UpdatingTradeAdjustmentAssistanceforToday’sTechnologyWorkforce…………………………………
June2007UpdatingTradeAdjustmentAssistanceforToday’sTechnologyWorkforce…………………………………
June2007

Introduction 
................................................................................1 
Trade 
Adjustment 
Assistance 
– 
An 
Overview 
...................................1 
The 
Trade 
Act 
of 
2002................................................................1 
Current 
TAA 
Eligibility 
and 
Benefits 
................................................2 
Training 
...................................................................................2 
Income 
Support 
........................................................................3 
Health 
Coverage 
Tax 
Credit 
(HCTC) 
.............................................3 
Alternative 
Trade 
Adjustment 
Assistance 
(ATAA) 
...........................3 
Key 
Facts 
and 
Figures 
on 
TAA 
Implementation: 
...............................4 
6 
Key 
Issues 
for 
TAA 
Reform 
.........................................................6 


1. 
Extending 
TAA 
benefits 
to 
include 
service 
workers....................6 


2. 
ATAA 
Eligibility.....................................................................8 


3. 
Industry-wide 
certifications 
...................................................8 


4. 
Health 
Coverage 
Tax 
Credit 
(HCTC)........................................8 


5. 
Better 
data 
from 
DoL 
& 
states 
to 
evaluate 
TAA.........................9 


6. 
Outreach 
to 
inform 
potential 
participants 
of 
available 
benefits....9 


i 



Introduction 


The 
topic 
of 
U.S. 
Trade 
Adjustment 
Assistance 
(TAA) 
has 
received 
much 
attention 
in 
recent 
years 
in 
the 
form 
of 
legislative 
attempts 
to 
reform 
the 
program 
and 
revise 
the 
benefits 
it 
provides. 
The 
aim 
of 
this 
report 
is 
to 
provide 
a 
brief 
overview 
of 
the 
history 
and 
current 
position 
of 
the 
Trade 
Adjustment 
Assistance 
program 
as 
it 
pertains 
to 
the 
Information 
Technology 
(IT) 
Industry, 
and 
to 
examine 
legislation 
introduced 
in 
the 
110th 
Congress 
that 
would 
reform 
the 
program. 


As 
a 
leading 
voice 
of 
the 
IT 
industry, 
CompTIA 
has 
undertaken 
this 
study 
in 
order 
to 
provide 
a 
better 
understanding 
the 
Trade 
Adjustment 
Assistance 
program 
and 
the 
features 
of 
the 
program 
of 
most 
relevance 
to 
the 
US 
technology 
workforce. 
The 
US 
technology 
workforce 
is 
generally 
understood 
to 
be 
divided 
into 
three 
categories: 
IT 
hardware, 
software 
and 
IT 
services 
employees. 
The 
estimated 
size 
of 
the 
US 
technology 
workforce 
varies 
greatly, 
mostly 
depending 
on 
the 
parameters 
one 
uses 
to 
define 
a 
“technology 
worker,” 
though 
according 
to 
the 
latest 
complete 
data 
available 
from 
the 
Bureau 
of 
Labor 
Statistics1, 
there 
are 
3,103,540 
technology 
workers 
in 
the 
United 
States, 
accounting 
for 
roughly 
2.3% 
of 
total 
US 
employment.2 


Trade 
Adjustment 
Assistance 
– 
An 
Overview 


The 
Trade 
Adjustment 
Assistance 
program, 
or 
TAA, 
was 
signed 
into 
law 
with 
the 
Trade 
Act 
of 
1974 
and 
has 
provided 
an 
invaluable 
safety 
net 
for 
America’s 
workers 
separated 
from 
their 
employment 
due 
to 
the 
forces 
of 
globalization 
or 
increased 
imports 
due 
to 
the 
removal 
of 
trade 
barriers. 
While 
some 
job 
losses 
due 
to 
globalization 
and 
trade 
liberalization 
are 
seen 
as 
inevitable 
side 
effects 
of 
what 
is 
otherwise 
good 
for 
America’s 
economy, 
TAA 
provides 
a 
specialized, 
fine-tuned 
package 
of 
benefits 
and 
professional 
retraining 
schemes 
to 
ease 
workers 
back 
to 
work 
after 
suffering 
a 
trade-related 
job 
loss. 


At 
its 
inception, 
TAA 
was 
specifically 
designed 
to 
assist 
workers 
employed 
by 
a 
firm 
engaged 
in 
the 
production 
of 
an 
article 
who 
lose 
their 
jobs 
as 
a 
result 
of 
increased 
imports 
or 
shifts 
in 
production 
to 
a 
foreign 
country. 
However, 
as 
the 
global 
economy 
has 
evolved, 
new 
needs 
have 
arisen 
and 
new 
paradigms 
have 
emerged, 
thus 
necessitating 
reform 
to 
the 
TAA 
program. 
While 
the 
Trade 
Act 
of 
2002, 
as 
discussed 
below, 
addressed 
some 
of 
these 
issues, 
there 
are 
still 
issues 
faced 
by 
today’s 
workforce 
that 
are 
not 
covered 
by 
current 
TAA 
policy. 
We 
will 
discuss 
these 
issues 
in 
greater 
detail 
later 
on. 


The 
Trade 
Act 
of 
2002 


The 
last 
major 
overhaul 
to 
TAA 
was 
introduced 
in 
2002. 
The 
Trade 
Act 
of 
2002 
authorized 
TAA 
payments 
and 
benefits 
through 
the 
end 
of 
FY 
2007, 
and, 
aside 
from 
updating 
and 
extending 
existing 
benefits, 
introduced 
two 
major 
new 
features 
relevant 
to 
tech-sector 
workers: 
a 
health-care 
tax 
credit 
(HCTC) 
and 
Alternative 
Trade 
Adjustment 
Assistance, 
or 
ATAA, 
also 
known 
as 
wage 
subsidy 
or 
wage 
insurance. 
Both 
of 
these 
new-for-2002 
features 
will 
be 
discussed 
in 
further 
detail 
below. 


1 
May 
2005 
National 
Occupational 
Employment 
and 
Wage 
Estimates 
United 
States. 
Bureau 
of 
Labor 
Statistics. 
http://www.bls.gov/oes/current/oes_nat.htm. 
Compiled 
using 
occupation 
codes 
15-1011 
– 
15-1099, 
43-9011, 
17-2061, 
51-2022 
and 
49-2011. 
2 
Total 
US 
employment, 
as 
stated 
in 
the 
compendium 
referenced 
above, 
is 
130,307,840. 


