Wo rk Sha ring : A la yo ff pre ve ntio n to o l fo r We st Virg - - PowerPoint PPT Presentation
Wo rk Sha ring : A la yo ff pre ve ntio n to o l fo r We st Virg inia Ju ly 2 8 , 2 0 1 2 Se a n OL e a ry, Polic y Ana lyst T he c a se fo r wo rk sha ring Une mployme nt Re ma ins Hig h Sinc e E nd of Re c e ssion 12% 10% Une mplo
Se a n O’L e a ry, Polic y Ana lyst
0% 2% 4% 6% 8% 10% 12%
Une mplo yme nt Ra te
Une mployme nt Re ma ins Hig h Sinc e E nd of Re c e ssion
U.S. WV
So urc e : U.S. Bure a u o f L a b o r Sta tistic s, Curre nt Po pula tio n Surve y a nd L
Sha de d a re a indic a te s re c e ssio n.
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Sha re o f une mplo ye d wo rke rs who ha ve b e e n une mplo ye d 27 we e ks o r lo ng e r
More worke rs a re e xpe rie nc ing long te rm une mployme nt
So urc e : U.S. Bure a u o f L a b o r Sta tistic s, Curre nt Po pula tio n Surve y Sha de d a re a indic a te s re c e ssio n.
Wo rk sha ring is type o f
une mplo yme nt insura nc e b e ne fit de sig ne d to pre ve nt la yo ffs.
Sta te s with wo rk sha ring
pro g ra ms a llo w e mplo ye rs to re duc e the ho urs a nd wa g e s
tha n e na c t la yo ffs.
Affe c te d e mplo ye e s a re
e lig ib le fo r wo rk sha ring b e ne fits to supple me nt the ir re duc e d pa y.
Be ne fit: $400
Wa g e s: $640 WS Be ne fit: $80 T
L ike wo rk sha ring , pa rtia l une mplo yme nt a llo ws a wo rke r to c o lle c t so me une mplo yme nt insura nc e while still wo rking .
Wo rke rs c a n c o lle c t pa rtia l UI b e ne fits if the ir ho urs ha ve b e e n re duc e d a nd the y a re e a rning le ss tha n the ir “we e kly b e ne fit a mo unt,” whic h is b a se d o n pre vio us e a rning s. If a wo rke r’ s e a rning s in a re duc e d wo rk we e k e xc e e d his o r he r we e kly b e ne fit a mo unt, the n he o r she is no t e lig ib le fo r a ny pa rtia l une mplo yme nt b e ne fits.
T his re stric tio n ke e ps ma ny hig h-wa g e e a rne rs fro m q ua lifying fo r pa rtia l une mplo yme nt witho ut la rg e re duc tio ns in the ir wo rk we e k.
While a ll sta te s ha ve so me fo rm o f pa rtia l une mplo yme nt, no t a ll sta te s ha ve wo rk sha ring pro g ra ms. 0% 10% 20% 30% 40% 50% 60% 70% 80%
$7.25 $10.00 $15.00 $20.00 $25.00 $30.00 Pe rc e nt Re duc tio n in Ho urs to Qua lify fo r Be ne fits Ho urly Wa g e
Pa rtia l UI Wo rk Sha ring
So urc e : WVCBP a na lysis o f sta te pa rtia l une mplo yme nt syste ms
pa id fro m sta te une mplo yme nt insura nc e trust funds.
a re c ha rg e d to the e mplo ye r a nd re imb urse d to the trust fund just like re g ula r une mplo yme nt b e ne fits.
“Ra te s a re e sta b lishe d June 30 o f e a c h ye a r, to b e e ffe c tive the fo llo wing Ja nua ry 1, in a c c o rda nc e with the ra tio o f e a c h e mplo ye r's re se rve b a la nc e to tha t e mplo ye r's a ve ra g e a nnua l pa yro ll. T he c re dits to a n e mplo ye r's a c c o unt a re the c o ntrib utio ns pa id whic h e xc e e d a n a mo unt e q ua l to .4 pe rc e nt o f ta xa b le wa g e s. T
a t the e mplo ye r's re se rve b a la nc e , a ll the b e ne fits c ha rg e d a g a inst the a c c o unt a re sub tra c te d fro m the c re dits to the a c c o unt. Ave ra g e a nnua l pa yro ll is the a ve ra g e o f the e mplo ye r's ta xa b le pa yro lls fo r the thre e -ye a r pe rio d e nding o n the c o mputa tio n da te o f June
a ve ra g e a nnua l pa yro ll yie lds a ra tio whic h pla c e s the e mplo ye r's a c c o unt in a b ra c ke t e sta b lishe d b y la w. “
Wo rkfo rc e WV Ha nd b o o k fo r E mplo ye rs
a re pa id o ut a s a n a lte rna tive to la yo ffs, a nd a re re imb urse d in the sa me ma nne r a s re g ula r UI b e ne fits, wo rk sha ring ha s a minima l fisc a l impa c t o n sta te UI trust funds.
n a re c e nt surve y, no sta te s ha ve re po rte d a ne g a tive impa c t o n the ir UI trust funds fro m wo rk sha ring
n a dditio n, 6 o f the 17 sta te s with a c tive wo rk sha ring pro g ra ms in 2009 did no t ha ve to b o rro w fro m the fe de ra l g o ve rnme nt to ke e p the ir UI trust funds so lve nt.
b o rro w mo ne y, sta te s with wo rk sha ring b o rro we d le ss pe r priva te se c to r wo rke r tha n sta te s witho ut wo rk sha ring .
