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Speeches by Secretary Elaine L. Chao

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Remarks Prepared for U.S. Secretary of Labor Elaine L. Chao
U.S. Senate Republican Conference
Legislative Agenda to Create and Protect Jobs
Washington, DC
Monday, April 12, 2005

Thank you Senator Hutchison, Chairman Santorum and all the Members of the Senate who are here today.

Your call for a pro-growth agenda comes at a crucial time for our economy. We've had 22 straight months of job growth and more Americans are working than ever before. 3.1 million jobs have been created since the up tick in job growth began in June 2003. And the unemployment rate is 5.2%.

This kind of steady, consistent growth is great news for America's workers. But we all know that America faces many challenges in the worldwide economy. We need to retrain our workers and remake our companies so they can compete successfully, grow and create more jobs here at home.

The best way to do that, as the President has said many times, is to create the environment in which new jobs can be created.

You've already led the way by curbing law suit abuse through class action reform. I'm delighted that your impressive agenda includes reforming and reauthorizing the Workforce Investment Act (WIA).

The Administration has an ambitious proposal (WIA Plus) to remake this important worker training program into a client-centered powerhouse that helps more workers land high-skilled, good-paying jobs. The House has already passed WIA reform (H.R. 27) with some important reforms.

I look forward to working with Chairman Enzi, the HELP Committee, Republican Conference and Governors to incorporate the Administration's additional WIA reforms in the Senate.

We must improve the outcomes for workers by updating the design of the current Workforce Investment System. We know that a system with over a dozen different funding streams—each with separate rules, reports and definitions—is not effective in meeting the needs of individual workers. The current system is too focused on bureaucracy and processes. It should be more worker-centered and focused on better outcomes for the people it serves.

The principles underlying the President's reforms reflect a new vision and new approach to workforce investment that will bring the system into the 21st century and better serve our workers.

The first principle is to give state and local communities maximum flexibility to design a workforce investment system that meets their needs.

Second, in exchange for greater flexibility, this Administration will require greater accountability.

Third, multiple layers of bureaucracy eat up too much of the available resources. So this Administration proposes to spend more workforce investment system resources on actual worker training.

Fourth, this Administration proposes to create a more effective governance structure by enhancing the role of state and local officials.

Fifth, this Administration proposes to strengthen the One-Stop Career Center System.

Finally, this Administration proposes to enhance individual choice through Innovation Training Accounts. These accounts will allow individual workers to create their own customized training program, using a broad range of public and private training resources.

In addition to reforming the Workforce Investment System, we need to recognize that the world of work has changed. Workers need flexible workplace arrangements that allow them to balance work and family needs. And we owe it to workers to ensure that they have a safe workplace environment.

So, on behalf of this Administration, I look forward to working with the Conference on a comprehensive, pro-growth agenda for America's workers.

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