Wo rk Sha ring : A la yo ff pre ve ntio n to o l fo r We st Virg - PowerPoint PPT Presentation

Wo rk Sha ring : A la yo ff pre ve ntio n to o l fo r We st Virg inia Ju ly 2 8 , 2 0 1 2 Se a n O’L e a ry, Polic y Ana lyst

T he c a se fo r wo rk sha ring Une mployme nt Re ma ins Hig h Sinc e E nd of Re c e ssion 12% 10% Une mplo yme nt Ra te 8% 6% U.S. WV 4% 2% 0% So urc e : U.S. Bure a u o f L a b o r Sta tistic s, Curre nt Po pula tio n Surve y a nd L o c a l Are a Une mplo yme nt Sta tistic s Sha de d a re a indic a te s re c e ssio n.

T he c a se fo r wo rk sha ring More worke rs a re e xpe rie nc ing long te rm une mployme nt 50% Sha re o f une mplo ye d wo rke rs who ha ve b e e n 45% une mplo ye d 27 we e ks o r lo ng e r 40% 35% 30% 25% 20% 15% 10% 5% 0% So urc e : U.S. Bure a u o f L a b o r Sta tistic s, Curre nt Po pula tio n Surve y Sha de d a re a indic a te s re c e ssio n.

Wha t is wo rk sha ring ?  Wo rk sha ring is type o f une mplo yme nt insura nc e b e ne fit de sig ne d to pre ve nt la yo ffs.  Sta te s with wo rk sha ring pro g ra ms a llo w e mplo ye rs to re duc e the ho urs a nd wa g e s o f the ir e mplo ye e s, ra the r tha n e na c t la yo ffs.  Affe c te d e mplo ye e s a re e lig ib le fo r wo rk sha ring b e ne fits to supple me nt the ir re duc e d pa y.

24 Sta te s ha ve e na c te d wo rk sha ring

Ho w do e s wo rk sha ring wo rk? Sc e na rio 1: Sc e na rio 2: L a y o ffs Wo rk Sha ring

Wo rk Sha ring vs Une mplo yme nt - T o ta l Pa y Wo rk Sha ring Une mplo yme nt Wa g e s: $640 • Wa g e s: $0 WS Be ne fit: $80 • UI Be ne fit: $400 T o ta l Pa y: $720 • T o ta l Pa y: $400

Wo rk Sha ring vs Une mplo yme nt - Co sts Wo rk Sha ring Une mplo yme nt • Wo rke rs : 10 • Wo rke rs: 2 • Be ne fit pe r wo rke r: $80 • Be ne fit pe r wo rke r: $400 • T o ta l c o st: $800 • T o ta l c o st: $800

Ho w is wo rk sha ring diffe re nt fro m pa rtia l UI ?  L ike wo rk sha ring , pa rtia l une mplo yme nt a llo ws a wo rke r to c o lle c t so me Pa rtia l UI Wo rk Sha ring une mplo yme nt insura nc e while still wo rking . 80% Pe rc e nt Re duc tio n in Ho urs to Qua lify fo r  Wo rke rs c a n c o lle c t pa rtia l UI b e ne fits if the ir 70% ho urs ha ve b e e n re duc e d a nd the y a re e a rning le ss tha n the ir “we e kly b e ne fit 60% a mo unt,” whic h is b a se d o n pre vio us e a rning s. If a wo rke r’ s e a rning s in a re duc e d wo rk we e k e xc e e d his o r he r we e kly b e ne fit 50% a mo unt, the n he o r she is no t e lig ib le fo r a ny Be ne fits pa rtia l une mplo yme nt b e ne fits. 40%  T his re stric tio n ke e ps ma ny hig h-wa g e 30% e a rne rs fro m q ua lifying fo r pa rtia l une mplo yme nt witho ut la rg e re duc tio ns in 20% the ir wo rk we e k. 10%  While a ll sta te s ha ve so me fo rm o f pa rtia l une mplo yme nt, no t a ll sta te s ha ve wo rk 0% sha ring pro g ra ms. $7.25 $10.00 $15.00 $20.00 $25.00 $30.00 Ho urly Wa g e So urc e : WVCBP a na lysis o f sta te pa rtia l une mplo yme nt syste ms

