What is layoff aversion? In June 2010, the U.S Department of Labor (DOL) ETA issued TEGL Broader Definition Layoff aversion is preventing, or minimizing the duration of unemployment. DOL ETA considers a layoff averted when: 1) A worker’s job is saved with an existing employer that is at risk of downsizing or closing. 2) A worker at risk of dislocation transitions to a different job with the same employer or a new job with a different employer and experiences no or a minimal spell of unemployment. This Definition opens up a world of opportunity for Rapid Response teams to focus on Prevention. Averting layoffs adds a critical element to a transitioning economy and a crucial element for successful regional economic development.

Who is responsible for averting layoffs? Averting layoffs is and should be a function of the public workforce system, and Rapid Response is the most logical place to develop aversion strategies to carry out layoff aversion activities. It should be noted that US DOL ETA has been and intends to reinforce these key areas through technical assistance activities, to state and local workforce professionals. To better understand who is responsible for averting layoffs, let’s take a look at the WIA Final Rules

WIA Final Rules 20 CFR Part 652 WIA Final Rules Sec describe required and allowable Rapid Response activities: Rapid response activities must include: Immediate and on-site contact with employer, representatives of affected workers, and local community, which may include assessment of: - Potential for averting the layoff in consultation with State or local economic development agencies, including private sector economic development entities

WIA Final Rules continued 20 CFR Part 652 WIA Final Rules Sec provides more contexts for allowable layoff aversion activities. The State of designated entity may: 1. In conjunction with other appropriate federal, State and local agencies and officials, employer associations, technical councils or other industry business councils and labor organizations: Identify strategies for aversion of layoffs In collaboration with appropriate State agency(ies), collect and analyze information related to economic dislocations including potential closings and layoffs 2. Assist in devising and overseeing strategies for: Layoff aversion such as prefeasibility studies of avoiding a plant closure through an option for a company or group including the workers to purchase plant or company and continue it in operation Incumbent worker training Linkages with economic development activities at federal, State and local levels, including Federal Department of Commerce programs and available State and local business retention and recruitment activities

Examples of layoff aversion activities Paid with WIA funds or leverage resources from partners. Developing early warning networks and systems to gather data and intelligence related to economic transition trends within industries, communities, or specific employers, and planning strategies for intervention (Filling a job is more expensive than saving a job). Engaging in proactive measures such as business visitation programs or layoff forecasting programs to identify indicators of potential economic transition, and to identify training needs in either growing industry sectors or expanding individual businesses

Examples of layoff aversion activities Consultation with at-risk businesses to explore refocusing or retooling a company to serve new markets and/or emerging and high-growth industries such as “green manufacturing” Establishing contracts with business intermediaries with known expertise in business assessment and viability studies to conduct prefeasibility studies and implement business intervention strategies including skills upgrade training for at risk employees. The National Institute of Standards and Technology (NIST) and the Manufacturing Extension Partnership (MEP) fund and operate two centers in California: * Corporation for Manufacturing Excellence (MANEX) * California Manufacturing Technology Consulting (CMTC)

Required/Allowable Rapid Response Activities Assessing layoff aversion potential (R) Devising layoff aversion strategies with employer (A) Providing layoff technical assistance to employer (A)** Conducting business services workshops (A)** Reaching out to business (A) ** Allowable per State policy decision as part of employer outreach and job development activities authorized by WIA regulations Section (b). If funded with formula- allocation Rapid Response funds or, if specifically authorized, by yearly directive describing the use of Rapid Response Competitive-Priorities funds for that program year

Resources One-Stop Career Centers provide recruitment assistance to employers. In many cases, they also have access to a qualified pool of job seekers. They also have a team of job developers that can assist businesses with connecting to potential employees through assistance with job posting, on-site recruitments, and on the job training opportunities (OJT). To locate a career center in your area: Provide information on hiring incentives including: tax credits, OJT, enterprise zones Be a resource for programs and opportunities for business development Educate business and industry on local and state incentives and programs to help fund business development and expansion Sponsor business seminars to meet the needs of businesses Plan and forecast current and future needs and determine how to satisfy those needs Coordinate and convene meetings with business and economic development partners to engage and identify opportunities for collaboration and business expansion Provide referrals to business service organizations for technical assistance (SBDC)

For more information please contact: George E. Carter III Business Services Representative/Rapid Response Coordinator Workforce Development Board of Contra Costa County (925) office (925) cell (925) fax