Shared Works Program Helps Companies Avoid Lay-Offs

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Cheryl Saunders of Cazenovia does not like seeing her employees get laid off. That is why she is a big supporter of the state Labor Department’s Shared Works program.

“I’m a huge fan of the program and have been for many years. It’s one of the best kept secrets out there for businesses for a long time, and people are finally starting to recognize it,” said Saunders, director of administration for Dielectric Laboratories in Cazenovia. The company is manufactures high-frequency ceramic components used in wireless communication devices and radar systems. Shared Works, Saunders said, has saved at least 30 jobs in the last eight years.

Shared Works is a voluntary program run by the New York State Department of Labor that gives employers an alternative to laying people off during tough economic times. Under the program, an employer can reduce hours and the wages it pays to its workers. The state, through the Shared Work program, makes up the difference for the employee. The employee receives partial unemployment benefits to supplement his or her lost wages.

Signing up for the program is simple:
•Employers fill out a Shared Works application form with the state Labor Department.
•Employers return that application form to the Labor Department by mail. Employers must include the nature of their business, when the program should take effect, how long it should last, and the names of employees.
•Employers interested can download the application at http://www.labor.state.ny.us/formsdocs/ui/formsandpublications.shtm.   Or, contact the Labor Department at (518) 457-5807.

Shared Works has been around for 20 years. As the economy has worsened recently, state officials say the program is growing in popularity.

“Our phones have been ringing off the hook lately with employers interested in signing up for Shared Works. With the economy the way it is, we’ve really been trying to make a concerted effort that everybody knows about the program,” said Joe Morrissey, a spokesman for the New York State Department of Labor.

In 2007, the Shared Work program was being used by 291 employers in Central New York. By the end of 2008, that number had increased to 462. Now, 14,775 workers are enrolled in the statewide program.
“We’re here to help businesses get over the hump. We want employers thinking about layoffs to look at this program as an alternative to laying people off, because in the end nobody wins by losing their job,” said Morrissey.

In Syracuse, the program is partly tracked by CNY Works. It is a local, not-for profit corporation that aims to help people re-enter the workforce. It helps tell local businesses and employees about Shared Works. Businesses do not apply for the program at CNY Works. But CNY Works reports to the Labor Department report which local employees are still eligible to be using the Shared Works program.

“It’s great that there is a program that helps cut down on the number of people being totally laid off,” said Lori Wilson, a quality officer and human resource consultant for CNY Works.

The Shared Works program, Wilson said, also helps businesses because it saves them money in the long run. They don’t have to retrain and rehire new workers. That would cost businesses more money compared to providing more unemployment benefits, said Wilson.

“Whether the economy is good or bad this type of program helps,” said Wilson. “But especially now, this program can save a business in the worst economy I’ve ever seen.”

In Cazenovia, Saunders of Dielectric Laboratories says her business would have suffered greatly without it. “Aside from having to lay people off, it’s helped us keep and maintain skilled workers,” said Saunders. “And in today’s economy, the workers are so skilled that it would have been hard to replace them.”

(Matt Cohen is a junior with dual majors in broadcast journalism and history.)

Editor’s Note: this story corrects an earlier description of what the companie manufactures.

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