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INTRODUCING AIRLINE WORKER RELIEF ACT -- HON. JAMES L. OBERSTAR (Extensions of Remarks - October 17, 2002)
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HON. JAMES L. OBERSTAR OF MINNESOTA
IN THE HOUSE OF REPRESENTATIVES
Wednesday, October 16, 2002
- Mr. OBERSTAR. Mr. Speaker, today I and 28 of my colleagues from the Transportation and Infrastructure Committee have introduced the ``Airline Worker Relief Act,'' legislation to deal with inequities in our treatment of companies in the aviation industry, on the one hand, and their employees on the other. While we have given $15 billion of financial assistance to the aviation industry to help them recover from the impact of September 11, we have not give any relief to industry workers who lost
their jobs as a result of September 11. Now legislation is being developed to help the aviation industry to weather the difficulties it will face if there is a war with Iraq. Regrettably, the bills which have been developed do not include relief for displaced aviation industry workers. My bill will establish a framework for providing this relief.
- Although the events of September 11 had effects throughout our economy, the effects on the aviation industry were direct and far-reaching. The airlines were totally grounded for several days and realized no revenues while incurring hundreds of millions of dollars in expenses. Even after the industry resumed flying, passenger traffic was slow to recover because of public anxiety over security. The events of 9/11 have also added to the industry's expenses, including a billion dollars a year in
increased insurance costs, and loss of substantial revenues because of security limitations on the carriage of freight and mail. A coming war with Iraq is also likely to have a significant impact on the industry, including increased fuel costs, loss of revenue from the reluctance of passengers to fly, and from need of our military to use the airlines' aircraft to carry troops and equipment to the war zone.
- Shortly after September 11, Congress responded to the aviation industry's financial problems by passing a $15 billion package of direct assistance and loans. More recently, legislation has been reported by the Aviation Subcommittee of the House Committee on Transportation and Infrastructure to provide airlines with low cost war risk insurance from the federal government, enhanced opportunities to carry freight and mail, and loan guarantees to assist the carriers in coping with any major increases
in fuel costs resulting from a war with Iraq.
- While I have supported these efforts to aid the industry for the problems created by terrorism and war , I and many of my colleagues are deeply disappointed that there has not been the same fair treatment of aviation industry employees who have also suffered from terrorism and war .
- Aviation industry workers, including employees of airlines, aircraft manufacturers and suppliers, and airports, have suffered unprecedented job loss and economic uncertainty. Some 100,000 airline employees are out of work or facing imminent lay-off Another 30,000 Boeing workers have been laid-off, along with 51,000 additional aerospace employees. And with bankruptcies looming large, the staggering job losses may grow.
- The issue of aiding aviation employees is not new. When we passed the $15 billion assistance bill soon after September 11, I, and many of my colleagues, insisted that if the airline companies were to be afforded relief, so should employees who had lost their jobs. The Republican leadership told us that there was no time to develop a consensus proposal on employee relief, but on the House floor, Speaker HASTERT promised prompt consideration of employee relief, including financial assistance,
ability to retain health insurance , and training for new careers. Regrettably, the leadership has not followed through, and the House has never considered assistance for displaced airline employees.
- Mr. Speaker, if the airline industry is entitled to special relief because it has suffered disproportionately from terrorism and war , its displaced workers are equally deserving of relief My bill will help to redress the imbalance, and help the 'industry's employees cope with difficulties arising from events outside their control.
- My bill provides unemployment benefits, training, job search assistance, and healthcare assistance for airline workers displaced from their jobs as a result of reductions service by air carriers and closures of airports caused by the terrorist attack on September 11, 2001, security measures taken in response to the attacks, or a military conflict with Iraq authorized by the Congress. Benefits would be extended to employees of airlines, airports, commercial aircraft manufacturers and airline suppliers.
- To summarize the benefits in greater detail: Unemployment Benefits: This bill would extend the Temporary Extended Unemployment Compensation Act of March 2002 and provide an additional 13 weeks of benefits for eligible aviation workers who have already exhausted their initial 13 weeks of benefits.
- Training: In the present economy, many laid off aviation workers will be unable to return to the industry in which they are employed. Under my bill, individuals who would not be expected to return to their jobs within the aviation industry would be eligible for retraining
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benefits and adjustment allowances. Individuals who would not be expected to return to their jobs, but who may find some alternative job within the various sectors of the aviation
industry, would also be eligible for training.
- Health Care: COBRA coverage, which continues health insurance for displaced workers, is prohibitively expensive and beyond the ability of many workers to pay. My bill requires the Secretary of Treasury, in consultation with the Secretary of Labor, to establish a program under which 75% of the premium for COBRA continuation coverage shall be provided for a displaced aviation employee. Payment of such premium assistance may be made through appropriate direct payment arrangements with a
group health plan or health insurance issuer. Individuals who do not qualify-for COBRA and are otherwise uninsured might be able to benefit from a state option to provide temporary Medicaid coverage. Furthermore, a state could provide temporary coverage under Medicaid for the unsubsidized portion of COBRA continuation premiums.
- Hiring Preferences for Laid Off Workers: Thousands of federal security screener jobs remain unfilled at the Transportation Security Administration. Title III of my bill establishes a preference for displaced airline workers for TSA airport security screening jobs. Additionally, the Under Secretary of Transportation Security is directed to develop a program of performance incentive awards to Federal Security Managers, to encourage the hiring of eligible airline employees for TSA positions.
- Mr. Speaker, my bill is designed to furnish assistance to aviation industry workers who have suffered severe economic damage from the terrorist attacks of September 11, and those who may suffer as a result of a war with Iraq. This assistance can tide them over the initial period of economic distress, and help them find new jobs. just as we found it appropriate to recognize the plight of our airlines as economic victims of a terrorist attack on our entire nation, we should also recognize the plight
of that industry's employees.