[Congressional Record Volume 156, Number 106 (Monday, July 19, 2010)]
[House]
[Pages H5686-H5690]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STRENGTHENING EMPLOYMENT CLUSTERS TO ORGANIZE REGIONAL SUCCESS ACT OF
2010
Mr. LOEBSACK. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 1855) to promote industry growth and competitiveness and to
improve worker training, retention, and advancement, and for other
purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1855
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strengthening Employment
Clusters to Organize Regional Success Act of 2010'' or the
``SECTORS Act of 2010''.
SEC. 2. INDUSTRY OR SECTOR PARTNERSHIP GRANT.
(a) Amendment.--Subtitle D of title I of the Workforce
Investment Act of 1998 (29 U.S.C. 2911 et seq.) is amended by
inserting after section 171 the following:
``SEC. 171A. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM.
``(a) Purpose.--It is the purpose of this section to
promote industry or sector partnerships that lead
collaborative planning, resource alignment, and training
efforts across multiple firms for a range of workers employed
or potentially employed by a targeted industry cluster, in
order to encourage industry growth and competitiveness and to
improve worker training, retention, and advancement in
targeted industry clusters, including by developing--
``(1) immediate strategies for regions and communities to
fulfill pressing skilled workforce needs;
``(2) long-term plans to grow targeted industry clusters
with better training and a more productive workforce;
``(3) core competencies and competitive advantages for
regions and communities undergoing structural economic
redevelopment; and
``(4) cross-firm skill standards, career ladders, job
redefinitions, employer practices, and shared training and
support capacities that facilitate the advancement of workers
at all skill levels.
``(b) Definitions.--In this section:
``(1) Career ladder.--The term `career ladder' means an
identified series of positions, work experiences, and
educational benchmarks or credentials that offer occupational
and financial advancement within a specified career field or
related fields over time.
``(2) Economic self-sufficiency.--The term `economic self-
sufficiency' means, with respect to a worker, earning a wage
sufficient to support a family adequately over time, based on
factors such as--
``(A) family size;
``(B) the number and ages of children in the family;
``(C) the cost of living in the worker's community; and
``(D) other factors that may vary by region.
``(3) Eligible entity.--The term `eligible entity' means--
``(A) an industry or sector partnership; or
``(B) an eligible State agency.
``(4) Eligible state agency.--The term `eligible State
agency' means a State agency designated by the Governor of
the State in which the State agency is located for the
purposes of the grant program under this section.
``(5) High-priority occupation.--The term `high-priority
occupation' means an occupation that--
``(A) has a significant presence in an industry cluster;
``(B) is in demand by employers;
``(C) pays family-sustaining wages that enable workers to
achieve economic self-sufficiency, or can reasonably be
expected to lead to such wages;
``(D) has or is in the process of developing a documented
career ladder; and
``(E) has a significant impact on a region's economic
development strategy.
``(6) Industry cluster.--The term `industry cluster' means
a concentration of interconnected businesses, suppliers,
research and development, service providers, and associated
institutions in a particular field that are linked by common
workforce needs.
``(7) Industry or sector partnership.--The term `industry
or sector partnership' means a workforce collaborative that
is described as follows:
``(A) Required members.--
``(i) In general.--A workforce collaborative that organizes
key stakeholders in a targeted industry cluster into a
working group that focuses on the workforce needs of the
targeted industry cluster and that includes, at the
appropriate stage of development of the partnership--
``(I) representatives of multiple firms or employers in the
targeted industry cluster, including small- and medium-sized
employers when practicable;
``(II) 1 or more representatives of State labor
organizations, central labor coalitions, or other labor
organizations, except instances where no labor representation
exists;
``(III) 1 or more representatives of local boards;
``(IV) 1 or more representatives of postsecondary
educational institutions or other training providers; and
``(V) 1 or more representatives of State workforce agencies
or other entities providing employment services.
``(ii) Diverse and distinct representation.--No individual
may serve as a member in an industry or sector partnership
for more than 1 of the required categories described in
subclauses (I) through (V) of clause (i).
