we provide this semester up to 90 percent
of tuition assistance towards a state university, community
college equivalent that can be used. And I think it is a very
successful program.
This week, the first bill signed by the governor this week
was an additional $1.4 million by the legislature to fund us to
90 percent. Because of the amount of soldiers and airmen that
came into college after the deployment, we were down to a 50-
percent tuition assistance. And through their efforts, the
first bill passed.
So you talk about support for the men and women in our
state, that is a great testament right there.
Mr. Stutzman. Thank you.
General Washburn, any comments?
General Washburn. We have these programs in Indiana as
well. What we are looking to do is to improve the utilization
of them, more outreach to use the tuition assistance that is
available, and to apply for the grants that are available, the
grants and the scholarships that are available. That is what we
would like to see. Other than that, our programs are the same
as Iowa and Tennessee.
Mr. Stutzman. Okay. Very good. Thank you.
Mr. Braley, anything further?
Mr. Braley. I just want to make an observation about this
incredibly critical component of every national guard unit and
that is the tuition assistance which not only helps recruit new
members but gives those existing members of those guard units
some sense that their country believes in them and wants to
invest in them.
Yet, sadly when you have a unit that had served the longest
combat deployment in Iraq and they come home and somebody at
the Pentagon cuts their orders short by one, two, three, four,
or five days, so they are ineligible for a $250 a month
additional tuition bump under the GI Bill, it sends a horrible
message.
And it should not take Members of Congress to get that
problem solved when it is initiated from the Pentagon. And I
think that we have seen so much sacrifice by our guard units
and we saw historically why they are playing such a critical
role in our overall defense strategy that we need to think
these things through seriously before we put them in a position
where they doubt whether their government is standing with
them.
So I just want to offer that editorial comment.
Mr. Stutzman. Okay. Thank you very much to all of you for
being here and thank you in particular for your service to our
country and to our guardsmen as well. And we will excuse you
all.
And we will call up our last and final panel. The final
panel has just one witness and it will be the Acting Assistant
Secretary of Labor for Veterans' Employment and Training,
Ismael Ortiz.
Okay. Thank you.
Mr. Ortiz, welcome, and we appreciate your work that you
have been assigned to. And we know that you are an integral
part of the many ways that we help our veterans and to also
help create solutions and increasing employment opportunities
for all our veterans including the members of the guard and the
reserves.
So you are also responsible for helping implement the Vow
to Hire Heroes Act, so no pressure for you, right? And so thank
you for being here and you are recognized for five minutes.
STATEMENT OF ISMAEL ORTIZ, ACTING ASSISTANT SECRETARY,
VETERANS' EMPLOYMENT AND TRAINING SERVICE, U.S. DEPARTMENT OF
LABOR
Mr. Ortiz. Thank you, sir.
Good morning, Chairman Stutzman, Ranking Member Braley, and
distinguished Members of the Subcommittee.
As you know, my name is Junior Ortiz, Department of Labor's
Veterans' Employment and Training Service. Thank you for the
invitation to testify today and for holding this important
hearing on lowering the unemployment rate of our national
guard.
I would like to provide an overview of the work VETS is
doing to lower this unemployment rate and our efforts to
educate members of the military, guard, reserve, as well as
employers about the provisions of the Uniformed Services
Employment and Reemployment Rights Act.
The military transitions approximately 160,000 active-duty
servicemembers and demobilizes approximately 95,000 reserve and
national guard servicemembers annually.
One of the department's programs aimed at meeting this need
is Job for Veteran State Grants which funds our DVOPs and LVERs
Program.
These employment specialists provide outreach and intensive
employment services through nearly 3,000 one-stop career
centers across the country. These services benefit both active
duty and reserve components.
Last year, JVSG provided service to nearly 600,000 veterans
of which more than 200,000 veterans found jobs.
Another important VETS program is the Transition Assistance
Program which provides employment workshops and direct service
for separating servicemembers including members of the national
guard and reserve.
In fiscal year 2011, over 144,000 transitioning
servicemembers and spouses attended the TAP employment
workshop. Of those attendees, 2,249 were guard and reservists.
VETS has also taken steps to provide transition assistance
and employment services to demobilizing members in the guard
and reserve in the event that they are not located near the 272
locations where TAP is normally provided.
VETS state directors work with the stay behind element of
the units and coordinate requested support as part of the
planning process when units are in their area being
demobilized.
Let me share a couple of examples. VETS in the Oregon
employment department have partnered with the Oregon national
guard and others to address the employment needs of returning
guards and reservists. This past year, while the 3rd 116th Cav
Unit was deployed to Iraq, the commander surveyed the
employment status of the deployed personnel. The information
was used to coordinate Skype employment interviews with local
employers. Upon return from the deployment, 51 of the 113
original soldiers surveyed found jobs after their release from
military service.
When I testified before the Committee in December,
Congressman Walz mentioned the Red Bull brigade combat team
project in Minnesota. The project intends to hire two LVERs and
three DVOPs to work specifically with this brigade.
In partnership with ESGR, pre-deployment interviews were
held with each member to identify employment and training
needs. Five hundred and fifty servicemembers are either
unemployed or underemployed. Thus, a referral process is being
developed to provide these servicemembers assistance
immediately upon their return.
Similar efforts are happening all across the country. Our
DVOPs are working closely with JVSG staff, several other
organizations, some of whom were here today, to coordinate as
many services to the veterans and reserve components as
possible in their states.
To complement the core programs of our service, we have
also provided intensive service and on-line initiatives such as
the gold card, the veterans' job bank, and my next move for
veterans.
We are working together with private sector to increase
employment to our veterans and returning servicemembers. As of
this point, as Mr. Young mentioned, Chamber of Commerce in
partnership with ESGR and VETS has hosted numerous hiring fairs
with more than 84,000 veterans and military spouses have been
given the opportunity to meet with 4,300 different employers.
And as a result, more than 7,300 veterans and military spouses
and 60 wounded warriors have found employment.
Lastly, I would like to discuss DoL's efforts to educate
and enforce the provisions of USERRA. VETS investigates
complaints filed by veterans and other protected individuals,
assesses complaints alleging violations to statutes requiring
veterans' preference in Federal hiring, and implements and
collects information regarding veterans' employment by Federal
contracts.
Outreach and education are the best ways to ensure that our
servicemembers' and veterans' rights are protected under
USERRA. Having said that, VETS will continue its aggressive
public campaign not only to our servicemen and women but
employers, attorneys, and human resource professionals as well.
VETS conducts mobilization and demobilization briefings to
all guards and reserve units and provides direct technical
assistance to returning and deploying servicemembers and their
families.
Since September 11th, VETS has briefed nearly one million
individuals on USERRA. We plan to continue our outreach
activities and remain confident in our abilities to provide
timely and accurate information to the veterans we serve.
VETS is fully committed to fulfilling our mission and with
the help of our stakeholders and partners, we will continue to
work to improve the services and programs we provide.
Chairman Stutzman, Ranking Member Braley, Members of the
Subcommittee, this concludes my statement. Thank you for the
opportunity to testify today and I would be pleased to answer
any of your questions, sir.
[The statement of Ismael Ortiz appears on p. 62.]
Mr. Stutzman. Thank you, Mr. Ortiz, and thank you for your
testimony.
In your written testimony, you state that VETS often
provides the three core components of TAP to guard and reserve
units at the unit commander's request.
How many of these type of briefings does a VETS complete in
a year? And then I will ask you the same question I asked the
previous panel. Is it time to make TAP mandatory for guard and
reserve units?
Mr. Ortiz. Sir, we provide briefings not only into TAP and
USERRA and everything else in conjunction with ESGR when the
individuals are mobilizing and demobilizing. The specific
number I do not know, but I will find out.
As far as making TAP mandatory, we have provided the
services to our reserve and national guardsmen to date again
with the help of ESGR and the partnerships that we have with
the tags.
We will continue to do whatever needs to be done. If it
becomes mandatory, again, sir, we are standing by to make that
happen.
Mr. Stutzman. Also, you had stated that TAP includes labor
market information. As part of that, as each participant is
given information on the specific labor market in the area
where the participant intends to live--I am sorry. Let me
restate that.
As part of that, is each participant, are they given
information on the specific labor market in the area in which
they intend to live?
Mr. Ortiz. Congressman, what we normally do is, depending
on the state, for the national guard and reserve, it is pretty
easy because, I mean, the majority of them will stay in that
area. So, of course, yes. When we give information on the
market, the market information is usually within that area.
However, if the individual decides to go to other places,
it depends exactly on a one-on-one basis, but the majority of
the time, to answer your question, yes, sir, we do. We provide
market information within that specific area.
Mr. Stutzman. And when a guardsman is moving to another
area, that information is included as well for----
Mr. Ortiz. If we find out and, again, depending on how you
work with the unit commander, how you are working not only with
the unit commander but the individual units themselves,
specifically if we have onesies and twosies that come in and
say, hey, instead of being in Indiana, I am going to go to
Iowa, at least being able to find out what those particulars
are, being able to pass it off, if you will, to our DVET in
that specific area or our one-stop career centers in that
specific area also can give that kind of information.
Mr. Stutzman. Have you heard about the Pipeline Program
that was mentioned earlier by Ms. DeRocco?
Mr. Ortiz. Yes, sir, we have. Matter of fact, we are
presently having a meeting, I think it is next week, to hear
all the particulars with DoD on exactly what they have to offer
and all the specifics on it, sir.
Mr. Stutzman. Okay. And then also General Orr had stated
that in Iowa, they have placed employment kiosks to assist
guardsmen in armories throughout the state.
Is it common, first of all, in any other states that you
are aware of and then is this something that should be
replicated throughout other state workforce agencies around the
country?
Mr. Ortiz. Actually, sir, I was not aware of that. However,
after talking with General Orr on those, it would be a very
helpful tool because it gives information on everything that is
available there.
And along those same lines, I mean, you can look at some of
the initiatives that DoL has actually put out there, whether it
be the job bank or whether it be my next move for veterans, to
be able to at least go in there and put in that information so
that way, they can find out specifically what their MOS is,
specifically how that translates to a civilian job.
So to answer your question, sir, I think it would be a
great idea.
Mr. Stutzman. Yes, I agree. I think, too, it is a good
idea.
Ms. DeRocco also mentioned that manufacturers have little
interaction with the state employment services. You want to
comment on that? I mean, we have seen this before in the
hearings that we have had that there is a disconnect between
the DVOP and LVERs and those offering employment services
around the country.
Mr. Ortiz. Sir, I am not going to comment on specifically
what she put out as far as how she is doing it. The basic
premise behind this is our LVERs are going out there to
outreach to employers. They are going to find out what is
available out there in order to help our veterans that come in
because as they come in, we are able to say, hey, these are
your skill sets, this is where we are at, these are the
opportunities that are available out there.
If for some reason, as she stated, she said it is up to the
manufacturer who turns around and wants to go and let people
know what is available, that defeats the purpose. If you have a
facility, and I will put it in the simplest terms, is if you
have some place that you can put information that is going to
help attract the individuals that you are trying to attract,
then by God use it.
I cannot speak to why they would not do it or anything. I
can only speak that we have one-stops across the country that
actually help in being able to provide that information to our
veterans, whether it be national guard, reservists, or veterans
across the board, on opportunities that are out there.
If I do not know what those opportunities are, I cannot
turn around and continue to push that on.
Mr. Stutzman. You know, as I think about this and where we
are putting the dollars, there comes a point when we have to
look at the value that we are getting from DVOPs and LVERs.
Would we be better off at some time putting more of those
dollars into educating those who are transitioning back into
the workforce? I mean, you understand?
If they would get the education that they need, it gives
them the tools that they need rather than focusing on placement
because it seems like we have a disconnect that we continually
hear about. And, is it a problem that can be resolved and
fixed?
Mr. Ortiz. If I understand your question correctly, sir, we
are talking about our transitioning servicemembers or our
veterans across the board coming out and having the specific
information on areas.
