Trade Adjustment Assistance 2010 Annual Report - Texas ...

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Trade Adjustment Assistance 2010 Annual Report - Texas ...

Texas

Workforce

Commission

Trade Adjustment Assistance

2010 Annual Report


Texas Workforce Commission Mission

To promote and support an effective workforce

system that offers employers, individuals,

and communities the opportunity

to achieve and sustain

economic prosperity.


Tr a d e ad j u s T m e n T assisTance

2010 an n u a l re p o r T

Texas Workforce Commission

101 East 15th Street

Austin, TX 78778-0001

(512) 463-2227


Tr a d e ad j u s T m e n T assisTance 2010 an n ua l re p o r T

Abstract

Texas Labor Code §302.007 requires the Texas Workforce Commission to submit an annual report to the

Texas legislature on the effectiveness of the federally funded Trade Adjustment Assistance (TAA) program.

TAA provides reemployment services to individuals who lose their jobs because of foreign imports or shifts

in production to foreign countries. On May 18, 2009, the program was expanded to include not only the

import or production shift of manufactured articles, but also services.

The population of Trade-certified workers in Texas continues to trend to individuals possessing more

education and a higher level of job skills. With more education

and transferable job skills, coupled with the vibrant economy

that Texas experienced prior to 2009, Trade-certified workers

had great success in returning to employment without

occupational or remedial training. In 2009, the trend started

to reverse as Texas began to feel the impact of the economic

downturn affecting most of the country. Throughout 2010,

increasing numbers of Trade-certified workers had difficulty

finding suitable employment after losing their jobs.

The number of Trade-certified workers participating in

TAA-approved training has increased 139 percent over the

past two years, from 1,042 as of August 31, 2008, to 2,492 as of

August 31, 2010.

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Introduction

Tr a d e ad j u s T m e n T assisTance 2010 an n u a l re p o r T

This report provides the services and outcomes for Trade-certified workers who completed participation

in the Trade Adjustment Assistance (TAA) program. Most of these participants were covered under

certifications subject to the rules of the Trade Act of 2002. The program rules changed substantially with

the passage of the Trade and Globalization Adjustment Assistance Act (TGAAA) of 2009. This legislation

became effective May 18, 2009, and very few Trade-certified workers covered under this new legislation

completed participation during Program Year 2010.

The federally funded TAA program of 2002 provides reemployment services to individuals who lose their

manufacturing jobs because of foreign imports or shifts in production to foreign countries with which

the United States has a free trade agreement. The Texas Workforce Commission (TWC) administers a

program of services for Trade-certified individuals that is fully integrated with the Texas workforce system.

Texas Labor Code §302.007 requires TWC to submit an annual report to the Texas legislature on the

effectiveness of the TAA program. Specifically, the statute requires TWC to report:

1) The number of individuals entering employment (Table 3);

2) Whether an individual who enters employment after completion of a program retains that employment

for at least six months (Table 4);

3) The wages earned by individuals before and after participation in the program (Table 5);

4) The occupations in which the individuals are placed (Table 6);

5) The number of individuals participating in integrated vocational and language training programs (see

Services and Outcomes discussion below); and

6) Whether a participant has acquired basic skills to enhance employability in the participant’s local labor

market (see Services and Outcomes discussion below).

The Trade Adjustment Assistance Program in Texas

Services and Outcomes

TWC coordinates the TAA program with all programs

offered across the state through Texas Workforce Centers,

including Workforce Investment Act (WIA) services for

dislocated workers.

Trade-certified workers are eligible for services including

job search assistance, skills assessments, and advanced

vocational skills training to meet the needs of Texas

employers as well as other assistance, such as transportation

reimbursements and child care while in training provided

through Texas Workforce Centers. A description of Trade

services, benefits, and service delivery for Trade-certified

workers is provided in the Appendix.

