COMPREHENSIVE 5-YEAR LOCAL PLAN

WORKFORCE INVESTMENT ACT

COMPREHENSIVE 5-YEAR LOCAL PLAN MODIFICATION

FOR ADULT, DISLOCATED WORKER, AND YOUTH

E.U.P. EMPLOYMENT AND TRAINING CONSORTIUM

PY 2007 – 2008

July 1, 2007 – June 30, 2009

COMPREHENSIVE 5-YEAR LOCAL PLAN

Eastern Upper Peninsula

Modification: PY 2006

Section I. Adults and Dislocated Workers

I. Labor Market Analysis

A. Identification of workforce investment needs and description of key trends. The

annual unemployment rate for the Eastern U.P. in 2006 was 8.5 percent, substantially higher than the statewide rate of 6.8 percent. This is 29 percent higher than the unemployment rate of the Eastern U.P. six years ago. Manufacturing losses and a weaker tourism industry contributed to the higher than average unemployment situation. The national unemployment rate for 2006 was 4.6 percent.

Persons employed in the Eastern U.P. primarily earn their income in three major industry sectors: government, leisure and hospitality services (restaurants/hotels) and retail trade. Government jobs accounted for approximately 43.5 percent of the total industry employment in the Eastern U.P. This is nearly three times the statewide level of 15 percent. It should be noted, however, that the Sault Tribe of Chippewa Indians and Bay Mills Indian Community are classified as local government. Their employees account for roughly 28 percent of the total governmental workforce. If tribal employment was not included, other governmental personnel would make up 31 percent of the payroll jobs. Retail trade far surpassed manufacturing in the percentage of employment provided, while statewide, manufacturing sector employment remained above the level

provided by retail trade. Between 2002 and 2005, construction employment fell by 7.4%, and manufacturing employment fell by 16.5% where losses were centered in transportation equipment manufacturing.

The largest single employer in the Eastern Upper Peninsula is the Sault Ste. Marie Tribe of Chippewa Indians, which has expanded their gaming operations, and increased governmental and health services, along with a host of other diverse enterprises. The Bay Mills Indian Community has also expanded their labor force with increased gaming and resort employment. These tribal employers are classified as governmental, even though many of the jobs for which they are responsible are in the service sector, highly dependent on amusement/recreation and tourism. This provides some contrast to traditional governmental employment, which includes federal, state, county and city jobs as well as employment by public educational institutions. The Michigan Department of Corrections is also a significant employer in the Eastern U.P. with five large correctional facilities and one camp located within Chippewa and Luce Counties. The steady pay and benefits enjoyed by nearly 1600 correctional employees have had a major impact on local communities.

There is a predominance of small firms in the area and a scarcity of firms with more than 100 employees. Leisure and hospitality have the largest number of individual firms, followed by retail trade, while agriculture has the fewest. Across the Upper Peninsula, the increase in health care primarily reflects expected gains in registered nurse (570 jobs), nursing aide (275 jobs), and home health aide (230 jobs) occupations. Even though the other occupational categories in the Upper Peninsula will record modest rates of job growth, they will generate job openings due to the need to replace existing workers. All occupational sectors are expected to add jobs over the decade with the exception of farming which is expected to decline by 3.2 percent.

Occupational forecast data can be somewhat misleading in the Eastern U.P. First, much of the data available encompasses the entire Upper Peninsula, which includes the larger labor market areas around Marquette and Escanaba. Second, the growth rates can be deceivingly high, simply because the base number of jobs is low enough that moderate numerical increases translate into high growth. For example, network systems and data communications analysts (56.4 percent) and computer software engineers (52 percent) top the list of occupations with the fastest growth rates. However, the annual average number of new jobs for each occupation is expected to be only five, with replacement jobs being only two and one, respectively. And that is for the entire Upper Peninsula.

Conversely, the growth rate for registered nurses over the period of 2002-2012 is 21.6 percent, yet the annual number of new jobs is expected to be 57, with 55 replacement jobs. At less than half the growth rate of the computer related jobs above, there will be more than ten times as many opportunities to become employed as a registered nurse.

