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Hammond, Reese, director of research and education, International Union
of Operating Engineers, AFL-CIO..
Co., accompanied by S. Vincent McCleary, assistant to director, person-
Churchill, Colin, secretary, Hospital Research & Educational Trust,
Chicago, Ill.; accompanied by Edward Weimer, staff member..
Co., Inc., prepared statement.--.
Felker, Merl, corporate director of personnel operations, Douglas Aircraft
Co., accompanied by S. Vincent McCleary, assistant to director, per-
City Bank of New York's monthly letter, August 1965..
1964," from the U.S. Department of Labor, Bureau of Labor Statis-
Economic Growth,” by Hon. Thomas B. Curtis, of Missouri, from
"Human Investment Credit," from "Toward Full Employment,'
committee print of Subcommittee on Employment and Manpower
Yale University, New Haven, Conn...
"Unemployment and Technological Change," from the Joint Economic
Committee Report, 1965-
Dubrow, Jordan, executive vice president, Major Chevrolet, Inc.,
Long Island, N.Y., to Senator Clark, Aug. 31, 1965.,
Joint Economic Report, 1965, excerpt from, March 17, 1965.
Prouty, Hon. Winston L., a U.S. Senator from the State of Ver-
EMPLOYER ENCOURAGEMENT FOR ON-THE-JOB
TUESDAY, SEPTEMBER 14, 1965
Committee staff members present: Stewart E. McClure, chief clerk; William C. Smith, subcommittee counsel; and Stephen Kurzman, minority counsel.
Senator CLARK. The subcommittee will be in session. Our subcommittee begins hearings today on employer job training: These hearings are part of this subcommittee's continuing policy of examining the manpower and employment problems of our Nation and of developing recommendations for legislation and administrative action to help assure the wise use of our human resources.
On-the-job training has a number of advantages as a training method. On-the-job trainees are provided with income and employment while in training Training opportunites are tied directly to the demand for labor in the occupation trained for, and a job is assured before the job applicant is selected. Public investment in plant and equipment is avoided along with the vocational education problem of keeping up with the latest equipment development.
This subcommittee and the Congress recognized these advantages when it provided for on-the-job training programs under the Manpower Development and Training Act of 1961. The subcommittee also recognized and recommended that additional ways be found to provide employer incentives to encourage industry to make greater use of on-the-job training. These hearings will follow through on the initial studies of the subcommittee in this area.
Personally, I have been quite disappointed at the effectiveness of the on-the-job training provisions in the manpower act. I recall when Ambassador Goldberg was Secretary of Labor, before he went to the Supreme Court, he and I in preparing hearings on the act had high hopes that on-the-job training would be one of the most effective ways, probably the most effective way of retraining individuals for useful employment.
It just has not worked out that way, and I am delighted that we are now going to take the time and effort in the subcommittee to find out
why and to see what we can do, if anything, either legislatively or by further prodding of administrators and management, union labor, and the other interested agencies, to see if we cannot step up the pace and effectiveness of on-the-job training.
The subcommittee will review existing efforts by the Federal Government and within industry to promote on-the-job training, and seek out recommendations for further Federal action in this area in an effort to determine whether new legislation or administrative action is needed to assure that the fullest possible appropriate use is made of direct employer training and retaining of the unemployed and underemployed.
As chairman of this subcommittee, at the beginning of this session of Congress, I suggested to the members of the subcommittee that each assume responsibility for specific areas of the subcommittee's concern. Each member would thus take the initiative in developing issues through hearings, making recommendations to the Congress and executive branch and introducing and processing legislation.
I am delighted that Senator Kennedy of Massachusetts has agreed to chair these hearings and carry on the subcommittee's work in this most important area with which we are concerned this morning. I am sure that as a result of these hearings, the Congress and the administration, State and local governments, industry and the public will have a greater understanding of the role which on-the-job training now plays and can in the future play in helping to provide the skilled manpower needed by industry.
As chairman of the subcommittee I shall take a keen personal interest as these hearings develop and hope to work right closely with you, Senator Kennedy, in preparing the report which I am sure you will want to make when the hearings have been concluded.
I have here an opening statement on behalf of Senator Prouty of Vermont, who could not be with us this morning, which he asked me to read, and I am happy to accede to his request.
This is Senator Prouty's statement:
STATEMENT OF HON. WINSTON L. PROUTY, A U.S. SENATOR FROM
THE STATE OF VERMONT
I am delighted that these hearings are being held today, under the distinguished chairmanship of Senator Kennedy of Massachusetts.
In recent years the Federal Government has quite properly taken an interest in the problem of improving the Nation's labor skills. But all too often the Congress has tended to concentrate on Governmentoperated programs, and to neglect the tremendous job training efforts carried on quietly by the American private enterprise system.
No one can be sure of the amount of money invested in training by private business. One writer, Professor Clark-parenthetically, not related to the subcommittee chairman-has cited the figure $17 billion. Another, Professor Machlup, estimated that about $2.7 billion is spent on informal on-the-job training by business each year, with another $1.5 billion in formal training. Whatever the actual figures may be, they are certainly very large.
I have long been interested in devising a way to promote the jobtraining efforts of private industry. Two years ago I asked the Library of Congress to prepare for me a study on tax incentives to