Secretary of Labor Elaine L. Chao

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Remarks to the Associated Builders and Contractors
Hyatt Regency Hotel
Washington, D.C.
June 5, 2001

Good morning, and thanks so much for that warm welcome.

Thank you, Henry Kelly, Bill Spencer and Kirk Pickerel for inviting me. It's great to have this chance to be here today and talk with all of you.

This is a great organization, representing more than 23,000 members across the country who are contractors, sub-contractors and suppliers to the merit-shop construction industry.

And I'm especially pleased to be here today with the newest member of my staff, a fine young woman that ABC was kind enough to let me have — Jennifer Jameson. Thanks for letting me have her! She'll be a great addition to my Congressional affairs staff. And I really appreciate the opportunity to meet with all of you today, because groups like you are important partners in my efforts to modernize the American workplace and bring workers and employers together to meet the challenges of the 21st century workforce.

At the Department of Labor, we are working to help keep America's economy the strongest in the world.

I have challenged my staff — and I extend this challenge to each of you — to think outside of the box so that we work together to can change the way workforce issues have been traditionally approached.

I want us to work together to solve problems, not just to study them. As I see it, our job at the Department of Labor is to anticipate changes and enable our workforce to adapt to them.

A glance at the history of the Department of Labor is telling: In 1903, President Theodore Roosevelt created the Department of Commerce and Labor, a single agency dedicating pursuing those interests simultaneously.

He believed that what was good for one ought to be good for the other.

And while I understand why the two areas were ultimately separated, I do wonder if we haven't lost sight of the close and vital link between the interests of commerce and labor.

The regulatory agenda has often been at odds with the promotion of economic expansion and job creation.

While the maze of regulations governing everything from wages to employee rights and worker safety answered many needs in the last century — and still serves, in many instances, a valid purpose today — it doesn't always offer the flexibility that both businesses and workers need to fully take advantage of a changing economic climate.

We need to look for ways to make our economy more responsive to changing economic conditions, while preserving the important protections afforded by our labor laws.

The American economy was reshaped at the close of the 20th century, largely by the spread of free trade and the growth of technology.

This New Economy presents unprecedented opportunities: new, well-paying jobs with limitless potential for advancement. The ironic problem is that often employers can't find workers qualified to fill the jobs that they've created.

Workers must be prepared for change and have access to opportunities to acquire new skills throughout their working careers.

Employers will need to continually adapt their workplaces to accommodate the need for lifelong learning, changes in technology, and an increasingly diverse group of employees.

Employers have learned to accommodate different languages and work schedules in an effort to attract and retain workers with specific skills and knowledge.

But the scarcity of qualified workers will be exacerbated by the inevitable shrinking of the workforce as the baby boomers head into retirement in the next two decades.

We have a greater incentive than ever before to explore new frontiers that will bring more people into the workforce.

The disabled are one such frontier.

President Bush recently committed $1 billion to his New Freedom Initiative, in order to ensure that all Americans with disabilities have a chance to pursue the American Dream — to use more of their own skills and make more of their own choices.

There are nearly 2,500 companies working to bring assistive technologies to Americans with disabilities.

Many employers, however, can't afford the capital investments necessary to hire disabled workers. President Bush's New Freedom Initiative will help bridge the gap between disabled workers and employers who want to hire them.

What used to be a moral imperative — reaching out to those who are disadvantaged and under-employed — is fast becoming an economic imperative as well. We cannot afford to leave any human resource undeveloped or underutilized.

If we fail to develop all of our human resources, the shrinking workforce will place an enormous strain on the federal budget and our economy.

Working taxpayers will be forced to shoulder an increasing burden in order to enable us to sustain current levels of government services and meet our obligations to the large waves of retirees.

We must meet these challenges head on and identify solutions in anticipation of, rather than in reaction to, the changing marketplace and workforce.

To accomplish this will require foresight and cooperation among a broad range of stakeholders, many of whom are not used to working on the same side of most issues.

I believe that by working together, we can redefine and recapture the Labor Department's crucial role in promoting economic growth.

Together, we must identify the common ground on which we can develop the 21st century workforce and maximize the potential of every American worker.

If we don't, America's economy — both employers and employees — will pay the price.

Far too often, I'm afraid, rather than finding new, innovative solutions for employers and their employees, government has relied on antiquated methods for delivering workforce training and job placement services.

We need fresh approaches that foster innovation and take advantage of new technologies.

I am committed to creating a new Department of Labor for the 21st century — a Department of the Workforce, a department that is more creative and inclusive in its approach to anticipating and responding to the very real challenges we face both today and tomorrow.

As a first step in this mission, my first act as Secretary was to open a new Office of the 21st Century Workforce.

During the years ahead, this office will work with a broad array of constituents to identify the best solutions for shoring up the skills gap, responding to future labor shortages, and making the workplace of the 21st century more flexible and connected to the way people really work today.

And on June 20th, the Department of Labor will host a Summit on the 21st Century Workforce here in Washington.

I'm delighted that ABC will be joining us at the Summit, and I look forward to your participation in our common quest for innovative approaches to timeless problems.

We want to hear from leaders in economics, education, business and labor.

This summit will set the stage for how the Department of Labor will act on behalf of our workforce and how we can work together to ensure a highly skilled, vibrant workforce ready to meet the challenges of the new century.

The Department must lead the way in developing more flexible, innovative rules that allow workers and their employers to custom-design work arrangements and thus tap the full potential of every American worker.

And, working with other agencies and the private sector, the Department must prepare those workers to fully participate in this dynamic new economy.

For every American who's ready and willing to work, I will work to ensure there's a job in a safe workplace that will enable them to lead productive and fulfilling lives.

If we work together and look ahead, we can create the open and flexible environment where opportunity will flourish, and we will succeed.

Thank you for inviting me here today. There is much we can accomplish together and I look forward to working with you.