Following registered nurses, there are several occupations which are expected to add a large number of jobs before 2012. They include the higher skilled positions of correctional officers and jailers (310), and carpenters (215), and the more moderately skilled jobs such as retail salespersons (345), food preparation workers (120), janitors (300), home care aides (230), and tractor-trailer truck drivers (220). Plentiful jobs that do not require training beyond high school are expected to include waiters and waitresses (455), and maids and housekeeping cleaners (345).

Between 2002 and 2012, substantial job losses are expected to occur in the following occupations: secretaries (except legal/medical/executive) (-275), word processors and typists (-105), administrative assistants (-115), freight and stock laborers (-130), and farmers (-50).

The Michigan Talent Bank data reveals that in the third quarter of 2006, over 3,900 individuals were available and seeking work. The Eastern U.P.’s civilian labor force between ages 20 and 65 is approximately 22,400. It would appear that around 17 percent of the labor force is seeking employment, when one includes those individuals who are employed and seeking another job.

Discussions held with employers indicate that a strong work ethic and motivation are the qualities desired most by employers. Although technical skills are required for many positions, the majority of employers insist that they can often provide the training if the new employee exhibits the willingness to work and learn new skills.

The tourism related and service oriented economy demands good communications skills, appropriate personal appearance and the ability to accommodate normal employer expectations. Employers continue to express the need for training and educational programs to emphasize work values and ethics.

If there are areas in which strong technical skills are required, they appear to be in the business and computer fields and health occupations. Lake Superior State University, Bay Mills Community College and the Sault Area Career Center all have training programs which provide various levels of education in these fields. Placement personnel at these institutions indicate continued local demand for individuals with these skills. We are in the process of increasing our efforts to recruit individuals into allied health careers, particularly nursing, as regional, state and national shortages are expected to grow.

Individuals in need of high school completion or G.E.D. preparation will find programs available in almost every district. Open enrollment is available throughout the school year for individuals who are referred by WIA service providers. It is more difficult to locate assistance for basic skills remediation, for those who score at the elementary level in reading and math.

Job development and placement activities will utilize Michigan’s Talent Bank as the primary labor exchange system. Partners in the Michigan Works! Service Center system will promote this self-serve, Internet-based tool to job seekers and employers, while targeted populations will have access to additional mediated services. WIA case managers are active in each county in the placement of eligible participants, as are the rehabilitation counselor, Work First counselors and disabled veteran outreach workers. The area career center has a work-based training specialist who connects students and graduates with employment opportunities. Lake Superior State University also has a placement director who assists graduates in obtaining suitable employment.

Three major job fairs are held each spring. Sault Ste. Marie, Newberry, and St. Ignace each host a job fair and the events are promoted to job seekers of all ages. The job fairs are organized by Michigan Works!, the Sault Area Career Center, Consolidated Community School Services, St. Ignace Chamber of Commerce, and the Michigan State University Extension Service. Additionally, the Sault Tribe of Chippewa Indians, the Bay Mills Indian Community, and War Memorial Hospital have sponsored job fairs or career fairs to fill numerous openings within their organizations.

As previously mentioned, data shows that the share of manufacturing in the Eastern U.P. remains significantly below the state’s percentage of manufacturing jobs (4 percent versus 15.5 percent). The region clearly does not enjoy the benefits shared by more industrialized areas in Michigan, i.e., a higher tax base and more stable year-round employment. The numerous jobs in tourism, services and retail trade are frequently seasonal in nature and provide little in the way of employee benefits. Although an expanded tourist season and Native American gambling casinos have created more 12-month employment openings, they are

not generally sufficient to support a family without an additional source of income. Manufacturing jobs have become less available locally, but demand more skills and offer more in wages and benefits.

The average weekly wage for workers in the Eastern Upper Peninsula, $449, is 43.2% below the state average weekly wage of $791. In 2004, the per capita income in each county (Chippewa, $20,776; Luce, $19,605; and Mackinac, $27,182) was significantly less than the State’s average of $32,079.

