LSI benefit extension denied
Podcast Episode
Kyle Geissler talks with Janesville Gazette business editor Jim Leute about a decision not to extend benefits for LSI workers, and prospects for GM to get the TAA benefits.
JANESVILLE — The federal government has denied an extension of unemployment and education benefits to workers who were laid off at LSI in Janesville as a result of production cuts at the General Motors assembly plant in Janesville.
And whether GM workers will qualify for the extended benefits remains undecided.
The Department of Labor ruled that the workers at LSI do not produce a product and therefore are not eligible for Trade Adjustment Assistance that would extend benefits for up to 130 weeks.
Typically, TAA status is granted on a case-by-case basis when workers are displaced by global competition.
Whether the GM plant’s product has been adversely affected by global competition likely will be decided this fall.
GM and the UAW are working on a separate petition for their workers at the plant.
Mary Frederick, the UAW-GM joint activities representative at the plant, has been working on it for weeks.
“The department looks at a 12-month window,” she said. “So what we use as that 12-month window is critical in the success of the petition. We certainly haven’t been dragging our feet in filing the petition. We’re just trying to get the timing right.”
Frederick said the petition likely would be filed in September.
In the past, some auto-related layoffs have been approved for TAA, which basically continues to pay unemployment benefits after the state’s 26-week program expires. Some experts have said, however, that TAA might not be available to GM workers because high gas prices more than foreign competition caused the closures.
Frederick said she’s aware of that, but the petition must still be filed on behalf of the displaced GM workers.
“TAA is based on the loss of jobs to imports,” she said. “We’ve been told that we may be able to build a case on sales. If 20 percent or more of your sales loss is due to imports, then you can qualify.
“But, in our class, we’re competing against the Toyota Sequoia and Nissan Pathfinder, and they’ve lost sales, too.”
To receive TAA benefits, workers must be enrolled in some sort of job training program and do job searches. TAA allows up to $15,000 for additional education and re-training for eligible workers.
Earlier this year, GM announced that it would cut second-shift production in Janesville as a result of slow sales of the full-size sport utility vehicles built here. Officials have blamed a struggling national economy and soaring gas prices for a consumer shift from big trucks to small, fuel-efficient cars.
GM since has announced that it will end all production in Janesville by 2010 or sooner.
By eliminating its second shift, GM said it would lay off 852 people.
LSI, which sequences and delivers parts to GM, followed with its announcement that it would lay off 132 of its 235 workers.
Lear Corp., which makes seats for GM in Janesville, said it would lay off 336 of its 660 employees.
LSI, formally known as Logistics Services, Inc., filed its petition for TAA benefits with the Department of Labor on June 2. The top criterion for TAA certification is that the workers’ company produces a product.
Rich Johnson, United Auto Workers Local 95 shop chairman at LSI, said he understands that LSI workers don’t make anything.
“What we do is sequence, so in that regard I understand it,” Johnson said. “We knew it was a long shot because we don’t make a product.”
But a portion of the Department of Labor’s decision has Johnson and others in Local 95 scratching their heads.
The decision reads: “The parts supply workers at Logistics Services, Inc., Janesville, Wisconsin, do not support a firm or appropriate subdivision that produces an article domestically, and thus the worker group can not be considered import-impacted or affected by a shift in production of an article.”
The union officials counter that LSI’s existence in Janesville is entirely tied to the GM plant, which most certainly produces a product.
Johnson said the union plans to appeal the department’s decision on LSI. When it does, it probably will piggyback it on the petition to certify GM workers for TAA benefits.
If the LSI appeal is denied, the affected workers will be left with the standard 26 weeks of state unemployment compensation that pays a maximum of $355 per week.
“It’s really frustrating,” said one LSI worker who requested anonymity. “I’m concerned because there are a lot of people running around doing job searches and looking at schooling.
“Now they’re finding out that they won’t get those benefits.”
Questions of fairness
While extended unemployment benefits and training have been denied for one Janesville company and are uncertain for another, they’re apparently locked in for a third.
And that might raise questions of fairness among the 1,320 workers who have been laid off in Janesville as a result of General Motors’ decision to cut second-shift production here.
The employees—852 at GM, 336 at Lear Corp. and 132 at LSI—all have been laid off for the same reason. Its starts with the plummeting sales of full-size sport utility vehicles built at GM and trickles to Lear and LSI, the two largest GM suppliers in Janesville.
But the U.S. Department of Labor ruled that LSI workers are not eligible for Trade Adjustment Assistance that would extend benefits for up to 130 weeks. Essentially, the department ruled that LSI workers do not make a product and are therefore not eligible for the assistance.
