Cutting Back Instead Of Laying Off -- Work Share
It's a grim season for many Oregon workers, with news of new layoffs coming all the time. The state is working with some companies to avoid layoffs, when possible, using a program called Work Share.
April Baer reports the program is helping some employers keep their workers.
There are far too many companies facing the choices Darrell Sabin's had to make lately. His company, Fluid Connector Products, makes hoses--not your garden variety, but the kind needed for big machines, and big construction projects. Darrell Sabin "In November, it was like someone took hold of the faucet, and put it to half-speed." This isn't the first recession Sabin's weathered, and he says he's trying to make decisions based on the long-term picture. This is the first time he's had a tool called Work Share to help him. Darrell Sabin "I was over at our large customer, Columbia Machine, and they were talking about Job Sharing, and I said 'What is that?' "What it is, is a state program that provides unemployment benefits for partially employed people. So an employer like Sabin can cut hours by up to 40 percent—instead of laying workers off—knowing that some of his workers’ lost income will be made up by unemployment insurance. Craig Spivey "Well, what happens is an employer will submit a work-share plan to the Employment Department." Craig Spivey with the Oregon Employment Department says Work Share was designed in the big recession of the late 80s. It's run at the state level, out of the same pool of employer donations that fund full unemployment benefits when people lose their jobs.Employers like it, because it helps them hold on to skilled people. Many workers appreciate the chance to hold onto their jobs. And it’s a good deal for the state, too, since partially employed workers aren’t drawing full unemployment benefits. But like any state plan, there’s a form to fill out, or for Nancy Misgen, who works in HR for Darrell Sabin, a stack of forms. Nancy Misgen "This is probably an inch, and it's going to be two inches by the end of this week."It's not a perfect system. Whenever workers hours are cut back, employers scramble to keep key shifts covered. And Misgen’s co-worker, CFO Andy Thaler, says rolling back hours is still not something to be taken on lightly. Andy Thaler "There's a much greater demand on those employees who are here, the same amount of work is to be done, regardless. It's higher wear and tear on employees. And it impacts how they relate with customers directly."Thaler says the company is trying to minimize the impact, by exempting its sales force from the work-hour reductions. And he's keeping a watchful eye on the balance between how much the company pays into the unemployment insurance fund, and how much its workers are drawing out. Then, there’s the decision that workers like Nancy Misgen have to make. The state unemployment insurance program guarantees her a percentage of her income, for up to 26 weeks. While Work Share lets her tap into those benefits while she’s still mostly employed, taking the money now could have consequences if she lost her job, because of the 26-week limit. Nancy Misgen "If I take the money now, then it might not be available later, if there is as big a crisis as everyone portrays."And Misgen confesses she's having trouble seeing herself as someone who needs unemployment benefits--even partial ones. Nancy Misgen "In the early 80s, I laid off, and I moved to a different state and I got a job being the worst waitress in the world." From table service purgatory, Misgen went on to work in a mortuary, the hotel industry, and finally here, where she didn't expect to face a cutback. But she says she appreciates that Work Share is providing an alternative. The state says the UI fund is far from tapped out. As poorly as the economy's performing right now, the employment department says there's plenty of room for more firms to participate in Work Share.
© 2009 OPB
Share this article
Discuss
blog comments powered by DisqusRelated articles
- West Coast Gas Prices Higher Than Other Regions
- Oregon's Recovery Uneven Around The State
- Central Oregon Considered For Drone Testing Area