Demographics currently suggest a growing older population, which could raise employers’ concerns about the availability of workers. Data shows that the number of high school and community college graduates in the region fell by 6.3 percent in the most recent school year, with 561 persons graduating. This is an indicator of potential new entrants to the labor force. Continuous encouragement to hire older workers will help employers to tap resources that may have been previously overlooked. Young people who emerge from high school will have greater opportunities to enter the workforce earlier. Articulation agreements afford Sault Area Career Center students the ability to earn advanced placement credits at Lake Superior State University and Bay Mills Community College in Business Services and Technology. Completers of other Career Center programs may be granted college credit at LSSU, BMCC, Ferris State University, Bay de Noc Community College, the Universal Technical Institute and the University of Northwestern Ohio. A third category of potential employees includes those individuals with barriers to employment who previously were “not desirable” to most employers. Long-term welfare recipients fall into this category, but with the expansion of the Jobs, Education and Training (JET) program and its associated supportive services, more will be able to compete favorably for entry-level positions. We have found already that assistance with transportation problems has enabled many welfare recipients to enter the workforce. Another group falling into this category is ex-offenders, specifically medium to high risk parolees who will receive services through the Michigan Prisoner ReEntry Initiative.

The seasonal demand for workers in the Straits Area continues to be a major problem for local employers. There is not enough temporary housing available to support the importing of workers from other areas, and most people are reluctant to move for seasonal employment. Unfortunately, it appears that private-sector solutions may be the only workable approach to this problem (investment in affordable housing, higher wage rates, etc.), and government will only be in a position to support such initiatives.

1. Current and projected employment opportunities by occupation. Michigan’s Office of Labor Market Information describes the career outlook through 2012 for the Upper Peninsula; the Eastern U.P. data is not isolated from the rest of the region, and labor market conditions vary substantially across the peninsula, so the projections are not completely representative of our tri-county area. Given that, the jobs with the largest number of annual openings include cashiers, wait staff, retail salespersons, food service workers and servers, registered nurses, maids, janitors, correctional officers, stock clerks, carpenters, nursing aides and truck drivers. Other high growth occupations include registered nurses, retail sales supervisors, licensed practical nurses, police/sheriff officers, cooks, secondary teachers, accountants, mental health and substance abuse social workers, computer software engineers and system analysts. Anecdotally, most healthcare related jobs are in demand, either locally or within the state of Michigan. In addition to those already mentioned, these include physician assistants, pharmacists, physical therapists, dental hygienists, radiological technologists and technicians, medical records technicians, medical and clinical lab technologists, medical transcriptionists and pharmacy technicians. Projected employment opportunities are also expected to occur in law enforcement/corrections, building trades and the food and lodging industry.

II. Michigan Works! System

A. Detailed description of each Michigan Works! Service Center. The full service Michigan Works! Service Center for the Eastern U.P. is located at 1118 East Easterday Avenue in Sault Ste. Marie (Chippewa County). Satellite offices, which do not house all of the partners, are located in Newberry (Luce County) and St. Ignace (Mackinac County). The addresses are 501 W. Harrie Street, Newberry, MI 49868 and 106 Spring Street, St. Ignace, MI 49781, respectively. Within the last year, we moved the St. Ignace office to its current location, which offers more appropriate access to customers with disabilities. The agencies with resident staffing at the full service center include the WIA contractor, the Employment Service contractor, the Jobs, Education and Training (JET) contractor, the Food Assistance Employment and Training contractor, the Trade Act contractor, Michigan Rehabilitation Services, and Veterans Employment Services. The satellite offices provide Employment Services, WIA services, and JET services, with other services available by appointment or referral. The staff to the Workforce Development Board is also located in the building which houses the One-Stop Center, providing a continuous opportunity to evaluate the system and the center operations. We use the state’s mystery shopper program and customer satisfaction surveys as sources of feedback about how the services meet the needs of the customers, and we solicit comments from center visitors regarding the level of customer satisfaction they have enjoyed. Our service providers have demonstrated consistency in meeting performance standards. The One-Stop staff members engage in periodic staff meetings to share programmatic information, and the JET staff members meet at least quarterly with our partners at the Department of Human Services.

