Washington -- For months, the Bush
administration has been fighting a lawsuit brought by a group
of computer programmers whose jobs were outsourced abroad,
arguing that they don't qualify for government benefits aimed
at people coping with layoffs caused by imports.
But now, in the furor over outsourcing, the administration
is showing support for the program, called Trade Adjustment
Assistance, which aids workers laid off from companies
battered by foreign competition.
President Bush has been talking up the program in recent
speeches, and Cabinet officers have been touting the big
expansion the program got in 2002 - - even though it was
congressional Democrats who insisted on the expansion, over
Republican objections.
Moreover, U.S. Trade Representative Robert Zoellick has
hinted that the administration might back a bill to expand
benefits further, to service workers such as engineers,
architects and telephone call-center employees, whose job
losses to India and other countries have become a major source
of voter anxiety.
The administration's new stance is part of a broader effort
by the White House to combat Democratic attacks on the jobs
issue. Bush, Zoellick and other officials have started using
the term "economic isolationism" to deride Democratic
criticism of the administration's free-trade policies.
At the same time, to defuse charges that they are
insensitive to the Americans who suffer hardships amid the
rough-and-tumble of the global marketplace, they are going out
of their way to acknowledge the need to give such workers
temporary income supplements, retraining and other support --
a point that Democrats have repeatedly stressed in the past as
the price that must be paid for open markets.
The lawsuit brought by the computer programmers, however,
poses an embarrassing counterpoint to the administration's
efforts to show its concern.
The case involves more than a dozen software workers from
International Business Machines Corp. in New Jersey and
Computer Horizons Corp. in Irving, Texas, whose jobs were
moved to Canada and other countries over the past couple of
years.
The workers' efforts to obtain the recently expanded
benefits under Trade Adjustment Assistance have been rejected
by the Labor Department, which administers the program, on the
grounds that they were not in the manufacturing sector -- that
is, makers of "articles," as the law requires. The Justice
Department is backing Labor's position in the case, which is
before the Court of International Trade in New York.
Seizing on that case and others like it, Democrats are
accusing the White House and Republican lawmakers of having
deprived such workers of the chance for extra unemployment
insurance and wage and retraining subsidies that laid- off
manufacturing workers can get.
"Despite the obvious benefits of (Trade Adjustment
Assistance), the administration fought tooth and nail against
every penny, and against every provision" to expand the
program in 2002, Sen. Max Baucus, D-Mont., said in a recent
speech.
Baucus, the ranking Democrat on the Senate Finance
Committee, spearheaded the effort to obtain a tripling in
funding for the program, to $1.3 billion, in exchange for
Democratic backing for a trade bill the White House wanted.
He noted in his speech that although he fought to extend
eligibility to service workers, "that provision was struck in
the final version of the bill," adding, "As we read about
service jobs moving overseas, we can see now that was a
mistake."
The Labor Department could use its discretion under the law
to give benefits to the computer programmers, according to
Howard Rosen, a former congressional aide who helped draft the
2002 legislation. The problem, he said, is that the department
is "nickeling and diming," a policy he warned would boomerang
on the administration by undermining support for free trade.
But Mason Bishop, the deputy assistant labor secretary for
employment and training, contended that the department's
implementation of the program simply reflects what Congress
mandated.
Although benefits can go to a computer programmer, or a
cafeteria worker, who is laid off from a firm making an
"article" affected by increases in imports or a shift in
production to other countries, workers not employed by such
firms are not eligible, according to Bishop. "The statute is
very clear," he said.
Whatever the current law prescribes, the political
environment is forcing the administration to consider a new
Baucus bill that has obtained 24 Senate sponsors, along with
similar legislation in the House, extending the program to
service workers.
"I think that's something that we should examine very
closely," Zoellick said Tuesday in response to a question from
Baucus at a hearing about whether the White House would back
the bill.
"Now, frankly, one needs to look at the cost aspects of
this as well. But my personal view is ... one way or another
this program or others -- you've got to help people adjust if
you're going to require change."
Asked about the bill, a White House spokeswoman, Claire
Buchan, said: "That's something that's being looked at."