``(B) Authorized members.--An industry or sector
partnership may include representatives of--
``(i) State or local government;
``(ii) State or local economic development agencies;
``(iii) other State or local agencies;
``(iv) chambers of commerce;
``(v) nonprofit organizations;
``(vi) philanthropic organizations;
``(vii) economic development organizations;
``(viii) industry associations; and
``(ix) other organizations, as determined necessary by the
members comprising the industry or sector partnership.
``(8) Targeted industry cluster.--The term `targeted
industry cluster' means an industry cluster that has--
``(A) economic impact in a local or regional area, such as
advanced manufacturing, clean energy technology, and health
care;
``(B) immediate workforce development needs, such as
advanced manufacturing, clean energy, technology, and health
care; and
[[Page H5687]]
``(C) documented career opportunities.
``(c) Grants Authorized.--
``(1) In general.--From amounts appropriated to carry out
this section, the Secretary shall award, on a competitive
basis, grants described in paragraph (3) to eligible entities
to enable the eligible entities to plan and implement,
respectively, the eligible entities' strategic objectives in
accordance with subsection (d)(2)(D).
``(2) Maximum amount.--
``(A) Implementation grants.--An implementation grant
awarded under paragraph (3)(A) may not exceed a total of
$2,500,000 for a 3-year period.
``(B) Renewal grants.--A renewal grant awarded under
paragraph (3)(C) may not exceed a total of $1,500,000 for a
3-year period.
``(3) Implementation and renewal grants.--
``(A) In general.--The Secretary may award an
implementation grant under this section to an eligible entity
that has established, or is in the process of establishing,
an industry or sector partnership.
``(B) Duration.--An implementation grant shall be for a
duration of not more than 3 years, and may be renewed in
accordance with subparagraph (C).
``(C) Renewal.--The Secretary may renew an implementation
grant for not more than 3 years. A renewal of such grant
shall be subject to the requirements of this section, except
that the Secretary shall--
``(i) prioritize renewals to eligible entities that can
demonstrate the long-term sustainability of an industry or
sector partnership funded under this section; and
``(ii) require assurances that the eligible entity will
leverage, in accordance with subparagraph (D)(ii), each year
of the grant period, additional funding sources for the non-
Federal share of the grant which shall--
``(I) be in an amount greater than--
``(aa) the non-Federal share requirement described in
subparagraph (D)(i)(III); and
``(bb) for the second and third year of the grant period,
the non-Federal share amount the eligible entity provided for
the preceding year of the grant; and
``(II) include at least a 50 percent cash match from the
State, the industry cluster, or some combination thereof, of
the eligible entity.
``(D) Federal and non-federal share.--
``(i) Federal share.--Except as provided in subparagraph
(C)(ii) and clause (iii) of this subparagraph, the Federal
share of a grant under this section shall be--
``(I) 90 percent of the costs of the activities described
in subsection (f), in the first year of the grant;
``(II) 80 percent of such costs in the second year of the
grant; and
``(III) 70 percent of such costs in the third year of the
grant.
``(ii) Non-federal.--The non-Federal share of a grant under
this section may be in cash or in-kind, and may come from
State, local, philanthropic, private, or other sources.
``(iii) Exception.--The Secretary may require the Federal
share of a grant under this section to be 100 percent if an
eligible entity receiving such grant is located in a State or
local area that is receiving a national emergency grant under
section 173.
``(4) Fiscal agent.--Each eligible entity receiving a grant
under this section that is an industry or sector partnership
shall designate an entity in the partnership as the fiscal
agent for purposes of this grant.
``(5) Use of grant funds during grant periods.--An eligible
entity receiving grant funds under a grant under this section
shall expend grant funds or obligate grant funds to be
expended by the last day of the grant period.
``(d) Application Process.--
``(1) Identification of a targeted industry cluster.--In
order to qualify for a grant under this section, an eligible
entity shall identify a targeted industry cluster that could
benefit from such grant by--
``(A) working with businesses, industry associations and
organizations, labor organizations, State boards, local
boards, economic development agencies, and other
organizations that the eligible entity determines necessary,
to identify an appropriate targeted industry cluster based on
criteria that include, at a minimum--
``(i) data showing the competitiveness of the industry
cluster;
``(ii) the importance of the industry cluster to the
economic development of the area served by the eligible
entity, including estimation of jobs created or preserved;
``(iii) the identification of supply and distribution
chains within the industry cluster; and
``(iv) research studies on industry clusters; and
``(B) working with appropriate employment agencies,
workforce investment boards, economic development agencies,
community organizations, and other organizations that the
eligible entity determines necessary to ensure that the
targeted industry cluster identified under subparagraph (A)
should be targeted for investment, based primarily on the
following criteria:
``(i) Demonstrated demand for job growth potential.
