Simultaneous layoffs and skill shortages call for focused, collaborative response

In the mid-1990s, food processors and growers in the Pacific Northwest responded to the challenge of foreign competition by increasing the use of technologies that improved productivity and reduced costs.  This reduced demand for low-skill, entry-level workers, and created an increase in jobs requiring higher levels of technical knowledge and skill.

The results were simultaneous layoffs and skill shortages.  Workers with technical skills faced many hours of overtime, while those without these skills faced unemployment.  Employers were frustrated by constraints on their ability to sustain productivity, much less expand their operations, because of the lack of skilled workers.

In 1996, Washington Governor, Gary Locke and the state’s Employment Security Department convened a Labor-Management Committee to address the problems of simultaneous layoffs and unmet workforce training needs.  This Committee was co-managed by labor and business, and included all key workforce stakeholders.

“Creating new curricula and delivering the training in the conventional way is not practical.  The mix of private and public training institutions helped demonstrate that training can be delivered at the speed of business.  Training is now more real-time flexible.” 

John Parks, Teamsters Union Local No. 760

The Labor Management Committee found willing partners in the Workforce Development Councils established by the federal Workforce Investment Act, and among public and private local education and job training institutions.

“Industry leaders, with help from the workforce development system, have begun to create a long-term solution to their skill shortage problem just in time.  Program development is being combined with training opportunities that are linked to industry defined skill standards.  The rewards and return on investment are immediate.  It takes much less effort to market a program that is this successful than it did to market the slower more traditional approach to developing and delivering training.”

Pam Lund, Former Executive President, Northwest Food Processors Association

In June, 2000, state and local agency collaboration with the Northwest Food Processors Association and the Labor Management Committee resulted in the creation the Eastern Washington Agriculture/Food Processing Partnership, which won a $750,000 federal Department of Labor grant to assess specific skills gaps, create skills standards, and to construct career ladders that would foster wage progression for entry-level workers.  Governor Gary Locke committed an additional $500,000 in Workforce Investment Act discretionary funds to finance immediate training of incumbent workers.

The work that ensued involved a complex array of partners and projects. Participants developed an assessment model (using existing assessments) to pinpoint and quantify skill gaps of workers at farms, packing houses and processing plants.  Individual training plans were developed to address employer needs and workers’ skills and interests.  This data was analyzed carefully to zero in on what training was needed, where, and for what number of workers.  In addition, employers were invited to apply for training sessions held specifically for their workers, often at their worksite.

“Workforce and technical training organizations are changing the direction of their programs to address the training needs of business and industry.  A new paradigm is evolving which focuses on the integration of training with demands of the workplace.”  

Tom Martinez, J.R. Simplot Company

Skill standards were established for two specific occupations, and previously developed skill standards were used in this process.  A career ladder for entry-level agricultural and food processing workers was developed to create a bridge from farm to processing plant, and to establish incentives for workers to pursue job-specific training and basic literacy and English as a Second Language instruction.

Local training providers – both public community and technical colleges and private vocational schools – competed for training contracts. 

In some instances, they also collaborated; in one case, a private training provider offered classes on a community college campus.

“The industry requires more and more specialized training to remain competitive.  Workers are filling the classes to capacity and they are saying that the training is high quality and on target.”

J. Tuman, President, Perry Technical Institute

For training providers, this project was an intensive tutorial in responding to specific industry needs rather than offering more standardized curriculum, delivered in academic quarters.

Successful training providers learned to customize training in modules responsive to the time, location, cost, and content needs of employers.

Employers matched public training dollars with in-kind contributions in several ways, ranging from providing paid time and benefits for workers in training to furnishing facilities and equipment.  In most cases, employer contributions exceeded state requirements.

For some employers, training included job-specific English as a Second Language training that focused specifically on the vocabulary needed at work.  In one case, training also included Spanish lessons for supervisors.

Achieving results for employers and workers

By the end of grant activities, in 2003, the Eastern Washington Agriculture/Food Processing Partnership had achieved an impressive list of results:

	The original goal of training 400 incumbent workers was surpassed with over 900 workers received training.
	Thirty one customized training courses were developed.
	Thirty five companies and 75 work sites had workers participate in training.
	Sample wage gains of $700- $745 were reported for workers who earned certificates in Programmable Logic Controls or Ammonia Refrigeration; wage gains for other trainees averaged $587.

“I’ve applied the new knowledge to better keep the machinery going, and we now function better as a company.  When the fruit goes through the cannery, the waste is down and the production is up.”

Scott Nedrow, Trainee and company electrician for Snokist Growers

Awards and Honors

This exemplary success was recognized by several awards and honors.  In September, 2002, the Partnership won a U. S. Department of Labor Pyramid Award for excellence in customer service. 

The Partnership was also honored by the National Governors Association Center for Best Practices, and several of its leaders received Best Practices Awards from Washington Governor Gary Locke. 

In each case, the Partnership was specifically recognized for the collaboration between industry and labor, and for the seamless provision of services that provided hope and opportunity to low-wage workers while improving the productivity and competitiveness of local farms and food processors.

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