Unfortunately, and as, you know, as a parent of someone who
transitioned out, sometimes our transitioning servicemembers
are not really aware of exactly where they want to go. We have
some that know exactly what they want, how they are going to
achieve it, and they go for it.
To be able to kind of give them a general purpose, which is
what the transition assistance workshop is trying to do, to
give them an idea and the tools they need to be able to get
that program together, if you will, their individual transition
plan, to go forward so that way they can find it and then go to
a specific entity that is going to help you achieve that goal,
that may be the one-stop. That may be education. That may be a
combination of things.
I think to be specific in the area unless you get a one-on-
one kind of thing with a specific individual, transitioning
member, which is what, I mean, honestly, sir, that is what the
gold card initiative is supposed to do, once that individual
comes out to be able to go right with them and have 6 months of
an individual one-on-one.
As the tags told you, if we have a one-on-one kind of
thing, hey, I can place anybody. But to make that a completely
big statement, sir, you are talking about a transition
employment workshop or a transition process, if you will, that
would take a lot longer.
Mr. Stutzman. And I understand that. And I guess that is
why I am questioning, at some point, do we need to reevaluate?
And, the value that we are receiving, because that is a
tough job, it is a big job, would we be better off at some
point saying we need to make sure that we are providing enough
education assistance for the guardsmen or for the soldier
coming out of the military focusing our attention on that part
and then, hoping that that will naturally give them the tools
that they need to transition into the workforce because they
have those tools and not counting on placement help from DVOP
and LVERs, that is really a tough challenge to accomplish?
Mr. Ortiz. I am in agreement with you, sir. I mean, it is a
matter of how we wanted to reevaluate certain things. I think
what we are trying to do now as far as transitioning our
servicemembers to get them to a point where they at least have
the tools to be able to do exactly what you are saying, sir.
Mr. Stutzman. I just want to make sure we get the best bang
for our buck and, you know, making sure that our men and women
who come out of the military are getting that I think is
important.
Mr. Ortiz. I am in agreement with you, Chairman.
Mr. Stutzman. Thank you.
Mr. Braley.
Mr. Braley. Mr. Ortiz, welcome back.
Mr. Ortiz. Thank you, sir.
Mr. Braley. Mr. Lara, Minority O&I Subcommittee Staff
Director, and I have one very pressing question for you.
Mr. Ortiz. Sir.
Mr. Braley. Why Junior? I told him I think it is because
everybody trusts a guy named Junior.
Mr. Ortiz. You know what, sir? If I was in rural America,
you are absolutely right.
Mr. Braley. I have a question for you about the Guard
Apprentice Program initiative that you discussed in your
testimony. And you wrote continues to build relationships with
employers and colleges to facilitate civilian apprenticeship
and employment opportunities for national guard and reserve
component members.
My question to you is, are you also partnering with labor
unions which have existing apprentice programs and have many
veterans who are members?
Mr. Ortiz. Actually, sir, yes, we have. And we have been
doing that for many years. You know, helmets to hard hats is a
perfect example.
I will talk to you about a specific one, welders, a
welder's program, pipe fitters and welders out in California
where the services have actually come and we joined with them
to do certain things. The marines actually were doing this.
So to answer your question, yes, sir, we have. And I think
now it is getting even more involved because the skills that
these young men and women bring out there, especially as an
example, navy individuals, Heltecs. Heltecs are plumbers,
pipers, you know, can weld, can do things like that, RCBs from
the navy side of the house or, for that matter, in the army or
the air force, those technicians that actually work on a lot of
those things.
The unions out there see that as a great piece. So, yes,
sir, we have. And we cannot specifically turn around and tell a
person go and see so and so or go do this. However, at the one-
stop centers, those individuals are told about specific
entities.
So I think it helps them at least identify what their
capabilities are. Our DVOPs and LVERs can actually do that for
them.
Mr. Braley. Is that a more common practice in states that
have large military installations in their states than it is in
states like mine that do not?
Mr. Ortiz. Congressman, I cannot answer that, sir, because
I do not know.
Mr. Braley. Okay.
Mr. Ortiz. And I would be remiss if I told you, yes, sir,
that is what it is.
Mr. Braley. You also testified that transitioning
servicemembers often do not know where they want to go which is
something we have seen and heard at some of our hearings. We
never really talk a lot about small business entrepreneurs
because a lot of young people have never really had an adult
job because they have either enlisted before they had that
opportunity or they have gone to college and then they get
deployed in a guard unit and they come home and that is their
first real opportunity to decide what are they going to do with
the rest of their life.
Are we doing anything for those individuals who may want to
be the ones giving the orders and running their own small
businesses to help them understand what it takes to be
successful small business owners and how they put together a
business plan and how they put together a finance plan and how
they get capital to start a small business?
Mr. Ortiz. Presently as far as DoL, our transition
assistance, our employment workshop talks about the
generalities of that. What we are doing in the task force, the
DoD/VA task force that hopefully will be giving you information
on some of those things, there are four areas that they are
looking at also, education, entrepreneurship, employment
obviously, and technical.
So, yes, we are finally understanding that there are young
men and women that come out that through the time that they
have been in the service have actually gotten their degrees,
have actually worked really hard or as an example our
phenomenal mechanics and they want to open up a bike shop or a
shop that would be able to do stuff like that. We have some
great diesel mechanics who would really like to do that,
especially for 18-wheelers and things of that nature.
So, yes, now we understand the services have finally
understood that there is a need for these young men and women
to be able to have a track, if you will, along those same
lines. The VOWAC basically tells us our mandatory piece is the
employment workshop, the VA benefits, and, of course, the
services giving us their information as far as making sure that
that individual transitions out.
The secondary piece to that is to have them have the
capability of going back and finding out what their educational
opportunities are, what entrepreneurial opportunities there are
and things of that nature.
So, yes, sir, we are actually looking at it. And the
services have actually made the, how do you say, the needed
move to try and make that happen because they are seeing the
same thing, sir.
Mr. Braley. I just have two quick questions about two of
the programs you identified in your statement, one the
veterans' job bank and the gold card. And I realize that the
jobs bank bill was just signed into law November of last year.
But are you getting any sense from people who are using
that resource, and I am not talking about just visiting and
checking it out, but actually using it and deriving some
benefit from it in terms of whether it is meeting its stated
objective or not?
Mr. Ortiz. Actually, sir, last Thursday, I was in New
Orleans with the National Association of State Workforce
Agencies, NASWA, and I asked the same question. I said, hey,
you know, we know how many people are actually downloading the
gold card, and specifically for the gold card, sir, are
downloading the gold card and they are looking at different
aspects.
I said have you all been receiving this. We had a lot of
the states turn around and say yes, as a matter of fact, we
have and, in fact, it is working really well.
I cannot turn around and tell you, sir, the specifics on
how many, but the anecdotal information that I got from the
actual state workforce agency members as part of the NASWA
Committee, they told me that it was being effective because
they are able to talk to the person one on one and be able to
kind of get that feeling of exactly what they need and how to
guide them in the right direction. And their DVOPs and LVERs
have been tremendous in that thing.
The specific states, Texas was one of them. Connecticut
told me that they are moving along real well. I was not sure of
Indiana or Iowa or any of those, but I know that a letter,
every one of them were aware of it and they actually are
working it.
So, you know, it appears anecdotally, sir, that the system
is actually working and that kids are finally getting something
out of it.
As far as the job bank is concerned, I cannot tell you the
results as how many have actually gotten jobs. But as far as
visiting the site and working through it and everything else,
we have gotten pretty good response, sir.
Mr. Braley. Mr. Chairman, maybe with your permission, we
could set a goal of a 6-month review and get an update on what
has been happening and which states are sort of setting the
curve on that so we can continue to push for results as well.
And with that, I will yield back.
Mr. Stutzman. Yes, I would agree to that as well.
And I have no further questions at this time. I just want
to thank you again, Mr. Ortiz, for being here and for your
work. I know you have a big job to handle and we want to be
here to help and make sure that our vets are getting the
services that they need.
So any further closing comments?
[No response.]
Mr. Stutzman. Okay. Well, with that, I ask unanimous
consent that all Members have five legislative days in which to
revise and extend their remarks on today's hearing. Hearing no
objection, so ordered.
Again, I just want to thank each of the witnesses for being
with us today and I look forward to continuing this dialogue we
have begun. And I realize that it is a tough job and this job
is only going to get more challenging as the wars wind down
thankfully. But we do want to address these problems as best as
we can.
So with that, this hearing is adjourned.
[Whereupon, at 12:59 p.m., the Subcommittee was adjourned.]
A P P E N D I X
----------
Prepared Statement of Chairman Stutzman
Good morning.
Welcome to the first Subcommittee on Economic Opportunity hearing
of the second session. There is a good reason why I chose this as the
first topic.
Shortly after the end of the Vietnam War, the United States defense
policy changed to transition the National Guard and Reserves from a
strategic reserve to an operational reserve. There were several reasons
for doing this ranging from the perception that a reliance on the
Reserve Components would lessen the likelihood of military actions in
the future to reducing the cost of our defense forces. Regardless of
those reasons, members of the Guard and Reserves have borne a
significant share of the combat since 9/11. Clearly, they are no longer
``Weekend Warriors.''
That also means that employers--especially small businesses--have
experienced labor challenges not seen since World War II and by and
large, have supported their employees. Unfortunately, active duty call-
ups, combined with a bad economy, have created historically high
unemployment rates among the Guard and Reserves. Even more unfortunate,
you will hear today that some employers have used what I believe are
less-than-ethical tactics to terminate members of the Guard and
Reserves.
As the owner of a small business, I understand the pressures on
employers that the loss of a critical employee creates. But in the end,
the question I always ask is, who is making the greater sacrifice, the
employer or the servicemember who is literally going in harm's way and
that member's family who must cope with all the stresses of a
deployment?
You will also hear today from the National Association of
Manufacturing about the over 600,000 manufacturing jobs going unfilled
because of skill shortages. With that kind of information we must ask
ourselves, what are we as a nation doing wrong?
For example, taxpayers are providing a generous GI Bill education
and training program and the Department of Education offers numerous
Title 4 financial assistance programs. In many cases, the states are
also offering generous education and training benefits to members of
their state's National Guard as well as veterans in general.
Additionally, the recently passed VOW to Hire Heroes Act focuses on
renewing the skills of unemployed veterans between the ages of 35 and
60 by providing up to a year of Montgomery GI Bill benefits. Veterans
also have priority access to all Department of Labor Workforce
Investment Act or WIA (WEE-A) programs. All of these education and
benefit programs offer opportunities to acquire skills needed by
today's employers. So where are we going wrong, where are the gaps and
I look forward to some concrete ideas here today to help us. I would
note that none of the government's witnesses have made any such
suggestions in their written testimony.
I am pleased to see that manufacturers are increasing their role as
you will hear in Ms. De Rocco's testimony and I believe that increasing
initiatives by the employer side of the equation is an area that offers
significant leverage in developing and matching skills with job
vacancies. In the end, it will likely be up to employers to take
actions at the local level rather than moving jobs overseas. I know
that many companies work with community colleges to develop the skills
needed in their company and I suspect that expanding that model is an
area we need to explore further.
Before I yield to the Ranking Member, as everyone knows, the
Transition Assistance Program is an integral part of transition. In
fact, I believe that every one of today's witnesses mentions TAP in
their written testimony. In preparing for this hearing, the staff asked
the Administration for a briefing on the redesign of the Transition
Assistance Program or TAP. Unfortunately, that briefing has been
delayed pending release of a study done for the White House. While I
commend the Administration for doing the study, delaying its release--
for whatever reason--does not help either the Congress or the
Administration to get on with revitalizing an important program and I
urge the White House to release the study.
Once again, welcome and I now recognize the distinguished Ranking
Member, Mr. Braley for his opening remarks.
Thank you.