Copyright 
CompTIA 
2007. 
Updating 
Trade 
Adjustment 
Assistance 
for 
Today’s 
Technology 
Workforce 



Current 
TAA 
Eligibility 
and 
Benefits 


TAA 
provides 
benefits 
to 
those 
workers 
whose 
employment 
has 
been 
terminated 
as 
a 
direct 
result 
of 
increased 
foreign 
trade. 
Responsibility 
to 
make 
the 
final 
determination 
on 
eligibility 
to 
participate 
in 
TAA 
lies 
with 
the 
US 
Secretary 
of 
Labor. 
In 
the 
event 
of 
a 
mass 
layoff 
or 
shift 
in 
production 
resulting 
from 
increased 
imports 
or 
competition, 
a 
petition 
may 
be 
filed 
with 
the 
Department 
of 
Labor 
to 
certify 
a 
group 
of 
trade-affected 
workers 
as 
eligible 
to 
receive 
TAA 
benefits. 
Petitions 
cannot 
be 
filed 
individually 
and 
can 
only 
be 
filed 
by 
certain 
entities, 
i.e. 
a 
group 
of 
workers 
(not 
fewer 
than 
three 
(3)); 
an 
employer 
on 
behalf 
of 
the 
separated 
workers; 
unions; 
and 
state 
and 
local 
workforce 
agencies. 


The 
Department 
of 
Labor 
must 
make 
a 
determination 
of 
eligibility 
within 
40 
days 
of 
receiving 
a 
petition. 
This 
period 
was 
shortened 
to 
the 
current 
40 
days 
from 
60 
days 
by 
the 
Trade 
Act 
of 
2002. 
In 
the 
event 
that 
the 
petition 
is 
certified 
by 
the 
Department 
of 
Labor, 
the 
appropriate 
State 
is 
notified 
thereof, 
which 
then 
bears 
the 
responsibility 
of 
notifying 
the 
workers 
of 
the 
benefits 
available 
to 
them. 


Though 
the 
complete 
TAA 
package 
includes 
more 
benefits 
than 
those 
described 
here, 
we 
will 
concentrate 
on 
those 
items 
which 
are 
most 
utilized 
and 
relevant 
to 
the 
majority 
of 
workers 
and 
thus 
receive 
the 
most 
attention 
from 
businesses, 
politicians, 
think 
tanks, 
labor 
unions, 
etc.: 
Training, 
Trade 
Readjustment 
Allowances 
(TRAs, 
or 
Income 
Support), 
the 
Health 
Coverage 
Tax 
Credit 
(HCTC) 
and 
Alternative 
Trade 
Adjustment 
Assistance 
(ATAA), 
or 
wage 
insurance. 


Training 


Perhaps 
the 
most 
important 
aspect 
of 
TAA, 
training 
benefits 
are 
made 
available 
to 
workers 
who 
have 
been 
certified 
as 
TAA-eligible 
and 
lack 
the 
necessary 
skills 
to 
find 
a 
suitable 
new 
job 
in 
the 
labor 
market. 
The 
purpose 
of 
TAA 
training 
is 
to 
enable 
workers 
to 
find 
a 
job 
at 
a 
skill 
level 
that 
is 
equal 
to 
or 
higher 
than 
that 
required 
by 
his/her 
previous 
employment, 
while 
at 
the 
same 
time 
staying 
in 
that 
job 
at 
the 
best 
wage 
available. 
Training 
options 
are 
tailored 
to 
each 
worker’s 
particular 
skill 
set 
and 
the 
labor 
market 
conditions 
prevailing 
in 
his/her 
location. 
Current 
training 
benefits 
have 
a 
maximum 
duration 
of 
130 
weeks, 
and 
may 


80,700 


include 
traditional 
teacher-led 
classroom 
training, 


The 
number 
of 
individuals 
participating 
on-the-job 
training 
and 
other 
customized 
training 
in 
TAA 
training 
programs 
in 
FY 
2006 
programs. 
Of 
the 
130 
weeks 
of 
training 
currently 
available 
to 
TAA 
participants, 
a 
maximum 
of 
104 
weeks 
are 
available 
for 
normal 
training 
modules, 
and 
an 
additional 
26 
weeks 
of 
training 
can 
be 
awarded 
for 
remedial 
education 
such 
as 
literacy 
training 
or 
English-language 
instruction. 
All 
training 
programs 
must 
be 
TAA-approved, 
according 
to 
the 
following 
criteria:3 


• 
There 
is 
no 
suitable 
employment 
available 
to 
the 
worker. 
• 
The 
worker 
would 
benefit 
from 
training. 
• 
There 
is 
a 
reasonable 
expectation 
of 
employment 
following 
completion. 
• 
Training 
is 
reasonably 
available 
to 
the 
worker. 
• 
The 
worker 
is 
qualified 
to 
undertake 
and 
complete 
the 
training. 
• 
Training 
is 
suitable 
and 
available 
at 
a 
reasonable 
cost. 
3 
Overview 
of 
Trade 
Adjustment 
Assistance 
(TAA) 
Program. 
U.S. 
Department 
of 
Labor, 
Employment 
& 
Training 
Administration. 
November 
15, 
2006. 
http://www.doleta.gov/tradeact/docs/ComprehensiveProgramOverview.pdf 


Copyright 
CompTIA 
2007. 
Updating 
Trade 
Adjustment 
Assistance 
for 
Today’s 
Technology 
Workforce 



Income 
Support 


Income 
Support, 
formally 
known 
as 
Trade 
Readjustment 
Allowances 
(TRAs), 
is 
designed 
as 
a 
supplement 
to 
traditional 
state-administered 
Unemployment 
Insurance 
(UI) 
benefits, 
and 
in 
this 
light 
is 
only 
made 
available 


53,493 


after 
the 
worker 
has 
exhausted 
the 
standard 
26 


The 
number 
of 
TAA 
participants 


weeks 
of 
UI 
available 
in 
most 
states. 
In 
addition, 


receiving 
income 
support 
in 
FY 
2006 


income 
support 
is 
only 
afforded 
to 
workers 
participating 
in 
full 
time 
training 
or 
who 
have 
qualified 
for 
a 
training 
waiver 
according 
to 
six 
(6) 
criteria:4 


• 
The 
worker 
will 
be 
recalled 
reasonably 
soon; 
• 
The 
worker 
has 
marketable 
skills 
for 
suitable 
employment 
and 
a 
reasonable 
expectation 
of 
employment 
in 
the 
foreseeable 
future; 
• 
The 
worker 
is 
within 
two 
years 
of 
eligibility 
for 
a 
pension 
or 
social 
security; 
• 
The 
worker 
is 
unable 
to 
participate 
in 
or 
complete 
training 
due 
to 
health 
issues; 
• 
Immediate 
enrollment 
is 
not 
available; 
or 
• 
No 
training 
program 
is 
available. 
Basic 
Income 
Support, 
which 
initially 
lasts 
26 
weeks, 
is 
payable 
if 
the 
trade-affected 
worker 
is 
enrolled 
in 
or 
has 
completed 
training, 
or 
has 
received 
a 
training 
waiver 
according 
to 
the 
conditions 
outlined 
above. 
Additional 
Income 
Support, 
up 
to 
78 
weeks, 
is 
generally 
available 
to 
certified 
trade-affected 
workers 
actually 
enrolled 
in 
training 
programs; 
thus, 
training 
waivers 
do 
not 
apply. 
Lastly, 
an 
additional 
26 
weeks 
of 
Income 
Support 
can 
be 
solicited 
in 
cases 
where 
the 
worker 
is 
enrolled 
in 
remedial 
education 
such 
as 
such 
as 
literacy 
or 
English-as-a-second-language 
training. 


