Dems push plan to subsidize lost hours

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Dems push plan to subsidize lost hours
By Walter Alarkon - 11/16/09 06:00 AM ET


Senate Democrats crafting a job creation bill are considering a proposal to give money to workers who cut their hours in order to avoid layoffs.

A bill sponsored by Sen. Jack Reed (D-R.I.) would give unemployment compensation to employees who accept a reduced work schedule to allow their companies to avert layoffs or to hire more employees. Reed's proposal for work-sharing was mentioned during the Senate Democrats' lunch Tuesday, when Majority Leader Harry Reid (Nev.) announced that an initiative focusing on jobs would soon be a priority, Reed's office said.

Democratic Sens. John Kerry (Mass.), Paul Kirk (Mass.) and Patrick Leahy (Vt.) have signed on as co-sponsors.

Reed's plan calls for up to $600 million for the program, which would last for up to two years. Rhode Island and 16 other states already have their own work share programs, which have saved more than 146,000 jobs this year so far, according to the Labor Department. Reed's bill would provide funding for existing work share programs and grants for states that have yet to start them. If all 50 states participated in work share programs, between 400,000 and 500,000 jobs a year could be saved, according to Reed's office.

“Work share programs provide businesses with the flexibility to reduce hours instead of cutting jobs,” Reed said in a statement. “This plan will help prevent layoffs, make businesses more productive, and save taxpayers money by keeping people on payrolls and off unemployment benefits."

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http://thehill.com/homenews/senate/67841-senators-push-proposal-to-subsidize-lost-hours