Prepared Statement of Hon. Bruce L. Braley,
Ranking Democratic Member
First, I would like to thank Major General Timothy Orr, The
Adjutant General of the Iowa National Guard and Dick Rue, State Chair
of Iowa ESGR for joining us to testify in this hearing today. I know
they have both been hard at work trying to decrease unemployment among
returning Iowa National Guard and Reserve members.
In October, Chairman Stutzman and I traveled to Waterloo, Iowa, and
Ft. Wayne, Indiana to hear first-hand about unemployment issues from
veterans and Guard and Reserve members. One of the things we kept
hearing was the need to help servicemembers translate their military
skills to the civilian jobs they were seeking, as well as getting
assistance in interview techniques.
Over 600,000 members of the National Guard and Reserve have been
mobilized since the attacks of September 11, 2001, and nearly 15,000
Iowa National Guard members have served their country at home and
across the world in that same time period. Just this past summer, 2,800
Iowa National Guard members returned from a deployment to Afghanistan.
This means that thousands of individuals volunteered to leave their
jobs to serve their country, with the uncertainty of knowing what would
be waiting for them once they returned.
Coming home after fighting overseas is difficult enough, but
veterans often struggle to find good-paying jobs after leaving the
service. It is estimated that approximately one out of every four
combat veterans from Iraq and Afghanistan are out of work. That's
unacceptable. Fortunately, progress is being made. Because of the work
of various organizations in Iowa, the unemployment rate for recently
returned Iowa National Guard members has dropped considerably, from
around 25 percent in August to around 10 percent today. And I expect
that this rate will continue to drop because of their efforts.
The uncertainty of knowing when a deployment will occur can affect
employment. Our Reservists and Guardsmen are a pool of talented and
dedicated individuals--men and women who have an education and real-
world employment experience. These warriors have full-time civilian
jobs while they proudly serve on the weekends. They return from
deployment to their civilian jobs, only to face the reality of being
deployed once again, which can be emotionally draining for our troops
and their families.
According to the statements made during the field hearings in
October, some National Guard members deemphasized their service to
their country because of fears that employers would not want to hire
them, knowing they could be deployed at any minute. They did not want
to discourage prospective employers from hiring them. Although the
Uniformed Services Employment and Reemployment Rights Act (USERRA)
provides protections from employment discrimination based on military
service, some Reserve members have lost their employment.
It is our responsibility to create a culture where all American
businesses recognize the important service of their employees who have
answered the call to duty. Employers are vital to empowering employees
who are members of the National Guard and Reserves. We want all of our
veterans to succeed and we want their employers to do well also.
Employers' support and encouragement allow these warriors to serve
their country without the concern of losing their job or being
unemployed when they return home.
Men and women who've put their lives on the line for our country
deserve to have every opportunity when they return home. This hearing
will help us find better ways to open new doors for veterans,
particularly Iowa National Guard and Reserve members who have recently
returned from service in Iraq and Afghanistan.
Prepared Statement of Theodore L. Daywalt
EXECUTIVE SUMMARY
Despite the impression from press reports, the employment situation
of veterans as a group has always been positive. In fact, the
unemployment rate for ALL veterans has always been lower than
nonveterans and lower than the national unemployment rate.
While the national unemployment rate for all veterans was only 7.7
percent (CPS) in December 2011, there is an unemployment issue for
young veterans, but it is not as many think because the young veterans
lack skills or served in the current wars. The unemployment rate for
young veterans had historically been comparable to the national
unemployment rate until 2007, at which time the 18 to 24 year old
veteran unemployment rate and to some degree the 25 to 29 year old
unemployment rate started rising rapidly. The rise in the young veteran
unemployment rate is a direct result of a DoD call up policy
implemented in January 2007. The call up policy caused employers to not
want to hire members of the National Guard which led to the high
unemployment rate in young veterans.
The information and data in this testimony will demonstrate the
high unemployment rate of young veterans is a direct result of their
participation in the National Guard and Reserve and the current call up
policy. Due to the constant activation of the National Guard, upwards
of 65 percent of employers will not now hire as a new employee anyone
who is an active member of the National Guard. The result is the
exceptionally high unemployment rate of young veterans. The
unemployment rate of 18 to 24 year old veterans in November 2011 was
37.9 percent, comprising 95,000 veterans and fell to 31.0 percent in
December, comprising 74,000 veterans. While BLS statistics do not
distinguish between veterans and active members of the National Guard,
the data presented in this report leads me to believe the bulk of these
unemployed veterans are in the National Guard.
If a veteran has totally separated from the military, retired, or
is a wounded warrior, they are for the most part finding employment.
This is not to say some are not having difficulties in this rough
economy. One can always find an exception. But if a veteran remains
active in the National Guard, they are having a difficult time finding
meaningful employment due to the constant call ups and deployment
schedules.
Young veteran unemployment in the National Guard will become worse
as they try to compete against veterans who will be downsized from the
active duty forces. Young veteran unemployment in the National Guard
could reach 50 percent if there is not a change in policy.
Veterans do very well in the following disciplines: information
technology, project management, consulting, sales, linguists,
logistics, transportation, human resources, education, construction,
manufacturing, engineering, finance, banking, health care, senior
executives and expatriates.
WRITTEN TESTIMONY
Good morning, Chairman, members and staff of the Subcommittee on
Economic Opportunity of the House Committee on Veterans Affairs (HVAC).
I am very pleased the HVAC is addressing the issue of National
Guard unemployment. The National Guard unemployment problem is
intertwined with the Federal Reserve forces unemployment.
VetJobs (www.vetjobs.com) has a unique vantage point on these
discussions as by the nature of our business over the last 13 years,
VetJobs deals with veterans and their family members on a daily basis
who are pursuing employment. We deal with all veterans, including
Officer and Enlisted, Active Duty, Transitioning Military, Reservists,
Veterans and Retirees of the Air Force, Army, Coast Guard, Marine
Corps, Merchant Marine, National Guard, Navy, NOAA and Public Health
Service, DoD civilians and their family members. VetJobs has been
fortunate in being successful in assisting them in finding employment
for 13 years.
Our interest in the National Guard and Reserve became heightened
when the 20 to 24 year old young veteran unemployment rate doubled when
it went from 10.4 percent in 2006 to 22.3 percent in 2007 following the
introduction of the current call up policy in January 2007. That
increase was the initial warning bell that there would be significant
increases in employment problems for members of the National Guard and
Reserve directly related to the change in the call up policy.
In order to solve a problem one must effectively analyze, define
and identify the problem and its causes. If one does not understand the
sources of the problem, well-meaning solutions that are chosen will not
work, or worse, will not address the problem at all.
Working on a solution to the National Guard and Reserve
unemployment problem is important. I am convinced that there are those
at DoD who were aware this problem existed, but for various
bureaucratic and political reasons have been trying to pretend the
issue does not exist and have been kicking the can down the road for
someone else to deal with in the future. That might be good for a
bureaucrat's career, but the young members of the National Guard and
Reserve who have families to support should be given better treatment.
The component members are being made to suffer from bureaucratic
policies, and that is not a fair thing to do to the very people who
have been fighting for our country and freedoms.
For example, in a discussion with a former head of a Reserve force,
I was told that not one of his Reservists was having a problem finding
a job. He was parroting policy, but it was a flawed policy because at
the time many Reservists were having problems finding employment due to
the call up policy. The same issue affects the National Guard.
What follows is a discussion of my observations of the National
Guard and Reserve unemployment issue with an emphasis on the National
Guard. My observations are as a former drilling Navy Reservist and as a
businessman managing the leading military related internet employment
site that interacts with state and Federal agencies, corporations,
nonprofit organizations, and businesses seeking to hire transitioning
military, veterans, National Guard, Reservists and their family
members.
Due to the myths and misunderstandings in the press regarding
veteran unemployment, I present the following documentation about what
is actually happening and why the National Guard in particular is where
the true veteran unemployment problem exists.
Following the discussion I offer potential solutions for
consideration. Having studied this issue for nearly a decade, I have
found there is no silver bullet that will solve the National Guard
unemployment problem. But a combination of policy changes and utilizing
existing public and private sector resources will go a long way towards
assisting those members of the National Guard who need help.
While this testimony is concentrating on the National Guard, the
Federal Reserve faces many of the same issues.
I want to emphasize from the outset that I am very supportive of an
operational National Guard and Reserve. In the later years of my time
as a drilling Navy Reservist in the Naval Reserve Intelligence Program
we stressed making our Reserve Intelligence units operational, which
proved very beneficial during the first Gulf War. Having an operational
National Guard and Reserve makes the United States stronger on the
national stage. But the use of the National Guard and Reserve needs to
be done in such a way as to still let the component member maintain a
continuum of civilian employment.
Prepared Statement of Emily DeRocco
Chairman Stutzman, Ranking Member Braley and Members of the
Subcommittee, thank you for the opportunity to testify on behalf of The
Manufacturing Institute at this hearing on Lowering the Rate of
Unemployment for the National Guard.
My name is Emily DeRocco, and I am the President of The
Manufacturing Institute. We are the non-profit affiliate of the
National Association of Manufacturers (NAM), and our mission is to
support the Nation's manufacturers through solutions and services
focused on education, workforce development and innovation
acceleration.
Over the past few months, manufacturing has enjoyed something of a
national spotlight. Organizations all across Washington, from the White
House and Congress to major think tanks and government agencies, have
been discussing the manufacturing industry and what America must do to
maintain and grow its manufacturing base.
Manufacturing is certainly deserving of the recognition it is now
receiving because it is an industry that is truly vital to our economic
security. Manufacturing is the leader in generating wealth from
overseas, contributing 57 percent of the total value of U.S. exports.
Of course, manufacturing also plays a vital role in our national
security, building the equipment, machines, and armor that equip and
protect our servicemen and women.
The American public understands how important manufacturing is to
our country. Each year we conduct a public perception survey to
understand how Americans feel about our industry. Not only do they
believe that manufacturing is critical to our economic and national
security, but when given a choice of selecting any industry to create
1,000 jobs in their backyard, the number one choice is manufacturing.
But while manufacturing enjoys the support of policymakers and the
public, manufacturing companies face a serious challenge--they are
unable to find workers who are qualified to step in and contribute to
their operations. In a survey that the Institute just completed, over
80 percent of manufacturers reported a moderate-to-serious shortage in
skilled production workers. Eighty percent. Nearly 75 percent of
manufacturers say that this shortage has negatively impacted their
ability to expand, costing us an incredible number of jobs at a time
when jobs are desperately needed. Perhaps most alarming though is that,
because much of the current workforce is quickly approaching
retirement, over two-thirds of manufacturers actually expect the
situation to get worse in the next couple of years.
This has led to a situation where 5 percent of all jobs in
manufacturing are unfilled because companies cannot find workers with
the right skills. In real terms, that is 600,000 open jobs today in
manufacturing.
Those are some frightening results and make clear the threat that a
lack of a skilled workforce poses to manufacturers.
It is widely accepted that the skills obtained in the military,
from personal effectiveness attributes such as integrity and
professionalism to more technically defined skills such as process
design and development, are in abundance among separating military
personnel. However it has traditionally been a challenge to directly
align the skills developed during military service to the job codes in
the private sector. In addition, the services offered through the
Transition Assistance Program vary base by base . . . command by
command. Traditionally the military has focused on retaining members,
not helping them transition out.
So we have two problems . . . The Transitional Assistance Program
is inconsistent and often outdated in its attempt to help separating
military and manufacturers who want access to a highly skilled labor
force.
Fortunately, we now have a new system that will help with both of
these challenges. In partnership with a company called Futures, The
Manufacturing Institute has created an online tool that we're calling
the U.S. Manufacturing Pipeline. It will provide the information for
separating military to learn about careers available in advanced
manufacturing, locate the schools and programs that teach additional
applicable skills, and find available jobs at manufacturers in every
region of the country.