``(ii) Employment base.
``(iii) Wages and benefits.
``(iv) Demonstrated importance of the targeted industry
cluster to the area's economy.
``(v) Workforce development needs.
``(2) Application.--An eligible entity desiring to receive
a grant under this section shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require. An application
submitted under this paragraph shall contain, at a minimum,
the following:
``(A) A description of the eligible entity, evidence of the
eligible entity's capacity to carry out activities in support
of the strategic objectives identified in the application
under subparagraph (D), and a description of the expected
participation and responsibilities of each of the mandatory
partners described in subsection (b)(7)(A).
``(B) A description of the targeted industry cluster for
which the eligible entity intends to carry out activities
through a grant under this section, and a description of how
such targeted industry cluster was identified in accordance
with paragraph (1).
``(C) A description of the workers that will be targeted or
recruited by the partnership, including an analysis of the
existing labor market, a description of potential barriers to
employment for targeted workers, and a description of
strategies that will be employed to help workers overcome
such barriers.
``(D) A description of the strategic objectives that the
eligible entity intends to carry out for the targeted
industry cluster, which objectives shall include--
``(i) recruiting key stakeholders in the targeted industry
cluster, such as multiple businesses and employers, labor
organizations, local boards, and education and training
providers, and regularly convening the stakeholders in a
collaborative structure that supports the sharing of
information, ideas, and challenges common to the targeted
industry cluster;
``(ii) identifying the training needs of multiple
businesses, especially skill gaps critical to competitiveness
and innovation to the targeted industry cluster;
``(iii) facilitating economies of scale by aggregating
training and education needs of multiple employers;
``(iv) helping postsecondary educational institutions,
training institutions, apprenticeship programs, and all other
training programs authorized under this Act, align curricula
entrance requirements and programs to industry demand,
particularly for higher skill, high-priority occupations
validated by the industry;
``(v) ensuring that the State agency, including services
provided by State merit staff authorized under the Wagner-
Peyser Act program, shall inform recipients of unemployment
insurance of the job and training opportunities that may
result from the implementation of this grant;
``(vi) informing and collaborating with organizations such
as youth councils, business-education partnerships,
apprenticeship programs, secondary schools, and postsecondary
educational institutions, and with parents and career
counselors, for the purpose of addressing the challenges of
connecting disadvantaged adults as defined in section
132(b)(1)(B)(v) and disadvantaged youth as defined in section
127(b) to careers;
``(vii) helping companies identify, and work together to
address, common organizational and human resource challenges,
such as--
``(I) recruiting new workers;
``(II) implementing effective workplace practices;
``(III) retraining dislocated and incumbent workers;
``(IV) implementing a high-performance work organization;
``(V) recruiting and retaining women in nontraditional
occupations;
``(VI) adopting new technologies; and
``(VII) fostering experiential and contextualized on-the-
job learning;
``(viii) developing and strengthening career ladders within
and across companies, in order to enable dislocated,
incumbent and entry-level workers to improve skills and
advance to higher-wage jobs;
``(ix) improving job quality through improving wages,
benefits, and working conditions;
``(x) helping partner companies in industry or sector
partnerships to attract potential employees from a diverse
job seeker base, including individuals with barriers to
employment (such as job seekers who are low income, youth,
older workers, and individuals who have completed a term of
imprisonment), by identifying such barriers through analysis
of the existing labor market and implementing strategies to
help such workers overcome such barriers; and
``(xi) strengthening connections among businesses in the
targeted industry cluster, leading to cooperation beyond
workforce issues that will improve competitiveness and job
quality, such as joint purchasing, market research, or
centers for technology and innovation.
``(E) A description of the manner in which the eligible
entity intends to make sustainable progress toward the
strategic objectives described in subparagraph (D).
