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http://www.dol.gov/_sec/media/speeches/20070313_shrm.htmFree choice at bottom. Doesn't mention new jobs are mostly low pay. Speeches by Secretary Elaine L. Chao Printer-Friendly Version Prepared Remarks for Delivery by U.S. Secretary of Labor Elaine L. Chao Society for Human Resources Management Conference Washington, D.C. Tuesday, March 13, 2007 Thank you, Robb .
This afternoon, I’d like to share some thoughts on the state of our nation’s economy, the competitiveness of America’s workforce, and a few legislative proposals SHRM members may be concerned about. But first, let me give you a snapshot of our nation’s economy.
Today, America’s economy is healthy and resilient. It is one of the fastest growing among the large industrialized nations, with a 3.1 percent GDP growth rate in 2006. Recently, we saw the rippling effects of the growing integration of the worldwide economy and the strong resiliency of United States financial markets and economy.
Our country’s unemployment rate remains low at 4.5 percent. That’s more than a full percentage point lower than the average 5.7 percent unemployment rate of the 1990s. You can contrast this with Europe, where two countries, in particular — France and Germany — have unemployment rates near 9 percent. And their long term unemployment is three times higher than the United States.
Our economy has created 7.6 million new jobs since August 2003. That’s more jobs than the European Union and Japan combined have created. Furthermore, the latest revisions to the payroll employment survey show that our country actually created one million more jobs over the past two years than had previously been estimated.
America’s workers are among the most productive of any major industrialized economy. And strong productivity growth in recent years is translating into higher wages and a higher standard of living. Real hourly earnings for workers increased 2.2 percent over the past 12 months. That’s an extra $1,279 of new purchasing power for the typical family of four with two wage earners. And overall compensation, including both wages and benefits, has increased 3 percent over the past 12 months.
America’s workforce is also characterized by its flexibility and mobility. That’s important because our country is transitioning to a knowledge-based economy.
But our country does face a skills gap. Two-thirds of all the new jobs being created require higher skills and more education. By definition, these jobs pay above average wages. But workers will require postsecondary education to access these opportunities. This means that workers with higher skills and educational levels are more in demand. Therefore the wages of these higher skilled workers have risen much more quickly than those of lower-skilled and less educated workers.
Over the decade ending 2014, for example, the U.S. will need over three million healthcare providers and technical specialists, including physicians, therapists, and over 1.2 million registered nurses. There will also be over three and a half million job openings in the education, training, and library occupations fields. Other high growth fields include geospatial technology, biotechnology, nanotechnology, and advanced manufacturing. So, more than ever before, education, training, and retraining are the keys to future earnings.
In fact, here are just a few examples of the link between education, employment, and earnings:
* Workers who drop out of high school average $494 per week and this group of workers has an unemployment rate of about 7.1 percent.
* Workers with a high school diploma average $726 weekly and this group of workers has a 4.3 percent unemployment rate.
* Workers with an associate’s degree average $826 per week, and this group of workers has an unemployment rate of 3.3 percent.
* But workers with a bachelor’s degree or higher average $1,344 per week for full-time work, and this group of workers has a 1.9 percent unemployment rate.
So higher education really pays off!
Overall, the best way to build a brighter future and ensure America’s competitiveness is not through bigger, more expensive government programs, but by empowering the individual.
The President has given us a roadmap to help us carry out this important mission. That roadmap is called the ownership society. When workers have ownership over their skills, education, pensions, and health insurance, they are empowered. They can face the future with greater confidence. That’s the overarching principle behind nearly every major proposal and reform put forward by the Department of Labor in this Administration. These include pension reform, job training reforms, Association Health Plans, updating workplace rules and regulations, union transparency reforms, and many others.
Today, our country has a workforce of over 150 million. And every year approximately 50 million workers change jobs, usually for better opportunities.
Each year, the federal government spends nearly $15 billion on worker training and employment services. The Labor Department administers nearly $10 billion of this amount. The Department of Education spends the rest. And the private sector spends much more.
