Kinexus is calling out a proposed rule change in Washington that it says will hurt job seekers and businesses. Kinexus has released the following:
A proposed rule change by the United States Department of Labor (USDOL) will negatively impact job seekers and employers throughout Michigan. The move will mean a reduction of staff and services provided by the Michigan Works! organizations throughout the state.
The rule has to do with the Wagner-Peyser Act, a 1933 law concerning employment services and how federal funds are allocated and spent. The rule change would move the funding away from local workforce development boards and to the State of Michigan to deliver. That would mean a loss of up to $16 million for the Michigan Works! Workforce system, impact up to 400 jobs, and force the closure of up to 22 service centers.
“Each of the 16 Michigan Works! organizations have created unique local models to assist and meet the needs of job seekers and employers. Using these funds we leverage additional dollars to provide an array of services. This change makes no sense,” said Christopher Randall, Chairman of the Kinexus Group which manages Michigan Works Berrien, Cass, Van Buren. The Kinexus Group Board voted unanimously last week to oppose the rule change and keep the current system in place in Michigan.
The states of Michigan, Colorado, and Massachusetts are set up in a similar fashion and are considered “demonstration states.” That designation came in 1997 under the direction of then Governor John Engler who believed setting up one stop shops under the direction of local workforce boards, who are closest to and understand the challenges best, was the best way to provide services.
“When you look at Michigan’s performance compared to other midwestern states, Michigan outperforms them,” said Kinexus Group President and CEO, Todd Gustafson. “This is a critical time as we work to serve employers, who are desperately in need of workers, boost the labor force participation rate, along with retraining and reskilling our workforce – and prepare for a possible economic slowdown,” Gustafson added. The Kinexus CEO said that while closures of offices in Berrien, Cass, and Van Buren are possible, the rule change would unquestionably means less services for job seekers, employers, and those looking to get back into the workforce.
“We have fortunately diversified our funding, which cushions the blow, but this is an example of what impact bad policies and rules can have at the local level,” said Gustafson. A loss of Wagner-Peyser funding will negatively impact Southwest Michigan, regardless of what someone in Washington, D.C. capriciously decides to assert. Why change something now after three decades of success?”
The Michigan Works! Association has been working with federal and state legislators to preserve the existing law and fight the rule change. To sign the statement yourself and help Michigan Works! offices across the state, click here. The U.S. Department of Labor is taking public comments on the rule through June 21. To add a comment, visit www.federalregister.gov and go to Department of Labor/Employment and Training Administration.