And for manufacturers, it will be the place to find the skilled
workers they need to close the skills gap and expand their operations.
Pipeline can allow individual companies to send a message to any
individual that has, for example, welding skills, and lives within a
certain distance of their facility and invite them to apply for an open
position. This really is a powerful tool that can change the way
manufacturers find and recruit talent, facilitating access to
separating military.
Though the Pipeline platform has only been in operation for a short
time, and no significant marketing campaign has occurred, over 35,000
servicemen and women are now using the site for their career and
employment searches. This is entirely through peer-to-peer and viral
marketing and demonstrates the quality of the product. And this number
is set to increase dramatically.
The Defense Department is preparing a major advertising campaign to
reach over 1 million Armed Forces Reserve and National Guard personnel
and encourage them to sign up with Pipeline. By demonstrating success
with this group of servicemen and women, we hope that, through our
partnership with Futures, we can engage with the Transition Assistance
Programs for each of the services to reach all active duty personnel
who are nearing their transition date, offering manufacturing jobs as
an immediate career opportunity for all men and women who have served
in uniform.
Finally, our longer term strategy for the U.S. Manufacturing
Pipeline includes engaging with community colleges across the country
that offer programs that provide national industry skill
certifications. This will allow transitioning military personnel to
easily find any additional education and training needed to work in
manufacturing.
I'm certainly excited about this and believe we are very close to a
National Talent Solution for manufacturing. Our manufacturers need the
skilled workforce to compete. Our separating military need good jobs.
And our country needs manufacturing for this to be another great
American century.
Thank you for the opportunity to join you today and I'm pleased to
take any questions.
Prepared Statement of Terry M. Haston
Chairman Stutzman, Ranking Member Braley, and distinguished Members
of the Subcommittee; I am honored to appear before you today on behalf
of the more than 14,000 men and women serving in the Tennessee Army and
Air National Guard, and I would like to begin by expressing my sincere
appreciation for the outstanding support of this Subcommittee.
Since the tragic attacks on our homeland on September 11, 2001,
more than 27,000 brave Tennessee National Guard Soldiers and Airmen
have deployed both at home and abroad protecting the freedoms that we
all enjoy.
Tennessee National Guard Unemployment Statistics
These men and women of the Volunteer State have answered the call
of this Nation without hesitation or reservation. Most return home
after defending this great nation and resume the civilian lifestyle
they left, renewing relationships with family and friends and returning
to their civilian workplace; but all too often many return to an
uncertain future. The issue of Soldiers and Airmen facing unemployment
in the civilian sector is paramount in our concerns for the well-being
of our troops.
In Tennessee, about 20-25 percent of our National Guard strength is
either unemployed or under employed, with about 3.5 percent of those
identified as full-time students. This compares to an 8.7 percent
unemployment rate for Tennessee as a whole. We owe these volunteers our
very best efforts in helping them gain employment. But to effectively
combat this problem, we have to know the enemy. We have to look beyond
the reported numbers that may, in fact, demonstrate a ``false
positive''. To understand the magnitude of the problem, we have to
determine an accurate number of Guard members who are actively seeking
employment. We also have to determine if their deployment caused them
to be unemployed, or were they unemployed before deploying. In
Tennessee, we continually encourage the unit commanders and leadership
to identify these individuals in order to assist them however we can.
Simply, we must know what the true objectives are before we can attack
them.
Tennessee National Guard Initiatives and Transition Assistance
In Tennessee, we are striving to identify those true objectives. In
conjunction with the Employer Support of the Guard and Reserve, we are
conducting Employment Assistance Workshops about once each month. This
3-day event provides one-on-one career counseling addressing issues
such as writing an effective resume, guidance in preparing for, and how
to conduct an interview. On the final day, employers, such as FEDEX,
Verizon Wireless, Hospital Corporation of America, Dollar General, AT&T
and a multitude of other employers are on hand to interview prospective
employees. Hopefully, through this process the employers will find and
hire a quality Guard member that brings a great deal to the table,
offering that employer a motivated, disciplined, drug-free asset with
the training and potential for leadership within their company.
We have sponsored or supported 18 Job Fairs in the past 17 months
with 415 participants. Of those participants, 111 have responded to
inquiry, and 37 percent of the respondents have found employment.
This program, along with our Yellow Ribbon initiatives,
unemployment counseling at Soldier out-processing upon their return,
and our outstanding relationship with the Tennessee Department of Labor
are all positive steps in reducing the number of unemployed Guard
members in Tennessee.
Closing Remarks
I've often heard it said that the Soldiers and Airmen of our
National Guard are the best America has to offer. These men and women
are willing to put their lives on hold, and without hesitation . . .
without reservation, walk away from family, community, and their
civilian occupation to defend and protect this great nation. We owe
them no less than our very best.
Thank you for allowing me to address this Subcommittee, and I stand
ready to answer any questions you may have.
Prepared Statement of Margaret Washburn
Chairman Stutzman and honorable Members of the Subcommittee; on
behalf of MG R. Martin Umbarger, The Adjutant General of Indiana, I am
honored to appear before you today to represent our 14,314 Army and Air
National Guard Servicemembers. I would also like to begin by expressing
my sincere appreciation to the Subcommittee for its tremendous support
over the past several years, and for your concern with the well-being
of the outstanding men and women serving in our Nation's National
Guard.
Indiana National Guard Unemployment Information/Statistics
Indiana also faces the challenge of unemployment and
underemployment for our Guardsmen. Indiana has deployed over 17,693
servicemembers since 9/11. Based on the Department of Defense Civilian
Employment Information database, it is estimated that nationally 20
percent of returning National Guard Soldiers and Airmen are unemployed.
The current rate of unemployed Indiana National Guard members is
roughly 23 percent, which is over twice our current state rate of 9
percent unemployment. Thus, we estimate roughly 3,300 Indiana Guardsmen
and women are unemployed.
As we conduct more detailed analysis, we find these numbers
slightly skewed by the number of servicemembers just completing high
school or currently enrolled in higher education. Furthermore, in
Indiana, we also chose to track and assist unemployed spouses, when
identified, believing that getting at least one of the family members
employed significantly improves overall servicemember household well
being and readiness.
Indiana National Guard Initiatives
In 2009, MG Umbarger created the Indiana National Guard Employment
Coordination Program. The objectives of this program are to identify,
track, and reduce unemployment within the Indiana National Guard. These
objectives are accomplished through working directly with each
unemployed servicemember to increase their marketability, collaborate
with Indiana employers for the hiring of our members, and quality
assurance checks with these businesses on the servicemembers they have
already hired. Direct hands on assistance includes Resume writing,
active Job Search training, Interview Skills, and Job Preparedness
training. Developing a servicemember's marketability includes
education, skills training, Vocational rehabilitation, and even near
term financial assistance for such things as reliable transportation to
their new employment.
Our Employment Coordination Program works individually with each
identified servicemember throughout all phases of the deployment cycle.
We actually define a servicemember's needs while the member is still in
theater and are present at the demobilization station when the
servicemember returns so we may initiate actions required to improve
their marketability or educational needs. We have now placed over 1000
servicemembers and spouses in jobs. Some of these jobs were Active Duty
Operational Support (ADOS), temporary positions, and a combination of
education with part time employment. The Employment Coordination
Program has also assisted in completion of 2443 resumes, has 484 jobs
openings currently posted, and submitted 2050 job applications.
Another initiative is the Indiana National Guard--Business
Partnership. We currently have over 125 businesses involved with this
partnership. This partnership includes a reciprocal support process
designed to provide both the employer and employee with resources and
assets to complete successful hiring and sustained job performance. We
have placed 172 servicemembers in jobs within these 125 businesses.
Another initiative is MG Umbarger's Executive Business Meetings.
These monthly meetings give key business and community leaders a
greater understanding of the National Guard experience and what our
servicemembers have to offer the state workforce. These leaders are
encouraged to consider a veteran for any open position, especially
those returning from deployment and those negatively impacted due to
economic challenges in their local communities.
Our Adjutant General also created a J9 Civil-Military Affairs
Directorate. This Directorate brings all support programs including
Family Programs, Yellow Ribbon Reintegration, Employer Support of the
Guard and Reserve, Transition Assistance Advisors, and Employment
Coordination Program under one supervisor. It affords these programs a
level of ``unity of effort'' that did not exist when they were working
independently. The J9 Directorate also serves as the community outreach
platform creating new relationships with community resources and
developing increased servicemember and family access to these
resources.
The Indiana National Guard also participates in all Employer
Support of the Guard and Reserve activities, the Job Connection
Education Program (JCEP), job fairs, town hall meetings, network and
social media programs.
Needs Assessment
Funding and Manning are needed to allow these programs to maintain
success. We believe long term job placement is potentially greater with
our holistic approach to the employment process. Thus there is greater
value to the National Guard workforce by including education, skills
training, and improved marketability over just sending in a resume.
Closing Remarks
Our National Guardsmen have proven themselves to be ready,
reliable, and accessible here at home and worldwide. Many of them have
answered the call to duty and spent multiple deployments away from
their families and employers. The Indiana National Guard is working
hard to insure these heroes return to a lifestyle and family wellness
deserving of the sacrifices they have made. The strength of the Indiana
National Guard rests in its citizen soldiers and airmen. The strength
of these citizen soldiers and airmen rests in their employment and
productivity to their communities. Indiana employers are military and
veteran friendly and many desire to hire our talented, experienced, and
reliable servicemembers. We need to help make that connection possible.
Once again, I thank you for recognizing this issue and holding this
hearing. I look forward to responding to your questions.
Prepared Statement of Timothy E. Orr
Opening Remarks
Chairman Stutzman, Ranking Member Braley, and Members of the
Subcommittee:
It's a great privilege to be here today representing the 9,400
Soldiers and Airmen of the Iowa National Guard in this important
discussion to maximize employment opportunities for National Guard
members. Thank you for the opportunity to testify on this topic and
provide perspective on the State of Iowa's initiatives to address this
important issue.
The Iowa Experience
First let me begin by saying that Iowa is unique in many ways.
Thankfully, our state and region currently have lower unemployment
rates than those seen in other parts of the country. The employers in
our state are military and veteran friendly and we enjoy incredible
support from our communities. The level of cooperation between our
employment and education partners, including private sector job
creators, Employer Support of the Guard and Reserve (ESGR), Iowa Work
Force Development, Job Connection Education Program, the Iowa
Department of Education, community colleges, and the Society of Human
Resource Managers is outstanding. In addition, Governor Branstad has
provided key leadership to drive employment opportunities for our
National Guard members.
While we remain focused on those with employment challenges, we are
fortunate to have seen tremendous improvement in overall employment
numbers for those who have returned from the state's largest deployment
since World War II. We currently estimate, based on data collected
during our deployment outprocessing and reintegration events, that the
unemployment rate of our returning warriors fell from a high of 25
percent in August 2011 to a current rate of just under 10 percent.
Though we still have work to do in this area, we are very happy to see
this remarkable improvement among our returning warriors.
Working Together
I truly believe the success we've seen in this area is a result of
steps we took long before the 2,800 members of our brigade combat team
deployed to Afghanistan. Because of its size and scope, we knew this
deployment would have a significant effect on our state including our
families, our employers and our communities. Through a series of
``Lunch & Learn'' engagements, townhall meetings, predeployment
briefings and other public engagements we initiated an information
awareness campaign to build support and deepen understanding between
servicemembers and employers regarding the Uniformed Services
Employment and Reemployment Act (USERRA). In conjunction with ESGR, we
initiated a series of employer bosslifts, bringing employers to our
Annual Training and post deployment training sites to witness firsthand
the important and complex work their Citizen-Soldiers were doing in
preparation to deploy overseas.