``(F) Performance measures for measuring progress toward
the strategic objectives. Such performance measures--
``(i) may consider the benefits provided by the grant
activities funded under this section for workers employed in
the targeted industry cluster, disaggregated by gender and
race, such as--
``(I) the number of workers receiving portable industry-
recognized credentials;
``(II) the number of workers with increased wages, the
percentage of workers with increased wages, and the average
wage increase; and
[[Page H5688]]
``(III) for dislocated or nonincumbent workers, the number
of workers placed in sector-related jobs; and
``(ii) may consider the benefits provided by the grant
activities funded under this section for firms and industries
in the targeted industry cluster, such as--
``(I) the creation or updating of an industry plan to meet
current and future workforce demand;
``(II) the creation or updating of published industry-wide
skill standards or career pathways;
``(III) the creation or updating of portable, industry-
recognized credentials, including national credentials or
where there is not such a credential, the creation or
updating of a training curriculum that can lead to the
development of such a credential;
``(IV) the number of firms, and the percentage of the local
industry, participating in the industry or sector
partnership; and
``(V) the number of firms, and the percentage of the local
industry, receiving workers or services through the grant
funded under this section.
``(G) A timeline for achieving progress toward the
strategic objectives.
``(H) In the case of an eligible entity desiring an
implementation grant under this section, an assurance that
the eligible entity will leverage other funding sources, in
addition to the amount required for the non-Federal share
under subsection (c)(3)(D), to provide training or supportive
services to workers under the grant program. Such additional
funding sources may include--
``(i) funding under this title used for such training and
supportive services;
``(ii) funding under the Adult Education and Family
Literacy Act of 1998 (20 U.S.C. 9201 et seq.);
``(iii) economic development funding;
``(iv) employer contributions to training initiatives; or
``(v) providing employees with employee release time for
such training or supportive services.
``(e) Award Basis.--
``(1) Geographic distribution.--The Secretary shall award
grants under this section in a manner to ensure geographic
diversity.
``(2) Priorities.--In awarding grants under this section,
the Secretary shall give priority to eligible entities that--
``(A) work with employers within a targeted industry
cluster to retain and expand employment in high wage, high
growth areas;
``(B) focus on helping workers move toward economic self-
sufficiency and ensuring the workers have access to adequate
supportive services;
``(C) address the needs of firms with limited human
resources or in-house training capacity, including small- and
medium-sized firms; and
``(D) coordinate with entities carrying out State and local
workforce investment, economic development, and education
activities.
``(f) Activities.--
``(1) In general.--An eligible entity receiving a grant
under this section shall carry out the activities necessary
to meet the strategic objectives, including planning
activities if applicable, described in the entity's
application in a manner that--
``(A) integrates services and funding sources in a way that
enhances the effectiveness of the activities; and
``(B) uses grant funds awarded under this section
efficiently.
``(2) Planning activities.--Planning activities may only be
carried out by an eligible entity receiving an implementation
grant under this section during the first year of the grant
period with not more than $250,000 or 10 percent, whichever
is greater of the grant funds.
``(3) Administrative costs.--An eligible entity may retain
a portion of a grant awarded under this section for a fiscal
year to carry out the administration of this section in an
amount not to exceed 5 percent of the grant amount.
``(g) Evaluation and Progress Reports.--
``(1) Annual activity report and evaluation.--Not later
than 1 year after receiving a grant under this section, and
annually thereafter, an eligible entity shall--
``(A) report to the Secretary, and to the Governor of the
State that the eligible entity serves, on the activities
funded pursuant to a grant under this section; and
``(B) evaluate the progress the eligible entity has made
toward the strategic objectives identified in the application
under subsection (d)(2)(D), and measure the progress using
the performance measures identified in the application under
subsection (d)(2)(F).
``(2) Report to the secretary.--An eligible entity
receiving a grant under this section shall submit to the
Secretary a report containing the results of the evaluation
described in subparagraph (B) at such time and in such manner
as the Secretary may require.
``(h) Administration by the Secretary.--
``(1) Administrative costs.--The Secretary may retain not
more than 2 percent of the funds appropriated to carry out
this section for each fiscal year to administer this section.