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Tr a d e ad j u s T m e n T assisTance 2010 an n ua l re p o r T

The following is a summary of the outcomes of the services provided to

Trade-certified workers who recently ended participation in the TAA

program. Additional detail about TAA program participants and the

applicable timeframes covered is available in Tables 1–6.

• 71 percent of the individuals who ended participation in the TAA

program found employment by the end of the quarter following

participation (Table 3);

• 85 percent of individuals who entered employment by the end of the

first quarter after ending participation in the TAA program retained

that employment for at least six months (Table 4);

• Individuals who ended participation in the TAA program and entered

employment earned average wages of $15,360 in the first quarter of

employment, or 77 percent ($15,729,138, compared to $20,514,370) of

their prior wages (Table 5);

• Of the 976 participants who ended participation in the TAA program and for whom the employing

industry after ending participation is known, the top five industries in which individuals obtained jobs

are (Table 6):

‣ 21 percent (or 202) in manufacturing;

‣ 18 percent (or 179) in administrative and support services;

‣ 11 percent (or 108) in health care and social assistance;

‣ 8 percent (or 81) in retail trade; and

‣ 7 percent (or 108) in educational services;

• Of the 715 individuals who ended participation in the TAA program after being enrolled in TAAapproved

training:

‣ 83 percent (595 of 715) participated in vocational training that also may have included

English as a Second Language (ESL) training or other remedial programs (data does not

specifically identify remedial training that has been integrated with a vocational program);

‣ 31 percent (or 224) participated in a remedial education program that was delivered

separately from vocational training; and

‣ 15 percent (or 104) participated in both vocational training and a separate remedial

education program.

Changes to Service Delivery

TGAAA, effective May 18, 2009, amended the Trade Act of 1974 and made significant changes to the

TAA program. Before this legislation, the TAA program benefited only manufacturing workers. The

amendment expands coverage to business services workers laid off because their jobs or the services they

supplied were relocated to a foreign country. Additionally, TAA program funding nearly tripled through

December 31, 2010.

The TGAAA amendments required that training programs for Trade-certified workers not be limited

to the training programs available to individuals eligible for the WIA dislocated worker program.

This expanded the training choices for Trade-certified workers in Texas.

Since the amendments became effective, Texas has seen an increase in the number of companies

Trade-certified and the number of workers covered by those certifications. In addition to manufacturing

companies, the state has seen companies in the following service sectors become certified:

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Tr a d e ad j u s T m e n T assisTance 2010 an n u a l re p o r T

• Information technology

• Financial/accounting services

• Software publishing;

• Information help centers

In SFY’10, the most common types of training approved for Trade-certified individuals were the following:

• Heating, air conditioning, and refrigeration mechanics

• Network and computer system administrators

• Medical assistants

• Computer support specialists

• Accounting and auditing clerks

Delivery of TAA program services devolved to the Local Workforce Development Boards (Boards) July

1, 2004. DOL regulations that go into effect December 15, 2010, require that any staff funded by TAA

administrative funds be merit staff—i.e., they must be State of Texas employees. DOL recognizes that

TAA administrative funds will probably be insufficient to support enough merit staff to meet TAA

service delivery needs across the state. If there is insufficient TAA-funded merit staff to serve all of the

Trade-certified workers in the state, services must be provided by staff funded from other programs,

such as Employment Service or WIA.

For FFY’11, Texas has determined that the available TAA administrative funds will allow hiring 23 merit

staff. These 23 positions have been placed in the areas with the highest concentrations of Trade-certified

individuals. Staff from federal partner programs will supplement the TAA-funded merit staff in some areas

and will provide Trade services in other areas as needed.

Trade Activity

After several years of decline, trade activity continued the increase that

began in SFY’08. The number of affected workers increased from 5,823

separated in SFY’08 to 14,846 separated in SFY’09. There were 35

pending petitions on August 31, 2010, covering workers laid off during

SFY’10 (a certification period goes back one year before the petition is

filed with DOL). Many petitions for certification are not filed until after

the layoffs occur. As these petitions are certified, the number of SFY’10

layoffs covered under certifications will continue to rise.

