1. "New Beginnings: Trade Program Tools for a New, Flatter World"
eta
EMPLOYMENT AND TRAINING ADMINISTRATION
UNITED STATES DEPARTMENT OF LABOR

2. Topics to Be Covered Acronyms: Speaking the Language of Trade
Purpose of the Program
Petition / Application Process
Secondary Workers
Rapid Response and TAA
Integration with WIA and Wagner-Peyser
Trade Adjustment Assistance (TAA) Benefits
Trade Readjustment Assistance (TRA) Benefits
ATAA Program
TAA for Farmers and Fishermen
HCTC
TAA for Firms

3. Acronyms: Speaking the Language of Trade
ATAA = Alternative Trade Adjustment Assistance
PBGC = Pension & Benefit Guarantee Corporation
DOL = U.S. Department of Labor
DTAA = Division of Trade Adjustment Assistance
HCTC = Health Coverage Tax Credit
RR = Rapid Response
TAA = Trade Adjustment Assistance
TRA = Trade Readjustment Assistance
UI = Unemployment Insurance
WIA = Workforce Investment Act

4. Purpose of the Trade Program for Workers
Why are we here?
Purpose of the
Trade Program for Workers

5. Why Are We Here? Purpose of the Trade Program for Workers
To enable the rapid reemployment of individuals, who became unemployed (or experience a reduction of hours and wages) as a result of increased imports, in suitable employment. The TAA program provides for reemployment services and allowances for eligible individuals. These services include training, job search and relocation assistance and income support payments.
The program is, in short, an attempt to offset the harm of free trade on workers whose jobs are lost to foreign competition by assisting them in finding new employment in high growth, high demand occupations.
All workers for whom a petition is filed, whether or not it is certified, are considered to be Dislocated Workers under the WIA program.

6. Application Process Group Eligibility Requirements
Petition Process
Application Process
Group Eligibility Requirements

7. How does the TAA petition process work?
Layoff (or notice thereof) occurs
Rapid Response initiated by State
Petition is filed with DOL and the Governor on behalf of the workers by:
Group of 3 or more workers
Official of recognized union or other representative
Official of the employer/firm
One-Stop operators or partners
State dislocated worker unit
DOL (DTAA) investigates and issues a decision
Denials may be appealed

8. Criteria for Primary Certification
Group 1
Section (a)(2)(A) all of the following must be satisfied:
A. a significant number or proportion of the workers in such
workers' firm, or an appropriate subdivision of the firm,
have become totally or partially separated, or are
threatened to become totally or partially separated;
B. the sales or production, or both, of such firm or
subdivision have decreased absolutely; and
C. increased imports of articles like or directly competitive
with articles produced by such firm or subdivision have
contributed importantly to such workers' separation or
threat of separation and to the decline in sales or
production of such firm or subdivision; or

9. Criteria for Primary Certification
Group 2
II. Section (a)(2)(B) both of the following must be satisfied:
A. a significant number or proportion of the workers in such workers' firm, or an appropriate subdivision of the firm, have become totally or partially separated, or are threatened to become totally or partially separated;
B. there has been a shift in production by such workers' firm or subdivision to a foreign country of articles like or directly competitive with articles which are produced by such firm or subdivision; and
C. One of the following must be satisfied:
1. the country to which the workers' firm has shifted production of the articles is a party to a free trade agreement with the United States;
2. the country to which the workers' firm has shifted production of the articles is a beneficiary country under the Andean Trade Preference Act, African Growth and Opportunity Act, or the Caribbean Basin Economic Recovery Act; or
3. there has been or is likely to be an increase in imports of articles that are like or directly competitive with articles which are or were produced by such firm or subdivision.