B. Memorandums of Understanding. The following section represents the basic Memorandum of Understanding which has been amended by an agency-specific agreement with the One-Stop Partners:

MEMORANDUM OF UNDERSTANDING

between the

EASTERN UPPER PENINSULA WORKFORCE DEVELOPMENT BOARD,

the EASTERN UPPER PENINSULA EMPLOYMENT AND TRAINING CONSORTIUM,

and the

The purpose of this Memorandum of Understanding is to identify and coordinate a variety of workforce development resources to create a seamless, customer-friendly system that addresses the needs of employers and job seekers by offering education, job training, human service and other workforce development services to residents of this region. The partners have agreed to support the Michigan Works! System and have committed program resources to its success. They will assist in the promotion and marketing of the system through their individual programs, and work toward providing excellent customer service, including participating in measurements of customer satisfaction and performance.

I Parties to this Memorandum of Understanding

A. The E. U. P. Workforce Development Board, Inc., a private non-profit board comprised of local employers and agency representatives, and authorized by the Michigan Department of Career Development to oversee components of the Michigan Works! System, including federal Workforce Investment Act programs (adult, youth and dislocated worker programs), Work First and other welfare-to-work programs, the Food Stamp Employment & Training program, and Wagner-Peyser Employment Service programs.

B. The E.U.P. Employment and Training Consortium, a consortium of local elected officials (County Commissioners), two from each county in the region, designated as the grant recipient and administrative entity for the local workforce development system, and employing the staff of the Consortium and Workforce Board.

C. Consolidated Community School Services, 4900 West Davis Court, Kincheloe, MI 49788, current contractor for Job Training Partnership Act programs and Wagner-Peyser Employment Services. CCSS also provides adult education services throughout the Eastern Upper Peninsula.

D. Northern Transitions, Inc., 1401 W. Easterday Avenue, Sault Ste. Marie, MI 49783, current contractor for Work First, Welfare Reform, and Food Stamp Employment & Training programs.

E. Employment Service Agency-funded Employment Services, including Veterans Services, the state agency which provides local services to veterans and disabled veterans.

F. Lake Superior State University, 650 W. Easterday Avenue, Sault Ste. Marie, MI 49783, the area’s only four-year post-secondary institution.

G. Bay Mills Community College, 12214 W. Lakeshore Drive, Brimley, MI 49715, a federally recognized, tribally chartered community college which offers one and two year educational programs to Native Americans and the general public.

H. U.P. Area Agency on Aging, Escanaba, MI, which provides senior community services to older workers.

I. Experience Works (formerly Green Thumb), a Michigan agency staffed out of Gwinn, MI, which provides senior community services to older workers.

J. U.S. Forest Service, which provides senior community services to older workers.

K. Chippewa-Luce-Mackinac Community Action Agency, 524 Ashmun Street, Sault Ste. Marie, MI 49783, which handles the Community Services Block Grant for Employment and Training.

L. Michigan Rehabilitations Services, which employs a local rehabilitation counselor to assist individuals with disabilities.

M. The Michigan Commission for the Blind, which provides services to the blind and individuals who are severely vision-impaired.

N. Sault Ste. Marie Tribe of Chippewa Indians, which provides social, health, educational, employment and governmental services to its membership, which resides primarily in seven counties, including the Eastern U.P.

The Michigan Unemployment Insurance Agency has its own Memorandum of Understanding with Michigan Works!, which conforms to Department of Labor and Economic Growth specifications.

II Services to be Provided through the One-Stop Delivery System

The Michigan Works! system provides services to all employers and all job seekers. Employers, students, persons with disabilities, veterans, welfare recipients, unemployed, underemployed and employed individuals will all have equal access to services. A core set of services will be available, free of charge, to all who seek them.

Job seekers may receive the following core services: outreach, intake and orientation to the information and services available through the Michigan Works! system; eligibility requirements and referrals to appropriate programs; information regarding claims for unemployment compensation; information about the availability of supportive services and community resources; labor exchange information; labor marker information; career and skill self-assessment tools; information on occupational training and financial aid; job search skills information, information about workplace accommodations; resume writing software and support materials; and job vacancy listings. The system may provide intensive services to targeted job seekers. These services may be based on eligibility and funding constraints, and are not to be considered entitlements: comprehensive assessments and diagnostic testing; the development of an individual employment plan, individual or group career counseling; case management; and short-term pre-vocational services (employability skills and introductory computer training). For those targeted individuals who have received intensive services and who are still unable to obtain or retain employment, the following training services may be available, depending on eligibility and funding constraints: occupational skills training, on-the-job training; skill upgrading and retraining, entrepreneurial training, job readiness training; adult education and literacy activities and customized training.

