Employment Security Department helps businesses avoid layoffs - September 30, 2009

09-077

Media contact: Bill Tarrow, Business and Minority Outreach Manager, 360-902-9376

Audio: /newsandinformation/releases/audio/sharedwork4.mp3

OLYMPIA –When the recession started taking a toll on The Gear Works manufacturing firm in Seattle, the company avoided laying off 15 workers by turning to the Employment Security Department’s Shared-Work Program for help.

Company co-owner Sterling Ramberg and Employment Security Commissioner Karen Lee hosted a news conference at the facility today to extol the advantages of the program for both businesses and workers.  They were joined by company managers and employees, who manufacture precision gears for machinery used in variety of industries, including construction, mining, agriculture, marine, gas processing, and energy and utilities.

The Shared-Work Program allows employers to temporarily reduce the work hours of their full-time employees by up to 50 percent, while the workers collect partial unemployment benefits to replace a portion of their lost wages.

“Shared Work takes the sting out of layoffs and has helped us keep our skilled workers on the job,” said Mike Robison, superintendent for the company.  “We recommend the program to any business whose production is down due to the recession.”

More than 2,100 businesses and 42,000 employees are currently approved to participate in the program.  A year ago, just 145 employers and about 5,700 employees were using the program.

Employment Security Commissioner Karen Lee said that, in the past, about 90 percent of participating employees worked in the manufacturing industry, but that has changed sharply in the current recession. 

Although the number of manufacturing participants is up sharply, participation by wholesale trade, construction and retail workers has grown at a faster percentage rate.  At the end of August, 68 percent of workers participating in shared work were from manufacturing, 8.4 percent from wholesale trade, 5.7 percent from construction and 4 percent each from retail trade and from the professional, scientific and technical services industry.

“The Shared-Work Program is one of the ways Employment Security is helping businesses and workers turn hard times into better times,” Lee said.  “We hear over and over how grateful they are that this option is available to their employees.”

A recent survey showed the program has helped most participating employers reduce their payroll by as much as 30 percent. Nearly 60 percent felt the program had helped their business survive the current recession, and almost 90 percent would recommend the program to other businesses.

The Gear Works enrolled in the Shared-Work Program in March 2009. Approximately half of its employees are working reduced hours and receiving shared-work benefits.

Both public- and private-sector employers are eligible to participate, and employers of all sizes are accepted. 

Shared-work benefits may be paid up to 52 weeks.  Only full-time, hourly workers who meet additional eligibility criteria are eligible for the program. The program will not subsidize seasonal employers, part-time employees, corporate officers or employees paid on a piece rate, mileage rate, job rate, salary or commission basis.

Information about the program is available online at www.esd.wa.gov, search on “shared work,” or by phone at 800-752-2500

Shared-Work Program: /uibenefits/faq/shared-work.php

Employment Security: www.esd.wa.gov