Federal Retraining Program for Displaced Auto Workers

Mass layoffs in the auto industry have led the U.S. Department of Labor to introduce an initiative providing up to $6,000 in federal retraining money over two years to displaced workers. Five states, including Minnesota, have been chosen to participate in the Career Advancement Accounts program, which aims to retrain workers in high-paying fields such as biotech, health care, and energy. The program, funded by a combined $3 million in federal and state money, is expected to create approximately 1,000 career advancement accounts.

Key Takeaways:

• The U.S. Department of Labor has selected Minnesota, Michigan, Georgia, Ohio, and Missouri to participate in the Career Advancement Accounts program, which will provide up to $6,000 in federal retraining money over two years to displaced auto workers.
• The program, which aims to retrain workers in high-paying fields, will be administered through state employment offices and must be used for tuition, books, and educational fees associated with an accredited program that offers some form of industry certification.
• Each state will receive $1.5 million for the program, contingent on first securing $1.5 million in matching funds.
• The combined federal and state funding will create approximately 1,000 career advancement accounts, with each state expected to establish about 200 accounts.
• In Minnesota, hundreds of workers from the Ford Ranger truck plant in St. Paul will be eligible for the program, which offers individual workers $3,000 a year for education and training and a one-year renewal option.
• Minnesota's Dislocated Worker Program has already committed retraining dollars, job placement assistance, and counseling to affected workers, and officials have arranged a series of job fairs, including one at the St. Paul Ford plant.
• Skills assessments and job coaching assistance are needed as workers consider their futures without Ford, according to Diane Knutson, manufacturing advocate with the state Department of Employment and Economic Development.
• Ford's buyout program, offering workers $35,000 to $140,000, will be available until November 27.

Statistics:

• 5 states selected to participate in the Career Advancement Accounts program: Minnesota, Michigan, Georgia, Ohio, and Missouri
• 1,000 career advancement accounts expected to be created through the program
• $3 million in combined federal and state funding for the program
• 1,880 union and nonunion workers at Ford's Ranger truck plant in St. Paul expected to be eligible for the program
• $3,000 annual education and training allowance per individual worker in the Minnesota program
• 1-year renewal option for individual workers in the Minnesota program

Sources:

• U.S. Department of Labor
• Ford Motor Co.
• General Motors Corp.
• Minnesota Department of Employment and Economic Development
• St. Paul Ford plant officials
• Dee DePass, 612-673-7725