Between 2004 and 2007, TAA activity was centered in the heavy

manufacturing sector of East Texas. Recently, with the expansion of

the TAA program to include companies providing services as well

as manufacturing, many Trade-certified workers are located in the

metropolitan areas of Dallas, Fort Worth, Houston, and Austin.

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Tr a d e ad j u s T m e n T assisTance 2010 an n ua l re p o r T

Fig. 1 Trade Activity State Fiscal Year 2006 – State Fiscal Year 2010

(Worker activity data is based on the workers’ date of separation.)

16000

14000

12000

10000

8000

Trade Affected

Workers

Trainees

6000

4000

2000

0

18%

28% 24%

22%

15%

2006 2007 2008 2009 2010

Demographic Characteristics of Trade-Certified Workers

Table 2 summarizes the race/ethnicity, gender, age, and education of Trade-certified workers in the

TAA program in SFY’10.

In SFY’10, about two-thirds of the Trade-certified workers were male, compared to only one-half in

SFY’08. Only 17 percent of the Trade-certified workers in SFY’10 had less than a GED credential or

high school diploma when they entered the program. Higher education levels generally reduce the need

for remedial education. However, some of the affected workers with higher education levels, especially

those in technical fields such as information technology, have limited English proficiency and require

remedial English language training.

6


Funding and Expenditures

Tr a d e ad j u s T m e n T assisTance 2010 an n u a l re p o r T

States receive formula-allocated TAA funding from a capped

congressional appropriation from DOL for training, job search

allowances, and relocation allowances. TWC then distributes the funds

to local workforce development areas (LWDAs) and works closely with

the Boards to encourage the use of all available funding sources to avoid

service interruptions.

Trade Readjustment Allowance (TRA) payments provide weekly support

to eligible Trade-certified workers while they are enrolled in TAAapproved

training. An eligible Trade-certified worker also can receive

some TRA payments if the training requirement is waived (allowable

reasons for waiver are included in the Appendix). TRA and Alternative/

Reemployment Trade Adjustment Assistance (ATAA/RTAA) payments

are made through the state unemployment insurance (UI) payment system from dedicated federal funds

allocated by DOL. These are not UI benefits, are not charged against employers’ accounts, and do not

affect employers’ UI tax rates. As with UI payments, TRA and ATAA/RTAA payments are made by debit

card and direct deposit.

TRA payments are classified as extended benefits. During SFY’10, many Trade-certified workers received

extended benefits in the form of Extended Unemployment Compensation. These extended benefits replaced

TRA benefits on a week-for-week basis. As a result, SFY’10 experienced a drop in the amount of TRA

benefits expended, even though Trade-certified workers, in most instances, were receiving benefits to

support them during TAA-approved training.

Texas Trade Act Expenditures for Federal Fiscal Year 2009

(Expenditure data for FFY’10 will be available February 15, 2011.)

Type of Payment

Amount

Job Search Allowances $1,365

Relocation Allowances $54,538

Training $9,396,420

Alternative/Reemployment Trade Adjustment Assistance $329,142

Trade Readjustment Allowances $4,148,436

Total $13,929,901

While FFY’10 expenditures have not been finalized, the estimated training expenditures alone in 2010 were

approximately $18.5 million.

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Tr a d e ad j u s T m e n T assisTance 2010 an n ua l re p o r T

Conclusion

Despite the higher level of education of the typical Trade-certified worker in Texas compared to past years,

requests for occupational training increased due to expansion of TGAAA and the economic downturn.

Increasing numbers of Trade-certified workers are coming from the high technology industries located in

large metropolitan areas, semiconductor production, and the business service industry.

The TGAAA amendments, including the expansion of industries eligible for certification and the increased

federal funding for the program, are set to expire December 31, 2010. Congressional action will be required

to extend in whole or in part the amendments currently defining operation of the TAA program.

