| Notes |
OPENINGSTATEMENTOFSENATORKENEDY
TheCHAIRMAN.We'lcometorder.
Iwilplacemyentirestatementintherecordasifread,andwe
wilbeginthismorningbyhearingfromtwoftheprincipalspon- sorsofthelegislationintheSenateandtheHouseofRepresenta-
tives,SenatorHatfieldandCongresmanRegula.Wearedelighted
towelcomeyouheretospeakonthissubject,whichIthinkalof usbelieveisofvitalimportanceintermsofoureconomicsecurity
andourdemocraticinstitutionalsecurityaswel. [ThepreparedstatementofSenatorKenedyfolowsd
PREPAREDSTATEMENTOFSENATORKENEDY
TheAmericaneconomyisataturningpoint,andthefuture standardoflivingforalAmericansisatrisk.Sucesininterna- tionalcompetitionandahighstandardoflivingforalcitizens dependinlargemeasureontheducationandskilsofthenation's workforce.Inturn,thatmeansbusinesesmustinvestintheir workersandimprovethewaytheyproducegodsandservices.
Ourmajorinternationalcompetitorshavelongrecognizedthis chalenge,andtheyareaheadofusinmetingit.Theyareal
comitedtoahighproductivity,highwagestrategyfortheir
economies.TheUnitedStatesdoesnotyethavesuchastrategy.In
fact,wearepursuingalow-wagestrategythatisdrivingourstand-
ardoflivingdowninsteadofup.Asaresult,weareatacompeti-
tivedisadvantageinthenewglobaleconomy,andthedisadvantage is growing.
TheHighSkils,CompetitiveWorkforceActisdesignedtostimu- latecoperationbybusines,labor,scholsandcoleges,andstate
andlocalgovernmentstoimprovetheducationandtrainingof
theU.S.workforce,andtodevelopnewsystemsandstrategiesfor metingtheconomicnedsofbusinesandworkers.
(1)
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Inesence,theActdoesfourthings: First,itcalsforthedevelopmentofvoluntaryeducationaland
ocupationalstandardstoasesstudentperformanceandprovide meaningfulinformationonworkerskils;
Second,itcreatesschol-to-worktransitionprograms,including jobfindingasistancefor'studentsandgraduates,and"second-
chance"programsfordropouts;
Third,itencouragesbusinesestoimprovetheirproductivityand competitivenes;
Fourth,itincreasesthetrainingandeducationofAmerica's
workforce,requiringemployerstoprovidetraining,orelsecontrib- uteonepercentofpayrolintoastate-administeredtrainingfund.
Thiseforthasspecialurgency,becausetheAmericanstandard
oflivingissliping,andourinternationalcompetitivepositionis
eroding.Wemustinvestinourworkforce.Intoday'sglobalecono- my,thequalityofanation'sworkforceisitsmostimportantaset.
InvestingmoreinAmerica'sworkersisthekeytoAmerica'sfuture economicsuces.
IntheUnitedStatestoday,wearefailingtomakethoseinvest- ments,especialyforour"front-line"workersthemenand
womenwhobuildthecars,operatethecomputers,andcaryout themilionsofotherjobsthatmaketheconomygo.
Alofourmajorcompetitorsinvestmoreintraining.Anewly-
hiredJapaneseautoworkergetsover30hoursoftraininginthe
first6monthsofwork.Incontrast,Americanworkersgetlesthan 50hoursa6to1advantagefortheJapanese.
Developmentofthislegislationwasstimulatedinlargemeasure
bythegroundbreakingworkofthebipartisanComisiononthe SkilsoftheAmericanWorkforce,chairedbyformerLaborSecre-
tariesBilBrockandRayMarshal.Their190report,America's
Choice,corectlyidentifiedthechoicefacingtheNationhigh skilsorlowages.Thereportsumonsustoaction,beforeour curenteconomicdeclinebecomesireversible.
Onanisueofthismagnitude,alsectorsofsocietymustpartici- patescholsandcoleges,stateandlocalgovernments,busines, andlabor,comunityorganizations,andmanyothers.Thisisnot
apartisanisue,norisitconfinedtoanarowsetofinterests.It touchesalAmericans.