10. Criteria for Secondary Certification
Upstream
Workers at primary firm must be certified
Separations (or threat) at supplier firm must exist
In addition, one of the following must be true:
Component parts accounted for at least 20% of upstream firm’s production or sales
Loss of business contributed importantly to workers’ actual or threatened separation

11. Criteria for Secondary Certification
Downstream
Workers at a firm that performs additional, value-added production processes directly for a firm producing articles that were basis of TAA certification
Downstream production can include final assembly or finishing
Separations (or threat) at secondary firm
Loss of business with primary firm must have contributed importantly to separations of secondary workers
Applies only to primary certifications based on increased imports from or shift in production to Canada or Mexico

12. Rapid Response and Trade

13. Rapid Response and Trade
Trade Act of 2002 requires that Rapid Response services be provided in response to every TAA petition received
Rapid Response activity is often the source of the Petition for Trade Adjustment Assistance
Rapid Response provides overview of TAA and other services available through One-Stops (e.g., counseling, resume writing, assessment, job development, etc.)
Early intervention promotes rapid reemployment, allowing workers with marketable skills to immediately move to reemployment
Rapid Response services could lead to new employment without the participant ever having to access TAA or TRA

14. Services and Benefits Available Training, TRA, Job Search, Relocation
Trade Participants
Services and Benefits Available
Training, TRA, Job Search, Relocation

15. Individual access to TAA…
Each worker must apply to the state for their individual eligibility determination
There is a 8/16 week deadline that must be met by the participant
Eligible participants may receive reemployment services, training, and TRA, if appropriate
There is no entitlement to training, only an entitlement to apply
Governor is required to make WIA core and intensive services, including reemployment services, available to workers
Workers denied eligibility should be offered WIA services through the One-Stop center

16. What are the benefits/services available to certified workers?
Benefits Available Under the Trade Act
Training
Remedial, Occupational, OJT, Customized
Trade Readjustment Allowances (TRA)
Relocation Allowances
90% of costs PLUS lump sum up to $1250
Job Search Allowances
Costs up to $1250 (can be multiple searches)
ATAA Wage Subsidies
Health Coverage Tax Credit (HCTC)

17. What are the benefits/services available to certified workers?
Additional Services Governor is Required to Make Available Under WIA
Rapid Response
Core and Intensive Services (ES & WIA)
Support Services (WIA)

18. What are the training approval criteria?
Six Criteria for Training Approval:
There is no suitable employment available to the worker.
The worker would benefit from training.
There is a reasonable expectation of employment following completion.
Training is reasonably available to the worker.
The worker is qualified to undertake and complete the training.
Training is suitable and available at a reasonable cost.
There is no entitlement to receive training. All 6 of these criteria must be met before training can be approved. There is also no entitlement to receive a full 104 (130) weeks of training.
Primary goal: Get trade-affected workers reemployed quickly
Not every worker who comes through the door requires training
States must aggressively apply the six approval criteria for TAA training
6 criteria provide the framework of questions that must be answered by assessment.
These are not just boxes you check off automatically.
My understanding is that they have been weakened by us playing fast and loose with them over the years, but we need to return to applying them in a reasonable manner.
Also, participant writes to congress, letter goes to national office, we call and ask what’s going on. Sometime this probably implies- put them in training. We really just need to write a letter explaining the issue and we need to communicate more clearly.

19. What income support is available to TAA participants?
Income support is available to TAA participants for up to 130 weeks through a combination of:
Unemployment Insurance (UI): generally available for 26 weeks
Basic Trade Readjustment Allowances (TRA): 52 weeks minus weeks of UI received
Additional TRA: Up to 52 weeks
Remedial TRA: Up to 26 weeks

20. What are the requirements for receiving income support?
Basic TRA
Worker must be in TAA-approved training or on a waiver from training by the 8/16 deadline
Additional TRA
Worker must attend training each week
No waivers are permitted
Additional TRA is only available for up to 52 consecutive weeks (missing weeks cannot be made up)
Remedial TRA
May only be paid to remedial education participants
While remedial education can take place at any time within the training program, the remedial TRA may only be paid at the end

21. What are job search and relocation benefits?
Job Search Allowance
Must be conducted outside commuting area
Reimburses 90% of all reasonable expenses, up to $1,250
Can be multiple events
Relocation Allowance
Must relocate to new job outside commuting area
Pays for movement of family, household goods, and other reasonable expenses
Pays 90% of moving costs
Also provides the equivalent of 3 weeks of wages, up to $1,250 as a lump sum payment

22. ATAA - Alternative Trade Adjustment Assistance

23. What is the Alternative TAA (ATAA) program?
Program is for workers age 50 and over
Worker group must be certified eligible for both TAA and ATAA
Worker must be reemployed within 26 weeks from separation
“Full time” in new employment as defined by State Law
Lesser wage than at separation
Receipt of first payment under ATAA voids access to the TAA program

