Grassley tours Graphic Packaging

Sen. Chuck Grassley, R-Iowa, walked away from a meeting with Graphic Packaging International employees on Friday knowing they have a clear opinion that the $600 unemployment relief distributed during the COVID-19 pandemic is a “disincentive to work” and “makes it difficult for people to go back to work.”

One employee asked, “So we talk about creating jobs all the time — and that’s good and I think we should continue to do that, I don’t want to take away from that — but is there anything that they’re working on to try and get people trained or retrained to get the open jobs that are not being filled?”

Every company struggles with this, the worker added. Another Graphic Packaging International employee stressed this has become more of a problem since the pandemic. Grassley admitted Congress “created some of that problem” with the $600 unemployment checks.

Grassley also drew attention to the Employee Retention Tax Credit (ERTC), which incentivizes businesses to keep employees instead of laying them off or placing them on furlough. If possible, Grassley suggested he would like to pass a second bill to make the ERTC better for a short period of time.

Still, Grassley criticized the $600 relief and the unemployment compensation systems used by the states to generate that amount, which he claimed are all “different” and “outdated.” The ideal approach, he said, would have been to have the relief money related to current policies and average incomes of the state.

So, in essence, a state like New York would receive more than a state like Iowa.

“(For the) first time in 240-year history of our country, the government shut the economy down,” Grassley said. “So a week later you wake up and you gotta do something. You got a virus to fight. You got 20 (millions) or 30 million people unemployed, people that have need.”

Grassley said if the government hadn’t acted when it did then the unemployed people would have not received help. By the time elected officials made the decision to make checks a flat fee, Grassley said they knew it would be a disincentive to work. Now, he wants to correct that. Republicans’ offer is $200.

“I think we’re willing to compromise at $300, but (U.S. House Speaker Nancy) Pelosi’s still at $600,” Grassley said, noting President Donald Trump signed an executive order to allow $300 per week, allowing states the option to provide an extra $100 if they so choose.

As far as the worker’s question about training and retraining, Grassley said there are several different answers to that. One is that Pell Grants are only provided to students who want degrees at community colleges, rather than those who are working toward a certificate.

“Maybe a six-month or nine-month program instead of a two-year program,” Grassley said. “And I think that would help get people trained that wouldn’t otherwise. Because maybe they can’t go to a community college. So get away from this business that if you don’t have a degree you don’t amount to anything.”

Since the COVID-19 pandemic has put a stop to a lot of in-person town halls in Iowa, Grassley said visits like the one he made to Graphic Packaging International this past week allow him to hear constituents’ concerns or answer any questions. Many of the questions focused on jobs and wages.

One Graphic Packaging International worker who handles employee payroll asked if the federal minimum wage a fair assessment of the 2020 economy. Grassley said it was in February (seemingly before the pandemic), but he’s unsure if it is today. It was fair then because unemployment was low, he clarified.

Grassley guessed if former U.S. Vice President Joe Biden is elected president this year that he would push to increase the minimum wage. Another worker, who has worked at Graphic Packaging International for 38 years, was concerned about the education of younger generations and their motivation or lack thereof.

“Their ‘want’ to work isn’t there anywhere,” the worker said. “… Instead of paying $600 for them to sit in home, why wouldn’t there be an incentive for companies or even them to come here and learn the skills? This is a career. This is not just a job. I moved all over the United States doing this.”

Grassley replied, “There’s no way I can disagree with what you’re saying. It’s a good approach and it makes sense.”

Some employers are encouraged to hire ex-offenders, persons with disabilities or others persons from certain targeted groups who face employment barriers to receive Work Opportunity Tax Credits (WOTC), Grassley said. However, he was unsure if that applies to manufacturers.

Grassley later told Newton News that the United States has programs that do encourage companies to train unemployed people; one is the WOTC and another is the ERTC. Although he does not support permanency of the ERTC, the senator is in favor of extending it in another bill, like he mentioned earlier

“But what we would do in this bill is we’d open it up for a little larger employers,” Grassley said.

Contact Christopher Braunschweig at 641-792-3121 ext. 6560 or cbraunschweig@newtondailynews.com