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Tr a d e ad j u s T m e n T assisTance 2010 an n u a l re p o r T

TABLES

Table 1

Trade Participants Ending Participation in the Trade Adjustment Assistance

Program October 1, 2008 – September 30, 2009, by Local Workforce Development

Area (LWDA)

Table 2

Characteristics at Intake of Participants in the Trade Adjustment Assistance

Program in State Fiscal Year 2010 (September 1, 2009 – August 31, 2010)

Table 3

Entered Employment by the End of the First Quarter after Ending Participation in

the Trade Adjustment Assistance Program October 1, 2008 – September 30, 2009,

by Local Workforce Development Area (LWDA)

Table 4

Employment Retention of Workers Who Entered Employment by the End of

the First Quarter after Ending Participation in the Trade Adjustment Assistance

Program April 1, 2008 – March 31, 2009, by Local Workforce Development Area

(LWDA)

Table 5

Earnings of Workers Who Ended Participation in the Trade Adjustment Assistance

Program April 1, 2008 – March 31, 2009, by Local Workforce Development Area

(LWDA)

Table 6

Industries for Participants Reemployed within Three Quarters of Ending

Participation in the Trade Adjustment Assistance Program April 1, 2008 – March

31, 2009, by North American Industry Classification System (NAICS)

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Tr a d e ad j u s T m e n T assisTance 2010 an n ua l re p o r T

Table 1. Trade Participants Ending Participation in the Trade Adjustment Assistance Program

October 1, 2008 – September 30, 2009, by Local Workforce Development Area (LWDA)

Participants

Participants Receiving

Training, Job Search,

Relocation, or ATAA

LWDA

No.

LWDA Name

No. with

No. % Only

Waivers**

No. %

20 Alamo 56 2.63% 20 28 3.95%

16 Brazos Valley 20 0.94% 19 1 0.14%

24 Cameron County 8 0.38% 7 1 0.14%

14 Capital Area 47 2.21% 37 10 1.41%

26 Central Texas 200 9.40% 195 3 0.42%

22 Coastal Bend 4 2 2 0.28%

12 Concho Valley 17 0.80% 2 15 2.12%

6 Dallas County 96 4.51% 56 27 3.81%

17 Deep East Texas 128 6.02% 123 4 0.56%

8 East Texas 507 23.83% 390 102 14.39%

19 Golden Crescent

28 Gulf Coast 15 0.70% 10 4 0.56%

13 Heart of Texas 8 0.38% 1 7 0.99%

23 Lower Rio Grande 129 6.06% 74 31 4.37%

27 Middle Rio Grande 17 6 11 1.55%

4 North Central 93 4.37% 69 16 2.26%

7 North East Texas 32 1.50% 29 3 0.42%

3 North Texas 174 8.18% 93 65 9.17%

1 Panhandle 1 0.05% 1

11 Permian Basin

15 Rural Capital 116 5.45% 95 18 2.54%

2 South Plains 0.00%

21 South Texas 0.00%

18 Southeast Texas 1 0.05% 1

5 Tarrant County 172 8.08% 35 118 16.64%

25 Texoma 14 0.66% 5 9 1.27%

10 Upper Rio Grande 206 9.68% 32 163 22.99%

9 West Central 6 0.28% 5

99 State of Texas 141 6.63% 40 77 10.86%

Statewide (Unduplicated) 2,128 1,332 709

* Participants may have been served by more than one LWDA. Eleven individuals who were reported

as receiving TRA payments but did not receive any TAA services are counted as participants.