From the beginning, we knew we had to work together to minimize the
disruption and confusion caused by such a significant deployment on our
state's employers. I invited Dick Rue, our state ESGR Chair, to stand
with me to help answer questions about the rights and responsibilities
of both employers and their Citizen-Soldiers during our press
conference announcing the deployment. We often talk about the service
and sacrifice of our servicemembers and their families. In Iowa, we
know employers also sacrifice when their Citizen-Soldiers deploy and we
work hard to acknowledge that through ESGR engagements and employer
recognition events.
Tool Box Solutions
Though this information campaign was important we knew it would not
be enough based on what other states experienced following large
deployments. Opening up our ``Tool Box'' we started looking at ESGR,
National Guard Bureau and other state and Federal employment programs
designed to assist returning warriors. One of the most important steps
we took was to nest our employment and education counselors in order to
emphasize these areas during the demobilization process. Working
together, they counseled returning warriors on employment and education
programs and benefits available to assist with their transition from
active duty. Thanks to this integration, an additional 900 of our
returning warriors indicated their intent to enroll in school than were
students when the deployment began. We screened members as they out
processed and attended reintegration events to identify those
struggling with employment issues and link them up with assistance
through our Jobs Connection Education Program and online job search and
application programs.
Working with our employment partners, we developed a one-day course
designed to assist our unemployed or underemployed warriors. We help
them write resumes and cover letters that translate their military
experience into meaningful civilian skills. We work on interviewing
techniques and skills in order to prepare them for job fairs and
interviews.
Through our partnerships with Iowa Workforce Development, we placed
computers kiosks in our armories to assist our warriors with finding
and applying for job openings. Last October we supported, with other
state and Federal agencies, a Veterans' job fair and began posting job
openings, targeting veterans on Web sites like the National Guard's
Jobs Connection Education Program and Employer Partnership.
The Iowa Department of Education and the U.S. Department of
Veterans Affairs have teamed up to develop a program designed to assist
veterans and their dependents by allowing them to learn a trade or
skill through participation in apprenticeship or on-the-job training
rather than by attending academic classes. Veterans and servicemembers
eligible for the GI Bill may use these benefits for apprenticeship or
on-the-job training. This program allows a military veteran or
servicemember to enter into a training contract for a specific period
of time with an employer or union and then after the training period,
the trainee is given job certification or journeyman status. In most
cases, the veteran trainee receives a salary from the employer or union
while participating in the program. As they progress through the
program and their skill level increases, so does their salary. The U.S.
Department of Veterans Affairs (VA) provides monthly GI Bill payments
for veterans or servicemembers in approved programs. This is another
great example of the team approach we have taken in Iowa to assist our
returning warriors.
While we still have a lot to do to ensure employment opportunities
for all of our returning warriors, we have made significant progress.
We will continue to work to enhance our tool kit to help our warriors
like working with our state legislature to assist with legislation that
better aligns state licensure requirements with military specialty
skills and working with our employment and private sector partners to
continue to identify job opportunities for our warriors.
Closing Remarks
Our Iowa National Guard Soldiers and Airmen continue to be
``Mission Focused and Warrior Ready''. Over 15,000 Iowa National Guard
members have served and sacrificed in support of ongoing contingency
operations here at home and across the world, many on multiple
occasions. They, along with their families and employers, have borne a
heavy burden to help ensure our Nation's safety and security. They did
so willingly and have asked little in return. Working together, at
every level, we have a responsibility to assist those struggling with
unemployment issues related to their military service. I greatly
appreciate the Subcommittee's work on this issue and I look forward to
your questions on our efforts to help our returning warriors.
Prepared Statement of Richard A. Rue
Chairman Stutzman, Ranking Member Braley, and Members of the
Subcommittee:
It is a privilege to be here today representing the Iowa ESGR team
in this important discussion to maximize employment opportunities for
members of the Guard and Reserve. Thank you for the opportunity to
testify on this topic and provide the Iowa ESGR perspective and
initiatives to address this important issue.
The primary mission of Employer Support of the Guard and Reserves
(ESGR) is to promote a culture in which all American employers support
and value the military service of their employees. We accomplish this
through advocating relevant initiatives, recognizing outstanding
support, increasing awareness of the law (USERRA) with our employer and
military outreach programs and resolving conflicts through mediation
when requested. Under our advocate role, in FY 11 ESGR educated,
provided consultation to, and assisted with reemployment challenges for
employers, National Guard members, and Reservists. The Employment
Initiative Program (EIP) was added to our mission in the fall of 2010
and is designed to facilitate employment opportunities for unemployed
and underemployed servicemembers and their spouses. This program is an
outgrowth of our ESGR Employer and Military Outreach Programs and
complementary to the current economic realities in our state and
aligned with our President's New Veterans Employment Initiative.
The essence of my written testimony is that in Iowa, we feel that
we have made positive advancements toward successfully lowering the
rate of unemployment of our National Guard. This has been accomplished
by effective planning to ensure that the multiple resources in
existence to support the National Guard and employment of National
Guard and Reserve members have worked in harmony towards this common
purpose. It is easy for varying organizations to work independently and
thus diminish the opportunity for success in achieving this important
common goal. As the result of our state National Guard leadership,
Major General Orr and his command staff, from the earliest public
notification of pending deployment all related resource partners worked
together to ensure that planning, execution and follow-up was in place
to support the needs of the 2nd Brigade Combat Team.
My written testimony outlines in more detail the support, resources
and access that the members of the Iowa ESGR volunteer team received
during pre-mobilization, during deployment and during post-mobilization
up to and including the present. The key element of our ability to
achieve success has been communication and cooperation between and
among the multiple resource partners (the Iowa National Guard, Iowa
ESGR and Iowa Employers) and our support organizations (Iowa Workforce
Development, DOL-VETS and Job Connection Education Program (JCEP)). As
per my written testimony, this cooperation allowed for hands-on
personal engagement by the Iowa ESGR team with soldiers for both
education and support purposes. Enhanced communications and greater
efficiencies across agencies yielded Employment Assistance Training
targeting approximately 400 self-identified unemployed servicemembers
from the 2nd Brigade Combat Team. Information regarding upcoming
employment events is regularly emailed to these unemployed individuals,
the command and staff of all Iowa National Guard and Reserve units, all
Guard and Reserve members returning from deployments, and Iowa ESGR's
military outreach volunteers. Additionally, the support received by all
the organizations I just mentioned was effectively channeled towards
Iowa employers through the pre, during and post mobilization time frame
via multiple events and touch points.
Now, with the Employment Initiative Program, our associated
partnerships within the state and the continued support of the Iowa
National Guard leadership, Iowa ESGR is well prepared to continue our
history of assisting servicemembers and employers to connect more
effectively than ever before.
Iowa ESGR and our Partners
The primary mission of Employer Support of the Guard and Reserves
(ESGR) is to promote a culture in which all American employers support
and value the military service of their employees. We accomplish this
through advocating relevant initiatives, recognizing outstanding
support, increasing awareness of the law (USERRA) with our employer and
military outreach programs and resolving conflicts through mediation
when requested. Under our advocate role, in FY 11 ESGR educated,
provided consultation to, and assisted with reemployment challenges for
employers, National Guard members, and Reservists. The Employment
Initiative Program (EIP) was added to our mission in the fall of 2010
and is designed to facilitate employment opportunities for unemployed
and underemployed servicemembers and their spouses. This program is an
outgrowth of our ESGR Employer and Military Outreach Programs and
complementary to the current economic realities in our state and
aligned with our President's New Veterans Employment Initiative.
I will focus my comments of the Iowa ESGR support directed
primarily towards the Iowa Army National Guard's 2nd Brigade Combat
Team's recent deployment and return to Iowa in three parts: Pre-
mobilization, mobilization, and post mobilization.
Pre-mobilizaton: Prior to the 2nd Brigade Combat Team (2BCT)
leaving the state the National Guard provided work space for our staff
to set up computer stations during all pre-mobilization briefing
events. ESGR was given the opportunity to partner with the Department
of Labor VETS providing a USERRA and ESGR briefing to all
servicemembers to ensure that they were aware of their rights and
responsibilities with regard to employment and re-employment.
Additionally, the computer work stations provided every soldier the
opportunity to update their Civilian Employment Information (CEI) with
ESGR staff there to assist with the sometimes difficult navigation of
the Web site; this ensured that we, Iowa ESGR, had the most current
possible information with regard to our employer communication focus.
The National Guard made this station a requirement to ensure that this
DoD requirement was accurately completed prior to their deployment. We
believe the approach to this data collection process greatly
contributed to improved accuracy of the pre-mobilization information
regarding employment status.
In an effort to be proactive, ESGR requested the CEI data
information ``by unit'' to better determine the number of soldiers that
were not employed and also identify those that were students. As the 2
BCT prepared for deployment, the Iowa economy continued in an economic
downturn and there was a National emphasis on the unemployment status
of our troops. The CEI report from December 2010 showed that 630
soldiers considered themselves ``not employed'' and 267 as
``students''. With these numbers in mind, Iowa ESGR and the Iowa
National Guard began to jointly discuss and develop an appropriate plan
to assist these members upon their return. Proactive planning was our
plan for success.
Mobilization: Iowa ESGR has hosted regular employer outreach events
statewide for several years; however during mobilization, with the
current emphasis on employment needs of our Reserve Component members,
these events were revised to emphasize re-employment rights and
employment opportunities. Iowa ESGR partnered with DOL-VETS on the
planning and facilitation of several events with the primary focus
around educating employers on USERRA and to provide awareness of
resources like ESGR and DOL-VETS, which are available to employers and
not just for the benefit of servicemembers. Additionally, ESGR provided
an overview of the unemployment outlook for our returning National
Guardsmen and encouraged employers to actively hire these qualified
individuals upon their return. Once engaged, employers began sending
their job opportunities to ESGR and several employers provided
volunteer H.R. representatives for the Employment Assistance Training
(EAT) events that Iowa ESGR subsequently conducted in coordination with
DOL-VETS and Iowa Workforce Development.
Post-mobilization: In July 2011 the Iowa ESGR staff, as requested
by the Iowa National Guard, traveled to Fort McCoy, Wisconsin as the 2
BCT transitioned from their overseas deployment back to the United
States. The purpose of ESGR's presence was to provide a refresher
briefing to all troops on USERRA as well as to facilitate the
collection of survey data regarding employment status. Of particular
interest was the unemployment and student status change's that occurred
during the deployment. ESGR and the Iowa National Guard partnered
together in developing a survey to capture up-to-date information on
the 2 BCT return. ESGR collected, tabulated and presented the survey
results to the Iowa Guard Command.
During the 90-day post mobilization events, the Iowa National Guard
again provided work space to us and required all troops to visit the
ESGR station where they updated the Civilian Employment Information
(CEI) data previously collected. It was clear upon review of the
collection results that our Brigade returnees had success finding jobs
within their communities. Statistics have not been gathered from other
elements of the Iowa National Guard or other service branches in the
state, leaving a large portion of the Guard and Reserves population
with an unknown employment status at this time.
The Employment Assistance Training (EAT) was created through a
partnership with the Iowa ESGR, DOL-VETS, and Iowa Workforce
Development as a one day training event. These workshops were designed
to teach job search skills to job seekers. Topics included the
Transition Assistance Program (TAP), resume writing, job interview
skills training, and online job search techniques. Additionally,
civilian human resource representatives volunteered to provide
constructive critiques on resumes and provided practice interviews for
participants with immediate feedback of their interview skills. The
Society of Human Resource Managers (SHRM) and the Employers Council of
Iowa supported the training events by providing many of the H.R.
volunteers. The Iowa National Guard and Reserves also supported this
effort by ensuring that their members were aware of the program and
encouraged their participation. Since September 2011, ESGR and Iowa
Workforce Development have offered seven Employment Assistance Training
events in communities identified as having the highest number of
unemployed Guard members. These locations were selected based on the
survey results acquired in July during soldier out-processing at Ft.