Inthecomingmonths,wewilbeaskingmanygroupsfortheir asistance.ThislegislationisnotanewcentralizedFederalpro- gram,butaneforttocatalyzeandstimulateactivitiesbestcaried
outattheStateandlocallevelandintheprivatesector. IneschofthetopicsadresedbytheAct,therealreadyare
world-clasexamplesintheUnitedStates.Buttheseisolatedand uncordinatedefortsarenotenough.Theyarenotbeingreplicat-
edacrostheNation.Thereisnonationalpolicytoidentifythem orencouragethem.Thatisthewhywenedthislegislation.
Thislegislation,liketheOSHAbilIintroducedafeweksago,
sekstofindthebestwaythatgovernmentcanworkwiththepri- vatesectorforthemostefectivepursuitofgoalsthatwealshare. Whethertheisueistheplant-levelhealthandsafetycomites
wecaledforhitheOSHAbil,ortheincreasedprivatetraining efortcaledforhere,wearenotsekingnewareasofregulation. Rather,wewantgovernmentandtheprivatesectortobealiesin
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achievingastrongandjusteconomy.Wewanttofindprivatemul- tipliersforpublicprograms,becauseotherwisethesepublicpro- gramswilfail.
TheAmericaneconomyisinmoretroublethananyofusliketo admit.Wecancontinuetopursuealow-wage"liveforthe moment"strategy,butthatshort-sightedstepwilworsenourlong- runproblems,andputusina"racetothebotom"withThird Worldnations.Thatisaracethatwecanotwin,andshouldnot run.Nothermajorindustrialnationispursuingthisstrategy-` andneithershouldwe.TheUnitedStatescanotafordtobecome aneconomicolonyofEuropeandJapan.
Thereisanotherpath.Wecanreturntoahighproductivity, highwagestrategy,withthepromiseofabeterstandardofliving foralAmericans,notjustforthefewhocanavoidbeingstrand- edbytherecedingtide.TheActthatweareintroducingtodaycan makeamajorcontributiontoimplementingthatstrategy,sothat futuregenrationscancontinuetorealizethepromiseofthiscoun- try.Therequiredstepswilnotbepainlesoreasy,buttheyare absolutelynecesaryforourfutureprosperity.
BRIEFSUMARYOFHIGHSKILS,COMPETITIVEWORKFORCEACTOF 191
Schol-to-workprogramsforalstudents,includingcarerprepa- ration,asistanceinfindingjobs,technologyeducation,andyouth oportunitycenterswheregovernment-fundededucationprograms wouldbeavailableforstudentswhodropoutofscholtoenable themtoachieveducationalandocupationalproficiency.
Corporatesuportforworkertraining.Thebilwouldrequire thatcompanieseirierinvestintrainingorpaythequivalentof onepercentoftheirpayrolintoaStateadministeredtraining fund.Companiesthatalreadymakesuchtraininginvestments wouldbexempt,aswouldfirmswithfewerthan20employes.
ResearchbytheStatesonvoluntaryperformance-basedstudent asesmentsystems,andevelopmentofvoluntaryocupational standardscraftedbycomiteswithbusines,labor,andpublic representatives.
Highperformanceworkorganizations.Thebilauthorizestechni- calasistancetoemployerstohelpthemdevelopworkorganiza- tionsthatemphasizeteamwork,front-linedecisionmaking,andin- creasedworkerresponsibility.Only5percentofAmericanbusi- neseshavemovedtothetypeofhighperformanceworkorganiza- tionsemployedsucesfulybyourchiefeconomicompetitors.
CordinationofStateandlocaltrainingprograms.Thebilen- couragesthedevelopmentofStateandregionaltrainingboardsto cordinatetheadministrationofFederal,State,andlocalemploy- mentandtrainingprograms,includingtheJobTrainingPartner- shipAct,vocationaleducationandrehabilitation,andropoutpre- vention.AFederalstudywouldbecomisionedtoexamineways toeliminategapsinserviceandunecesaryduplicationofservices andincreaseoveralefectivenesofemploymentandtraining. |