Health 
Coverage 
Tax 
Credit 
(HCTC) 


Only 
recently 
introduced 
as 
a 
result 
of 
the 
Trade 
Act 
of 
2002, 
the 
Health 
Coverage 
Tax 
Credit 
was 
designed 
to 
help 
trade-affected 
workers 
continue 
their 
health 
coverage 
while 
participating 
in 
TAA. 
Workers 
who 
are 
certified 
as 
eligible 
to 
receive 
income 
support 
can 
apply 
for 
the 
health 
coverage 
tax 
credit. 
In 
order 
to 
qualify, 
the 
worker’s 
coverage 
must 
be 
administered 
through 
COBRA, 
state 
COBRA, 
a 
continuing 
individual 
coverage 
plan 
or 
other 
plans 
qualified 
by 
the 
worker’s 
state. 


The 
HCTC 
will 
cover 
65% 
of 
the 
trade-affected 
worker’s 
healthcare 
coverage 
premiums 
while 
s/he 
is 
receiving 
income 
support. 
HCTC 
can 
be 
paid 
directly 
to 
the 
healthcare 
provider 
by 
the 
IRS 
on 
behalf 
of 
the 
worker 
as 
an 
advance 
payment, 
in 
which 
case 
the 
worker 
is 
responsible 
for 
paying 
the 
remaining 
35% 
directly 
to 
his/her 
provider, 
or 
in 
the 
form 
of 
a 
tax 
credit 
at 
the 
end 
of 
the 
year 
when 
the 
worker 
files 
an 
income 
tax 
return. 


Alternative 
Trade 
Adjustment 
Assistance 
(ATAA) 


ATAA, 
first 
instituted 
in 
2002, 
is 
offered 
to 
certified 
individuals 
who 
are 
age 
50 
and 
over. 
A 
parallel 
program 
to 
TAA, 
ATAA 
was 
specifically 
designed 
for 
older 
workers 
for 
whom 
training 
is 
not 
an 
option 
or 
does 
not 
make 
sense 
due 
to 
their 
age. 
Thus, 
through 
ATAA, 
senior 
workers 
are 
able 
to 
forego 
training 
and 
accept 
new 
employment 
at 
lower 
wages 
in 
order 
to 
get 
back 
to 
work 
sooner. 
Workers 
receiving 
ATAA 
benefits 
are 
also 
eligible 
for 
the 
HCTC 
described 
above. 


4 
Overview 
of 
Trade 
Adjustment 
Assistance 
(TAA) 
Program. 
U.S. 
Department 
of 
Labor, 
Employment 
& 
Training 
Administration. 
November 
15, 
2006. 
http://www.doleta.gov/tradeact/docs/ComprehensiveProgramOverview.pdf. 


Copyright 
CompTIA 
2007. 
Updating 
Trade 
Adjustment 
Assistance 
for 
Today’s 
Technology 
Workforce 



Requirements 
for 
ATAA 
are 
as 
follows: 
the 
new 
salary 
must 
not 
exceed 
$50,000, 
the 
worker 
must 
be 
reemployed 
within 
26 
weeks 
of 
separation, 
and 
may 
receive 
a 
wage 
subsidy 
of 
50% 
of 
the 
difference 
between 
the 
old 
salary 
and 
the 
new 
one, 
up 
to 
a 
maximum 
of 
$10,000 
paid 
over 
a 
period 
of 
up 
to 
two 
years. 
Thus, 
if 
a 
worker’s 
previous 
employment 
provided 
a 
salary 
of 
$60,000, 
if 
the 
worker 
were 
reemployed 
within 
26 
weeks 
with 
a 
salary 
of 
$50,000, 
he/she 
would 
be 
eligible 
to 
receive 
a 
wage 
subsidy 
of 
$5,000 
per 
year 
for 
2 
years. 


Key 
Facts 
and 
Figures 
on 
TAA 
Implementation: 


Reporting 
on 
the 
effectiveness 
of 
TAA 
benefits 
to 
its 
recipients 
has 
been 
limited. 
Despite 
Congressional 
calls 
for 
improved 
reporting 
from 
states 
and 
the 
Department 
of 
Labor, 
precise, 
analyzable 
data 
remain 
scarce. 


FY 
2006 
TAA 
Statistics 
Number 
of 
petitions 
received 
2,440 
Number 
of 
certifications 
issued 
1,426 
Number 
of 
Denials 
837 


The 
Department 
of 
Labor 
has 
endeavored 
to 
improve 
TAA 
data 
quality, 
much 
of 
which 
comes 
from 
states, 
but 
cooperation 
from 
the 
states 
continues 
to 
be 
problematic. 
Since 
2003, 
states 
have 
been 
required 
to 
validate 
the 
data 
they 
submit 
to 
DoL; 
however, 
many 
states 
do 
not 
include 
all 
TAA 
participants 
in 
the 
data 
they 
validate 
and 
submit. 
For 
example, 
fewer 
than 
half 
of 
all 
States 
include 
data 
on 
the 
number 
of 
training 
waivers 
they 
issue 
when 
they 
submit 
data 
to 
DoL.5 
In 
fiscal 
year 
2006, 
the 
Department 
of 
Labor 
rolled 
out 
a 
set 
of 
common 
measures 
to 
ensure 
consistent, 
quality 
data 
from 
states 
across 
the 
board. 
It 
is 
too 
early 
to 
gauge 
what 
effect, 
if 
any, 
these 
new 
measures 
will 
have 
on 
data 
quality. 
States, 
however, 
have 
begun 
to 
report 
delays 
in 
the 
implementation 
of 
the 
new 
system 
and 
have 
complained 
that 
it 
creates 
an 
unnecessary 
burden.6 
The 
burden 
will 
be 
most 
felt 
in 
those 
states 
still 
using 
manual 
reporting 
techniques: 
The 
US 
Government 
Accountability 
Office 
(GAO) 
reports 
that 
nine 
states, 
or 
almost 
1 
in 
5, 
still 
rely 
on 


57.89 


manual 
data 
collection 
and 
submission 
processes. 