``(2) Technical assistance and oversight.--The Secretary
shall provide technical assistance and oversight to assist
the eligible entities in applying for and administering
grants awarded under this section. The Secretary shall also
provide technical assistance to eligible entities in the form
of conferences and through the collection and dissemination
of information on best practices. The Secretary may award a
grant or contract to 1 or more national or State
organizations to provide technical assistance to foster the
planning, formation, and implementation of industry cluster
partnerships.
``(3) Geographic equality.--The Secretary shall ensure
that, to the extent practicable, grants are awarded on a
geographically equal basis.
``(4) Performance measures.--The Secretary shall issue a
range of performance measures, with quantifiable benchmarks,
and methodologies that eligible entities may use to evaluate
the effectiveness of each type of activity in making progress
toward the strategic objectives described in subsection
(d)(2)(D). Such measures shall consider the benefits of the
industry or sector partnership and its activities for
workers, firms, industries, and communities.
``(5) Dissemination of information.--The Secretary shall--
``(A) coordinate the annual review of each eligible entity
receiving a grant under this section and produce an overview
report that, at a minimum, includes--
``(i) the critical learning of each industry or sector
partnership, such as--
``(I) the training that was most effective;
``(II) the human resource challenges that were most common;
``(III) how technology is changing the targeted industry
cluster; and
``(IV) the changes that may impact the targeted industry
cluster over the next 5 years; and
``(ii) a description of what eligible entities serving
similar targeted industry clusters consider exemplary
practices, such as--
``(I) how to work effectively with postsecondary
educational institutions;
``(II) the use of internships;
``(III) coordinating with apprenticeships and cooperative
education programs;
``(IV) how to work effectively with schools providing
vocational education;
``(V) how to work effectively with adult populations,
including--
``(aa) dislocated workers;
``(bb) women in nontraditional occupations; and
``(cc) individuals with barriers to employment, such as job
seekers who--
``(AA) are economically disadvantaged;
``(BB) have limited English proficiency;
``(CC) require remedial education;
``(DD) are older workers;
``(EE) are individuals who have completed a sentence for a
criminal offense; and
``(FF) have other barriers to employment;
``(VI) employer practices that are most effective;
``(VII) the types of training that are most effective; and
``(VIII) other areas where industry or sector partnerships
can assist each other;
``(B) make resource materials, including all reports
published and all data collected under this section,
available on the Internet; and
``(C) conduct conferences and seminars to--
``(i) disseminate information on best practices developed
by eligible entities receiving a grant under this section;
and
``(ii) provide information to the communities of eligible
entities.
``(6) Report.--Not later than 18 months after the date of
enactment of this Act and on an annual basis, the Secretary
shall transmit a report to Congress on the industry or sector
partnership grant program established by this section. The
report shall include a description of--
``(A) the eligible entities receiving funding;
``(B) the activities carried out by the eligible entities;
``(C) how the eligible entities were selected to receive
funding under this section; and
``(D) an assessment of the results achieved by the grant
program including findings from the annual reviews described
in paragraph (4)(A).
``(i) Rule of Construction.--Nothing in this section shall
be construed to permit--
``(1) the reporting or sharing of personally identifiable
information collected or made available under this section;
and
``(2) the Secretary to share with, or report to, any
person, any personally identifiable information collected or
made available under this section.''.
(b) Conforming Amendment.--The table of contents in section
1(b) of the Workforce Investment Act of 1998 (20 U.S.C. 9201
note) is amended by inserting after the item relating to
section 171 the following:
``171A. Industry or sector partnership grant program.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Iowa (Mr. Loebsack) and the gentleman from Kentucky (Mr. Guthrie) each
will control 20 minutes.
The Chair recognizes the gentleman from Iowa.
General Leave
Mr. LOEBSACK. Madam Speaker, I request 5 legislative days during
which Members may revise and extend and insert extraneous material on
H.R. 1855 into the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Iowa?
There was no objection.
Mr. LOEBSACK. Madam Speaker, I yield myself such time as I may
consume.
[[Page H5689]]
I rise today in strong support of H.R. 1855, the Strengthening
Employment Clusters to Organize Regional Success Act, or the SECTORS
Act, legislation that I introduced in the House along with my colleague
from the other side of the aisle, Congressman Todd Platts.
I want to thank Congressman Platts for his work on this legislation
and for recognizing the worthiness of this effort. The SECTORS Act was
introduced as bipartisan legislation, and I am pleased that we have
gained additional bipartisan cosponsors as well.