** See Appendix for details on waivers of the TRA training requirement.

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Tr a d e ad j u s T m e n T assisTance 2010 an n u a l re p o r T

Table 2. Characteristics at Intake of Participants in the Trade Adjustment Assistance Program

in State Fiscal Year 2010 (September 1, 2009 – August 31, 2010)

Race/Ethnicity*

Gender

2.2%

1.5%

1.4%

.70%

Not Reported

11.6%

21.1%

Other

More than one race

Asian

34.30%

65.0%

Not Reported

Female

35.1%

31.7%

White

Male

Hispanic

Black

Age

8.3%

2.8%

Highest Grade Completed

.9%

.4% .1%

26%

17%

44.9%

Not Reported

Other certificate or credential

Bachelor's degree

Some College/

Associate's degree

High school or GED

Less than high school

28.9%

7% 7.8%

32.2%

23.5%

Not Reported

60 or older

50 through 59

40 through 49

30 through 39

20 through 29

Less than 20

* If multiple racial categories, participant is counted in each category.

** Age at beginning of participation.

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Tr a d e ad j u s T m e n T assisTance 2010 an n ua l re p o r T

Table 3. Entered Employment by the End of the First Quarter after Ending Participation in

the Trade Adjustment Assistance Program October 1, 2008 – September 30, 2009, by Local

Workforce Development Area (LWDA)

LWDA No.

LWDA Name

No. of Participants

Wages No Wages Total

Entered

Employment

Rate (%)

20 Alamo 10 41 51 80.39

16 Brazos Valley 9 5 14 35.71

24 Cameron County 3 2 5 40.00

14 Capital Area 17 23 40 57.50

26 Central Texas 60 109 169 64.50

22 Coastal Bend 1 2 3 66.67

12 Concho Valley 1 15 16 93.75

6 Dallas County 34 56 90 62.22

17 Deep East Texas 62 35 97 36.08

8 East Texas 90 353 443 79.68

19 Golden Crescent

28 Gulf Coast 6 7 13 53.85

13 Heart of Texas 1 6 7 85.71

23 Lower Rio Grande 29 77 106 72.64

27 Middle Rio Grande 17 17 100.00

4 North Central 30 54 84 64.29

7 North East Texas 2 28 30 93.33

3 North Texas 17 68 85 80.00

1 Panhandle 1 1 100.00

11 Permian Basin

15 Rural Capital 45 57 102 55.88

2 South Plains

21 South Texas

18 Southeast Texas

5 Tarrant County 43 117 160 73.13

25 Texoma 3 9 12 75.00

10 Upper Rio Grande 27 133 160 83.13

9 West Central 2 3 5 60.00

99 State of Texas 129 434 563 77.09

Statewide (Unduplicated) 508 1,252 1,760 71.14

Note: Some individuals were participants in more than one LWDA. For the statewide total, individuals are

counted only once.

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Tr a d e ad j u s T m e n T assisTance 2010 an n u a l re p o r T

Table 4. Employment Retention of Workers Who Entered Employment by the End of the First

Quarter after Ending Participation in the Trade Adjustment Assistance Program April 1, 2008 –

March 31, 2009, by Local Workforce Development Area (LWDA)

No. of Participants

LWDA

No. LWDA Name Wages No Wages Total

Reemployment

Rate (%)

20 Alamo 56 5 61 91.80

16 Brazos Valley 13 13 100.00

24 Cameron County 3 3 6 50.00

14 Capital Area 24 4 28 85.71

26 Central Texas 1 1 100.00

22 Coastal Bend 1 1 100.00

12 Concho Valley 32 1 33 96.97

6 Dallas County 35 7 42 83.33

17 Deep East Texas 18 3 21 85.71

8 East Texas 167 85 252 66.27

19 Golden Crescent

28 Gulf Coast 16 2 18 88.89

13 Heart of Texas 9 1 10 90.00

23 Lower Rio Grande 47 6 53 88.68

27 Middle Rio Grande 9 1 10 90.00

4 North Central 56 4 60 93.33

7 North East Texas 3 3 100.00

3 North Texas 60 8 68 88.24

1 Panhandle 1 1 0.00

11 Permian Basin

15 Rural Capital 22 1 23 95.65

2 South Plains

21 South Texas

18 Southeast Texas

5 Tarrant County 132 13 145 91.03

25 Texoma 9 9 100.00

10 Upper Rio Grande 268 32 300 89.33

9 West Central 10 5 15 66.67

99 State of Texas 591 62 653 90.51

Statewide (Unduplicated) 1,032 184 1,216 84.87

Methodology: Percentage of participants who had wages, as reflected in the UI wage record data, in all

three quarters after leaving the TAA program.

