Action Brief - Wagner Peyser Funded Activities Under WIA

The AFL-CIO strongly supports the concept that State Employment Service agencies must continue to administer and operate Wagner Peyser services. Using private entities to perform the services currently provided by ES could result in standards not being upheld and in system goals not met.

Union Proposals in Ohio

Rather than segregate Employment Services (ES) functions, the approach of the union (OCSEA/ AFSCME local 11) was to combine the claims and ES categories into a new position called customer service representative. While difficult for the workers in the short-term, in the long-term this approach made it possible in the long-run to prevent contracting out of services, especially the claims positions which are often viewed as most vulnerable to bidding by private contractors. Unfortunately the State of Ohio is now in the process of devolving these state positions to the county level.

Three states, Massachusetts, Michigan, and Colorado are running "pilot programs", sanctioned by the U.S. Department of Labor, that are providing Wagner Peyser services either through the counties or some privatized entity. These are specific exclusions from the general requirement, based on a circuit court decision and clarified in the Final WIA Regulations - that the Department intends that the term "merit-staff employees" means state merit-staff employees.²

Role of labor representatives on WIBs

Many Labor representatives who serve on state and local workforce boards assisted in the drafting of State Plans. They are in position to review the language in these Plans on Wagner Peyser and other public employee issues. In addition, as a required One-Stop partner, the UI program has the right to have a representative on the local workforce board.³ Some states have questioned whether or not this representative can be a public employee because of conflict of interest issues, but many are allowing public employees to serve in this capacity.

2. Privatization of Public Services, Mergers and Contracting Out

In Ohio, Michigan, Massachusetts and elsewhere, effective labor campaigns to defeat privatization efforts and protect workers disrupted by the transition to One-Stops have focused on mobilizing the community and making a strong documented case for the value of a publicly-run workforce development system.

In Ohio, the Save Our Services organizing and education campaign included valuable documentation of the merits and cost effectiveness of a publicly-run system. "Developing a World Class Workforce system in Ohio: OCSEA AFSCME Perspective." Specific tactics to address the job security of public sector workers are also being developed.

In Los Angeles, Milwaukee, Massachusetts and elsewhere, where private sector temp agencies and non-profits have bid for placement and one-stop contracts, there has been significant opposition by unions and community groups. The impact of these campaigns has been especially effective in documenting the failings of these private sector efforts, including poor quality of services, cost overruns and a lack of long-term commitment to the community.