[Congressional Record Volume 140, Number 41 (Friday, April 15, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 15, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
              WORK FORCE SKILLS AND DEVELOPMENT LOAN BILL

                                 ______


                          HON. STEVE GUNDERSON

                              of wisconsin

                    in the house of representatives

                        Thursday, April 14, 1994

  Mr. GUNDERSON. Mr. Speaker, I am pleased to introduce legislation on 
behalf of myself, and Representatives Goodling, Petri, Castle, Hobson, 
Shays, Johnston, Poshard, designed to charter a new course for the 
Federal Government in meeting the training needs of the U.S. work 
force.
  The Work Force Skills and Development Loan bill creates opportunities 
for businesses to obtain State guaranteed loans for the purpose of 
upgrading the skills of their work force. Although many employers are 
aware of the benefits of such training, few have the resources 
necessary to institute such programs. Furthermore, many businesses find 
it difficult to secure loans from banks and other lenders for the 
purpose of work force investment.
  The need for upgrading the skills of our Nation's workers should not 
be underestimated. A study by the Competitiveness Policy Council found 
that approximately 40 percent of business executives say they cannot 
modernize their equipment due to worker skill deficiencies. In addition 
to promoting the implementation of new technologies, skills upgrading 
has been documented to result in a host of other positive outcomes 
including increased productivity, quality improvements, and decreased 
job related injuries. In fact, studies of work force development 
programs show employers' return on investment for every dollar spent on 
job training is at a rate of $3.
  The benefits to the employees are equally impressive. Employees who 
receive formal skill upgrading enjoy earnings advantages of 25 percent 
or more over those with no such training. They also benefit from 
increased job security and mobility in the event they do lose their 
job. Unfortunately, not enough of this type of training is being 
provided. It is estimated that nationally, only about 7 percent of the 
work force is receiving formal training. Recent statistics have found 
of the roughly 2 million workers who are losing their jobs, nearly one 
quarter lack the skills being demanded in the U.S. economy. Many of 
these dislocated workers end up in government administered job training 
programs which are often unable to provide training which has the same 
quality and relevancy as that provided in the workplace. It is well 
documented that providing skills upgrading and other early intervention 
services to workers facing dislocation, is one of the most successful 
means of both averting dislocation or drastically reducing the time of 
unemployment should dislocation occur.
  The Work Force Development and Skills Loan Program is designed to 
meet the work force skill needs of both employers and employees. Using 
a small portion of funds currently under the Secretary of Labor's 
discretionary funds under title III of the Job Training Partnership 
Act, matching grants would be made available to States for the purpose 
of establishing work force skills and development reserve funds. 
Working with financial institutions, States would make loans available 
to employers and employee representatives instituting programs 
providing work force skills and development upgrading.
  As a Nation, we need to reexamine the proper Federal role in the 
preparation and reskilling of the U.S. work force. As a part of that 
transition we must move away from the ``reactionary policies indicative 
of our current Federal job training programs which wait until workers 
are laid off, then send them through a job training system which is 
oftentimes out of touch with the true needs of both workers and the 
work place. Federal policies should instead be proactive and recognize 
the value of training existing workers as a means of providing 
increased job security and as a way to meet the needs and changes in 
our competitive economy.

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