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extraordinarily large area, that the rate of unemployment is relatively light in that area, and yet there are unquestionably significant pockets of unemployment in that Greater Boston labor market area, particularly among minority groups.
Specifically how do you cope with this kind of situation if your policy dictates that you apportion by States and then you look at the Jabor market in areas?
What kind of priorities do you use in identifying smaller pockets of high unemployment, in healthy labor areas, and what kind of priorities do you give to develop programs among the minority groups ? I think that the figures that you have given for OJT programs for minority groups are not dramatic or overly impressive.
Mr. MURPHY. I will quickly respond. We have a contract with the Urban League in Boston. We also have a contract with the Action for Boston Community Development (ABCD) in Boston. Those are the two contracts we have, and they are, of course, working closely with the minority groups, in Dorchester-I will not attempt to name the areas, but I will ask my colleague to amplify on that.
Mr. PRZELOMSKI. Early in our efforts, the program emphasis was more oriented to the industry, the job market. At the direction of the Secretary we have actually redirected the program these past few months and our emphasis now is more for programing for people, so we can visualize in the finishing of this fiscal year and the next fiscal year the programs primarily now will be structured for the needs of the people of the area, working very closely with the employment service and the school people, determining what these needs are, and then developing specific programs for those needs instead of just developing programs for the industry and hoping that the people will fit it as the programs are developed.
So, we feel that about 60 percent of our trainees, and our funds probably, will be spent in this direction; approximately 40 percent will be spent in the regular program and the upgrading, which is an area which we expect more emphasis in next year, too. But it will be more of programing for people than just programing for the job market. Therefore, I think there will be a closer relationship with the community groups and with the people so that we can develop the right kind of programs for people that need this.
Senator KENNEDY Of Massachusetts. In that consideration you are giving priority to minority groups?
Mr. PRZELOMSKI. Yes, and the hard core. We actually have a program emphasis.
Secretary WIRTZ, Mr. Chairman, these figures are relevant. I agree with you that 20 percent is not only not dramatic, it is probably too low in the long run, but we are talking about meeting this problem at the point of actual employment, which is the hardest point or the furthest along the line here.
In the neighborhood youth program our nonwhite percentage is 47 percent; in the institutional training programs where there is perhaps more administrative flexibility on this, it is between 28 and 30 percent as far as the nonwhite is concerned.
This is the lowest figure and it reflects both the administrative considerations and the problems which rise at the point of actual employment, not because of discrimination but because of the accumulated disadvantage which we have to clear out at these early steps.
At this point in the program, the nonwhite percentage is properly higher in those programs which involve the basic training and the earlier training than in those where we are actually moving into employment. It is just the natural lag that we face here in that 20 percent figure.
Senator KENNEDY of Massachusetts. Finally, you have previously mentioned a number of the different associations that you are contracting with. · I would like to return to a point which I suggested earlier and which my colleague, Senator Randolph, stressed. Many of us are interested in what can be done to encourage the smaller industries that are attempting to take advantage of these programs but do not have a large organizational structure, which is probably more convenient and perhaps in some instances more efficient.
I know that in West Virginia and generally throughout New Eng, land, we are an area of small shopkeepers. So this is a problem and I know that you are giving it consideration. We certainly applaud those additional efforts.
Senator RANDOLPH. Mr. Chairman, could I comment? I meant to do it before. You spoke of now the two pages. What were the number of pages prior to the change you just made?
Mr. MURPHY. About 15.
Senator RANDOLPH. This is something unusual in Government; is it not? And I think
Mr. MURPHY. I hope we are on safe ground though, that is all. No, we have checked it out with our solicitors and attorneys andSenator RANDOLPH. I think that is
Secretary WIRTZ. That is half the answer. The other half is to work through these associations, the two things together.
Senator RANDOLPH. Yes, sir.
Senator KENNEDY of Massachusetts. Are you able to help informed associations coordinate on-the-job training programs and things like that?
Secretary WIRTZ. I think we have so far used established institutions. Now the answer to the last two points is reflected in our current conversations with the plans for progress people. That is the group of large corporations especially interested in minority group participation, and we are talking with them right now about the possibility of their becoming—if they are incorporated, as they are trying to beof their becoming a special association for the purpose of meeting exactly the needs to which you have referred, and they could combine those two sets.
That would be the first association which has been set up especially for this purpose in this country.
Senator KENNEDY of Massachusetts. Mr. Secretary, I want to thank you, Mr. Murphy, Mr. Przelomski, and the members of your staff for coming here this morning, and for the very helpful and informative examination of the problem which is of great interest to this committee.
Senator RANDOLPH. Senator, I wish to associate myself with your remarks.
Secretary WIRTZ. Thank you.
Senator KENNEDY of Massachusetts. The subcommittee stands adjourned until next Thursday.
(Whereupon, at 11:15 a.m., the hearing adjourned, to reconvene Thursday, February 24, 1966.)