I also want to thank Chairman Miller and Ranking Member Kline of the
Education and Labor Committee, as well as the committee staff, for
working with me to move this legislation to the floor of the House.
No matter what party you are from, I think we can all agree that we
should be supportive of innovative and collaborative strategies that
increase the success of American business and improve the employment
outlook of our workforce. As our country continues to recover from the
economic downturn, we should work toward long-term improvements in our
workforce training and resource systems and look at how we can better
utilize the infrastructure that is already in place. Given our current
economic situation and the fact that we have seen a steep decrease in
Federal investment in employment and training over the past 20 years,
this effort is all the more needed.
Recently, The New York Times ran a story detailing a significant
mismatch between the skilled workers needed for many industries and the
skill sets of many of the currently unemployed. The story also
referenced a survey done last year of 779 industrial companies by the
National Association of Manufacturers, the Manufacturing Institute, and
Deloitte which found that 32 percent of companies reported ``moderate
to serious'' skills shortages. Sixty-three percent of life science
companies and 45 percent of energy firms cited such shortages.
Through the SECTORS Act, we are taking serious action to help address
these issues and ensure that we build things in America again. In fact,
just yesterday, The New York Times had another story entitled ``After
Training, Still Scrambling for Employment'' that detailed the struggles
our workforce is having finding training to pursue careers in existing
and growing fields. It also highlighted some successful existing
efforts with sector partnership-based approaches.
Some of our industries that are poised for continued growth and
expansion and would be strong contributors to economic recovery, such
as advanced manufacturing, clean energy technology, and health care and
information technology, are struggling. By the nature of the problem,
this means our Nation's workforce is continuing to have trouble finding
work in these fields because of the mismatch of skill sets.
The SECTORS Act addresses these issues by facilitating, nationwide,
one of the key elements of successful State and local workforce
development efforts: sector or industry partnerships. Sector
partnerships organize stakeholders connected to a crucial industry,
like manufacturing, for example, and will include multiple firms and
businesses, employees, unions, education and training providers, and
local workforce and education systems, among others, to develop and
implement plans for growing, or saving, that industry.
There is a particular focus on building new workforce pipelines where
skilled worker shortages exist and improving the ways existing workers
are utilized, retrained, and paid.
The SECTORS Act will put in place partnerships that lead to alignment
of educational institutions, training institutions, apprenticeship
programs, and all other training programs to meet industry demand,
particularly for higher skill, high-priority occupations. Regularly
convening industry players on an ongoing basis to plan and implement
strategies to save or expand their industry will help to strengthen
connections and aggregate training and education needs of multiple
employers.
Sector partnerships will also help businesses recruit new workers,
retrain dislocated workers, develop and strengthen career ladders
across companies, and improve overall job quality. These types of
strategies have been highly successful regionally, including in my
State of Iowa.
The National Skills Coalition, which has been a strong advocate for
these strategies for some time, has organized a broad-based, nationwide
coalition of workforce and vocational organizations, manufacturing
associations, colleges and universities, chambers of commerce, and
training and human services organizations that support this legislation
and these partnerships.
The SECTORS Act is about helping industries access the trained
employees they need to expand and thrive, helping employees access the
education and training they require to be competitive in the 21st
century economy and find quality jobs, and helping workforce
development and education providers train employees in the demand of
today's industries. In so doing, this bill will help to ensure that our
Nation and the American workforce continue to stand at the forefront of
the 21st century economy.
I would also like to thank Representative Miller, chairman of the
Education and Labor Committee, for his support of and work on this
bill.
I urge support for this bipartisan legislation, Madam Speaker, which
also has bipartisan support in the Senate.
I reserve the balance of my time.
Mr. GUTHRIE. Madam Speaker, I yield myself such time as I may
consume.
Madam Speaker, I rise today in support of H.R. 1855, the
Strengthening Employment Clusters to Organize Regional Success, or the
SECTORS, Act, and I appreciate Mr. Loebsack and the bipartisan way in
which this is going to move forward.
H.R. 1855 creates new grants within the Workforce Investment Act to
help create or increase targeted industry capacity and partnerships
within specific regions. This is an idea that is already being done in
some places across the country with success. For example, Philadelphia
has created a regional program to train nurses for their hospitals and
health care industry needs.
