COLUMBUS (February 22, 2007)- Ohio Governor Ted Strickland today established a 120 day standard to determine if locked-out workers are unlikely to return to work, allowing those workers to become eligible for retraining programs after that time.

"After a 120 day period, I think it's appropriate that we make available to locked-out workers additional economic opportunities," Strickland said. "I have directed the Ohio Department of Job and Family Services to implement this policy change to give workers the ability to pursue those opportunities."

Previously, local Workforce Investment Areas created local policies to determine when workers were unlikely to return to their former job before they could be considered for re-training services. This created inconsistent timeframes for workers wishing to use the retaining services. The Strickland Administration's policy will give guidance to the local Workforce Investment Areas, but will also provide workers with the assurance of a 120-day deadline before retraining services become available.

The federal Workforce Investment Act allows the states to determine when workers are deemed unlikely to return to work after a lockout.

The new Strickland Administration policy will allow workers who have been out of work as the result of a labor dispute, determined by ODJFS to be a lockout longer 120 days, to pursue retraining services through the Dislocated Worker Program. Services in that program include:

• Core Services such as assessment, job search assistance, resume writing and career counseling are provided to return individuals to work as quickly as possible.
• Intensive Services can be provided to guide dislocated workers through a career change. These services include an in-depth vocational assessment, counseling and career planning. Services could include literacy and technical training and even college classes. Many times people choose to train or retrain for a new career.
• Training Services help dislocated workers to obtain the skills necessary to start a new career or upgrade skills to be valuable to employers.

Retraining displaced workers is one of the most important things we can do to boost Ohio's economy and help to create a better educated workforce," Strickland said. "Affected workers will now be able to transition more quickly into new jobs armed with the skills they need. And our economy will be strengthened by creating a highly-educated workforce prepared for the jobs of the future."

Last month, Strickland met with a delegation of local leaders, including Jackson Mayor Shane Goodman, State Senator John Carey (R- Senate District 17), State Representative Clyde Evans (R- House District 87) and district and local representatives of the United Steelworkers to discuss the situation facing workers locked out of the Meridian Automotive Systems plant in Jackson. The lockout at Meridian began last April.

ATTACHED:

Workforce Investment Act (WIA) Transmittal Letter No. 29

To: Local Elected Officials, WIA Local Workforce Investment Boards (WIBs), Fiscal Agents, Administrative Entities, and One- Stop Operators

From: Helen E. Jones-Kelley, Director

Subject: Dislocated Worker Eligibility Determination for Locked-Out Workers

I. Purpose

This communication provides state policy to enable provision of WIA services to locked-out workers. For lockout situations, it defines "unlikely to return to a previous industry or occupation" in the WIA definition of dislocated worker.

II. Effective Date

Immediately

III. Background

The Workforce Investment Act, Public Law 105-220, dated August 7, 1998, Section 101 defines the term ?dislocated worker? as an individual who meets specific criteria, primarily that an individual must be: (1) laid off or terminated from employment, (2) eligible for unemployment compensation, and (3) unlikely to return to his/her previous industry or occupation (see WIA section 101(9)(A)(iii)). Questions have been raised regarding if an employee locked-out by his or her employer could be considered eligible as a dislocated worker.

In addition, the ODJFS Office of Workforce Development (OWD) wants to ensure that any possible concern about potential impact on WIA performance does not interfere with provision of services to locked-out workers who qualify under this policy.

IV. Policy Statement

When an ODJFS Office of Unemployment Compensation hearing officer has issued a determination that a lockout exists, individuals prevented from working for a period of 120 days as a result of that lockout shall be considered "unlikely to return to a previous industry or occupation". The 120 day duration starts on either the date of layoff or date of lockout, whichever is earlier, at which point the locked-out workers are considered to be unemployed for WIA dislocated worker eligibility purposes. Eligibility for services does not constitute an entitlement to services for locked-out workers. Local workforce investment areas will still maintain responsibility for determining the individual need for services, including the appropriateness of specific training given the skills of the applicant and the requirements of the labor market.

If desired, local Workforce Investment Boards may establish policies that consider individuals in a lockout situation "unlikely to return to a previous industry or occupation" if the individuals have been laid off for a duration of less than 120 days. Local policies may not require duration greater than 120 days.

For purposes of WIA performance results, local workforce investment areas will be held harmless for locked-out individuals served under this policy and reported according to instructions that will be provided by OWD. OWD will re-negotiate performance standards with local workforce investment areas that request re-negotiation as a result of services to locked-out individuals. Local areas must follow the OWD reporting instructions, so that individuals may be tracked separately and performance may be re-negotiated. OWD will assist local areas in the re-negotiation process, using existing WIA policy.

If local funds are not sufficient to serve locked-out workers eligible as a result of this policy, the local workforce investment area should submit a request for additional funds by mail or fax to: Office of Workforce Development, Bureau of Workforce Services, 4020 E. Fifth Ave., P.O. Box 1618, Columbus, Ohio 43216-1618, fax number (614) 728-5938.

V. Technical Assistance

For additional information, you may send your questions to the Bureau of Workforce Services: wiaqna@odjfs.state.oh.us.

VI. References

Workforce Investment Act of 1998, Public Law 105-220: Section 101 (9)

29 USC 2801

Rescissions: None