McCoy, WI. Unfortunately only three of the seven events took place, as
the remaining 4 were canceled due to low RSVP numbers. Individuals
interested in attending the cancelled sessions were given the option to
schedule individual sessions with the local Veterans Representatives at
Iowa Workforce Development. One possible cause of the low participation
may be scheduling the employment events too soon after their return
home. After deployment, these soldiers were not in a duty status and
may have simply wanted a break from the military or had made a decision
to enroll in college or other skilled trade courses. They may have also
have just felt that they were not ready to think about finding
employment while decompressing after a long deployment.
Iowa ESGR is currently working with Iowa National Guard and Reserve
units to promote job training events and job fair opportunities
throughout the state. ESGR volunteers continue to brief Guard and
Reserve members and their families regarding job search opportunities,
training events and USERRA during Yellow Ribbon post-mobilization
events (reintegration briefings and activities) and during regular unit
annual briefings as part of our Military Outreach program. Information
regarding upcoming employment events is regularly emailed to all of the
400 unemployed individuals currently identified. We also ensure that
the employment event information is disseminated throughout the command
and staff of all Iowa National Guard and Reserve units, to all Guard
and Reserve members returning from deployments, and to all of our ESGR
military outreach volunteers who regularly visit all units throughout
the state.
When contacted by Guardsmen or Reservists regarding employment
opportunities, ESGR staff regularly refers individuals to the Employer
Partnership of the Armed Forces Web site, Yellow Ribbon's Hero 2 Hired
Web site, and local employment coaches who offer free services to
members of the Reserve Components and Veterans. Additionally, Iowa ESGR
developed and maintains a strong relationship with the Iowa Workforce
Development and the Job Connections Education Program (JCEP) staff and
regularly refers job seekers to their resources.
Closing Remarks
ESGR, within the state of Iowa and throughout the Nation, has a
long and successful history of helping National Guard and Reserve
Servicemembers and their employers to better understand their rights
and responsibilities under the Uniform Services Employment and
Reemployment Rights Act (USERRA). Our Iowa National Guard and Reserve
commands have demonstrated tremendous support for successful conduct of
our mission and I wish to publically thank them, as it takes a team to
win and they have certainly been team players with Iowa ESGR and all
supporting agencies within our state. Now, with the Employment
Initiative Program and associated partnerships, we are well prepared to
continue our history of assisting servicemembers and employers to
connect more effectively than ever before.
Prepared Statement of Ronald G. Young
Chairman Stutzman, Ranking Member Braley, and Members of the
Committee, thank you for your invitation to participate in this hearing
and share what we in Reserve Affairs have been doing in support of RC
servicemembers, their families and their employers. My full testimony,
submitted for the record, covers four major areas:
First, the latest statistics on the troubling rate of unemployment
among Reserve Component servicemembers. The Bureau of Labor Statistics
report that the December 2011 unemployment rate among all Post-9/11
veterans is at 13.1 percent and the most recent Status of Forces survey
(January 2011), junior enlisted servicemembers in the Reserve
Components self-reported their unemployment rate at 23 percent. With
very limited data on the unemployment rates of Guard and Reserve
members, we believe more analysis is required to understand the actual
unemployment rate, particularly for the 18-24 year old population. Let
me assure you that we in the office of the Assistant Secretary of
Defense for Reserve Affairs view civilian employment as an important
piece of a Reserve Component servicemember's readiness, and see the
current high rate of unemployment as a threat to the readiness of our
force. I look forward to sharing with you the ways in which we are
addressing this problem.
Secondly, the type of transition assistance that is provided to
these servicemembers. This is primarily provided by the Yellow Ribbon
Reintegration Program, a Congressionally initiated program that
connects National Guard and Reserve servicemembers and their families
with resources throughout the deployment cycle. The types of
information that these events give access to are health care,
financial, and legal benefits, as well as education and training
opportunities. Also, Yellow Ribbon post deployment training events
provide employment services to servicemembers.
Third, the efforts of the Employer Support of the Guard and Reserve
(ESGR) office and our 4,800 volunteers nationwide to help educate both
members of the Guard and Reserve and employers about the rights
afforded to servicemembers under the Uniformed Services Employment and
Reemployment Rights Act (USERRA). In Fiscal Year 2011, ESGR saw
successes such as 45,150 signed statements of support from employers
across the country; resolving 79.8 percent of the 2,884 USERRA cases
referred to us; and educating nearly 500,000 servicemembers regarding
their rights and responsibilities under USERRA.
Finally, my testimony covers the initiatives taken by the
Department of Defense to reduce unemployment rates among the Reserve
Components and minimize underemployment. It is important to note that
this is a unique population, as these servicemembers are not retiring
or separating from service. They are still continuing to serve and are
seeking employers who are willing to facilitate their continued
participation in our military. Military members must serve 180
continuous days on active duty to receive ``Veteran'' status. By this
standard, certain Reserve Component members may be statutorily
ineligible to receive services from DOL-VETS or the VA. Our goal is to
ensure these servicemembers still receive specialized assistance. ESGR
and YRRP have partnered under the umbrella of the Employment Initiative
Program addressing employment issues across the country, while working
with the U.S. Chamber of Commerce to execute nearly 70 mega-hiring
fairs across the country.
In December 2011, OSD-Reserve Affairs launched ``Hero2Hired'',
better known as H2H. H2H is a comprehensive, multi-faceted program
targeted to support Reserve Component servicemembers and help them
connect to and find jobs with military-friendly companies that seek
employees with specific training and skills. Through an electronic job
and career web platform, mobile applications and Facebook integration,
virtual and physical career fairs, and a national marketing and
management effort, H2H can reduce the DoD's unemployment benefits cost
as well as the stress and financial hardships faced by unemployed
Reserve Component servicemembers and their families.
Together, Yellow Ribbon and ESGR are delivering meaningful services
to assist Reserve Component servicemembers' transition into the
civilian workforce, providing full spectrum assistance by assisting
with the employment search via H2H, and continuing the support by
promoting positive employer relations through USERRA education. We
should anticipate that both ESGR and Yellow Ribbon will continue to
play a critical role with the enhanced access to Reserve Component
servicemembers as articulated in Title 10 USC Sec 12304. With the
changes to the law in the last National Defense Authorization Act, we
anticipate continued utilization of the Reserve Components, the desire
of these Servicemen and women to participate, and the need to continue
providing support to servicemembers, their families and their civilian
employers.
In closing, thank you for this opportunity to testify on behalf of
everyone that comprises the Family and Employer Programs and Policy
Team and most of all, ESGR's more than 4,800 volunteers located in all
50 States, Washington, D.C., Guam, Puerto Rico and the U.S. Virgin
Islands, and thank you for your continued support of the Reserve
Components.
Prepared Statement of Ismael ``Junior'' Ortiz
Good morning Chairman Stutzman, Ranking Member Braley, and
distinguished Members of the Subcommittee. Thank you for the invitation
to testify today and for holding this important hearing on ``Lowering
the Rate of Unemployment for the National Guard.'' I commend you all
for your tireless efforts to honor the brave Americans who have worn
the uniform of the United States of America and have risked so much to
keep America safe.
We ask so much of these men and women: to put their careers on
hold, leave their loved ones behind and embark on dangerous missions
across the world. Yet the men and women that serve in America's active,
National Guard, and Reserve forces do so willingly and without
hesitation. They selflessly serve their country and are a shining
example of America at its best as President Obama remarked in his
recent State of the Union address. At the Department of Labor (DOL or
Department), we strive to honor their contributions every day. We do
this by putting the full weight of our department behind programs to
ensure rewarding careers are waiting for them when they come home. We
must serve our returning Servicemembers and Veterans as well as they
have served us.
That's especially true now that the Iraq war has officially ended
and we are winding down our presence in Afghanistan. Our returning
Servicemembers deserve a hero's welcome and a chance to utilize their
unique skills to help rebuild our economy. Yet they often face a
difficult transition back to civilian life. This is particularly true
for the men and women of our National Guard and Reserve forces who are
often unintentionally overlooked or underserved. According to the
Bureau of Labor Statistics (BLS), in 2010, recent Veterans who served
during the post-9/11 era had an unemployment rate of 11.5 percent,
compared to a 9.4 percent rate among civilian non-veterans.
Unemployment rates were particularly high among recent Veterans who
have served or continue to serve our Nation in the National Guard and
Reserve forces. These Veterans had an unemployment rate of 14 percent
in July 2010, almost five points above the civilian unemployment rate.
Our Nation has a sacred obligation to help these men and women
overcome unemployment and get the good jobs and benefits that they've
earned. We at DOL believe that this obligation includes providing them
with the opportunity to utilize their unique skills to help rebuild our
Nation's economy. Through the Veterans' Employment and Training Service
(VETS), we provide Veterans and transitioning Servicemembers with the
resources and services to succeed in the workforce by maximizing their
employment opportunities, protecting their employment rights, and
meeting labor market demands with qualified Veterans.
I would like to begin by discussing the work we are doing to
decrease the unemployment rate for our Veterans, National Guard and
Reservists, focusing on the issues you asked me to address, including
the Department's efforts to decrease the rate of unemployment, the need
for additional employment services to areas of high unemployment among
members of the Active and Reserve Components, and DOL's efforts to
educate about and enforce the provisions of the Uniformed Services
Employment and Reemployment Rights Act (USERRA).
Jobs for Veterans State Grants Program
The U.S. military services transition approximately 160,000 active
duty Servicemembers and demobilize approximately 95,000 Reserve and
National Guard Servicemembers annually. Transition assistance and
employment services for Veterans are essential to help our servicemen
and women reintegrate into the civilian labor force.
One of the Department's programs aimed at meeting this need and
decreasing the rate of unemployment among Veterans is the Jobs for
Veterans State Grants (JVSG) program. Through JVSG, VETS provides funds
for two types of Veterans' employment specialist positions in the
states: (1) the Disabled Veterans' Outreach Program (DVOP) and (2) the
Local Veterans' Employment Representatives (LVER) program. DVOP
specialists provide outreach services and intensive employment
assistance to meet the employment needs of eligible Veterans. LVER
staff conducts outreach to employers and engages in advocacy efforts
with hiring executives to increase employment opportunities for
Veterans, encourages the hiring of disabled Veterans, and generally
assists Veterans to gain and retain employment. These services are
provided primarily through nearly 3,000 One-Stop Career Centers across
the country and benefit both the active and Reserve Components. Last
year, the JVSG provided services to nearly 589,000 Veterans, and
201,000 Veterans found jobs.
Transition Assistance Program (TAP)
Another important VETS program is the Transition Assistance Program
(TAP), which provides Employment Workshops and direct services for
separating Servicemembers, including members of the National Guard and
Reserve. TAP is an interagency program delivered via a partnership
involving the Departments of Defense, Labor, Veterans Affairs, and
Homeland Security. As part of this effort, VETS provides an Employment
Workshop, which is a comprehensive two and a half day program during
which participants are provided relevant skills and information, such
as job search techniques, career decision-making processes, and current
labor market conditions.
As you know, VETS is currently in the process of redesigning and
transforming the Employment Workshop, the first significant redesign of
the program in 19 years. The redesign, which is based on established
best practices in career transition, will create experiential,
effective, and enduring solutions for a successful transition from
military to civilian life and employment. Among other things, the
redesign will provide career readiness assessments to help returning
Servicemembers translate their military experience into civilian job
qualifications. Currently, VETS uses a mix of contractors, VETS Federal
staff, Disabled Veterans Outreach Program (DVOP) specialists, and Local
Veterans Employment Representatives (LVERs) as TAP facilitators. In the
future, however, VETS will transition to all skilled contract
facilitators, with DVOPs continuing their involvement in the workshops
as subject matter advisors. In FY 2011, over 144,000 transitioning
Servicemembers and spouses attended a TAP Employment Workshop at one of
272 locations world-wide. Of that number of attendees, 2,249 were Guard
and Reservists.