Ho w is wo rk sha ring fina nc e d?  Wo rk sha ring b e ne fits a re “Ra te s a re e sta b lishe d June 30 o f e a c h ye a r, to b e e ffe c tive the fo llo wing Ja nua ry 1, in a c c o rda nc e pa id fro m sta te with the ra tio o f e a c h e mplo ye r's re se rve b a la nc e to tha t e mplo ye r's a ve ra g e a nnua l une mplo yme nt insura nc e pa yro ll. T he c re dits to a n e mplo ye r's a c c o unt a re the trust funds. c o ntrib utio ns pa id whic h e xc e e d a n a mo unt e q ua l to .4 pe rc e nt o f ta xa b le wa g e s. T o a rrive a t the e mplo ye r's re se rve b a la nc e , a ll the  Wo rk sha ring b e ne fits pa id b e ne fits c ha rg e d a g a inst the a c c o unt a re sub tra c te d fro m the c re dits to the a c c o unt. a re c ha rg e d to the Ave ra g e a nnua l pa yro ll is the a ve ra g e o f the e mplo ye r a nd re imb urse d e mplo ye r's ta xa b le pa yro lls fo r the thre e -ye a r pe rio d e nding o n the c o mputa tio n da te o f June to the trust fund just like 30. Dividing the e mplo ye r's re se rve b a la nc e b y a ve ra g e a nnua l pa yro ll yie lds a ra tio whic h re g ula r une mplo yme nt pla c e s the e mplo ye r's a c c o unt in a b ra c ke t e sta b lishe d b y la w. “ b e ne fits. Wo rkfo rc e WV Ha nd b o o k fo r E mplo ye rs

Wo rk Sha ring a nd UI T rust F unds  Sinc e wo rk sha ring b e ne fits a re pa id o ut a s a n a lte rna tive to la yo ffs, a nd a re re imb urse d in the sa me ma nne r a s re g ula r UI b e ne fits, wo rk sha ring ha s a minima l fisc a l impa c t o n sta te UI trust funds.  I n a re c e nt surve y, no sta te s ha ve re po rte d a ne g a tive impa c t o n the ir UI trust funds fro m wo rk sha ring

Wo rk Sha ring a nd UI T rust F unds  I n a dditio n, 6 o f the 17 $600 F e d e ra l L o a n Ba la nc e pe r Priva te sta te s with a c tive wo rk Se c to r Wo rke r, 2011 sha ring pro g ra ms in 2009 $500 did no t ha ve to b o rro w $403.59 fro m the fe de ra l $400 $354.05 g o ve rnme nt to ke e p the ir UI trust funds so lve nt. $300  Of the sta te s tha t did $200 b o rro w mo ne y, sta te s with wo rk sha ring b o rro we d le ss $100 pe r priva te se c to r wo rke r tha n sta te s witho ut wo rk $0 Wo rk Sha ring Othe r Sta te s sha ring . Sta te s So urc e : WVCBP Ana lysis o f U.S. De pt o f L a b o r a nd Bure a u o f L a b o r Sta tistic s da ta .

Why wo rk sha ring wo rks fo r b usine sse s.  Wo rk sha ring he lps "We think it's a ve ry c re ative ide a to ke e p pe o ple in the wo rkplac e . b usine sse s re duc e c o sts We 're ve ry c o nc e rne d ab o ut lo sing during do wnturns. tale nt at time s, and if the re 's a way we c an ke e p pe o ple wo rking , the n  Wo rk sha ring a llo ws we want to do that, o b vio usly." – b usine sse s to re ta in skille d - Chuc k Ha dde n, Pre side nt, Mic hig a n wo rke rs, re duc ing turno ve r Ma nufa c ture rs Asso c ia tio n. c o sts.  Wo rk sha ring is vo lunta ry, a llo wing it to b e use d b y the b usine sse s it he lps the mo st.