WEDNESDAY, FEBRUARY 23, 1966
Senator KENNEDY of Massachusetts. The subcommittee will come
This morning we continue the hearings of the Subcommittee on Employment and Manpower in regard to on-the-job training and the NUTA.
We are delighted to have as our first witness this morning Mr. Wilbur E. Landis, the manager of the Technical Education Department of the Chrysler ('orp., Detroit, Mich.
Jr. Landis, if you would be kind enough to take the chair. We have pour testimony here. You may read your testimony or make any comments.
STATEMENT OF WILBUR E. LANDIS, MANAGER, TECHNICAL
viding them with the best in high-quality personal transportation. We never forget that providing this vital service is our primary responsibility, and we are always cognizant of the fact that the caliber of this service is totally dependent on the individual efforts of welltrained employees.
From time to time an organization like ours receives an opportunity to serve in an extra way. And whenever an appropriate opportunity for public service has come our way, we at Chrysler have stepped up to our responsibility.
Many businessmen have been saying that the private sector of the economy should assume the principal burden of providing job opportunities and the job training that will help to generate more of those opportunities in this period of change. These same businessmen have been saying that Federal, State, and local governments and institutions can help business carry this responsibility by creating the right climate for business investment and growth. They have been saying, in other words, that a more cordial and creative partnership between business and Government is both possible and necessary. The on-thejob training programs under MDTA are excellent examples of what this kind of partnership can accomplish.
Chrysler Corp. has had more experience and received more recognition in developing preemployment training programs under MDTA, but today I will confine my remarks to on-the-job training of employees.
The major program here, of course, for the corporation is apprenticeship training Recent expansion of our production has created a need for additional skilled tradesmen who are not readily available on the open market. Since last year we have been in the process of adding 350 apprentices in 17 different trades in 6 States under a 4-year indenture program. Upon completion of his indenture, the appren. tice is placed with accumulated seniority as a journeyman at the midpoint of the rate range in his specific trade. Under the MDTA, the Government gives financial assistance for approved and validated training expenses for the first year of this program only. Thereafter the cost is absorbed by Chrysler. In addition to that, naturally, we are paying wages at accumulated rates.
To add 350 apprentices to the roll required Chrysler, in cooperation with the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America, to amend their national apprentice and apprentice standards agreement to provide that the ratio of journeymen to apprentices would be reduced from 1 to 8 to 1 to 5. This program clearly illustrates the need for cooperation between Government, industry, unions, and educational institutions as well as a mutual recognition of their respective roles to make such programs effective.
Another on-the-job training program of interest to this subcommittee is the automotive technician training program. Chrysler Corp. is the prime contractor under the MDTA, and already 428 dealers in 13 States are subcontractors in the program. By June, dealers in 22 States will have programs in operation.
It is planned to have 1,000 apprentices for a 3-year period under this program, and we are planning in cooperation with the Bureau of Apprenticeship and Training to sponsor an additional 1,000 apprentices under a similar program next year. They are employed on the job as apprentice general repairmen or apprentice auto body repairmen during the week and attend 4 hours of classroom instruction once a week, usually at a local high school at night. The program is partially funded by MDTA for its first year of operation, but thereafter each dealer will assume the full cost of training.
In addition to the apprenticeship program, Chrysler has requested approval by the U.S. Department of Labor, Bureau of Apprenticeship and Training, for a skill-improvement program that may ultimately train 2,000 of our present employees. This long-range program is designed to upgrade the skills of the present work force, enabling the successful employees upon completion to be better prepared to perform jobs where greater skill is required.
This program is designed to permit nonindentured apprentices
(1) Scarcity of skilled manpower in the journeyman categories in an expanding job market;
(2) Age of the present work force;
(3) Earlier retirement by many journeymen in the near future. In addition, it is our opinion that industry has a moral obligation to give the present work force an opportunity to improve its economic position by such training. As these employees are enrolled in the skill improvement program, their present jobs will be filled from the ranks of the underemployed and unemployed.
We have found the most significant benefits of on-the-job training programs under the MDTA to be the following:
(i) The trainee receives comprehensive training by actually performing the work for which he is being trained through a regular schedule of work processes that takes him through all phases of the work area. In addition, he receives 4 hours per week of broadly related academic training. If there were no MDTA Chrysler would undoubtedly, as it has in the past, continue its regular apprentice program, but not as many employees would be placed in the program, In addition, emphasis in training would be focused on developing temporary specialists instead of all-around journeymen. Manpower would have to be placed to operate specific tool machines, and thus lose the value of job rotation.
(2) Technical assistance in setting up courses of on-the-job instruction is available to companies upon request from the Bureau of Apprenticeship and Training of the U.S. Department of Labor. Such assistance creates a stronger bond between Government and industry in the common problem of training people.
(3) Financial assistance for certain expenses is available to companies having programs established under the act over and above the