The 
average 
number 
of 
weeks 


In 
response 
to 
calls 
for 
better 
data, 
a 
five-year 


of 
TAA 
training 
received 


implementation 
effectiveness 
study 
carried 
out 
by 
the 
Department 
of 
Labor 
is 
due 
to 
be 
released 
sometime 
in 
2008, 
while 
some 
preliminary 
findings 
are 
expected 
to 
be 
released 
in 
the 
latter 
part 
of 
2007. 


The 
demographic 
data 
made 
available 
by 
the 
Department 
of 
Labor 
indicate 
the 
following 
characteristics 
of 
TAA 
recipients: 
a 
large 
majority 
of 
TAA 
participants, 
74%, 
have 
a 
high 
school 
degree 
or 
less, 
while 
8% 
have 
a 
college 
degree.7 
85% 
of 
participants 
received 
some 
type 
of 
training 
through 
TAA 
for 
an 
average 
of 
57.89 
weeks, 
although 
such 
high 
numbers 
of 
enrollment 
in 
training 
programs 
can 
largely 
be 


5 
Trade 
Adjustment 
Assistance: 
Labor 
Should 
Take 
Action 
to 
Ensure 
Performance 
Data 
Are 
Complete, 
Accurate, 
and 
Accessible. 
United 
States 
Government 
Accountability 
Office, 
Report 
to 
the 
Committee 
on 
Finance, 
U.S. 
Senate. 
GAO06-
496 
(April 
2006). 
6 
Ibid. 
7 
Fiscal 
Year 
2006 
Year 
End 
Performance 
Highlights. 
Employment 
and 
Training 
Administration 
| 
United 
States 
Department 
of 
Labor. 
http://www.doleta.gov/Performance/results/Quarterly_report/PerformanceHighlights06.pdf 


Copyright 
CompTIA 
2007. 
Updating 
Trade 
Adjustment 
Assistance 
for 
Today’s 
Technology 
Workforce 



explained 
by 
the 
requirement 
that 
TAA 
participants 
be 
enrolled 
in 
a 
State-approved 
training 
program 
in 
order 
to 
receive 
extended 
income 
benefits. 
25% 
of 
participants 
qualified 
for 
waivers 
of 
this 
requirement.8 


A 
look 
at 
total 
TAA 
uptake 
statistics 
shows 
that 
for 
fiscal 
year 
2006, 
the 
Department 
of 
Labor 
received 
2,440 
new 
petitions, 
and 
issued 
2,478 
determinations. 
The 
determinations 
resulted 
in 
1,426 
certifications 
(of 
which 
88% 
included 
eligibility 
to 
apply 
for 
ATAA), 
837 
denials, 
and 
215 
terminations 
for 
various 
reasons. 
This 
translated 
into 
80,700 
individuals 
participating 
in 
training, 
and 
53,493 
participants 
receiving 
Income 
Support.9 


The 
Department 
of 
Labor 
maintains 
accurate 
data 
on 
the 
funds 
it 
spends 
on 
TAA. 
In 
fiscal 
year 
2006, 
almost 
$1 
billion 
was 
appropriated 
for 
TAA: 
this 
includes 
$259.4 
million 
for 
training, 
job 
search 
allowances, 
relocation 
allowances, 
and 
program 
administration; 
$52 
million 
for 
ATAA; 
and 
$655 
million 
for 
TRAs 
or 
income 
support.10 
While 
income 
support 
clearly 
receives 
a 
much 
larger 
share 
of 
TAA’s 
total 
appropriations 
than 
do 
training 
programs, 
these 
figures 
seem 
to 
be 
falling: 
approximately 
$1.1 
billion 
was 
appropriated 
for 
income 
support 
alone 
in 
fiscal 
year 
2004,11 
while 
just 
$750 
million 
was 
appropriated 
for 
fiscal 
year 
2005, 
compared 
to 
the 
$655 
million 
mentioned 
above 
for 
FY 
2006.12 


While 
training 
programs 
receive 
less 
funding 
than 
income 
support, 
the 
Trade 
Act 
of 
2002 
actually 
doubled 
authorizations 
for 
amounts 
payable 
for 
training 
programs 
under 
TAA. 
Prior 
to 
2002, 
TAA 
training 
funds 
were 
capped 
at 
$80 
million 
per 
year; 
NAFTA-
TAA 
(a 
parallel 
TAA 
program 
created 
to 
address 
concerns 
over 
the 
North 
American 
Free 
Trade 
Agreement, 
NAFTA-TAA 
was 
repealed 
in 
2002 
and 
combined 
with 
TAA) 
authorizations 
were 
limited 
to 
$30 
million. 
The 
combination 
of 
these 
two 
programs 
created 
a 
single 
basket 
totaling 
$110 
million 
available 
for 
training 
benefits. 
The 
Trade 
Act 
of 
2002, 
while 
at 
the 
same 
time 
combining 
these 
two 
programs, 
doubled 
the 
total 
amount 
available 
for 
fiscal 
year 
payments 
to 
$220 
million. 


FY 
2006 
Spending 
on 
TAA 
(US$ 
Millions) 


$52 


$259.4 


$655 



TrainingIncomeSupportATAA
8 
TAA 
and 
NAFTA-TAA 
Participant 
Characteristics. 
Employment 
and 
Training 
Administration 
| 
United 
States 
Department 
of 
Labor. 
http://www.doleta.gov/tradeact/participant.cfm 
9 
Overview 
of 
Trade 
Adjustment 
Assistance 
(TAA) 
Program. 
U.S. 
Department 
of 
Labor, 
Employment 
& 
Training 
Administration. 
November 
15, 
2006. 
http://www.doleta.gov/tradeact/docs/ComprehensiveProgramOverview.pdf 
10 
Overview 
of 
Trade 
Adjustment 
Assistance 
(TAA) 
Program. 
U.S. 
Department 
of 
Labor, 
Employment 
& 
Training 
Administration. 
November 
15, 
2006. 
http://www.doleta.gov/tradeact/docs/ComprehensiveProgramOverview.pdf 


11 
Trade 
Adjustment 
Assistance: 
Reforms 
Have 
Accelerated 
Training 
Enrollment, 
but 
Implementation 
Challenges 
Remain. 
United 
States 
Government 
Accountability 
Office, 
Report 
to 
the 
Committee 
on 
Finance, 
U.S. 
Senate. 
GAO-04-
1012 
(September 
2004). 


12 
Trade 
Adjustment 
Assistance: 
Most 
Workers 
in 
Five 
Layoffs 
Received 
Services, 
but 
Better 
Outreach 
Needed 
on 
New 
Benefits. 
United 
States 
Government 
Accountability 
Office, 
Report 
to 
Congressional 
Requesters. 
GAO-06-043 
(January 
2006). 