24. What are ATAA benefits?
50% of difference between reemployment wages and wages earned at separation
Payments received on at least a monthly basis
Payments may not last more than 2 years
Total payments may not exceed $10,000
Health Coverage Tax Credit (HCTC)
Only while receiving ATAA payment
Not to exceed 2 years
Relocation allowance but not Job Search

25. HCTC – Health Coverage Tax Credit

26. What is HCTC? Health Coverage Tax Credit
Pays 65% of premium for qualified health insurance plans
There are three groups of eligible workers:
Eligible TAA Recipients
ATAA Participants
PBGC Participants Over 55
“Pension Benefit Guarantee Corporation”
States report eligible TAA and ATAA recipients to IRS
PBGC provides a list of its participants to IRS

27. Who are eligible TAA and ATAA recipients?
Eligible TAA and ATAA recipients include individuals who:
Received a TRA payment for any day during the month
Would have received a TRA payment for any day during the month, except that they had not exhausted their UI
Received an ATAA wage subsidy payment for any day during the month

28. How is HCTC received? Can be received two ways: End-of-Year Tax Credit
Available beginning December 2002
Worker must wait until taxes filed
Advance Payment
Available beginning August 2003
Monthly payment made to qualified insurance plan
Worker makes up 35% of the premium not paid by HCTC each month

29. “Other” Trade Act Programs
TAA for Farmers and Fishermen
TAA for Firms

30. What is the TAA for Farmers and Fishermen program?
Administered by U.S. Department of Agriculture (USDA)
Certification made by USDA covers all producers of a specific agricultural commodity
Participants are eligible for TAA but not TRA
Letter of Certification from USDA
Copy of the letter from FSA regarding cash payment

31. What is the TAA for Firms Program?
Administered through the Economic Development Administration under the U.S. Department of Commerce
Provides financial assistance to manufacturers affected by import competition
Cost sharing federal assistance program pays for half the cost of consultants or industry-specific experts for projects that improve a manufacturer's competitiveness
Assistance is coordinated through a series of non-profit TAA Centers

32. Integration of the Workforce Investment System

33. What is ETA’s integrated service strategy?
Coordination with WIA is high priority for ETA
All Trade participants are “dislocated workers” under WIA
Amended Trade Act requires Rapid Response be available to workers as soon as petition is filed
Early intervention is a key principle to return workers to the workforce
Trade Act requires closer coordination with WIA services
“Sense of Congress” that supportive services – such as childcare – be provided through other DOL programs
Trade workers depend on placement services delivered by One-Stop partners to obtain reemployment
Sessions on promising practices. Arizona – Local Area TAA agreements as innovative way to promote integration and co-enrollment. Also presentations by Maine and Massachusetts on integration and co-enrollment.

34. What is ETA doing to promote an integrated service strategy?
The Department has recently conducted a series of six regional forums for state and regional practitioners to improve services to dislocated workers. Follow-up forums are tentatively planned for Fall 2006:
Forums emphasized the importance of utilizing all available resources (TAA, WIA, and other) to provide comprehensive services
Reiterated the overall goal of returning workers to sustainable employment as quickly as possible
Presented an opportunity for state representatives to ask ETA leaders questions and provide feedback on emerging policies
Proposed EMILE system unifies ETA program reporting

35. Coordination with the One-Stop System
Coordination Principles:
Sooner versus later – Link Rapid Response with TAA
Customer choice – Provide a range of services to workers
Leverage resources – Use various funding sources to cover assessment, case management, supportive services and follow-up activity
Seamless delivery – Integrate TAA with One-Stop system

36. Coordination with the One-Stop System
Coordination Principles:
Active promotion – Increase awareness of services
Success is measurable – Measurement guides improvement; change in the Dislocated Worker earnings measure should reduce resistance from locals to co-enroll TAA participants
Consistent and accurate information – Enhances performance
Partnerships – Increases outcomes through collaboration and coordination

37. Web Resources TAA for Workers www.doleta.gov/tradeact TAA for Firms
TAA for Farmers & Fishermen
HCTC

38. Presenters Tim Theberge – Region 1 theberge.timothy@dol.gov
Rosemary Williams-Raysor – Region 2
Girardo Lara – Region 5
Elaine Tom – Region 6