Note: The statutory requirement is to report at least six months of employment. Three quarters are

used to meet this requirement because the first quarter typically does not show three complete months

of employment.

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Tr a d e ad j u s T m e n T assisTance 2010 an n ua l re p o r T

Table 5. Earnings Replacement of Workers Who Ended Participation in the Trade Adjustment

Assistance Program April 1, 2008 – March 31, 2009, by Local Workforce Development Area

(LWDA)

LWDA

No. LWDA Name Participants

Prior

Wages

Post

Wages

Average

Wages**

20 Alamo 55 $734,633.59 $599,464.88 $10,899.36

16 Brazos Valley 13 $204,515.42 $202,408.99 $15,569.92

24 Cameron County 3 $23,793.01 $25,474.23 $8,491.41

14 Capital Area 24 $590,886.21 $418,034.93 $17,418.12

26 Central Texas 1 $19,526.65 $19,004.50 $19,004.50

22 Coastal Bend 1 $14,695.61 $27,112.00 $27,112.00

12 Concho Valley 31 $557,640.44 $365,700.89 $11,796.80

6 Dallas County 35 $819,773.99 $664,219.25 $18,977.69

17 Deep East Texas 18 $258,629.48 $306,027.79 $17,001.54

8 East Texas 165 $4,360,777.70 $2,696,077.41 $16,339.86

19 Golden Crescent

28 Gulf Coast 16 $329,641.99 $256,888.85 $16,055.55

13 Heart of Texas 9 $160,635.86 $130,430.38 $14,492.26

23 Lower Rio Grande 46 $494,604.12 $526,120.71 $11,437.41

27 Middle Rio Grande 9 $203,273.25 $206,093.15 $22,899.24

4 North Central 55 $1,690,100.59 $1,201,811.05 $21,851.11

7 North East Texas 3 $55,246.48 $47,407.75 $15,802.58

3 North Texas 60 $1,537,598.33 $960,265.28 $16,004.42

1 Panhandle

11 Permian Basin

15 Rural Capital 22 $621,447.70 $459,667.84 $20,893.99

2 South Plains

21 South Texas

18 Southeast Texas

5 Tarrant County 132 $2,662,989.56 $2,281,025.60 $17,280.50

25 Texoma 9 $160,871.38 $122,623.51 $13,624.83

10 Upper Rio Grande 267 $3,552,656.09 $3,068,606.03 $11,492.91

9 West Central 10 $123,143.61 $186,077.22 $18,607.72

99 State of Texas 588 $10,538,057.96 $8,586,220.21 $14,602.42

Statewide (Unduplicated) 1,024 $20,514,370.44 $15,729,137.90 $15,360.49

* Total wages earned in the second and third quarters after exit quarter.

** Average wages earned in the second and third quarter after exit quarter.

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Tr a d e ad j u s T m e n T assisTance 2010 an n u a l re p o r T

Table 6. Industries for Participants Reemployed within Three Quarters of Ending Participation

in the Trade Adjustment Assistance Program April 1, 2008 – March 31, 2009, by North American

Industry Classification System (NAICS)