Copyright 
CompTIA 
2007. 
Updating 
Trade 
Adjustment 
Assistance 
for 
Today’s 
Technology 
Workforce 



6 
Key 
Issues 
for 
TAA 
Reform 


1. 
Extending 
TAA 
benefits 
to 
include 
service 
workers 
Much 
has 
been 
said 
in 
recent 
years 
about 
extending 
TAA 
coverage 
to 
workers 
in 
the 
service 
industry. 
The 
US 
economy 
has 
made 
a 
marked 
shift 
towards 
service-sector 
employment 
in 
the 
last 
few 
decades: 
currently, 
8 
of 
every 
10 
jobs 
in 
the 
US 
are 
in 
the 
services 
sector, 
and 
in 
2005, 
services 
provided 
more 
than 
two-thirds 
(68%) 
of 
U.S. 
GDP.13 


Services 
jobs 
in 
the 
IT 
sector, 
as 
an 
integral 
part 
of 
the 
US 
economy, 
accounted 
for 
nearly 
5% 
of 
GDP 
and 
10% 
of 
GDP 
growth 
in 
2005.14 
In 
2006, 
employment 
in 
IT 
services 
alone 
continued 
a 
four-year 
upward-growth 
trend 
by 
adding 
70,400 
new 
US 
jobs, 
accounting 
for 
over 
80% 
of 
total 
2006 
IT 
sector 
job 
growth. 
In 
2005, 
40,700 
new 
US 
IT 
services 
jobs 
were 
added; 
in 
2004, 
32,000.15 


Generally, 
TAA 
benefits 
have 
been 
made 
available 
to 
workers 
who 
have 
lost 
their 
jobs 
as 
a 
result 
of 
increased 
imports 
or 
a 
shift 
in 
production 
of 
articles 
like 
or 
directly 
competitive 
with 
the 
articles 
produced 
by 
the 
workers’ 
firm. 
Due 
to 
the 
nature 
of 
their 
work, 
most 
workers 
employed 
in 
the 
IT 
industry 
do 
not 
manufacture 
articles, 
but 
instead 
provide 
services 
such 
as 
network 
or 
systems 
design 
and 
administration, 
software 
development, 
call 
center 
operations 
or 
help 
desk 
services, 
etc. 
In 
fact, 
less 
than 
four 
percent 
of 
IT 
workers 
work 
in 
the 
design, 
production 
or 
repair 
of 
computer 
equipment 
or 
hardware.16 
IT 
service 
workers 
are 
not 
eligible 
to 
receive 
the 
benefits 
that 
are 
made 
available 
to 
IT 
manufacturing 
workers. 


The 
Department 
of 
Labor 
notes 
that 
44% 
of 
all 
denials 
for 
TAA 
certification 
are 
due 
to 
that 
fact 
that 
the 
workers 
in 
question 
do 
not 
produce 
an 
article.17 
Historically, 
the 
main 
criterion 
for 
determining 
eligibility 
for 
TAA 
benefits 
has 
been 
the 
issue 
of 
tangibility. 
An 
item’s 
tangibility 
was 
used 
to 
determine 
whether 
an 
article 
was 
produced, 
and 
if 
it 
were 
determined 
that 
an 
article 
had 
indeed 
been 
produced 
(assuming 
all 
other 
conditions 
had 
been 
met), 
the 
worker 
would 
be 
certified 
as 
eligible 
to 
receive 
TAA 
benefits. 
However, 
in 
recent 
years, 
the 
logic 
behind 
the 
tangibility 
requirement 
has 
come 
into 
question. 
In 
practice, 
the 
Department 
of 
Labor 
has 
begun 
to 
certify 
workers 
involved 
in 
the 
production 
of 
certain 
intangible 
articles, 
including 
most 
types 
of 
computer 
software. 
Nonetheless, 
despite 
the 
recent 
inclusion 
of 
some 
software 
workers, 
the 
majority 
of 
those 
still 
denied 
eligibility 
as 
a 
result 
of 
not 
producing 
an 
article 
come 
from 
two 
industries,18 
airport-related 
services 
and 
business 


13 
Services 
Trade 
Fuels 
Growth 
of 
U.S. 
Economy. 
Office 
of 
the 
United 
States 
Trade 
Representative, 
Benefits 
of 
Trade 
– 
January 
2007. 
14 
Ibid. 
15 
Plunkett's 
Infotech 
Industry 
Statistics; 
Plunkett's 
InfoTech 
Industry 
Almanac 
2007, 
Plunkett 
Research, 
Ltd. 
16 
According 
to 
the 
Bureau 
of 
Labor 
Statistics, 
in 
2005 
there 
were 
119,060 
workers 
employed 
in 
hardware-related 
occupations: 
Occupation 
codes 
51-2022: 
Electrical 
and 
Electronic 
Equipment 
Assemblers, 
subset 
Computer 
and 
Peripheral 
Equipment 
Manufacturing; 
49-2011: 
Computer 
[…] 
Repairers 
Subsets: 
Electronic 
equipment 
repair 
and 
maintenance 
& 
Computer 
systems 
design 
and 
related 
services; 
17-2061: 
Computer 
Hardware 
Engineers. 
May 
2005 
National 
Occupational 
Employment 
and 
Wage 
Estimates, 
United 
States. 
Bureau 
of 
Labor 
Statistics. 


http://www.bls.gov/oes/current/oes_nat.htm 


17 
Overview 
of 
Trade 
Adjustment 
Assistance 
(TAA) 
Program. 
U.S. 
Department 
of 
Labor, 
Employment 
& 
Training 
Administration. 
November 
15, 
2006. 
http://www.doleta.gov/tradeact/docs/ComprehensiveProgramOverview.pdf 


18 
Trade 
Adjustment 
Assistance: 
Changes 
to 
Funding 
Allocation 
and 
Eligibility 
Requirements 
Could 
Enhance 
States’ 
Ability 
to 
Provide 
Benefits 
and 
Services. 
United 
States 
Government 
Accountability 
Office, 
Report 
to 
Congressional 
Requesters. 
GAO-07-702 
(May 
2007). 