With 95,000 Guard and Reserve members demobilizing each year, VETS
has taken steps to provide them with transition assistance and
employment services in the event they are not located near any of the
272 locations where TAP is normally provided. For example, we have
organized the regular two and half day Employment Workshop into
separate modules, including the program's three core components
(overview of USERRA rights, current labor market information, and
explaining the roles of DVOPs and LVERs at One-Stop Career Centers),
along with other basic courses such as resume writing and interview
techniques. We often provide the three core components, and any
additional modules, to Guard and Reserve units at the unit commander's
request. Further, we have committed to provide any requested TAP
modules at the 30, 60, and 90-day Yellow Ribbon Reintegration programs,
a Department of Defense effort to promote the well-being of National
Guard and Reserve members, their families and communities, by
connecting them with resources throughout the deployment cycle.
DOL is also working in partnership with the Department of Defense
and the Department of Veterans' Affairs on the ``Guard Apprentice
Program Initiative,'' which continues to build relationships with
employers and colleges to facilitate civilian apprenticeship and
employment opportunities for National Guard and other Reserve Component
members.
Our State Directors for Veterans' Employment and Training (DVETS)
are part of the planning process when units in their area demobilize.
They work with the stay-behind element of the unit and coordinate
requested support. Let me share with you a few examples:
VETS and the Oregon Employment Department (OED) are
partnering with the Oregon National Guard Yellow Ribbon Reintegration
and Joint Transition Assistance Program (JTAP) staff to jointly address
the employment needs of returning National Guard and Reservists. During
the Oregon LVER/DVOP training conference in October 2011, OED hosted a
joint training session to determine how we will partner together
statewide to ensure Veterans are aware of the employment services
available to them. This past year, the Oregon Army National Guard (3-
116 Cav) deployed to Iraq in support of Operation New Dawn. While in-
country, the military unit commander stressed the importance of
addressing Servicemembers' future employment needs and took the
initiative to conduct employment status surveys of all deployed
personnel. This employment information was shared with Employer Support
of the Guard and Reserve (ESGR), Yellow Ribbon JTAP and Oregon
Employment Department Management, including LVERs, and used to
coordinate ``Skype employment interviews'' with local employers, such
as Boise Cascade. Upon return from deployment and at the 60 day
interval, the OED provided aggregate data to the JTAP on the number of
Guard and Reservists who found employment to the JTAP. Initial
estimates found that of the original 113 soldiers who registered for
employment in late May while deployed in Iraq, 51 have found jobs since
their release from military duty. This does not account for the 26
soldiers who registered but do not live in the state.
Congressman Walz mentioned the 34th Infantry Division
``Red Bull'' Brigade Combat Team (BCT) Project in Minnesota during our
last hearing in December. This project intends to hire 5 Veteran staff
(2 LVER & 3 DVOP) to work specifically with this BCT. One LVER has
already been hired and the remaining staff will be hired in April with
the anticipated return of the BCT being May of 2012. In partnership
with ESGR, pre-deployment interviews were held with each Servicemember
to identify employment and training needs. Five hundred and fifty
Servicemembers are either unemployed or under employed. A referral
process is being developed to get these Servicemembers the appropriate
employment assistance immediately upon their return.
In June 2010, Tennessee's DOL (TNDOL) started working
with the Tennessee ESGR Chair to help the high number of unemployed
Veterans returning from deployments. It was discovered that most of the
unemployed Servicemembers were just out of high school or just
graduating college and returning from their first deployment and had
never held a traditional job. As a result, a committee of individuals
was formed from different agencies, including the VA, USDOL, TNDOL,
ESGR, Yellow Ribbon, TN National Guard Command Staff and a few others.
The Committee met several times and decided to try a TAP employment
workshop. The first workshop was 2 days and was facilitated by contract
facilitators. The workshop was open first and foremost to unemployed
soldiers and their spouses and Servicemembers were put on orders to
help with the cost of travel. After holding several workshops and a
committee meeting, the Committee decided to go to the traditional 2\1/
2\ day employment workshop but also added a job fair at the end of each
TAP workshop. Only employers with current openings who were looking to
fill them were invited to the job fairs. To date, the Tennessee ESGR
has hosted 18 workshops for 415 participants. Today that committee has
grown to include other reserve units, and Commanders are calling asking
for weekend drill TAP workshops for their unemployed soldiers.
Similar efforts are happening across the country. VETS State
Directors (DVETS) work closely with the JVSG staff and partner with
several other organizations to coordinate as many services to the
Veterans and Reserve components as possible in their state. In
Kentucky, for example, LVERs and DVOPs are fully integrated into Yellow
Ribbon demobilization events across the Commonwealth, providing local
labor market information and general One-Stop Career Center employment
services. There is also direct coordination between the transition
representatives at Camp Atterbury, Indiana--the local National Guard
and Reserve demobilization point--where listings of individuals
transitioning out and to Kentucky are provided to the Veterans Program
Coordinator, who coordinates contact with a local LVER or DVOP. Through
coordination with the Kentucky Guard command, LVERs and DVOPs have
contacted local Guard units in their respective areas to offer direct
employment assistance, either during normal Career Center business
hours or, if necessary and more beneficial for all involved, during
weekend drills.
To compliment our core programs and services, we are involved with
a few other initiatives that provide additional employment resources in
an effort to decrease the rate of unemployment of Veterans of the
active and Reserve Components.
Veterans Jobs Bank
On November 7, 2011, President Obama announced a new Veterans Job
Bank at www.nrd.gov, the National Resource Directory Web site. This job
bank, a partnership among the Departments of Defense, Labor, and
Veterans Affairs, is an easy-to-use tool that enables Veterans to find
job postings from companies that are looking to hire them. It already
searches nearly one million job postings and is growing. In a few easy
steps, companies can make sure the job postings on their own Web sites
are part of this Veterans Job Bank.
The Gold Card
Post-9/11 Veterans can now go to the DOL Web site and download a
Gold Card, which provides them 6 months of intensive job counseling and
personalized case management services at one of the Labor Department's
3,000 One-Stop Career Center locations across the country. These
services include career assessments, direct referrals to open jobs,
interview coaching, resume assistance and training referrals.
My Next Move for Veterans
The Labor Department also launched a new Web site called My Next
Move for Veterans. It can be accessed at www.dol.gov/vets. This Web
site allows our Veterans to enter their military occupation code and
discover civilian jobs where their skills translate. They can browse
more than 900 career options. The benefit of these online tools is they
can be accessed from just about anywhere.
Employer Partnerships
We are also working with the private sector to increase the
employment of our Veterans and returning Servicemembers. The first of
these initiatives is our work with the U.S. Chamber of Commerce. The
Chamber, in partnership with VETS and ESGR, will have conducted 100
hiring fairs exclusively for Veterans, transitioning Servicemembers and
their spouses between March 2011 and March 2012. Through this
partnership, the Chamber and its affiliates secure the participation of
employers, while the VETS team and ESGR focus on participation by
Veterans, transitioning Servicemembers, and their spouses. The Chamber
hiring fairs have hosted more than 84,000 Veterans and military spouses
and given them the opportunity to meet with over 4,300 different
employers. As a result, the effort has helped more than 7,300 Veterans
and military spouses and 60 wounded warriors find employment.
Additionally, in an initiative sponsored by Microsoft, DOL has
facilitated Microsoft's contact with communities across the Seattle,
Washington; San Diego, California; Houston, Texas; Northern Virginia;
and Jacksonville, Florida regions, to provide Veterans with vouchers
for no-cost training that can lead to important industry recognized
credentials. Each area's Workforce Investment Board will receive 1,000
vouchers per year for 2 years, totaling 10,000 vouchers, and will
distribute them through the One Stop Career Centers.
Uniformed Services Employment and Reemployment Rights Act (USERRA)
The last piece I want to discuss is DOL's efforts to educate about
and enforce the provisions of the Uniformed Services Employment and
Reemployment Rights Act (USERRA). VETS' enforcement programs
investigate complaints filed by Veterans and other protected
individuals under USERRA, assess complaints alleging violation of
statutes requiring Veterans' preference in Federal hiring, and
implement and collect information regarding Veteran employment by
Federal contractors.
In addition to enforcing these rights, we do what we can to educate
employers, as well as Veterans, Guard, and Reservists, on USERRA. VETS
has long recognized the value of outreach and education as a means for
avoiding USERRA disputes. Through the course of our history
administering the statute, we have found that the vast majority of
employers seek to comply with the law and remain highly supportive of
our servicemen and women despite challenges imposed through multiple
and repeated deployments. To that end, VETS has engaged in an
aggressive public outreach campaign, aimed not only at our servicemen
and women but to employers, attorneys, and human resources
professionals as well.
In that regard, VETS' outreach to the employer community begins
with individual responses to technical assistance requests, which has
proven highly effective in resolving disputes before formal complaints
are filed. VETS staff has also sought out and given USERRA briefings to
a large number of employer groups, professional human resources
associations, State bar associations, the American Bar Association,
Chambers of Commerce, law schools, and a host of other groups. In
addition, VETS has developed online educational tools such as: an
interactive USERRA elaws Advisor for both employers and employees that
detail the roles and responsibilities for each under the law;
Frequently Asked Questions; and USERRA 101 and 102 courses, which are
designed to address the more commonly encountered situations and
challenges facing employers. Perhaps most importantly, when conducting
briefings and providing technical assistance in either a group or
individual setting, VETS staff always provide direct contact
information to reassure the public that help is just an e-mail or
telephone call away.
For example, in the Chairman's state of Indiana, VETS provides
workshops on USERRA for Servicemembers stationed at the Camp Atterbury
Joint Maneuver Training Center, including members of the Judge Advocate
General's Office. And similarly in Iowa, the Ranking Member's home
state, VETS and the Iowa Workforce Development (IWD) have undertaken
numerous initiatives to assist recently returning Veterans and
employers. The IWD Veterans Program partners with ESGR at their Lunch
and Learn events for employers across the state. At these events, VETS
and ESGR personnel teach employers about USERRA and how to deal with
Veteran employment issues. In addition, IWD Veterans Program personnel
train the employers on why they should consider hiring Veterans, how to
market their jobs to Veterans, how to interpret Veteran resumes and
what to expect from Veteran job applicants.
VETS is fully committed to fulfilling our mission. And, as I hope
my examples, we are doing so through the combined efforts of all of the
witnesses today as well as others. We pledge to you and to them to
continue to work with them to improve the services and programs we
provide.
Mr. Chairman, Ranking Member Braley, Members of the Committee, this
concludes my statement. Thank you again for the opportunity to testify
today. I would be pleased to answer any questions you may have.
MATERIAL SUBMITTED FOR THE RECORD
Statement of Reserve Officers Association of the
United States and Reserve Enlisted Association
On behalf of our members, the Reserve Officers and the Reserve
Enlisted Associations thank the Committee for the opportunity to submit
testimony on veteran and National Guard employment issues. ROA and REA
applaud the ongoing efforts by Congress to address employment problems
faced by so many veterans and servicemembers.
As contingency operations continue with ongoing mobilizations and
deployments, many of these outstanding citizen soldiers, sailors,
airmen, Marines, and Coast Guardsmen have put their civilian careers on
hold while they serve their country in harm's way. They share the same
risks as their counterparts in the Active Components. Since 9/11, more
than 825,000 Reservists and Guardsmen have been mobilized. More than
275,000 have been mobilized two or more times. The United States is
creating a new generation of combat veterans that come from its Reserve
Components (RC). It is important, therefore, that we don't squander
this valuable resource of experience, nor ignore the benefits that they
are entitled to because of their selfless service to their country.
ROA would like to thank the Committee and staff for making
improvements to the Post-9/11 GI Bill, enhancing benefits for
caregivers, and much more.
EXECUTIVE SUMMARY
Education:
Include Title 14 eligibility for the post-9/11 GI Bill.
Exempt GI Bill earned benefits from being considered
income in need-based aid calculations.
Develop a standard nationwide payment system for private
schools.