In addition to training, another key challenge for our country is providing our economy with the workers it needs. There are 11 to 12 million people living in the shadows who are here illegally. In his State of the Union Address in January, President Bush again called upon our nation to engage in a thoughtful debate on comprehensive immigration reform. The President's plan would secure our nation's borders and recognize the economic realities of our economy. His plan includes a temporary worker program that would address the needs and realities of our growing economy. Hopefully, there will be action in Congress this year.
Now let me turn to another workforce issue that many workers and employers are concerned with, which is balancing work and family time for employees.
As many of you know, the Labor Department published a Request for Information regarding the Family and Medical Leave Act in December 2006. We received over 15,000 comments, many of which were from SHRM and SHRM members. We appreciate all the data that was provided, your thoughtful comments and the time that it took to put this information together. We will be weighing them carefully and listening to what you have to say in response to this routine request for information. This is part of the routine process that the Department goes through when a regulation has been on the books for a long period of time, in this case more than 10 years.
Today, our country benefits because we give workers and employers the freedom to work out solutions to family and work balance issues, rather than imposing a one-size-fits-all approach.
Finally, let me mention a bill that was passed by the United States House of Representatives recently. The bill is called by its proponents the “Employee Free Choice Act,” or H.R. 800, otherwise known as “card check.”
Although this title sounds empowering, the bill does just the opposite. It effectively takes away a worker’s freedom to vote in a private ballot election.
Under current law, the most frequent form of union organizing is a private ballot election certified by the National Labor Relations Board. It is an independent regulatory agency. This official process has worked well for American workers for over 60 years. Its formality ensures election integrity – that each person’s vote counts. And it also promotes democratic self-determination by allowing each worker to choose what’s right for him or her without that choice being made public.
However, under this newly-passed bill by the House, a union would automatically be certified if union organizers are able to gather the signatures of 50 percent plus one worker in any given workplace. There would be no private ballot election. And indeed, under the “card check” process, it is possible that nearly half the workers in a workplace might not even be aware that a union organizing campaign is going on!
The union organizers basically pass out cards and, again, if 50 percent plus one worker signs these cards, the union would be automatically certified. There would be no private ballot election.
Now interestingly enough, under this newly-passed House bill, decertification of a union can only take place by a private ballot election.
Equally troubling is the mandatory binding arbitration provision in the bill. It would bypass the ordinary collective bargaining process and instead force both employers and the union into contracts that neither may like if the parties don’t reach an agreement within a set timeframe. Then, in almost all cases, whatever contract is imposed by the arbitrator cannot be changed for the duration of the collective bargaining period, nor can the union be de-certified during that period.
Now combined with the card check method of organizing, this mandatory arbitration provision would essentially strip workers of control over their employment situation. Without a private ballot election, workers lose control over whether they belong to a union. And with mandatory binding arbitration, they lose control over the process of reaching a collective bargaining agreement. Generally, after union organizers and management agree on a collective bargaining agreement, that agreement is set for voting by the rank and file. And that’s not going to occur. Finally, the bill would also levy extensive penalties on employers, but not unions.
The right of a worker to a private ballot election is a fundamental right in our democracy that should not be negotiated away by either management or labor, nor legislated away at the behest of special interest groups.
As mentioned, this bill was passed by the House of Representatives on March 1, 2007. Action on this bill now moves to the United States Senate. This Administration rejects any attempt to deprive the rights of workers. And we will defend a worker’s right to vote yes or no in a private ballot and a worker’s right to fair bargaining. Should the Senate pass this ill-conceived legislation, the Administration has announced that the President will veto this bill.
But, please do not think that President Bush can simply wave around his veto pen and the debate is over. It is important that this bill be defeated on the Hill and defeated soundly. Proponents of this bill should not be allowed to harbor any hope that they can win in 2009. People who care about fairness in the workplace need to pay attention to this issue.
Whether it’s through reforms to improve the workplace as whole or protecting the rights of workers, this Administration will continue to promote strategies that emphasize the empowerment of the individual. By working together, we can continue to ensure that our nation’s economy remains strong, competitive and the beacon of opportunity in the world. Thank you!
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