Why wo rk sha ring wo rks fo r b usine sse s. “T he wo rk-sha ring pro g ram in Rho de I sland has b e e n a life line fo r Pilg rim. I t’ s he lpe d a small manufac turing b usine ss like o urs to maintain the institutio nal kno wle dg e and skills that are c ruc ial fo r o ur suc c e ss.” -Ge o ff Gro ve , Pre side nt, Pilg rim Sc re w Co rpo ra tio n

Why wo rk sha ring wo rks fo r b usine sse s. Ma ss L a yo ffs b y Ind ustry, We st Virg inia , 2005-2010  I ndustrie s like mining , ma nufa c turing , a nd All Othe r c o nstruc tio n a re Mining Priva te dispro po rtio na te ly 12% Industrie s 12% a ffe c te d b y la yo ffs. Othe r Se rvic e s 9%  Wo rk sha ring c o uld b e ne fit Co nstruc tio n 26% Ac c o mmo da tio n a nd the se industrie s during F o o d Se rvic e 16% do wnturns. Ma nufac turing 25% So urc e : U.S. Bure a u o f L a b o r Sta tistic s, Ma ss L a yo ff Sta tistic s

Why wo rk sha ring wo rks fo r e mplo ye e s.  Wo rk sha ring pre ve nts la yo ffs, a llo wing wo rke rs to "Yo u fe e l it, b ut yo u do n't lo se yo ur sta y a tta c he d to the la b o r jo b ." fo rc e . -Ste phe n Sa ra vo , Wo rk Sha ring  Wo rke rs re ta in the ir skills, Pa rtic ipa nt, Pilg rim Sc re w re ma in fina nc ia lly sta b le , Co rpo ra tio n a nd a vo id the da ng e rs o f lo ng te rm une mplo yme nt.

Why wo rk sha ring wo rks fo r the e c o no my.  Wo rk sha ring ke e ps skille d “Sho rt-time c o mpe nsatio n, in lie u o f full lay-o ffs, is wo rke rs o n the jo b in the ir pre fe rab le also fo r the lo c al c o mmunity. c o mmunity and state as a who le as pe o ple will still b e  Wo rk sha ring ma inta ins wo rking unde r a sho rt-time wo rke rs’ spe nding po we r c o mpe nsatio n pro g ram, lo c a lly, ke e ping de ma nd e arning mo ne y fo r the ir up. familie s inste ad o f c o lle c ting full une mplo yme nt.” -T o ny Se e g e rs, Dire c to r o f L a b o r a nd Huma n Re so urc e s Po lic y fo r the Ohio Cha mb e r o f Co mme rc e .

Why wo rk sha ring wo rks fo r the e c o no my F ina nc ing Wo rk Sha ring Pro vide s Big Re turn to the E c o no my $1.80 $1.64 $1.60 $1.44 $1.40 $1.27 $1.20 $1.05 $1.00 $0.80 $0.60 $0.35 $0.32 $0.40 $0.20 $0.00 T e mpo ra ry Inc re a se E mplo ye e Pa yro ll E mplo ye r Pa yro ll Ma ke Bush Cut Co rpo ra te F e de ra l Infra truc ture T a x Ho lida y T a x Ho lida y Inc o me T a x Cuts Inc o me T a x Ra te F ina nc ing o f Spe nding Pe rma ne nt Wo rk Sha ring No te : T he b a ng fo r the b uc k is e stima te d b y the o ne -ye a r $ c ha ng e in GDP fo r a g ive n $ re duc tio n in fe de ra l ta x re ve nue o r inc re a se in spe nding a s o f 2011Q3. So urc e : Mo o dy’ s Ana lytic s

Why wo rk sha ring wo rks fo r e ve ryo ne .