I believe Federal policies should also encourage regional business
development and improve worker training, retention, and advancement
opportunities. That is why I strongly support not only this bill but
strongly support the reauthorization of the Workforce Investment Act.
{time} 1450
Madam Speaker, the Workforce Investment Act is 8 years overdue in its
reauthorization, and I am disappointed that we are not engaging in a
larger discussion of Workforce Investment Act reauthorization.
The American people are facing a tremendous economic challenge and
there has never been a more critical time to make sure our workforce
has the opportunity to find new jobs or receive additional training. We
need better systems of training and skills development to help move
into new industries.
I come from a small business manufacturing background, and I have
seen firsthand that unemployed workers who receive additional training
for new skills can obtain a higher-paying job which can radically
transform their way of life. We cannot afford to approach the workforce
and job needs of our country in a piecemeal way. The American people
deserve a real, comprehensive job training bill.
I, along with eight of my colleagues, introduced H.R. 4271, the
Workforce Investment Improvement Act of 2009, to begin the process of
reauthorization of WIA. But, unfortunately, my bill has not been taken
up by the Education and Labor Committee.
I do support this bill before us today, but I do believe it's a
disservice to the American people not to have an updated, comprehensive
workforce development bill, and I urge this Congress to take action on
full authorization of WIA as soon as possible. I do urge my colleagues
to support the bill before us, however.
I yield back the balance of my time.
Mr. LOEBSACK. Madam Speaker, in closing, I do want to thank the
gentleman from Kentucky for his support and the Members from the other
side of the aisle for supporting this bill. It has been a true
bipartisan effort, and I really do appreciate that.
I do want to say that according to a multiyear study conducted by
public-private ventures, participants in SECTORS-based training
programs earned
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an average of 18.3 percent, or about $4,500, more than a control group
over a 24-month period of study. In addition, participants in SECTORS
programs were more likely to work in jobs with benefits, including
health insurance and paid time off, and were more likely to find
consistent work, about 1.3 additional months of employment, over the 2-
year period than the control group average.
This legislation will put in place additional SECTORS partnerships,
as I said before, between business, employees, and education and
training providers that lead to collaborative planning, resource
alignment, and training efforts for current and potential workers to
improve our Nation's business manufacturing and industry outlook.
It is supported by a broad-based nationwide coalition of workforce
and vocational organizations, manufacturing associations, colleges and
universities, chambers of commerce, and training and human services
organizations nationwide, and it does have the dual benefits of helping
businesses and employees, and it has strong bipartisan support in the
House of Representatives.
I urge support for this legislation.
Mr. GEORGE MILLER of California. Madam Speaker, I rise today in
support of H.R. 1855, the Strengthening Employment Clusters to Organize
Regional Success or SECTORS Act, which promotes strategic approaches to
addressing skills shortages.
Sector strategies is an approach that brings employers in a certain
industry together with education, labor, workforce, and other groups to
identify and provide training that is tailored to meet the sector needs
of that region's economy. The SECTORS Act would support existing
industry partnerships or help leverage funding from employers,
educators, labor, and the workforce system to adopt a sectors-based
working partnership that comes together to identify economic trends and
shared workforce issues and develop the tools required to meet the
growing demand in that targeted industry.
As some industries maintain signs of recovery, you would expect that
employers would have an easy time filling their openings. In
manufacturing, the June 2010 ISM Report on Business showed that
economic activity in the sector grew for the 11th consecutive month.
The manufacturing industry has added 136,000 jobs since December 2009.
Yet many American companies, including manufacturers believe they
cannot find workers with the qualifications needed for these jobs.
A recent New York Times article highlighted a contract drug company
in Ohio that needed to hire 100 workers. Despite reviewing 3,600 job
applications, the company has only offered jobs to 47 people so far. In
a July 2009 survey of employers, the Business Roundtable's Springboard
Project found that more than 60 percent of those surveyed indicated
that they were having difficulty finding qualified applicants to fill
current vacancies, and almost half indicated that there was a gap
between the skills of their current workforce and company requirements.
