October 23, 2001

The Teamsters Union is urging Congress to adopt an economic stimulus plan that puts America’s working families first.

“Workers were facing the prospect of recession before the events of September 11, which made a bad situation worse,” said James P. Hoffa, Teamsters General President. “Our government must provide assistance to those most vulnerable to the ravages of economic dislocation.”

Although the House of Representatives is scheduled to take up a Republican proposal shortly, it largely comprises tax breaks for corporations and the wealthy, with no guaranteed assistance for laid-off workers.

By contrast, a Democratic package that was rejected in committee would have provided up to 52 weeks of unemployment insurance coverage; avoided the block grant approach that could prevent needy workers from receiving jobless benefits; a 75 percent subsidy for COBRA health care benefits; and expanded Medicaid coverage for those not eligible for COBRA benefits.

While the House is expected to vote on the GOP plan shortly, Senate Democrats are preparing their own alternative.

The Teamsters Union and other labor organizations believe that the first step towards restoring the economy must be a stimulus package that meets the immediate needs of working families, including:

·                    Enhanced federal support for basic safety net programs, such as unemployment insurance, health care coverage and employment and training programs for displaced workers;

·                    Labor market interventions, including raising the minimum wage and tying federal contract awards to the payment of living wages;

·                    Tax relief for low- and moderate-income families, such as tax rebates, payroll tax cuts and ending taxation of unemployment benefits; and

·                    Substantial federal aid to state and local governments to meet the surge in demand for services and benefits.

For the longer term, the nation needs greater federal investment in rebuilding infrastructure, including manufacturing, the public health system, energy production and supply, municipal water systems and public schools.