Employers may receive, at their request and at no cost, assistance in finding qualified workers; the use of interview facilities at service centers; access to the Michigan Talent Bank labor exchange system; labor marker information; information and referral to business start-up, retention and expansion services; information of the Americans with Disabilities Act and workplace accommodations, rapid response to mass layoffs and plant closings; information and referral to career preparation and school-to-work activities; and information about training incentives and tax credits.

For partners located within the service center and satellite offices, and whose funding source is administered through the Michigan Works! Agency, overhead costs shall be deducted from the grant before the award is made to the selected program contractor. For partners located within the service center and satellite offices, and whose funding source is not administered through the Michigan Works! Agency, overhead costs shall be collected from the partner through an agreed upon cost allocation system. Each partner will contribute the necessary resources from their program funds to address the needs of customers who meet the eligibility requirements of their programs, within the constraints of funding availability. For partners not located within the service center or satellite offices, operating costs for communications and the individual partner’s overhead will be assumed by the partner. To the extent that funds are available for the enhancement of the state’s one-stop delivery centers, general improvements will be funded from such grants.

IV Methods of Referral of Individuals between the One-Stop Operator and the Partner

The Workforce Development Board’s staff, employed by the E.U.P. Employment and Training Consortium, will oversee the operations of the one-stop by coordinating the service providers within the center. The Board will require, through this agreement and individual program contracts awarded by the Board, which referrals of individuals be made between partner agencies with respect to identified needs and anticipated eligibility. Partner agencies may make referrals electronically, in person, by phone or by mail, depending on the expediency and convenience required.

V Duration of the Memorandum and Procedures for Amending the Memorandum

This Memorandum of Understanding commences on the day it is signed by all parties and is ongoing, unless terminated upon ninety days written notice to all parties via certified U.S. Mail. It may be amended or modified with review and consent of all parties. Amendments and modification must be issued in writing to all parties and sent certified U.S. Mail. All parties must be given a minimum or 30 days to comment prior to the inclusion of any amendment or modification. Unless objections are submitted in writing, the implied consent of the amendment or modification will be taken.

VI General Provisions

The partners affected by this Memorandum of Understanding agree jointly to coordinate and perform the activities and services described herein, within the scope of legislative requirements governing the partners’ respective programs, services and agencies. The partners agree to:

III. Local Performance Measures

Program Activities for Youth Aged 14-18

Performance Indicator	Measurement	Benchmark
Performance Indicator	Measurement	PY 2006	PY 2007	PY 2008
Attainment of basic skills and, as appropriate, work readiness or occupational skills	Skill Attainment Rate	92%	95%	96%
Attainment of secondary school diploma or its recognized equivalents	Diploma or Equivalent Attainment Rate	79%	89%	90%
Placement and retention in post-secondary education or advanced training, or placement and retention in military service, employment, or qualified apprenticeships.	Retention Rate	72%	79%	80%

Program Activities for Youth Aged 19-21

Performance Indicator	Measurement	Benchmark
Performance Indicator	Measurement	PY 2006	PY 2007	PY 2008
Entry into unsubsidized employment	Entered Employment Rate	80%	83%	84%
Retention in unsubsidized employment 6 months after entry into the employment	Retention Rate at 6 Months	82%	85%	86%
Earnings received in unsubsidized employment 6 months after entry into the employment	Average Earning Change in 6 Months	$2,700	$3,500	$3,800
Attainment of a recognized credential relating to achievement of a secondary school diploma or its recognized equivalent, or occupational skills, by participants who enter unsubsidized employment, or by participants who are eligible youth age 19 through 21 who enter post-secondary education, advanced training, or unsubsidized employment.	Credential Rate	73%	79%	80%

Customer Satisfaction Rating (Youth)