A petition for TAA benefits for the displaced GM workers likely will be filed in September, but it’s considered a long shot because GM’s decision was based on the domestic economy and not the result of global competition, which is the tenet of the TAA program.
Lear workers, however, will get TAA benefits even though they recently have been laid off for the same reasons as their counterparts at GM and LSI.
That’s because workers at Lear, which builds seating systems for the GM plant, gained TAA certification in January 2007, shortly after the Janesville operation lost some welding work to a facility in Canada.
Once a worker group is certified, it is covered for up to one year before the petition is filed and up to two years after the certification is issued. In the case of the Lear workers, the TAA certification makes benefits available to employees laid off between Dec. 21, 2005 and Jan. 9, 2009.
“I can see where there will be some animosity about it,” said Mike Vaughn, United Auto Workers Local 95 shop chairman at Lear. “I’m sure people will point fingers, but it’s not because of anything Local 95 did or didn’t do. It’s just the way the federal rules are written.
“What’s going on with us getting the benefits has absolutely nothing to do with the automotive world we’re living in today.”
Without TAA benefits, workers at LSI will get 26 weeks of state unemployment compensation that tops out at $355 per week.
For GM workers, supplemental unemployment benefits negotiated into their national contract will boost that check. When state unemployment runs out, SUB pay will increase to cover the loss of unemployment and continue for another 22 weeks.
Jul 25, 2008 at 7:46 a.m.
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The healing needs to start now. This community needs to pull together no matter where you work or did work. The trickle down effect will have an enormous impact on all of us. Some businesses are already seeing the effect of people pinching pennies getting ready for the fallout in addition to the gas prices already gouging our paychecks. Help each other out. Work together. Lend a hand and quit being negative. The self centered griping is infuriating. Who cares what benefits someone else is getting, good for them, one less family that has to worry themselves into ulcers for a while. New businesses will not be attracted to a negative community. If we get this right Janesville will come out on top. Lets start healing and being positive right now. Lets get it right
Jul 24, 2008 at 10:26 p.m.
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LSI, should of waited to file for those benefits, at least till September. Some one screwed up bad for those People. WHO???
Jul 24, 2008 at 9:35 p.m.
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The day GM shuts down. I am throwing a party. hen then healing can start
Jul 24, 2008 at 8:24 p.m.
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I was in management at LSI and I'm not surprised that the company doesn't know what the hell it is doing (in regards to vacation pay that they have earned) with all the people that are going to be laid off. Thank God I jumped ship when I had the chance. It was a horrible place to work with absolutely no organization. Unfortunate for everyone losing their jobs...
Jul 24, 2008 at 7 p.m.
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Whoa! I am one who has eleven years in at LSI and dont expect the government to pay my way!However,a little help with tools and resources to excel elsewhere would be nice!Us at LSI dont make a "bad" wage,but believe me its not nearly enough to live beyond our means!Our pay is just enough to live on.The government dont have a problem feeding the mouths of families in other countries, so maybe its time they do it for the thousands of us locally who are gonna face hardships! Its one thing to lose your job,but when thousands are at the same time,where do you begin to fight for a job?
Jul 24, 2008 at 5:56 p.m.
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Lear got the benefits because of a STATE deal. Because four or six jobs, in the weld shop (not main assembly) were outsourced to Canada, Lear qualified for TRA and extended UEC. And, it is only for those who will be laid off by December 31, 2008 (the umbrella only covers a year). So, if the plant closes January 2, 2009, those still employed by Lear will not be eligible.
Jul 24, 2008 at 5:48 p.m.
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To All You People on Unemployment here is a Thought or should I say there are Jobs out there for You . All School Districts are looking for School Bus Drivers and will Train anyone with a good Driving Record and a Clean Background with no OWI's or Disorderly Conduct , Sexual/Child arrests . Help Our Children get the Education they so Desperately need to even have a chance of getting a Job in the Future . Check the Job Listings at the Job Center that are out there waiting for People to fill these Positions instead of complaining about Your Unemployment Running Out !
Jul 24, 2008 at 3:03 p.m.
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melstew47,
Yes, when receiving unemployment pay, you have to actively look for work, and accept a job if offered. This is nothing new. Read the rules carefully, and your husband won't get stuck with a crappy job. On the other hand, if that crappy job pays more than unmployment, take it while he can get it, and keep looking for something better.
Jul 24, 2008 at 2:09 p.m.
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ok, first of all my husband was an lsi employee,so we will be saying this is not gm employees fault! so get off it! second, the government doesnt owe any of us anything. they have already informed my husnand two days ago he will get no money for school, no extended unemployment benefits, they are also doing an audit on him to make sure he is actively looking for work, which he is, and was informed by the lady at the job center who is handling the situation with all these layoffs, that if a job offer is turned down, even if it is less than he made and with no benefits, or for any reason they dont deem good cause, his unemployment will be cut off. has anyone else got this good news yet? now, this is to the uaw, do you think you could possibly make lsi give these people their vacation that they are owed, we called, they said theyre not sure if they are even going to pay it out. one more thing, i think its time the former tnt employees get there severance pay, if this was gm it would have already been done, and no disrespect is intended for anyone at the uaw who reads this, we just need that money like everyone else. my husband paid union dues, now please take care of this situation. thank-you
Jul 24, 2008 at 1:59 p.m.
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This news is very unfortunate for those who work for LSI. Lear workers were simply lucky, because they previously lost welding jobs to Canada and the certification was still valid. I’m confident that UAW officials will continue to work towards certifying LSI and GM workers for extended benefits. However, TAA is a federal program and there is only a limited amount local representatives can do. I would suggest that people get in contact with Paul Ryan and Russ Fiengold and express your opinions, because they have more ability to work at the Federal level.
http://feingold.senate.gov/contact_opini...
http://www.house.gov/ryan/email.htm
Jul 24, 2008 at 1:25 p.m.
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Some of you people are unreal. Our government does not "owe" anybody anything for losing their job. GM does not "owe" anybody anything for losing their job. The deal you have with your employer is 40 hours of pay in return for 40 hours of work. After that, anything else is a bonus. The government is not responsbile for our employment or wages. If you had portable skills, you could find another job. If you had an extension education, you could find another job. You are upset that there is no longer a need for basic assembly or light equipment operation. Find another career! Either that or move to France or Canada and suck off of the government. Those societies are full of unmotivated people because they know they have the government to rely on. Nice system.
Jul 24, 2008 at 12:50 p.m.
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Provide a link please. I haven't read anything that GM will get extended unemployment benefits, only the usual SUB pay and jobs bank program.
Perhaps LSI should have waited to see if GM would get an extension.
Jul 24, 2008 at 12:44 p.m.
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GM did get the ext look back at past articles
Jul 24, 2008 at 12:43 p.m.
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Correct lynn. As the article states, there is a good change there will not be an extension for GM workers either, since the downturn was caused by high gas prices (and poor management, imho), not foreign competition.
Jul 24, 2008 at 12:42 p.m.
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But GM can get th extention how unfair is this
Jul 24, 2008 at 12:35 p.m.
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to opinionsforfree- It has not been decided if GM will qualify either. So how can you say its because they are/or think they are more important?
Jul 24, 2008 at 12:25 p.m.
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I question rather GM "produces" a product. They merely "assemble" a product essentially manufactured by other companies. Many, many of which are foreign companies. In the decison made by TAA, then many farmers should be eligle for benefits as they are unemployed for many months. Now they DO produce a product including the seed that they use for their employment. I say lets pay TAA benefits to the farmers and any other seasonal employee that produces a product that due to economy (as in GM's case) are off work for any length of time. The government should not discriminate.
Jul 24, 2008 at 11:56 a.m.
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FYI, Chrysler was denied TAA when it shut down it's shift.
Jul 24, 2008 at 11:41 a.m.
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THANK YOU ihavealife!
Jul 24, 2008 at 11:18 a.m.
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My previous comment should have said after they have exhausted their "26 weeks" of benefits they may be eligible for an additional 13 weeks.
Jul 24, 2008 at 11:11 a.m.
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While the TAA benefits petition was denied person who have exhausted their 36 weeks are eligib;e for up to 13 weeks of extended benefits.
Emergency Unemployment Compensation (EUC) is a federal extension of unemployment benefits which began July 6, 2008.
The first week payable under this program is the week ending July 12, 2008.
To be eligible for EUC benefits you must:
* Have an unemployment claim that began on or after May 7, 2006; and
* Have base period wages in the base period of this claim that is equal to at least 40 times your regular benefit rate; and
* Exhausted your regular benefits or your benefit year has ended and you are not eligible for new claim in any state; and
* Be unemployed or working reduced hours; and
* Be able and available for work and looking for work.
Jul 24, 2008 at 11:08 a.m.
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opinion.... GO AWAY !!!! Nobody thinks we are better than anyone else !!! Let's hope this gets turned around for these workers ! It's my opinion if Lear wouldn't have had in in their contract would their also be in the same boat as LSI ? GIVE THESE WORKERS ALL THE HELP THAT THEY NEED !!!!!WHAT IS WRONG WITH OUR GOVERMENT ?
Jul 24, 2008 at 10:53 a.m.
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Its cause the GM workers are so much more important than anyone else. or at least in their own minds they are. This makes me sick
Jul 24, 2008 at 10:19 a.m.
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What about the axle dress line at LSI? I would say that qualifies.
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