In a survey of manufacturing organizations conducted by Deloitte, The
Manufacturing Institute, and Oracle found that skill shortages persist,
especially for the most profitable companies. Almost one-third of
responding companies reported some level of shortages today, and over
one-half reported shortages for skilled production workers. With the
economy improving, companies are retooling the way they operate in
order to remain competitive against their global rivals and in
assessing its short and long-term talent needs, businesses are calling
for higher-skilled workers.
In the current economy, workers need a wide range of services and
support to reenter and succeed in the labor market. Job training is one
important part of that solution, particularly for workers who have
experienced extended unemployment and need to rebuild their skills;
dislocated workers who are moving into new industries as local and
regional economies are revamped; or even incumbent workers who need to
upgrade their skills as industries adopt new technologies, including
green technology. It is critical that we ensure that workers have the
right skills for today's labor market and that those skills help them
move into jobs and careers. One of the best ways to do this is to
ensure that federally funded training is developed in partnership with
local and regional employers.
The SECTORS Act will help businesses in growing industries plan for
their talents needs while ensuring education and workforce provide the
learning for workers to match the skills required by employers. By
promoting sector strategies, employers can take control of the design
and work in coordination with education and job training providers from
the public and private sectors to develop strategies that will quickly
train workers for waiting jobs, and develop long-term solutions to grow
that industry as part of a community's economic recovery. Specifically,
the SECTORS Act would establish a new Sector Partnership Grant program
administered by DOL to provide designated funding and distinct
performance measures for industry partnerships.
SECTORS help both workers and local firms in the same industry, to
help ensure that workers are getting the skills that employers need and
the employers can find and hire the skilled workforce they need to
compete and lead the world in the global economy. Federal investment
that encourages best practices in the workforce development field,
supports efforts already going on in communities around the country,
and ensures that federal investments improve the skill of our nation's
workforce, will efficiently and effectively support our nation's
economic recovery.
In addition, sector partnerships can have a positive impact on
workers, especially those that are low-income. Public/Private Ventures
found in their study of sector-based training those participants in the
program earned an average of about $4,500 more than those not engaged
in training sponsored by a sector partnership. More than 200 sector
partnerships are active, comprising 23 industry sectors in 41 states.
For example, Pennsylvania has nearly eighty partnerships serving more
than six thousand firms across the Commonwealth, and more than 70,000
workers have received training as part of the program. The SECTORS Act
will drive strategic alliances that advance a region's economic
vitality and make sure workers have the skills in place to move forward
industries that are pivotal to keeping our economy growing.
Madam Speaker, I want to thank Congressman Loebsack and Congressman
Platts for introducing this legislation that is so important to our
regional and national economy. I urge support of H.R. 1855, which helps
to strategically position our growing industries with a highly-skilled
workforce ready to innovate and complete in the 21st Century global
marketplace.
Mr. CONYERS. Madam Speaker, I rise in strong support of H.R. 1855,
the ``Strengthening Employment Clusters to Organize Regional Success,
SECTORS Act''. It is an important piece of legislation, and I would
like to thank Representative David Loebsack for bringing it to the
floor. This bill, when passed, will help to encourage job advancement
along with job growth.
By requiring the Secretary of Labor to award competitive grants that
may reach totals of over $2 million that will spur job growth and in-
house training, the SECTORS bill will help workers who have been hard
hit by this recession. This federal-industrial partnership and the
coordination with state and local institutions to improve economic and
educational investment will ensure a better way forward for the
American worker.
In the current job climate, it is not only the unemployed who feel
the wrath of recession. There are many workers, in my district
included, who continue to be outpaced by changing work environments.
Many industries that employ thousands of workers do not have the money
or the structure necessary to promote in-house training. These
industries are homes to jobs that often have no hope of advancement,
jobs that steer workers away from their families and into dead-end
career paths.
This bill will help workers become acclimated to the changing
environment. By promoting job training and job retention through
federal grants, the SECTORS Act brings hope to the thousands of workers
who may not know at the moment what their future will look like. It
fosters the hope that has been so barren these last months and brings
opportunity to the men and women who need it most.
Again, I encourage my colleagues to support the bill.
Mr. LOEBSACK. I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Iowa (Mr. Loebsack) that the House suspend the rules and
pass the bill, H.R. 1855, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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