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Employees laid off from Alcoa in Massena eligible for federal assistance

Posted 2/11/16

MASSENA -- Many workers laid off Alcoa workers are eligible for federal assistance under the Department of Labor Trade Adjustment Assistance certification, according to Sen. Kirsten Gillibrand. TAA …

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Employees laid off from Alcoa in Massena eligible for federal assistance

Posted

MASSENA -- Many workers laid off Alcoa workers are eligible for federal assistance under the Department of Labor Trade Adjustment Assistance certification, according to Sen. Kirsten Gillibrand.

TAA is a federal program established under the Trade Act of 1974 for workers whose employment is adversely affected by increased imports and shifts in production outside the U.S., according to Gillibrand.

Those eligible can receive those benefits on top of their Department of Labor unemployment insurance payments, Gillibrand said.

The TAA benefits include:

• Training for employment in another job or career. Workers are eligible for training in occupational skills, basic or remedial education, or training in literacy or English as a second language. Workers may also receive employment services such as case management, skills assessment, and job search assistance.

• Income support. Workers can receive weekly cash payments called trade readjustment allowances (TRA) after a worker's unemployment compensation benefit is exhausted and during the period in which a worker is participating in an approved full-time training program.

• Job search allowance. Workers can get reimbursed for expenses incurred in seeking employment outside their normal commuting area.

• Relocation allowances. Workers can receive reimbursement for approved expenses if they are successful in obtaining employment outside their normal commuting area and they need to relocate

“This is great news for our community,” said Joseph Gray, Supervisor of the Town of Massena. “Thank you to the governor and our senators for their assistance. This will make a difficult situation much better.”

In November, the governor announced a $68.8 million corporate welfare deal in exchange for a pledge to keep 600 jobs in Massena through March 20, 2019. That deal had promised $38.8 million, but that number later rose to $43.6 million.

The government bailout was announced after Alcoa made public plans to layoff 487 employees.

New York Power Authority Board of Trustees agreed Dec. 17 to assist the state in giving a $73.6 million bailout to Alcoa in exchange for retaining 600 jobs at the Massena west plant.

That’s about $5 million more higher than had previously been discussed when the deal was first announced.

Under the deal, NYPA agreed to provide $30 million in low-cost electricity. That will be paired with $43.6 million in subsidies for operational and capital expenses from Empire State Development. That's on top of NYPA power discounts the company is already receiving.

The subsidies and savings equal about $122,667 per job retained.

The deal is the latest in a long series of incentives offered to the company in exchange for maintaining jobs at the facility.

On multiple occasions, Alcoa has failed to live up to promises made in previous agreements.

According to a March 2014 news release from the governor's office, the company promised to maintain 750 jobs at the west plant and provide training for the east plant's future workforce, once a promised $600 million modernization of the Alcoa East plant was underway. That plan was dropped.

In summer 2013, Gov. Andrew Cuomo was quoted as saying 1,000 jobs would be guaranteed under a deal that had been struck with Alcoa.

In the past Alcoa has not been held accountable for failing to meet the terms of its agreements with the state and NYPA.

However, this deal includes up to $40 million in financial penalties should the company breach its commitment to maintain at least 600 jobs, or close the plant before the contract expires March 31, 2019.