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Related Links Blueprint: "Winning in the New Economy"



Ideas




The New Economy
Workforce Development

DLC | Blueprint Magazine | December 1, 1998
Making the New Economy Work
By Claude Fontheim

Table of Contents

As America becomes more integrated with the global economy and national boundaries diminish as barriers to trade and capital, we need new tools to enable working Americans to be upwardly mobile. A Wisconsin experiment provides an example of an innovative approach that communities nationwide would do well to imitate. In the early 1990s, southeastern Wisconsin - like much of the industrial Midwest - faced two pressing economic problems. At the same time that many low-skill jobs were disappearing to foreign competition, many other firms that were successfully introducing new technologies could not find enough workers with the necessary technical skills. The community responded by creating the Wisconsin Regional Training Partnership. This unique consortium joins industrial firms that agree to invest in worker training; labor unions and workers willing to develop new skills; and public agencies and academia, which coordinate and advise. Today, the partnership includes 46 companies employing 50,000 workers.

The Wisconsin Regional Training Partnership represents the kind of partnership between business, labor, and government that not only can address the inevitable dislocations caused by the New Economy but can help workers and companies prosper amid global competition. These partnerships give working Americans the tools to find jobs, keep jobs, and become upwardly mobile. However, very few existing programs do all three. Almost all of these partnerships make companies in their communities more competitive by supplying them with more highly skilled workers. Their missions should be combined to create a new breed of Community Workforce Partnerships.

Existing partnerships demonstrate the tools that Community Workforce Partnerships could combine under one roof. For example, the Garment Industry Development Corporation in New York helps garment manufacturers restructure and modernize to meet marketplace demands. It established a 9,500-square-foot training center to introduce small businesses to high-tech equipment and to help workers upgrade their skills, including their language skills. In Iowa, the Department of Economic Development fosters coordination among Iowa firms with similar training needs, such as those in the plastics industry, software development, and the recycling and insurance sectors - efforts particularly helpful to small firms. The department succeeds because it acts in concert with the business community. For example, the department sponsors the Iowa Mold-builders Apprenticeship Program - bringing together the Iowa Plastics Industry Consortium and the state's community colleges - to ensure that the demands for skilled labor in the state's rapidly growing plastics industry are met. Once hired by a participating company, students from around the state attend on-line classes two days a week via the Iowa Communications Network.

Operating locally, Community Workforce Partnerships would bring businesses, workers, and educational institutions together with state and local government agencies. Combined, they would provide workers and businesses with the skills, training, and other services to survive and prosper in the new global economy. Their tasks could include services such as inventories of job vacancies and predictions of local workforce needs, but these partnerships would be designed to respond to the specific needs of diverse communities. As in the examples discussed above, they would depend on workers and business each assuming substantial responsibility.

Successful Community Workforce Partnerships would expand upon the best examples of community-based efforts led by the private sector. They could look to Michigan, where the Virtual Automotive College specializes in developing diverse methods to train automotive workers, including on-site training centers, interactive television, CD-ROMs, and the Internet. They could look to a new development called Easton in Columbus, Ohio, where a public-private partnership sponsored by local business and government provides services such as transportation, day care, and job placement to welfare recipients entering the work force. And they could look to New York City, where the Garment Industry Development Corporation has evolved over nearly 15 years. Originally designed to help apparel factories find affordable real estate, the group today trains workers and management.

These models can provide a template of what works. Success, their examples suggest, requires:

  • flexibility, so communities can design programs that meet their particular needs;
  • responsibility on the part of both workers and employers, who must play a leading role in designing and implementing these programs; and
  • a wide reach, to help all workers achieve upward mo-bility, not only those who are displaced or downsized.

The recently enacted Workforce Investment Act takes a very significant step in the right direction but focuses only on displaced and disadvantaged workers. Community Workforce Partnerships would serve all working Americans (and thus benefit workers and business more significantly), whether by providing school-to-work assistance, transportation services, or other resources.

To build on these successful examples, the federal government should offer matching grants to states and cities wishing to create Community Workforce Partnerships to help workers be upwardly mobile or rapidly re-employed if displaced. The communities seeking grants should demonstrate that the local business community is involved and willing to lead. Beyond that, states and cities should design partnerships to meet local needs. By rebuilding confidence in all Americans' ability to be upwardly mobile, we can put a human face on the global economy. Community Workforce Partnerships can help us realize this very American aspiration for widely shared opportunities.

Claude Fontheim is the Chief Executive Officer of Fontheim International, LLC, and Chairman of the Democratic Leadership Council's project on America, the Global Economy, and Trade.