Top 5 industries where trade affected worker found employment

25%

Manufacturing

20%

20.74%

18.38%

Administrative and Support and Waste

Management and Remediation Services

15%

10%

11.09%

8.32%

6.98%

Health Care and Social Assistance

Retail Sales

5%

Educational Services

0%

Participants

NAICS Code

NAICS Title

No. %

11 Agriculture, Forestry, Fishing and Hunting 3 0.31%

21 Mining, Quarrying, and Oil and Gas Extraction 20 2.05%

22 Utilities 6 0.62%

23 Construction 33 3.39%

31 - 33 Manufacturing 202 20.74%

42 Wholesale Trade 61 6.26%

44 - 45 Retail Trade 81 8.32%

48 - 49 Transportation and Warehousing 57 5.85%

51 Information 9 0.92%

52 Finance and Insurance 10 1.03%

53 Real Estate and Rental and Leasing 8 0.82%

54 Professional, Scientific, and Technical Services 32 3.29%

55 Management of Companies and Enterprises 2 0.21%

56

Administrative and Support and Waste

Management and Remediation Services

179 18.38%

61 Educational Services 68 6.98%

62 Health Care and Social Assistance 108 11.09%

71 Arts, Entertainment, and Recreation 6 0.62%

72 Accommodation and Food Services 15 1.54%

81 Other Services (except Public Administration) 20 2.05%

92 Public Administration 54 5.54%

Total Reported 974

Not Reported 2

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Tr a d e ad j u s T m e n T assisTance 2010 an n ua l re p o r T

Appendix

Description of Trade Services and Benefits

Training assistance can be provided to Trade-certified workers when no suitable work is available

within their local commuting area. Training opportunities include on-the-job training (OJT), vocational

or technical training, customized training, and remedial education as part of an occupational training

program. Generally, participants must complete training programs within 130 or 156 weeks depending

on petition number. The training provides job skills that participants need to obtain employment in highgrowth,

high-demand occupations, such as computer-related occupations, accounting clerk positions,

nursing and other health and dental service occupations, computer-assisted drafting, general clerical

positions, heating and air conditioning repair, electronics, pharmacy technology, various machine repair

positions, and truck driving.

Weekly income support benefits (Trade Readjustment Allowances) may be paid to eligible

participants after they exhaust their state UI benefits. The income is intended to provide financial support

to participants and their families while the participants are in a TAA-approved training program. The

amount of income support payments is typically the same as the participant’s UI payments; however, these

are not UI benefits, are not charged against employers’ accounts, and do not affect employers’ UI tax

rates. Generally, the total length of time a participant may receive weekly benefits, including UI and TRA,

cannot exceed two years (104 weeks). Benefit payments can be extended for participants who need remedial

training to enroll in occupational training or to become job ready.

A waiver of the TRA training requirement can be issued in certain cases when it is not feasible to

approve training. The waiver, which permits an individual to be eligible for TRA without participating in

training, can be issued for any one of the following six reasons:

1. The participant has marketable skills sufficient to get a job in the occupation he or she has selected.

2. Training is not feasible because of the participant’s health reasons.

3. The participant is within two years of retirement.

4. The participant is subject to recall to his or her laid off position within six months.

5. Enrollment in suitable training is available within 60 days and the participant is supported by TRA

until the start of training.

6. Suitable training is not available at a reasonable cost

Unemployment rates, industry profiles, and the age, education, and skills of those who are laid off all

contribute to the waiver rate in a given LWDA.

Health Coverage Tax Credit (HCTC) pays 80 percent of the cost of health insurance premiums for

health coverage under the Consolidated Omnibus Budget Reconciliation Act—COBRA—of 1985 and other

qualified health insurance plans. An individual must be eligible for TRA payments to be eligible for HCTC.

Alternative Trade Adjustment Assistance (ATAA/RTAA) pays a 50 percent pay differential to older

Trade-certified workers who find employment within 26 weeks of being laid off.

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Tr a d e ad j u s T m e n T assisTance 2010 an n u a l re p o r T

Job search allowances cover the expenses participants incur in seeking employment outside their normal

commuting area. Participants may receive up to 90 or 100 percent, depending on petition number, of necessary

transportation and living expenses (with a maximum of $1,250 or 1,500) while searching for such employment.

