The 2016 legislative session marked the first time in the last several years that the work share policy made it to the hearing stage, despite having strong bipartisan support. Still, the Chamber knew in advance of the hearing that Rep. Doug Gutwein (R-Francesville), chair of the committee, was probably not going to take a vote on the bill. Our plan was to give it our best shot and hope that the chairman would change his mind.
The bill’s author, Rep. Ober, testified that work share is a win-win for employers and employees, and he laid the groundwork for why the bill is important for both. Employers in an economic downturn retain skilled workers who receive partial unemployment compensation instead of being laid off. That means employers then do not have to rehire employees (and retrain) when the economy picks back up. Employees also retain their jobs and their employer sponsored benefits while drawing a prorated unemployment compensation benefit. Additionally, Rep. Karlee Macer (D-Indianapolis), a co-author on the bill, testified of her long-time support for the issue.
The Chamber presented study findings, released just this month; the research was conducted as a joint request by the Indiana Department of Workforce Development (DWD) and the Indiana Chamber. Noted economist Michael Hicks from Ball State University, the author of the study, was unable to be present for the hearing. The most important point made by the study was the impact on the economy. During the peak of national unemployment in 2010, Indiana having a work share program would have translated into $500,000 less in month to month income volatility and approximately 10,500 employees would have kept their jobs.
The Chamber would like to thank members Tom Easterday of Subaru Indiana Automotive and Mark Gramelspacher of Evergreen Global Advisors for taking the time out of their busy schedules to come testify before the committee in favor of work share. Their points to the committee were right on the mark. Easterday noted that Indiana is the most manufacturing intensive state in the U.S. Additionally, he talked about the state’s shortage of skilled workers and why retaining skilled workers during an economic downturn is so vital to manufacturing in Indiana – and a work share program can help accomplish that.
Gramelspacher testified, “There is a better way to run the unemployment program and that is work share. It creates a win-win from a lose-lose. This is a rare opportunity for the legislative body. Work share allows employers to maintain the employment relationship with known individuals and people that employers have already recruited, interviewed, tested, trained and invested in.”
The Indiana Institute for Working Families and AFL-CIO testified in favor of the bill as well.
The Indiana Manufacturers Association (IMA) testified that previously it was not supportive of work share, but because of the Chamber’s recent study it recognized the benefits and now supported the concept. However, the IMA then proceeded to express various concerns for implementing the actual program.
Prior to the hearing, the DWD representative acquiesced that the Chamber had been able to remove most of the agency’s arguments in opposition to the bill. In testimony, however, DWD opposed even moving the bill out of committee for further debate. That was a curious strategy, given the discussion before the hearing and the fact that the agency partnered with the Chamber on the study.
The Indiana Chamber brought forth two viable options to pay for the minimal cost to set up a state work share program and maintain it annually.
Nonetheless, the committee chairman followed DWD’s lead and announced at the close of the hearing that no vote was being taken then or essentially anytime this session.
Once again, here is why work share would be extremely beneficial for the state: