(00:00:00) I sort of like the opportunity to be a little bit closer to you and not have that barrier between you and me and this way we can can visit on a number of issues of mutual concern and a little more informal manner. First of all Jerry. I want to thank you so much for that kind introduction you and I don't need an interpreter do we when we (00:00:19) communicate with one another with our Southern but you (00:00:23) know, I was interested in a recent. I think it was your Spring edition of Masthead that indicated a poll said that 91% of you feel that you are influential in your communities in terms of your (00:00:37) writings being influential in making a difference. Now, I really envy that because if 50% of what I said could be influential on the Congress and especially on one particular senator from Kansas, then I would feel very happy indeed. But you know when I became Secretary of (00:00:59) Labor My reason for going back into government was to do exactly what you're doing to try to have an impact a positive difference in the lives of people and most definitely you have a tremendous influence in a tremendous impact. That's why I wanted to share this morning some thoughts and some areas where I hope that we can work (00:01:18) together because I feel that the labor department (00:01:22) really is the people's Department There's an opportunity there to reach out and touch people's lives in a manner that I really didn't have as Secretary of Transportation, which was more policy-oriented in terms of your rail policy of the FAA the Coast Guard what's going to happen with the airline's (00:01:41) shipbuilding but you didn't have the (00:01:43) opportunity really to be quite as much in touch with people's lives to really touch their lives in a way that's very meaningful to me and I feel that the policies the programs and the regulatory responsibilities of the Department of Labor are very much front and center if indeed we want to continue this vibrant. (00:02:00) Job-creating economy increase the productivity (00:02:03) of our workers and become ever more competitive in a global Marketplace and there's some issues that I think impact very directly on that. We need to discuss and talk about this morning now in terms of setting my priorities. Once again, it was where can I make that difference that positive difference in people's lives certainly the work and family issues are crucial if we're going to ensure that work and family are complementary and not conflicting goals. And as you look at the demographics, you see that three-fifths of the new entrants in the workforce between now and the year 2000 will be female. So the issues of child care parental leave flexible work packages flexible benefit packages are going to be even more important than they are today. And the Department of Labor is the lead Agency on childcare. I'm hopeful that there will be legislation and this session of Congress through the tax credit approach which puts the money in the hands of the parents so that they can drive the market selecting the Of child care that they feel is most important for example, some parents might feel that they want people who share their values to oversee their children. And so the option of a religious institution would be important to them. So you want to provide more options not less provide that money to the lowest income and we feel it's important to the mother who's at home as well as the mother in The Marketplace because a low-income mother who chooses to stay with her children is indeed sacrificing a second salary and to so we feel that she should have the benefit of the tax credit as well. And then there's the issue of workplace safety. This is an important one to us were vigorously enforcing the OSHA laws. We are looking now toward an increase. I'm requesting an increase of 10% in our inspector Workforce would (00:03:43) be about another hundred and seventy-nine (00:03:45) inspectors. And that's the first increase in the past decade and we're going to clean out the old dogs as I call them. I really get impatient when I see that their potential rulemakings that have been around for (00:03:57) 10 12 15 years. I don't Stand that and (00:04:01) so we're going through Now tracking all of our rulemakings. We're going to be making decisions. Is this worth going forward with or should the file be closed yet that up to date and you might notice that there have been a number of odd (00:04:13) of rather large penalties fines recently. (00:04:16) Also, the (00:04:17) the area of generic rule making is one that's going to (00:04:19) continue to be used the communications Hazard rule, which was put out recently covered a half a million chemical substances. Now, if you go chemical by chemical, it'll take you forever. In fact, the workplace will change two or (00:04:32) three times before you get your rule out. The way things are going now. It's a (00:04:35) dynamic workplace. So we're going to be doing it generically where that's appropriate corporate abatement will be important. For example, when you find that a corporation has violated a rule and you go for a correction in one plant, we're going to ask them in many instances where appropriate to do that in all their plants corporate-wide abatement. So these are some of the issues I'm pleased that we were able to get out the rule on blood-borne disease. (00:05:00) As (00:05:00) recently this is the first time that OSHA and the Department of Labor had been involved in infectious diseases. This has to do with people who handle bodily fluids (00:05:09) where AIDS or Hepatitis B could be a (00:05:11) problem that rulemaking is underway right now. In fact hearings. I believe started while I've been out here this week. So that's a very important one like lockout tagout when I was in my confirmation hearings. I spotted that one right away is something that we needed to aggressively move on because this involves machines which can start up (00:05:29) on their own and we want to make (00:05:31) sure that they're locked out wherever possible and only where it's not feasible to lock it out while we permit a tag. So we stepped up the the activity on that rule to make it a tougher rule than had been originally contemplated and that was announced just last week so that will cover 90% of the electrical equipment with locks and then we'll be looking as they as they come up with revisions a new new equipment to have locks on (00:05:58) everything as we move (00:05:59) forward. Another area that's crucial pensions 48% of our workers in this country do not have pensions today. So obviously you want to create a climate to be conducive to employers to offer pensions in the first place. And as I say that in the same breath the fact that workers are going to have two three four jobs in their lifetime. That's what the Democratic demographics are showing now isn't it important that they be able to take their pension benefits with them from job to job now right away. That's an inconsistency because you're urging employers to offer pensions same time you're saying make them portable. So it's a tough issue and we're going to be talking with a lot of people in fact the minister of the Secretary of State for employment from a Great Britain met with me just this week. He said we've got a good system of portable pensions and Great Britain. I said, okay give me your information because we're in the process of looking very hard at this right now and it's a tough issue, but I hope that we can make some Headway on making pensions more portable. One issue that has to be at the top of the priority list is job training and retraining and that I want to spend a little time on and then share with you a few minutes on Poland and somebody needs to be my time keeper here because I made go too long unless you call sometime on me here, but I do want to say to that. I'm a member of the economic policy Council. This is my opportunity for input on trade issues such as super 301. This is the opportunity to be involved with the steel vrs with acid rain and other issues which have been very important to our unions and we do have good relations with the union leaders. We realize there are areas where we're going to have to agree to disagree but we either sit down or we're on the phone with AF of l-cio at least once a week and our other union leaders letting them know what's going on getting their thoughts and input and looking for the Common Ground now, let me go into the issue of job training about the time that you were having your first convention 42 years ago in Washington. (00:08:00) You (00:08:00) see there were a lot of American GIS coming back from from Asia from that theater and also from Europe and they were taking advantage of the GI bill. They were getting Education and Training which enable them to go into the marketplace and whole productive jobs and our economy went into high gear. Okay. Today. We are facing a challenge from those areas from Asia from Europe which are of a very different nature indeed. We have a tremendous challenge at the same time that the jobs of the future (00:08:33) the jobs now and the (00:08:35) future are going to be requiring higher skills levels because we're moving more and more into a service-oriented economy. And we (00:08:41) expect that nine out of the ten jobs in the future will be service-oriented. This requires higher (00:08:46) skills better reasoning (00:08:48) math skills that are reading and writing (00:08:51) at the same time. Our young people are dropping out of high school at the rate of 25 percent (00:08:56) and you'd be amazed at the number who graduate and cannot read (00:09:00) Our (00:09:00) diplomas. I mean that is shocking and that is happening. (00:09:03) And when you look at the average (00:09:05) young High School senior in Japan, (00:09:08) the average can outpace (00:09:10) our top 5% in our high schools in advanced math and that type of thing science and math. So when you look at the fact that half of the jobs from now on are going to require education Beyond High School, (00:09:23) we've got a crisis we have a crisis facing us (00:09:26) and it's not just with the new entrants into the workforce two-thirds of the people who are working right now are going to be working in the year 2000 and many of them don't have the basic skills. Now they're going to need to move into 234 jobs. That's what the demographics show but they aren't going to be able to adapt many of them to these higher skills levels because they don't have the basic skills many can't read and write in fact 20 to 40 million adult Americans have substantial literacy (00:09:54) problems. So we do have a crisis now, there's also An opportunity with the challenge comes an opportunity because the workforce is growing at the slowest rate in 40 years. It's growing at 1% a year. And we expect that slow growth to continue into the next Century that presents us with an opportunity to really fulfill a dream. And that is that every American who wants a job can have a job if they have the skills and that's where I come in and that's where I (00:10:25) hope you come into because your influence is so important and this is not an issue. Ladies and gentlemen, that's a Hot Topic that's going to be written about in news stories. It's not the kind of thing that's breaking today, but it is (00:10:39) absolutely crucial if we're going to be more competitive on a global Marketplace (00:10:45) if we're going to be able to compete at all and certainly if we're going to (00:10:49) turn young lives around from very negative behavior to a lifetime of productive work. (00:10:54) I can't imagine anything (00:10:56) is more important than success in a job to try to break through the (00:11:00) Albums of teenage pregnancy teenage (00:11:02) dropouts vandalism gang Warfare drugs alcoholism all the rest. So it seems to me on three levels. This is so important, (00:11:11) but sometimes people don't really think about it so much and don't realize what a skills Gap we (00:11:16) have because it's not that that one story that's breaking today. It's a very important though over the long run for the future of this country and our ability to compete in a global market back in March. I wanted to communicate with my Department of Labor career employees. And so I went out to our ten (00:11:33) Regional Offices in 10 days and visited all of our DOL family at the same time. I went to training programs across the country to see what we're doing. Are we training for (00:11:44) the jobs of the future or not? What's working? What's not and all I can (00:11:47) say is I came (00:11:48) back with a sense of missionary Zeal absolutely inspired (00:11:52) by the young people. I met out there people like Tim Douglas from high school redirection and Erica Carson in Atlanta, Georgia, Erica. Alone in Atlanta and purtill a Bryant in Washington young people (00:12:04) whose lives had been absolutely turned around some from (00:12:07) very negative behavior who are now ready to enter (00:12:10) the workforce or to go on to college because of very good job training programs. (00:12:15) The job training Partnership Act is the most successful program we've ever had in this country with a 68 percent placement rate, but (00:12:23) something I learned out there on that tour and that I've been pursuing ever since is that we can make it a whole lot better (00:12:29) right now. There's too much creaming in other words people are trying to in some instances train those who are easiest to train because they get funded by how many they train and push into job slots. And then what happens to them, there's no follow-up now, so it seems to me we have to Target the job training Partnership Act to those who are least skilled and most disadvantaged the ones who will not make it into the workforce without our intervention. We need to Target them and that's exactly what our amendments to the jtpa. (00:12:59) Do and I'm very encouraged that there's bipartisan support (00:13:03) for this legislation and I believe it will pass this (00:13:06) year. What it does is to (00:13:07) change the jtpa from just job training for a (00:13:11) job to basic skills training literacy remedial education (00:13:17) counseling now, why counseling because I found a motivation Gap out there too many of our young people have just lowered their expectations of themselves and the marketplace and I think it's rooted in an earlier day when there weren't many jobs for young people. But today there are a lot of jobs there wanted their needed their (00:13:36) respected if they have the skills (00:13:38) and there has to be that Nexus that connection between doing well in school and Market success. They are not many of them making that connection right now the workforce quality commission, which recently reported to me a blue ribbon commission with a number of outstanding labor leaders as well as Business (00:13:57) Leaders and leaders from Academia. (00:13:59) It out this very area that education is crucial and certainly there are many initiatives which they recommended that do not cost funds and there's some that do so I'm going to suggest that you take a look at that report. I don't agree with everything in it, but I think most of it is is an area that we can Implement and much of it. We're already implementing. So certainly the educational system the job training system. Both are crucial here. We are also going to be through jtpa amendments assessing each young person person by person for their particular needs too often today. We're training for (00:14:35) something a person doesn't need and overlooking their real needs. It (00:14:38) has to be individual assessment and then following them six months in a year after their in a job to see if they're still there in six months if they're really making progress another crucial area. We have to bring down the bureaucratic barriers no longer can we have HHS and education and DOL Reinventing the wheel and not talking to each other. (00:14:59) They're in trying to eliminate overlap and duplication. We can (00:15:03) work much smarter much more efficiently by working closely together and that rolls off the tongue very easily coordination. It's not very sexy. It's not something you'd be likely to write about but it is absolutely crucial if we're going to have any real impact in this area Sullivan Cavazos, and I have met in my office we're meeting again in a week or two. Our senior staffs meet (00:15:25) constantly to make this come (00:15:27) about and we built the same kind of incentives into our legislation into the VOC Ed reauthorization bill into the (00:15:33) jobs program in the welfare support system through HHS and we're going to coordinate the effort and come up with a total support (00:15:41) system. Another way we're doing it is something that's been called Almost revolutionary and Innovative Concept in our legislation. And that is that a certain pot of money will (00:15:51) be available to our governors (00:15:53) only if they can tell me exactly what they intend to do. In other words specific goals how they will live. (00:15:59) Our funds by (00:16:01) bringing in education funds HHS funds to provide a total support system. Otherwise, they don't get the money now too often. The government is funding programs in a programmatic piecemeal very haphazard way (00:16:16) without really understanding sometimes what we expect the recipients to achieve (00:16:21) and that has to end. So this is designed to make this the system (00:16:25) much more efficient to leverage funds and to hopefully to produce that total support system. So a young (00:16:31) person can find whatever they (00:16:33) need to be able to effectively move into the workforce. Let me stress to that. We have to continue retraining workers who are in their jobs now (00:16:42) companies are putting in about 30 billion dollars right now in that effort, but more has to be done that 30 billion covers about is over a hundred and eight million workers and it's about 1.4 percent of payroll. So more certainly can be done. (00:16:57) It's hard to talk about this quickly, but (00:16:59) Also going forward with demonstration grants, which I think will be very significant. In fact, Mayor Daley mayor (00:17:06) Berry and a number of others came in to get their 75,000 and planning grant money. (00:17:11) Just a couple of weeks ago. The idea here is that they're competing 14 areas 12 cities to rural areas for five positions. I'll select five and February each one of those five gets 2.7 million dollars. What will they do with it? They will be defining it within a city of 400,000 or more or rural area 400,000 more a 25,000 member (00:17:37) Community within that area that are (00:17:40) absolutely the most economically disadvantaged the highest dropout rate. The highest teenage pregnancy drugs, alcoholism the worst problems and we will pull out all the stops (00:17:51) over a three-year (00:17:52) period to set up programs that are proven to be successful in intervening with young people and that's what they're competing for. (00:17:59) Are (00:17:59) right now to get that almost three million dollars to do that in five areas, which I think can then be used as demonstrations (00:18:07) across the country. So we're committed to this and (00:18:10) especially we've got to mobilize the business Community. It's in their best interest to help me with this job training because they're (00:18:17) competing for workers already and they certainly (00:18:20) will be in the future with this (00:18:21) slow growth in the workforce. They are competing for workers and they need people to be (00:18:26) trained who've been outside looking in the disadvantaged the disabled many women many members of minorities will finally have their opportunity for productive work. So I think there's a real opportunity and there's certainly a major challenge here and (00:18:41) it is a crisis in terms of our school system and what we're doing to train young people and turn these lives around and I (00:18:49) know it can be done. I've seen the examples. I've had a lot of these young people (00:18:52) testify with me (00:18:53) before the house and the Senate and I don't think I could have done what they're doing at age 17 to sit down before the State Senate and talk about what I've gained from a job training program and show that motivation and all the rest. It is really inspirational. So I think that the more I can bring them out to tell their own story The more impressive it will be to those who have an (00:19:14) opportunity to work to (00:19:16) change this whole situation. (00:19:18) Now if I could just quickly (00:19:19) shift to another (00:19:20) workplace Poland and the (00:19:22) workers there this is kind of a radical (00:19:24) shift, but I do want to share with you (00:19:27) the experience that Bob and I had just very quickly we were fortunate enough by chance to arrive in war. So Warsaw the very day that massive jet ski was elected as prime minister. We went right from the airplane to a solidarity caucus and it was incredibly inspiring. The (00:19:45) spirit of (00:19:45) democracy in that room was almost (00:19:47) palpable. It was really something (00:19:49) that they were having a debate on economic theory Jeffrey Sachs from Harvard and a communist and they're wrestling with all these issues and then we were fortunate enough to have a Thing with Matt's Viet ski in his first day in office and he stressed that those who give first give twice we went from there to go Remick the solidarity leader in the parliament his economic advisors and they were very much concerned that the people of Poland needs some immediate signal that it's not going to be business as usual that there is going to be a positive change that there will be Improvement because obviously there's going to be a lot of pain for workers before the benefits come a lot of people will lose their jobs as as they move from a state centrally controlled economy to a market economy and they felt that some immediate (00:20:38) aid was important as a signal for of the fact that it will not be business as (00:20:43) usual. The suggestion was food that the shelves are empty. The lines are long and that's where something immediate is really needed. But when saw that was fascinating he said, you know, we've lifted the weight from Poland, (00:20:57) but we can't sustain it we've got Have the help of the West (00:21:01) and he was stressing investment foreign investment Banks need to be established. He said we have no banks. There's about two billion dollars under the mattresses that need to be (00:21:10) invested. We need joint ventures. We (00:21:13) need privatization the countries for sale. And obviously a lot of reforms are needed to make Poland more attractive to investors. So that leads you then to debt rescheduling and to the IMF reforms. We hope both will go forward simultaneously and also we need OPEC for Poland GSP and that's in the Congress right now and the president has set up his package believe yesterday and hopefully that can be moved quickly. He's also indicated. He'll support another 50 million dollars of food assistance in addition to the 50 million that was already planned for October 1st, and I hope they can do all their negotiation now and have it ready to go that'll save 60 to 90 days after the 1st of October and Bob and I have been urging that this be done because (00:21:59) we felt (00:21:59) I strongly that that that is needed and of course all of the Western countries together need to be looking at what more in the (00:22:07) short range in the long range (00:22:08) terms, I would just suggest to that as far as the safety net for workers. That is (00:22:15) crucial. There is no safety net now and this is where we can be helpful the Department of Labor. (00:22:21) We're sending a team now that (00:22:22) mr. Curran has been named as Secretary of Labor (00:22:25) and you know, he spent nine years in a prison because of his views on communism and his opposition to Communism and now he is the labor Minister in Poland and I really look forward to working with him to get that team over (00:22:38) immediately to do what they feel is (00:22:40) important and in our discussions with them while we're in Poland what they're looking at is collective bargaining right to strike non strike by dispute resolution (00:22:50) mechanisms. They want help with reform of their labor code obviously job retraining (00:22:55) and they're interested in unemployment (00:22:58) insurance. Matt service those kinds of opportunities how to make people to help them move from one job to another (00:23:06) labor mobility. And also we're talking with them about possibly choosing a sector of the economy like (00:23:12) food processing and distribution (00:23:14) to put up special focus on that (00:23:16) particular area because that I think could be very helpful to them. (00:23:20) So they're plenty of challenges there in a very delicate situation, but my word the ramifications if if indeed this experiment is successful the first time we've had a transition (00:23:30) peacefully from a communist control government to a democratic (00:23:33) control government. Imagine what what that could lead us to maybe an end of the division (00:23:38) in Europe. So I think that clearly that's one that Department of Labor will be following very closely and I want to (00:23:44) congratulate the AFL AFL-CIO Lane Kirkland our (00:23:48) unions. They were there in the dark days with solidarity. They were in there supporting solidarity all the way. They (00:23:55) raise a lot of money. They did all sorts of things helping with mimeograph equipment helping to To get the message out and most (00:24:02) definitely that's made a difference in moving that country toward democracy. So we'll be (00:24:06) working closely with the unions the private sector and other countries to try to Leverage The Help the technical help the poem. Whoever can do it best. We want to select (00:24:17) that party whether it's a union or whether it's another country or the private sector or the Department of Labor will all be working together in this (00:24:25) effort one final word in that I promise. I'll quit and give you all a chance, please. Don't stop writing about Armenia. We were there we went into the earthquake areas. It is absolutely heart-rending. In fact Inland enecon. We visited the spot where 400 (00:24:41) school children were killed (00:24:42) in 40 seconds. And the mothers of many of these children just came up around us while we were present for providing flowers and just having a moment there to think about what happened and that was just (00:24:54) heart-rending it really was (00:24:56) and then in speak talk everything is leveled there is no (00:24:59) He (00:24:59) talk anymore. That was a town of 25,000 people. They're going to have to build it again. Now in another area which doesn't have the seismic problems that that area obviously does (00:25:10) but 25,000 people lost (00:25:11) their lives in Armenia (00:25:13) and 700,000 are still homeless 200,000 from (00:25:17) Azerbaijan from that ethnic crisis and then 500,000 from the earthquake and winter is coming on they need housing. And so we both Bob and I feel so strongly that we need, you know, it's not on the front pages anymore and people tend to think well that problem must be solved. It is (00:25:34) not solved. They're still severe problems in Armenia. (00:25:38) I'll just end by saying that the khatallah coast the top (00:25:42) religious leader in (00:25:43) Armenia whom we met with the foreign minister of Armenia was there he of course is Communists and the catholicos said, well, I'm very interested in the fact that you're going on to Poland because I feel that Armenia will follow in the path of Poland, which I thought was a very interesting. Comment in front of the Communist foreign minister, and we found that it was very open to to challenge debate. We (00:26:07) were told talk about whatever you want on the Communist system. I mean, feel free. It's a very open discussion so much is happening all over (00:26:14) these days, but it was a very very meaningful and inspiring experience for us to have that trip this summer. I must say it was not the most restful quote vacation I've ever had we were in meetings from morning till night, but it was a wonderful (00:26:29) opportunity and hopefully we (00:26:30) can try to make a difference in that area now that we have seen firsthand what's going on that certainly doesn't make me an expert, but I did learn a great deal while I was there. I think well, thank you very much for your attention. I just wanted to (00:26:45) William Allen White as an adopted cans and of (00:26:48) course, I have great respect for all that. He did and (00:26:51) white described a memorable editorial in this way. He said an editorial is an expression of opinion based upon a selection of facts which present a truth in a new light something that everyone knows which no one has ever thought of before I thought that was very meaningful. So I want to wish you all the best as (00:27:10) you return to your home (00:27:12) areas to continue shedding light on issues that are so important to Americans into the (00:27:17) future of America because indeed you have that (00:27:20) tremendous influence and you can do so much.