Copyright 
CompTIA 
2007. 
Updating 
Trade 
Adjustment 
Assistance 
for 
Today’s 
Technology 
Workforce 



services, 
which 
includes 
the 
majority 
of 
non-software 
IT 
service 
workers. 
The 
Congressional 
Budget 
Office 
(CBO) 
estimates 
that 
extending 
TAA 
coverage 
to 
service 
workers 
would 
allow 
around 
90,000 
additional 
American 
IT 
services 
workers 
to 
receive 
training 
and 
other 
benefits 
under 
TAA.19 


A 
CBO 
scoring 
completed 
in 
2005 
during 
the 
109th 
Congress 
put 
the 
total 
cost 
of 
extending 
TAA 
coverage 
to 
service 
workers 
at 
$2.5 
billion 
over 
the 
ten-year 
period 
from 
2006-2015, 
or 
$250 
million 
per 
year. 
$1.9 
billion 
would 
correspond 
to 
increased 
income 
support 
payments 
for 
service 
workers, 
while 
the 
remaining 
$0.6 
billion 
would 
be 
for 
costs 
related 
to 
TAA 
training 
for 
service 
workers. 


Thus, 
extending 
TAA 
coverage 
to 
service 
workers 
would 
require 
authorizations 
for 
TAA 
training 
to 
be 
raised 
from 
the 
current 
$220 
million 
to 
$280 
million. 
In 
the 
President’s 
proposed 
FY 
2008 
budget, 
which 
does 
not 
account 
for 
the 
extension 
of 
TAA 
benefits 
to 
service 
workers, 
funds 
made 
available 
for 
training 
under 
TAA 
are 
the 
same 
as 
those 
appropriated 
in 
FY 
2007.20 
Failure 
to 
increase 
TAA 
funds 
even 
to 
account 
for 
inflation 
has 
been 
criticized 
by 
labor 
unions21 
and 
the 
media 
as 
debilitating 
an 
already 
weak 
tool. 
As 
a 
recent 
New 
York 
Times 
editorial 
noted: 
“Without 
adequate 
training 
funds, 
TAA 
becomes 
little 
more 
than 
extended 
UI.”22 


The 
Department 
of 
Labor, 
for 
its 
part, 
offers 
a 
much 
different 
assessment 
of 
the 
current 
financial 
state 
of 
TAA 
training 
funds. 
According 
to 
the 
DoL, 
each 
year 
since 
the 
cap 
on 
TAA 
training 
funds 
was 
raised 
in 
2003 
has 
ended 
with 
a 
surplus 
of 
funds 
available 
for 
distribution. 
DoL 
officials 
indicate 
that 
actual 
TAA 
training 
expenditures 
in 
FY 
2006 
reached 
$159 
million, 
leaving 
an 
accumulated 
surplus 
of 
funds 
available 
to 
states 
for 
TAA 
training 
programs 
of 
over 
$450 
million.23 


Disputes 
over 
availability 
of 
funds 
aside, 
training 
programs 
are 
widely 
viewed 
as 
an 
effective 
means 
for 
ensuring 
the 
continued 
success 
and 
competitiveness 
of 
the 
US 
technology 
workforce. 
With 
a 
growing 
shortage 
of 
skilled 
IT 
workers 
in 
the 
US 
economy, 
training 
programs 
allow 
America’s 
IT 
workers 
to 
update 
their 
skills 
and 
add 
value 
to 
the 
US 
economy. 


Lastly, 
it 
is 
important 
to 
note 
that 
not 
everyone 
believes 
that 
increasing 
training 
funds 
would 
be 
beneficial. 
In 
a 
related 
policy 
brief, 
The 
Institute 
for 
International 
Economics 
(IIE), 
for 
example, 
contends 
that 
the 
training 
programs 
themselves 
are 
ineffective, 
as 
workers 
have 
no 
guarantees 
of 
employment 
after 
they 
finish 
training 
programs. 
24 
According 
to 
the 
theory 
put 
forth 
by 
the 
IIE, 
on-the-job 
training 
or 
supplemental 
programs 
paid 
for 
by 
workers 
would 
be 
more 
effective. 


19 
Congressional 
Budget 
Office 
Cost 
Estimate. 
S. 
1309: 
Trade 
Adjustment 
Assistance 
Equity 
for 
Service 
Workers 
Act 
of 
2005, 
September 
19, 
2005. 
20 
Budget 
of 
the 
United 
States 
Government, 
Fiscal 
Year 
2008. 
Office 
of 
Management 
and 
Budget, 
March 
2007. 


http://www.whitehouse.gov/omb/budget/fy2008/ 
21 
AFLCIO 
Bushwatch: 
http://www.aflcio.org/issues/bushwatch/ 
22 
A 
Bipartisan 
Trade 
Policy. 
The 
New 
York 
Times 
Editorial, 
February 
2, 
2007. 
23 
Department 
of 
Labor 
records 
obtained 
by 
CompTIA 
show 
a 
surplus 
of 
$453,214,867 
in 
TAA 
funds 
available 
for 
distribution. 
24 
Lori 
G. 
Kletzer 
and 
Robert 
E. 
Litan, 
"A 
Prescription 
to 
Relieve 
Worker 
Anxiety," 
International 
Economics 
Policy 
Brief, 
Institute 
for 
International 
Economics, 
March 
2001. 


Copyright 
CompTIA 
2007. 
Updating 
Trade 
Adjustment 
Assistance 
for 
Today’s 
Technology 
Workforce 



2. 
ATAA 
Eligibility 
A 
2006 
U.S. 
Government 
Accountability 
Office 
report25 
highlights 
data 
from 
case 
studies 
of 
trade-affected 
workers 
and 
their 
experiences 
after 
participating 
in 
TAA 
and 
ATAA. 
State 
officials 
surveyed 
noted 
limited 
participation 
in 
the 
wage 
insurance 
benefit. 
Respondents 
indicated 
several 
reasons 
for 
low 
participation, 
including 
not 
being 
aware 
of 
the 
program, 
unwillingness 
to 
forfeit 
TAA 
training 
benefits 
in 
order 
to 
receive 
the 
ATAA 
wage 
insurance 
benefit 
and 
inability 
to 
find 
another 
job 
within 
the 
six-month 
period 
allowed 
by 
ATAA; 
while 
the 
age 
requirement 
(50 
years 
or 
older) 
to 
participate 
in 
ATAA 
excluded 
some 
workers. 


