Issue Position: Labor

Issue Position

Joe Sestak believes every worker in this country should be able to earn a fair wage without discrimination based on race, color, religion, gender, age, sexual orientation or national origin and that every person has the right to unionize without intimidation. He is working to ensure fair wages and benefits to eliminate wage inequality at a time when real income has declined as much as 50% since 2001, meaning hardworking families are earning less than they were at that time. He believes we need to ensure stronger worker health and safety rules that protect employees from unsafe conditions. It is wrong that 5800 workers died in the workplace in 2006, 16 every day (Pennsylvania is one of 26 states with no state OSHA). In addition, it is essential for our future to create a competitive workforce that provides job assistance and better preparation- in the form of skills- to the workers who make America strong through expanded vocational training and affordable college costs; and that we provide secure retirement and pensions through expanded enrollment in retirement plans and transparent retirement plan fees, which can consume as much as 50% of retirement savings.

SUMMARY OF FUTURE INITIATIVES

Looking forward, Joe believes that there is a great deal of work to be done to support America's workers:

1. Immediate Relief for Working Families

Extend middle class tax cuts: child tax credit, marriage penalty relief, and reduction

in income tax rates for taxpayers with incomes below $250,000;

Extend unemployment insurance benefits and suspension of taxes on these benefits until we emerge from the current economic crisis;

Extend COBRA coverage for displaced workers;

Provide penalty-free hardship withdrawals from IRAs and 401(k)s in 2008 and 2009;

Delay required withdrawals from 401(k)s and IRAs;

Foreclosure Prevention and Relief: Address mortgages that are presently underwater by

modifying the existing mortgage into two pieces: an FHA loan for 97.5% of the current value, and a note that represents the balance from the original loan amount and the new FHA loan. For each year that the homeowners remains current, the loan should be forgiven by one fifth; provides $1,000 incentive to servicers; and $0.05/dollar on the value of second mortgage to second lien holders.

2. Protect Worker's Rights

Ensure passage of legislation that makes necessary changes to the country's labor laws. Joe believes it is unacceptable that 32% of employees are fired for trying to unionize and 50% of businesses threaten to close if unionized.

3. Ensure Fair Wages

Joe voted for the first minimum wage increase in a decade. However, he believes that additional minimum

wage increases are needed to raise ensure the opportunity for a better future. American CEOs made 411 times more than average workers in 2005.

Support expansion and extension of middle class tax cuts (child tax credit, marriage penalty, tax break below $250K).

4. Competitive Workforce

Expand Job Readiness Programs: Job Corps, Workforce Investment Act Youth Activities, Youth Build, and Youth Conservation Corps

Improve College Affordability and Accessibility by increasing the maximum Pell Grant,

Stafford Loan, reducing unnecessary costs by creating a direct lending program, making textbook costs more manageable, and simplifying the federal student aid application process.

Support Vocational Education by ensuring that post-secondary cost relief and accessibility efforts include vocational programs.

Provide access and assistance to increase college attendance and completion by working adults who attend school part-time.

Expand incentives to students who are willing to train and serve in critical areas of national need (i.e., loan relief for nurses and physical therapists)

3. Retirement Security:

Allow automatic enrollment in company retirement plans;

Provide required minimum distribution relief for seniors

Temporarily eliminate penalties for emergency retirement plan withdrawals.

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