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September 7, 2008    DOL Home > Texas A&M News Article on Secretary Chao's Visit   

Labor Secretary Chao Says U.S. Workplace Is Changing

(Article reproduced by permission of Texas A&M University/University Relations Office.)

COLLEGE STATION - U.S. Secretary of Labor Elaine Chao said Friday that it is crucial to link workers, skills and jobs together if the United States is to have a competitive workforce in the 21st century.

“We’ve got to close the skills gap if we are to thrive and prosper as a nation,” Chao, the nation’s 24th labor secretary, said during a Bank of America Program on Volunteerism speech hosted by the George Bush Presidential Library Foundation at Texas A&M University.

“The high tech revolution has transformed the workplace and globalized our economy,” Chao added. “More and more, people work away from the office, connected by nothing more than a laptop or a cell phone. The average person will change jobs nine times over the course of his or her career.”

Chao, the first Asian-American woman ever appointed to a presidential cabinet post, said the Department of Labor’s Bureau of Labor Statistics projects there will be more significant job openings in various sectors, such as nursing, in the next few years. “There will be more than one million job openings for nurses by the year 2010, but yet health care companies are having a difficult time finding workers qualified for these jobs today,” she explained. “That’s why the Labor Department is partnering with private companies to create scholarships and other opportunities to train new health care workers.”

Chao said large, complex organizations are slow to change and this has created a big problem in the workplace over the past decade.

She said it is crucial that dislocated workers be trained with real-life skills; that performance measurement standards should net real-world results; and that collaborative programs be developed with local community groups and colleges to produce qualified workers. “The president of Cisco Systems, John Chambers, recently noted that 500,000 technology jobs in the U.S. will go unfilled next year due to a lack of qualified workers,” Chao added. Responding to a question from the audience about vocational training in high schools, Chao said such training has probably been sorely neglected.

“Not everyone wants to go to college, and not everyone should go to college,” Chao said. “We should encourage vocational programs. There are a number of professions, such as plumbers and auto mechanics, that pay very nice salaries.”

Regarding the West Coast dock workers work stoppage, Chao said the contract for more than 10,000 longshoreman expired in May and negotiations for a new contract fell apart about a month ago. Since then, the stoppage has cost about $1 billion per day in wages and revenue, and thousands of farmers and parts suppliers have been affected. “We have federal mediators trying to work out a solution,” Chao said. “It is interesting to note that today, only 9 percent of the workforce is unionized.”

Following her speech, a panel discussion of business leaders discussed volunteerism in the workforce. They included William Lorenz of Bank of America; Patricia Clapp of the Greater Dallas Chamber of Commerce; Ann Minnis of the Texas Instruments Foundation; and Justin Yancy of the Governor’s Business Council. Jane Close Conoley, dean of the College of Education at Texas A&M, served as moderator.

Lorenz said his company, Bank of America, encourages its associates to spend two hours a week “at schools to do volunteer work, and we pay for it. The critical areas of volunteerism are time, talent and money and all of us need to make sure we are using those areas in the best ways possible.”

Clapp said the successful Texas Scholars Program brings local business men and women into school classrooms and provides valuable mentor and role model qualities. “They urge students to stay in school and they show students how to create real budgets, and then compare those budgets to a minimum wage,” she said. “It is a real eye opener for students.”




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