LANSING, Mich. — A federal rule change could impact the way employment services would have to be delivered and force the state's workforce development operation Capital Area Michigan Works! to close more than a dozen offices across the state.
The Wagner-Act was established in 1933 and Chief Executive Officer of the Michigan Works! Association Ryan Hundt said that act helped establish the workforce delivery system across the country.
“We can meet the labor challenges for businesses and helping them identify qualified talent and helping those individuals through the pipeline into the businesses in all regions of the state, and we also work very closely with job seekers as well to help them identify resources that they can have or they can access in order to maintain employment,” Hundt said.
Hundt said Michigan has a flexible model allowing Michigan Works! employees to be hands on.
“We have that locally responsive, flexible model where local Michigan Works! staff are the ones interacting with businesses and job seekers every single day, helping them to identify resources to be successful in today's global economy,” Hundt said.
But the U.S. Department of Labor proposed rule changes in April that would impact that model.
“The proposed rules that have been put forth by the Department of Labor would essentially mandate that those services are delivered by state of Michigan civil service staff,” Hundt said.
Hundt said if these rules go into effect, Michigan Works! would have to close several locations across the state.
“We would see a significant reduction in terms of the overall staff that is available throughout the state to be responsive to labor market needs of both employers and job seekers," Hundt said. "We would also see the closure of up to 20 of the American Job Centers in Michigan where those Michigan Works! staff are currently housed to deliver these employment services.”
This would also cause 221 full-time employees with Michigan Works! to lose their jobs, meaning longer wait times for services.
“We may have some instances where if you are a job seeker, and you go into your local Michigan Works! center on a Tuesday, there may not be any staffing available there to deliver or provide those services to you or identify resources that you may need today, in order to get back on your feet, get back into a position that fits your skill sets and what you're looking for in terms of a career,” Hundt said.
Hundt said these rule changes come at a time when the labor market is hot.
“What we should be doing is ensuring that the public investments that we're making as a government, whether at the federal or the state level, are all built around ensuring long-term success for our labor market here in Michigan, and making sure that Michigan can remain competitive on a global scale, not just on a national or regional scale,” Hundt said.
They're asking stakeholders to write a statement opposing the rules.
“We've had over 1,300 individuals and more than 500 organizations from across the state that have signed on to that statement of support and that's going to be delivered to key decision makers in the workforce development space at the federal and the state level in the coming weeks,” Hundt said.
He said they anticipate a decision by next year.
"We don't know exactly when a final set of rules will be issued," Hundt said, "But we anticipate likely end of this year or early 2023.”
The deadline to submit a statement is June 21. Once they're submitted, Hundt said the U.S. Department of Labor will go through and respond to the public comments.
Public statements can be submitted here.
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