Re-examine qualification basis for Yellow Ribbon Program,
rather than first-come first-served.
Enact Uniformed Services Employment and Reemployment
Rights Act (USERRA) and Servicemembers Civil Relief Act (SCRA)
protections for mobilized Guard and Reserve students, granting
academic leaves of absence, protecting academic standing, and
guaranteeing refunds.
Increase Montgomery GI Bill-Selected Reserve (MGIB-SR) to
47 percent of MGIB-Active.
Include 4-year reenlistment contracts to qualify for
MGIB-SR.
Employer Support:
Continue to enact tax credits for health care and
differential pay expenses for deployed Reserve Component employees.
Provide tax credits to offset costs for temporary
replacements of deployed Reserve Component employees.
Support tax credits to employers who hire servicemembers
who served in the Global War on Terrorism.
Employee Support:
Permit delays or exemptions while mobilized of regularly
scheduled mandatory continuing education and licensing/certification/
promotion exams.
Continue to support a law center dedicated to USERRA/SCRA
problems of deployed Active and Reserve servicemembers.
Veterans Affairs:
Calculate years of service, rather than days of active
duty, for disability retired pay under section 12732 of U.S.Code Title
10 for Reserve Component members wounded or injured in combat.
Extend veterans preference to those Reserve Component
members who have completed 20 years in good standing, or
Permit any member who has served under honorable
conditions and has received a DD-214 to qualify for veteran status.
Make permanent Reserve Component Department of Veterans
Affairs (VA) Home Loan Guarantees expiring in October 2012.
Eliminate the 3/4 percent fee differential between Active
Component and Reserve Component programs on VA home loans.
Support burial eligibility for deceased gray-area
retirees at Arlington National Cemetery.
Continue to seek timely and comprehensive implementation
of concurrent receipt for disabled receiving retired pay and VA
disability compensation.
EMPLOYMENT
ROA and REA are grateful to Congress for the passage of the VOW to
Hire Heros Act.
Employment Protections
Veterans and servicemembers are provided protections through the
National Committee for Employer Support of the Guard and Reserve
(ESGR), the Uniformed Services Employment and Reemployment Rights Act
(USERRA), and the Servicemembers' Civil Relief Act (SCRA).
Notwithstanding the protections afforded veterans and
servicemembers and antidiscrimination laws, it is not unusual for
members to lose their jobs due to time spent away while deployed.
Sometimes this is because employers go out of business, but more often,
Reservists and Guardsmen are laid off because it costs employers money,
time, and effort to reintroduce the employee to the company.
The most recent national example is in the case of Straub vs.
Proctor Hospital in which Army Reservist Vincent Straub was fired by
Proctor Hospital of Peoria due to his service requirements. The Supreme
Court upheld Straub's rights under USERRA.
Employer Incentives
Partnerships: The Army Reserve under Lieutenant General Jack Stultz
initiated the Employer Partnership Program with civilian employers that
is an initiative designed to formalize the relationship between the
Reserve and the private sector, sharing common goals of strengthening
the community, supporting RC servicemembers and families, and
maintaining a strong economy. Over 1,000 companies are currently in
various preliminary stages of implementing partnership programs. This
sets a model for businesses to hire veterans. The program has its own
Web site http://www.employerpartnership.org/and provides job search, a
resume builder, professional staff support, a list of employer partners
and career resources. This program has now been broadened to the U.S.
Army.
Periodic and Predictable: Employers need increased notification
time in order to better support their personnel. The military services
and components should provide greater notice of deployments to RC
members, so that they, as well as their families and their employers,
can better prepare. Collaboration between industry and the military
needs to occur as the military considers deployment cycle models so
that the Nation's defense needs are met but its industrial base is not
compromised.
Employer care plans should be developed that will assist with
mitigation strategies for dealing with the civilian workload during the
absence of the servicemember employee and lay out how the employer and
employee would remain in contact throughout the deployment.
CNGR: The Commission on the National Guard and Reserve suggested
key recommendations including expansion of the Employer Support of the
Guard and Reserve (ESGR) committee to be able to work new employment as
well as reemployment opportunities, the creation of an employer
advisory council, and regular surveys to determine employer interests
and concerns over reemployment of Guard and Reserve members.
Unfortunately, the budget recommendation is to reduce ESGR's budget.
TRICARE as an employee/employer benefit: An employer incentive is
when an employee brings importable health care such as TRICARE,
reducing the costs for the employer. Guard and Reserve members as well
as military retirees should be permitted to tout the availability of
TRICARE as an employee asset, and permit employers to provide
alternative benefits in lieu of health care.
Another option is to fully or partially offset employer costs for
health care payments for Guard and Reserve members who are employed,
especially when companies continue civilian health insurance for
servicemembers and/or their families during a deployment. DoD should
provide employers--especially small businesses--with incentives such as
cash stipends to help offset the cost of health care for Reservists up
to the amount DoD is paying for TRICARE, with the understanding that
the stipend is tied to reemployment guarantees upon the serving
member's return.
Other incentives: Incentives of various types would serve to
mitigate burdens and encourage business to both hire and retain
Reservists and veterans. A variety of tax credits could be enacted
providing such credit at the beginning of a period of mobilization or
perhaps even a direct subsidy for costs related to a mobilization such
as the hiring and training of new employees. Employers felt strongly
that, especially for small businesses, incentives that arrive at the
end of the tax year do not mitigate the costs incurred during the
deployment period. Also cross-licensing/credentialing would ease the
burden of having to acquire new licenses/credentials in the private
sector after having gained them during their military service, and vice
versa.
ROA and REA support the concept of H.R. 802 introduced by Ranking
Member Bob Filner because it would recognize employers of veterans, but
strongly believe that it should be amended to include employers of
Guardsmen and Reservists.
While not under this committee's jurisdiction we hope that the
House Veterans' Affairs Committee can support specific tax incentives
to hire returning veterans and Guard and Reserve members.
ROA and REA support H.R. 865 Veterans Employment Transition Act of
2011, introduced by Rep. Tim Walz and referred to the HASC, that would
extend work opportunity credit to certain recently discharged veterans.
ROA and REA further recommend the following:
ROA and REA encourage a rapid implementation of certifications or a
form that would inform employers of skills potential veteran and
servicemember employees gained through their military service.
ROA and REA supports initiatives to provide small business owners
with protections for their businesses to be sustained while on
deployment, for example a potential program in which a trained
substitute is made available to run the business while the member is
out country. Further SCRA protection on equipment leases should be
included in the law.
EDUCATION
Post-9/11 GI Bill
ROA and REA support Chairman Jeff Miller's bill H.R. 1383 The Restoring
the GI Bill Fairness Act of 2011 which would grandfather in
current students who applied for benefits of the Post-9/11 GI
Bill under a different set of rules.
Education improves a veteran's chance for employment, and many
returning combat veterans seek a change in their life paths. There is
still room for more improvement in the Post-9/11 GI Bill that in the
long run can make the program more effective and increase utilization.
For example, while Title 32 AGR was included for eligibility, Title 14
Coast Guard Reserve was left out.
Other issues that student veterans have raised to ROA and that we
recommend include the following:
Require timely application and submission of
documentation by the institution to the Department of Veterans' Affairs
(VA) and vice versa.
Establish dedicated and well-trained officers for student
veterans to speak with via the call center.
Better define the Yellow Ribbon Program to determine what
`first come, first serve' means in context of institutions (such as
registration time, enrollment, and official enrollment).
Allow institutions to give more funds to students with
stronger merit and need-base under the Yellow Ribbon Program.
Align the VA's work-study program for students to work as
guidance officers at their institutions to aid other student veterans,
to be matched up with institution's academic calendar.
Safeguard and implement a long term plan for sustaining
the Post-9/11 GI Bill.
Ensure transferability benefits are protected.
Guarantee that any future changes to the program that
could have negative effects on benefits will grandfather in current
beneficiaries.
Pass legislation to disallow institutions including
benefits in need-based aid formulations.
Remove the requirement to have a parental signature.
Establish parity between FAFSA disclosure exclusion over
veterans' educational and non-educational benefits to CSS and all
institutions of higher learning.
Institutions of higher learning across the Nation that provide
need-based aid often require students to file a Free Application for
Federal Student Aid (FAFSA) form and a College Scholarship Service/
Financial Aid Profile (CSS) form administered by the College Board.
If an institution abides by the Federal methodology of determining
aid levels it uses the FAFSA form and guidelines, but an institution
may use an institution methodology (IM) formulated by CSS. By law under
the Higher Education Opportunity Act of 1965 (HEA), FAFSA's current
need analysis formula, while including some sources of untaxed income,
excludes veteran's educational benefits and welfare benefits.
On the other hand, CSS require military servicemembers to disclose
their earned educational benefits for the formulation of their need-
based aid levels. That disclosure of veterans' educational benefits on
the CSS is then often weighed by those institutions that use an IM in
the same manner of other traditional untaxed income items such as child
support or a contribution from a relative, in the formulation of their
aid package.
Disclosing these earned-benefits on the CSS profile serves to bring
down servicemembers' financial need level, thus increasing the cost out
of pocket, by improperly treating earned benefits as equivalent in
nature and function as untaxed income items. Since CSS is not
restricted from asking for disclosure of the benefits, institutions use
the CSS to add these earned benefits into the aid formulation, shirking
FAFSA's and the HEA's intentions.
ROA and REA urge Congress to bar institutions of higher learning
from considering veterans' educational benefits in need-based aid
calculations and apply the Higher Education Opportunity Act to all
financial aid practices of institutions of higher learning.
While many may gain advantages under the changes in law, others are
actually negatively affected. For example ROA has received concerning
calls and emails from members that feel forsaken as such members signed
commitments based on the benefits which they now feel are reduced.
One of the most significant problems that link all issues
pertaining to the Post-9/11 GI Bill is the lack of effectively trained
customer service representatives. One of the many examples came from
two of our members that are married, both serving in a Reserve
Component. They wanted to transfer their benefits to their children,
but were told that only one parent can register the children in the
DEERS system and therefore only one of the parents could transfer the
benefits.
After going through a couple back channels ROA found out that the
couple needed to go to a DEERS office and request an `administrative'
account for the purposes of transferring benefits.
There are many stories similar to this one which cause unnecessary
stress on the families, some of whom give in to the system and give up
the benefit because either they are given incorrect and/or incomplete
information or the hassles involved are not deemed worthwhile.
It is absolutely necessary that our servicemembers, veterans and
families have the ability to access accurate and timely information.
ROA and REA urge Congress to enforce the VA to properly and
effectively train their personnel.
Montgomery GI Bill
To assist in recruiting efforts for the Marine Corps Reserve and
the other uniformed services, ROA and REA urge Congress to reduce the
obligation period to qualify for Montgomery ``GI'' Bill-Selected
Reserve (MGIB-SR) (Section 1606) from 6 years in the Selected Reserve
to 4 years in the Selected Reserve plus 4 years in the Individual Ready
Reserve, thereby remaining a mobilization asset for 8 years.
Because of funding constraints, no Reserve Component member will be
guaranteed a full career without some period in a non-pay status. BRAC
realignments are also restructuring the RC force and reducing available
paid billets. Whether attached to a volunteer unit or as an individual
mobilization augmentee, this status represents periods of drilling
without pay. MGIB-SR eligibility should extend for 10 years beyond
separation or transfer from a paid billet.
CONCLUSION
ROA and REA appreciate the opportunity to submit this statement,
and we reiterate our profound gratitude for the progress achieved by
this committee such as providing a GI Bill for the 21st Century and
advanced funding for the VA.
ROA and REA look forward to working with the House Veterans'
Affairs Committee, where we can present solutions to these and other
issues, and offer our support, and hope in the future of an opportunity
to discuss these issues in person.
ROA and REA encourage this Committee to utilize the Servicemembers
Law Center and the Defense Education Forum and reports, both valuable
assets, and to share it with your constituents and other Congressional
members.