$354.05 $403.59 $0 $100 $200 $300 $400 $500 $600 Wo rk Sha ring Sta te s Othe r Sta te s F e d e ra l L
Se c to r Wo rke r, 2011
So urc e : WVCBP Ana lysis o f U.S. De pt o f L a b o r a nd Bure a u o f L a b o r Sta tistic s da ta .
b usine sse s re duc e c o sts during do wnturns.
b usine sse s to re ta in skille d wo rke rs, re duc ing turno ve r c o sts.
a llo wing it to b e use d b y the b usine sse s it he lps the mo st.
"We think it's a ve ry c re ative ide a to ke e p pe o ple in the wo rkplac e . We 're ve ry c o nc e rne d ab o ut lo sing tale nt at time s, and if the re 's a way we c an ke e p pe o ple wo rking , the n we want to do that, o b vio usly." –
Ma nufa c ture rs Asso c ia tio n.
“T he wo rk-sha ring pro g ram in Rho de I sland has b e e n a life line fo r Pilg rim. I t’ s he lpe d a small manufac turing b usine ss like o urs to maintain the institutio nal kno wle dg e and skills that are c ruc ial fo r o ur suc c e ss.”
Sc re w Co rpo ra tio n
ndustrie s like mining , ma nufa c turing , a nd c o nstruc tio n a re dispro po rtio na te ly a ffe c te d b y la yo ffs.
the se industrie s during do wnturns.
Ma ss L a yo ffs b y Ind ustry, We st Virg inia , 2005-2010
Mining 12% Co nstruc tio n 26% Ma nufac turing 25% Ac c o mmo da tio n a nd F
16% Othe r Se rvic e s 9% All Othe r Priva te Industrie s 12%
So urc e : U.S. Bure a u o f L a b o r Sta tistic s, Ma ss L a yo ff Sta tistic s
la yo ffs, a llo wing wo rke rs to sta y a tta c he d to the la b o r fo rc e .
re ma in fina nc ia lly sta b le , a nd a vo id the da ng e rs o f lo ng te rm une mplo yme nt.
"Yo u fe e l it, b ut yo u do n't lo se yo ur jo b ."
Pa rtic ipa nt, Pilg rim Sc re w Co rpo ra tio n
wo rke rs o n the jo b in the ir c o mmunity.
wo rke rs’ spe nding po we r lo c a lly, ke e ping de ma nd up.
“Sho rt-time c o mpe nsatio n, in lie u o f full lay-o ffs, is pre fe rab le also fo r the lo c al c o mmunity and state as a who le as pe o ple will still b e wo rking unde r a sho rt-time c o mpe nsatio n pro g ram, e arning mo ne y fo r the ir familie s inste ad o f c o lle c ting full une mplo yme nt.”
a b o r a nd Huma n Re so urc e s Po lic y fo r the Ohio Cha mb e r o f Co mme rc e .
$1.64 $1.44 $1.27 $1.05 $0.35 $0.32
$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80
T e mpo ra ry F e de ra l F ina nc ing o f Wo rk Sha ring Inc re a se Infra truc ture Spe nding E mplo ye e Pa yro ll T a x Ho lida y E mplo ye r Pa yro ll T a x Ho lida y Ma ke Bush Inc o me T a x Cuts Pe rma ne nt Cut Co rpo ra te Inc o me T a x Ra te
F ina nc ing Wo rk Sha ring Pro vide s Big Re turn to the E c o no my
No te : T he b a ng fo r the b uc k is e stima te d b y the o ne -ye a r $ c ha ng e in GDP fo r a g ive n $ re duc tio n in fe de ra l ta x re ve nue o r inc re a se in spe nding a s o f 2011Q3. So urc e : Mo o dy’ s Ana lytic s
24 – Sta te s plus D.C. whic h ha ve a do pte d wo rk sha ring pro g ra ms
0 – Sta te s whic h ha ve re po rte d a ne g a tive impa c t o n the ir U.I . trust funds due to wo rk sha ring
153,000 – Wo rke rs c o ve re d b y wo rk sha ring during the re c e ssio n’ s pe a k.
165,000 – Jo b s sa ve d b y wo rk sha ring pro g ra ms in 2009.
$4,000,000 – Amo unt WV c o uld sa ve its U.I . trust fund b y a do pting wo rk sha ring .
“F ro m Ro nald Re ag an, who sig ne d the first fe de ral pro g ram into law, to Barac k Ob ama, who ne g o tiate d an e mplo ye r-frie ndly mo de rnizatio n o f the pro g ram into law this ye ar, share d wo rk has e arne d b ipartisan suppo rt fo r o ve r thirty ye ars.” – Re pre se nta tive Mike Duffy, Ohio Ho use o f Re pre se nta tive s