Relocation allowances pay 90 or 100 percent of the reasonable and necessary expenses of moving

participants, their families, and their household goods to a new location, if participants obtain employment

outside their normal commuting area. As part of the relocation allowance, participants may receive a lump sum

payment equal to three times their former average weekly wage (with a maximum of $1,250 or 1,500) to pay

deposits and help them get settled.

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Tr a d e ad j u s T m e n T assisTance 2010 an n ua l re p o r T

Description of Service Delivery for Trade-Certified Workers

Service delivery begins when an employer provides notice of an impending layoff or plant closure, when

TWC staff receives notification of an event by other means, or when a Trade petition is filed. The Board in

the affected area provides rapid response services by meeting with the employer to arrange early intervention

reemployment services for affected workers. The Board and Texas Workforce Center staff members provide the

employer and employees with information about workforce services, including Trade services.

Rapid response early intervention services provide immediate aid to potentially dislocated workers affected by

plant closings and large layoffs. The objective is to help these workers find reemployment as quickly as possible,

often before their last day of work. Trade-certified workers also may be notified of possible eligibility for services

by individual mail-outs in English and Spanish, press releases, or notices published in newspapers announcing

Trade certifications.

During the rapid response effort, Texas Workforce Center staff conducts employee orientations and seminars

concerning job search skills, stress management, financial management, and local labor market information.

Activities such as local job fairs and job referrals also occur. If workers have been certified under a Trade

petition by DOL, or if a certification will likely occur, orientations and assistance include information about

Trade services and benefits. Providing this information to employees during rapid response activities helps to

ensure that Trade-certified workers apply for services and file for benefits as early as possible to meet the TRA

benefit eligibility timelines. Following job separation, Trade-certified workers can access WorkInTexas.com to

find jobs that match their skills and experience, or they can receive staff-assisted job search services through a

Texas Workforce Center.

Through coenrollment in WIA dislocated worker services, Trade-certified workers can receive thorough

assessment services. If a Trade-certified worker lacks the job skills required to secure suitable employment,

he or she can receive occupational training to prepare for a high-growth, high-demand occupation. Boardapproved

training providers can provide occupational training, or occupational training can be provided

through customized training or OJT with an employer. Texas Workforce Center staff continues to work

with participants while they are in training. TWC continuously stresses the need for training that integrates

occupational job skills with the necessary basic education and language skills required for the occupation.

While in training, the participant can file claims for weekly support payments through TWC’s UI system.

Not all workers covered under a Trade certification request services. Many workers who are potentially eligible

for Trade services and benefits find reemployment quickly, take advantage of retirement options or transfers

within a company, or become self-employed.

18


Texas Workforce Commission

101 East 15th Street

Austin, Texas 78778-0001

(512) 463-2222

http://www.texasworkforce.org

Equal Opportunity Employer/Programs

Auxiliary aids and services are available upon request to individuals with disabilities.

Copies of this publication have been distributed in compliance with the State Depository Law,

and are available for public use through the Texas State Publications Depository

Program at the Texas State Library and other state depository libraries.


05640-002A (1210)

ALAMO O BRAZOS VALLEY O

CAMERON COUNTY O CAPITAL AREA O

CENTRAL TEXAS O COASTAL BEND O

CONCHO VALLEY O GREATER DALLAS

O DEEP EAST TEXAS O EAST TEXAS O

GOLDEN CRESCENT O GULF COAST O

HEART OF TEXAS O LOWER RIO GRANDE

VALLEY O MIDDLE RIO GRANDE O

NORTH CENTRAL O NORTHEAST TEXAS

O NORTH TEXAS O PANHANDLE O

PERMIAN BASIN O RURAL CAPITAL AREA

O SOUTHEAST TEXAS O SOUTH PLAINS

O SOUTH TEXAS O TARRANT COUNTY O

TEXOMA O UPPER RIO GRANDE O

WEST CENTRAL

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