The Department of Labor, under provisions of the Trade Act of 1974, is assigned much broader responsibilities with respect to worker adjustment assistance than under the Trade Expansion Act of 1962. The Office of the Solicitor, which provides legal advice and assistance to the Secretary and other officials of the Department in the furnishing of worker adjustment assistance, will encounter a much heavier workload in this area.

Proposal:

The Need:

The Program:

To provide for additional positions to deal with the increased
need for legal services arising from the implementation of the
Trade Act of 1974.

To provide legal support for the Trade Act of 1974.

Additional staff will be required to: (1) review investigative files and background material prior to a decision on approving petitions; (2) assist with hearings; (3) monitor state agency determinations and decisions; (4) provide legal advice associated with individual workers that are certified as eligible for allowances; (5) prepare litigation materials for use by Department of Justice; (6) review documents for Federal Register publication; and (7) furnish a variety of other legal advisory services.

Base:

Positions: 361

Estimated Cost: $9,155,000

This activity fulfills the Department's responsibilities: (1) as a statutory member of the Council on International Economic Policy (CIEP) for the formulation of international economic, trade, and monetary policy; (2) as prescribed by the Trade Expansion Act of 1962 and the Trade Act of 1974, with respect to trade negotiations and the administration of trade agreements; (3) for advising the President on policy issues relating to the administration of the trade agreement program; (4) for administering trade adjustment assistance to workers; (5) as a member of the Board of the Foreign Service for the formulation of management policies including the employee-management relations program and the direction of the U.S. Labor Attache program; (6) for U.S. Government representation and substantive policies for U.S. participation in the International Labor Organization (ILO); (7) for participation and support for U.S. representation on labor-associated questions coming before other U.N. and regional organizations; (8) as a statutory member of the Development Coordination Committee under the Foreign Assistance Act of 1973; (9) for international technical assistance activities with the Agency for International Development (AID) and bilateral economic development commissions and multilateral organizations; and (10) for cultural exchange activities under contractual relationships with the Department of State, United States Information Agency (USIA) and other organizations. (Authorizing Legislation: 37 USC 736, 738, and PL 93-618.)

The Proposal: This proposal provides for additional resources to administer the Trade Act of 1974 by the Department of Labor. The Act was signed by the President on January 3, 1975. This Act gives the Department of Labor increased responsibilities in the broad areas of international trade negotiations, trade adjustment assistance certifications and benefit delivery, and trade-related economic and statistical research. Additional resources are not requested for benefit delivery activities. Efforts will be made to use existing Manpower Administration resources.

The Need:

Overview

The Trade Act of 1974 gives the Department of Labor new and expanded
responsibilities in the following arcas:

a.

Establishing, maintaining and/or serving on various non-government
advisory committees. A three tier structure is provided for:
first, a broad public advisory committee of 45 members representing
all segments of the economy; second, a separate policy advisory

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b.

C.

d.

committee for labor; and third, a series of separate sector committees which will advise on specific negotiation issues in that

sector.

The receipt and acceptance or denial of petitions for adjustment assistance certifications, the conduct of investigations to determine import injury, the issuance or denial of certifications, and the delivery of services to eligible workers within relatively tight time constraints. The benefits for eligible workers include cash payments, training, counseling, and placement services, relocation allowances, and job search allowances.

When an escape clause petition is filed with the International
Trade Commission, preparation of a report to the President on
the extent to which workers in that industry have applied for
adjustment assistance and the extent to which such assistance
might be made available.

A program to monitor changes in employment in relation to changes in imports. Cooperation with the GAO in evaluating the impact of the adjustment assistance program on program beneficiaries.

The Program:

1.

Trade Negotiations: The Trade Act of 1974, inter alia, grants
authority for the United States to participate in another major
round of negotiations in the General Agreement on Tariff and
Trade (GATT) to reduce trade barriers. The bill provides for
extensive pre-negotiations procedures including public hearings,
advice from the private sector, advice by the International Trade
Commission and advice by the Executive Branch agencies, including
specifically, the Department of Labor. Substantive bargaining
on specific trade barriers cannot commence until mid-1975, after
the U.S. pre-negotiation requirements have been met. However,
the preparatory work which has been in progress for some time,
both in Washington and Geneva (GATT headquarters), will intensify
immediately.

Based on the requirements on the bill and the U.S. negotiating plan,
eleven additional positions (9 professionals and 2 clericals) will
be necessary to supplement the present staff in the Office of
Foreign Economic Policy, Trade Policy Division (9 professionals,
one of whom is detailed to STR, and 3 clericals) 1/ to provide
for the Department's full participation in the negotiations.

In addition $8,000 for FY 1975 will be required for staff travel to and from Geneva for pre-negotiation meetings in the GATT and for DOL permanent representatives at the negotiations.

1/ This does not include staff in the International Commodities Division (5 professionals and 2 clericals).