Civilian/Military Task Force Labor Sub-Committee Comprehensive Plan - June 19, 2007

I.  LABOR SUB-COMMITTEE ORGANIZATIONAL MEMBERSHIP
 
Maria Connelley, Guam Department of Labor (GDOL) 475-7043   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Senator Jesse A. Lujan, 29th Guam Legislature 647-5373   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
David Dell’Isola, Agency for Human Resources Development (AHRD)  475-7072   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Cecilia Martinez, Department of Administration 475-1288   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Lou Lucena, Dick Pacific 647-5500   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
James Martinez, Guam Contractors’ Association 647-4840   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Greg Massey, Guam Department of Labor 475-7005   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Erica Unpingco, Guam Department of Labor 475-7044   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Joleen Santos, GDOL/AHRD  475-7074   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Vera Topasna, GDOL/AHRD 475-7078   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Mike Cruz, Guam Economic Development & Commerce Authority  647-4332    This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ext. 147
 
Larry Toves, Guam Economic Development & Commerce Authority  647-4332 This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Mary Ann Y. Okada, Guam Community College 735-4412  This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ext. 636
 
John Rider, Guam Community College 735-4412   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ext. 527
 
Katherine Dote, Guam Marriott Resort & Spa 649-7827 This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Civilian/Military Task Force Labor Sub-Committee Comprehensive Plan - June 19, 2007
 
Eloise Sanchez, Guam Public School System 475-0444   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Mathews Pothen, Guam Shipyard 339-5700   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Bert Johnston, Guam Trades Academy 647-4840   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Joni Santos-Borja, Navy Human Resources 339-2224   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Marcel Camacho, Office of the Governor  482-3012   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Greg Perez, Perez Bros. 647-1731   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
Peter Barcinas, University of Guam 735-2055   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
David Okada, University of Guam 735-2092   This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
II.  BACKGROUND/SUMMARY
 
U.S. national interests and treaty commitments require strengthening of U.S. military capabilities in the Western Pacific.  U.S. forces must be positioned to maintain regional stability, ensure flexibility to respond to regional threats, project power throughout the region, defend our assets as well as those of our allies, and provide forces to respond to global contingencies.

The relocation of III Marine Expeditionary Force (III MEF) personnel from Okinawa to Guam under U.S. Japan Alliance Transformation and Realignment is part of a broader realignment that, when implemented, will strengthen our regional posture, deter potential aggressors, and provide capabilities that can be flexibly deployed in contingencies, which are essential for the Defense of Japan and for peace and security in the region.  For the Marines, this development will balance the Marine Air Ground Task Force (MAGTF) lay down across the region with improved flexibility.  The 8,000 plus Marines and their 9,000 plus dependents leaving Japan will reduce the footprints of U.S. forces in Okinawa.  This will facilitate consolidation of U.S. bases on Okinawa to allow additional land returns in Japan while reinvigorating Guam’s economy through economic stimulus, infrastructure improvements, and external investments.

The Government of Japan will fund most of the infrastructure construction costs over the planned seven year time period to implement the realignment actions in mainland Japan, Okinawa, and Guam. 

On Guam, Japan will contribute billions of dollars for cost sharing toward the development cost associated with the realignment of Marines form Okinawa to Guam.  Japan’s contribution consist of billions of dollars in cash for operational facilities, barracks, and quality of life facilities, and equity investments and loans to special purpose entitles that will provide housing and utilities for the Marines on Guam.

Under the direction of the Deputy Secretary of Defense, the Navy established a Joint Guam Program Office (JGPO) for the coordination and management for the relocation of the Marines from Okinawa to Guam.  The JGPO will work closely with the Office of Economic Adjustment and the Government of Guam to ensure this initiative is mutually beneficial to the people of Guam.

JGPO will oversee National Environmental Policy Act (NEPA) studies that will provide the foundation for the Environmental Impact Statement (EIS) and parallel development of a Guam Master Plan.

Governor Felix Camacho, through Executive Order 2006-10, created the Civilian Military Task Force (CMTF) to maximize opportunities for the civilian and military community resulting from increases in military presence.  

As a Sub-Committee of the Civilian Military Taskforce (CMTF), the Guam Labor SubCommittee is responsible for providing and developing strategies to address Labor issues involving Government, Communities and Stakeholders. 

The Labor-Sub Committee has been pursuing strategies for innovative approaches to spur local and regional workforce development to meet the demands of high growth industries and the labor needs for military projects and economic growth.  The Labor Sub-Committee membership consists of business and industry; education and training providers; Human Resource professionals from public and private sector and the economic development community.

III.  MISSION STATEMENT
 
During Governor Camacho’s state of the island address in February 2007, the Governor articulated his vision emphasizing on future growth and prosperity of the citizens of Guam.  The Governor’s renewed vision and purpose calls for a season of transformation that promotes forward thinking and strategizing to establish a standard of excellence.  The Governor’s vision calls for strategies to address the emerging workforce and the need to expand opportunities for Guam’s youth.   The renewed vision called for a modification of the workforce development strategies that provides employment opportunities for Guam to be on the cutting edge of global advancement in careers that push the envelope of workforce development and foster our people's entrepreneurial spirit. 
 