The 
most 
vocal 
opposition 
to 
ATAA 
wage 
insurance 
comes 
from 
labor 
unions 
and 
other 
organized 
labor 
groups. 
They 
allege 
that 
ATAA 
benefits 
encourage 
workers 
to 
take 
inferior 
jobs 
and, 
in 
their 
view, 
ATAA 
is 
therefore 
not 
in 
the 
best, 
long-term 
interest 
of 
the 
worker 
or 
his/her 
career. 
According 
to 
Thea 
Lee, 
policy 
director 
at 
the 
A.F.L.-
C.I.O., 
“It’s 
basically 
about 
getting 
workers 
to 
take 
bad 
jobs 
quickly.”26 


Conversely, 
the 
Hamilton 
Project, 
as 
part 
of 
The 
Brookings 
Institution, 
supports 
the 
principle 
of 
wage 
insurance 
and 
other 
social 
protections 
to 
partially 
compensate 
workers 
who 
take 
lower-paying 
jobs 
to 
reenter 
the 
workforce 
more 
quickly. 
To 
that 
end, 
The 
Hamilton 
Project 
has 
put 
forth 
myriad 
proposals, 
including 
universal 
wage-
loss 
insurance 
programs 
and 
so-called 
temporary 
earnings 
replacement 
accounts.27 


3. 
Industry-wide 
certifications 
The 
basic 
premise 
behind 
industry-wide 
certifications 
is 
a 
simplification 
of 
the 
certification 
process 
in 
certain 
cases, 
providing 
a 
presumable 
benefit 
of 
the 
Department 
of 
Labor 
in 
the 
form 
of 
fewer 
petitions 
to 
be 
processed, 
and 
to 
potential 
TAA 
participants 
who 
can 
forego 
the 
certification 
process 
once 
their 
entire 
industry 
has 
been 
certified. 


The 
Department 
of 
Labor, 
however, 
considers 
that 
the 
potential 
benefits 
of 
industry-
wide 
certifications 
would 
not 
justify 
the 
costs. 
Moreover, 
the 
DoL 
believes 
the 
current 
requirement 
for 
filing 
a 
petition 
for 
each 
affected 
group 
of 
workers 
serves 
a 
critical 
function 
in 
connecting 
state 
and 
local 
service 
providers 
to 
the 
workers. 
Asserting 
that 
such 
a 
system 
could 
prove 
detrimental 
to 
the 
Department 
and 
to 
workers, 
the 
Department 
of 
Labor 
believes 
that 
TAA 
petitions 
should 
continue 
to 
be 
considered 
on 
the 
basis 
of 
individual 
worker 
groups. 


4. 
Health 
Coverage 
Tax 
Credit 
(HCTC) 
Participation 
since 
2002 
in 
the 
Health 
Coverage 
Tax 
Credit 
has 
been 
historically 
low. 
In 
the 
same 
2006 
GAO 
report 
mentioned 
earlier, 
participation 
in 
the 
HCTC 
amongst 
the 
workers 
in 
all 
5 
groups 
did 
not 
exceed 
12%.28 
The 
GAO 
attributes 
this 
low 


25 
Trade 
Adjustment 
Assistance: 
Most 
Workers 
in 
Five 
Layoffs 
Received 
Services, 
but 
Better 
Outreach 
Needed 
on 
New 
Benefits. 
United 
States 
Government 
Accountability 
Office, 
Report 
to 
Congressional 
Requesters. 
GAO-06-043 
(January 
2006). 
26 
Why 
Wage 
Insurance 
Is 
Dividing 
Democrats. 
Edmund 
L. 
Andrews, 
The 
New 
York 
Times, 
March 
18, 
2007. 
27 
See: 
Fundamental 
Restructuring 
of 
Unemployment 
Insurance: 
Wage-Loss 
Insurance 
and 
Temporary 
Earnings 
Replacement 
Accounts. 
The 
Hamilton 
Project, 
Policy 
brief 
No. 
2006-05, 
September 
2006. 
28 
Trade 
Adjustment 
Assistance: 
Most 
Workers 
in 
Five 
Layoffs 
Received 
Services, 
but 
Better 
Outreach 
Needed 
on 
New 
Benefits. 
United 
States 
Government 
Accountability 
Office, 
Report 
to 
Congressional 
Requesters. 
GAO-06-043 
(January 
2006). 


Copyright 
CompTIA 
2007. 
Updating 
Trade 
Adjustment 
Assistance 
for 
Today’s 
Technology 
Workforce 



participation 
to 
a 
lack 
of 
knowledge 
about 
the 
program: 
almost 
half 
of 
the 
workers 
surveyed 
told 
GAO 
surveyors 
that 
they 
were 
not 
aware 
that 
such 
a 
benefit 
was 
available 
to 
them. 
Furthermore, 
over 
half 
of 
all 
respondents 
indicated 
that, 
despite 
the 
65% 
credit, 
they 
still 
could 
not 
afford 
their 
premiums.29 


5. 
Better 
data 
from 
Department 
of 
Labor 
and 
States 
to 
evaluate 
TAA. 
By 
the 
Department 
of 
Labor’s 
own 
estimations, 
data 
on 
TAA 
implementation 
and 
participation 
are 
incomplete 
and 
quite 
possibly 
not 
entirely 
accurate. 
An 
April 
2006 
GAO 
report 
showed 
that 
only 
half 
the 
states 
surveyed 
(23 
of 
46) 
reported 
that 
the 
data 
they 
submit 
includes 
all 
exiting 
TAA 
participants.30 
The 
Department 
of 
Labor, 
for 
its 
part, 
has 
no 
real 
authority 
to 
sanction 
states 
for 
not 
complying 
or 
for 
providing 
poor-quality 
data. 


S. 
122 
and 
its 
companion 
bill 
in 
the 
House, 
H.R. 
910, 
would 
establish 
a 
Trade 
Adjustment 
Assistance 
Accountability 
Act, 
which 
aims 
to 
achieve 
greater 
accountability 
by 
requiring 
the 
Department 
of 
Labor 
to 
collect 
data 
and 
publish 
an 
annual 
report 
including 
certain 
key 
data 
on 
TAA 
implementation. 
The 
bills 
would 
also 
require 
the 
Department 
of 
Labor 
to 
ensure 
and 
report 
on 
proper 
State 
participation 
in 
data 
collection, 
establishing 
effective 
internal 
controls 
and 
other 
monitoring 
measures, 
while 
stopping 
short 
of 
granting 
real 
authority 
to 
the 
Department 
to 
sanction 
states 
that 
do 
not 
comply. 
6. 
Outreach 
to 
inform 
potential 
participants 
of 
available 
benefits 
A 
lack 
of 
knowledge 
among 
potential 
participants 
regarding 
certain 
TAA 
and 
ATAA 
benefits 
has 
been 
cited 
in 
several 
GAO 
reports 
referenced 
in 
various 
sections 
of 
this 
study. 
While 
the 
same 
reports 
indicate 
that 
the 
state 
employees 
who 
administer 
unemployment 
benefits 
claimed 
they 
had 
indeed 
informed 
workers 
of 
the 
programs, 
it 
is 
difficult 
to 
determine 
to 
what 
extent 
information 
is 
reaching 
the 
desired 
audience. 


The 
issue 
of 
informing 
potential 
TAA 
participants 
of 
the 
benefits 
available 
to 
them 
through 
outreach 
programs 
was 
raised 
in 
the 
Trade 
Act 
of 
2002. 
In 
its 
Sense 
of 
Congress 
in 
Section 
125(b) 
of 
the 
Trade 
Act 
of 
200231 
, 
Congress 
indicates 
that 
the 
Department 
of 
Labor: 


[…] 
should 
provide 
more 
specific 
information 
about 
benefit 
allowances, 
training, 
and 
other 
employment 
services, 
and 
the 
petition 
and 
application 
procedures 
(including 
appropriate 
filing 
dates) 
for 
such 
allowances, 
training, 
and 
services, 
under 
the 
trade 
adjustment 
assistance 
program 
[…] 
to 
workers 
who 
are 
applying 
for, 
or 
are 
certified 
to 
receive, 
assistance 
under 
that 
program, 
[…]. 


29 
Trade 
Adjustment 
Assistance: 
Most 
Workers 
in 
Five 
Layoffs 
Received 
Services, 
but 
Better 
Outreach 
Needed 
on 
New 
Benefits. 
United 
States 
Government 
Accountability 
Office, 
Report 
to 
Congressional 
Requesters. 
GAO-06-043 
(January 
2006). 


30 
Trade 
Adjustment 
Assistance: 
Labor 
Should 
Take 
Action 
to 
Ensure 
Performance 
Data 
Are 
Complete, 
Accurate, 
and 
Accessible. 
United 
States 
Government 
Accountability 
Office, 
Report 
to 
the 
Committee 
on 
Finance, 
U.S. 
Senate. 
GAO06-
496 
(April 
2006). 
31 
http://thomas.loc.gov/cgi-bin/query/F?c107:8:./temp/~c107WlFJI1:e43861: 


Copyright 
CompTIA 
2007. 
Updating 
Trade 
Adjustment 
Assistance 
for 
Today’s 
Technology 
Workforce 



Real-worldExample:HenrySmith,age43*
OnSeptember12,2005,HenrySmith,achipassemblylineworkerfromDesMoines,Iowa,waslaidofffromtheAcme,Inc.
factoryinwhichhehadworkedfor22years.Themasslay-offincludedsome50workersfromthesamefactory;Acmeinformedtheworkersthattheirjobswerebeingtransferredtoanothercountry.
OnSeptember21,Acmesubmittedapetitiononbehalfofthetrade-affectedworkerstotheUSDepartmentofLaborandtheStateTAACoordinatorforIowainDesMoines.
36daysafterthepetitionwasreceived,andwithinthe40-
daywindowallowedbylaw,theDepartmentofLaborissuedagroupcertificationtotheAcmeworkers,andcommunicateditsdecisiontoIowaWorkforceDevelopment.
IowaWorkforceDevelopmentcontactedHenryafewdayslater,andinformedhimoftheDepartmentofLabor’sfavorabledecision,andaskedwhenhewantedtocometoaOne-StopCareerCentertodeterminehiseligibilityforTAAandATAAandapplyforservicesandbenefits.
SinceHenryisunder50,thestateemployeesinformedhimthathewasnoteligibleforbenefitsunderATAA.Theyinformedhimthathewaseligibleforthefollowing:
•26weeksofIowastateUnemploymentInsurance(UI)
benefits,
•Upto104weeksofTAAIncomesupportafterUIbenefitscease,providedheobtainsaTAAtrainingwaiverorenrollsinTAA-approvedtraining,
•TrainingunderTAA,
•HealthCoverageTaxCredit.
HenrybegantocollectUIbenefits,andsigneduptohave65%ofhishealthcoveragepremiumspaiddirectlytohishealthcareprovideronhisbehalfthroughtheadvancepaymentoptionoftheHealthCoverageTaxCrdit.AstheOne-StopCareerCenterbeginstohelphimseekanewjob,HenryisbeginningtothinkaboutwhattrainingprogramshemightbeinterestedintosubmittotheTAArepresentativeattheOne-
StopCareerCenterforapproval.
*TheinformationprovidedinthisboxisfictitiousandisonlyintendedtodemonstratetheusualtimelineandprocesstoapplyforandreceivebenefitshroughTAAandATAA.
Real-worldExample:HenrySmith,age43*
OnSeptember12,2005,HenrySmith,achipassemblylineworkerfromDesMoines,Iowa,waslaidofffromtheAcme,Inc.
factoryinwhichhehadworkedfor22years.Themasslay-offincludedsome50workersfromthesamefactory;Acmeinformedtheworkersthattheirjobswerebeingtransferredtoanothercountry.
OnSeptember21,Acmesubmittedapetitiononbehalfofthetrade-affectedworkerstotheUSDepartmentofLaborandtheStateTAACoordinatorforIowainDesMoines.
36daysafterthepetitionwasreceived,andwithinthe40-
daywindowallowedbylaw,theDepartmentofLaborissuedagroupcertificationtotheAcmeworkers,andcommunicateditsdecisiontoIowaWorkforceDevelopment.
IowaWorkforceDevelopmentcontactedHenryafewdayslater,andinformedhimoftheDepartmentofLabor’sfavorabledecision,andaskedwhenhewantedtocometoaOne-StopCareerCentertodeterminehiseligibilityforTAAandATAAandapplyforservicesandbenefits.
SinceHenryisunder50,thestateemployeesinformedhimthathewasnoteligibleforbenefitsunderATAA.Theyinformedhimthathewaseligibleforthefollowing:
•26weeksofIowastateUnemploymentInsurance(UI)
benefits,
•Upto104weeksofTAAIncomesupportafterUIbenefitscease,providedheobtainsaTAAtrainingwaiverorenrollsinTAA-approvedtraining,
•TrainingunderTAA,
•HealthCoverageTaxCredit.
HenrybegantocollectUIbenefits,andsigneduptohave65%ofhishealthcoveragepremiumspaiddirectlytohishealthcareprovideronhisbehalfthroughtheadvancepaymentoptionoftheHealthCoverageTaxCrdit.AstheOne-StopCareerCenterbeginstohelphimseekanewjob,HenryisbeginningtothinkaboutwhattrainingprogramshemightbeinterestedintosubmittotheTAArepresentativeattheOne-
StopCareerCenterforapproval.
*TheinformationprovidedinthisboxisfictitiousandisonlyintendedtodemonstratetheusualtimelineandprocesstoapplyforandreceivebenefitshroughTAAandATAA.
Copyright 
CompTIA 
2007. 
Updating 
Trade 
Adjustment 
Assistance 
for 
Today’s 
Technology 
Workforce 



U.S. 
Public 
Policy 
515 
2nd 
Street, 
NE 
Washington, 
DC 
20002 
Phone: 
202.543.3003 
Fax: 
202.543.3008 
http://www.comptia.org/issues/us.aspx 
uspublicpolicy@comptia.org 
Copyright 
CompTIA 
2007. 
Updating 
Trade 
Adjustment 
Assistance 
for 
Today’s 
Technology 
Workforce