Vision Statement:  To provide leadership, strategic guidance, and resources valuable to the Workforce Investment System.
 
Mission Statement:  To improve the quality of life of Guam’s citizens by maximizing their potential for employment in a competitive economy.
 
IV.  CURRENT CHALLENGES
 
The anticipated increase in the federal military posture on Guam poses many potential socioeconomic changes to the Island; changes that are best addressed with proper planning.  The complexity of socio-economic changes alone is inherently difficult to forecast even with relatively close horizons.  Given a 10-year horizon, this effort becomes extremely difficult but necessary.  The effectiveness of planning efforts is highly dependent upon the accuracy of the forecast and on the ability of the planning efforts to anticipate and adjust to changes in the forecast.  Preliminary indications of the scope, magnitude, and duration of the increase in military activity strongly suggest an immediate need for a comprehensive workforce development plan with a specific focus on human resources, training, employment, and employment support (i.e. transportation, housing, family care) that are needed for this military growth.  
 
One of the most critical challenges facing our island is the need for additional labor.  Limitations of the labor pool and the cost to develop specialized skills to meet the needs of the impending growth, have prompted the workgroup to adopt several strategies to address the labor issues. 

Within that context the Labor Sub-committee continue to meet with civilian, military and federal officials to discuss options for developing an analysis and provide a draft report.  
 
The requirement for a skilled labor force in construction-related occupations is estimated to be from 10,000 (Joint Guam Program Office) to 20,000 (Guam Contractors Association). Other in-house estimates reach as high as 25,000 workers, which looks closer at all H-2B job categories for both military and non-military.  After a detailed description by the Director of the Guam Department of Labor (GDOL), Guam’s current labor workforce, as well as Guam’s projected labor workforce within the next decade, will not meet the demand for workers during the construction phase of the military build-up.  At best, Guam can probably meet only 10%-15% of this demand.  These factors are of paramount concern of local, federal and military officials. 
 
STRATEGIC APPROACH – HUMAN CAPITAL: 
 
In February 2007, the Labor Sub-Committee created a technical team consisting of private sector, education, and local government representatives.   The technical team is tasked to prepare a Guam 2008-2014 socio-economic plan that quantifies the anticipated growth of Guam’s economy over the next 10 years. The approach is to quantitatively measure where the island is now in terms of human capital, forecast what it will look like incrementally over the next 10 years, identify what resources are available and what resources are lacking, and provide practical alternatives on how best to address these shortfalls. The opportunity for smart growth (or right growth) requires that we establish or develop new initiatives capitalizing on community strengths.  To do this we recommend establishing emphasis areas specific to Military/Community Impact.
 
The situational context of Guam’s labor market and the results of on-going military growth discussions pose concerns for the group and leadership. Two important issues common in these discussions include but not limited to the following:  Workforce Sustainability and impact of Alien Labor Force (H-2B) to the local and regional community.  The recent U.S. Congress approval to remove the restriction of the H-2B on military related construction poses several challenges for an island economy and all workforce related issues and the ancillary social economic issues.  The following identifies the sub-committee concerns and opportunities gained from military growth.
 
I. IMPACT OF SERVICE AND TECHNICAL CAPACITY AT GUAM  DEPARTMENT OF LABOR (GDOL)

Compliance and Enforcement

• Needs for Alien Labor Processing & Certification Division (ALPCD) enforcement and compliance – considering all budget categories (personnel, equipment, supplies, rental, capital outlay, etc.)
• Funding associated with H-2B compliance and fraud/abuse prevention for ALPCD
• Technology and Systems
• Personnel and Administrative Services
• Needs of GDOL to support an increased department workload as a result of the increased H-2B population to include:
  
  
  • Labor market testing within the Guam Employment Service (Wagner Peyser Act)
  • Support for Workman’s Compensation & OSHA due to increase in construction activity and the injuries associated with this type of work
  • Support for Wage & Hour division to prevent wage abuses
    

 Socio-Economic spill over effect

 
II.  CURRENT DATA AND FUTURE DATA NEEDS

• Workforce Evaluation and Analysis

• Workforce Planning  

• Baseline Data and Programs  
• Workforce Database 
• Current Labor Capacity
• Current listing of training requirements and providers.
• List of all current and potential military projects over the next 15 years.
• Econometrics Forecasting
• Models (Population, Regional Economy, Social)
• Current training resources need to be evaluated for its current effectiveness in meeting present and anticipated training needs as well as the capacity to provide specialized training to meet anticipated needs. 

• Budget Cost associated with all aspects of impact related to all training and an evaluation of all potential funding sources.

• Forecasting

• A forecast of the demand for skilled labors by skills sets, including the primary construction industry, the secondary service industry (support service) and the tertiary maintenance and repair industry over the next 10 years. 
• Forecast current workforce skill level to meet as many of the skill levels anticipated over the next 10 years.

• Workforce Planning: 6- Forces Diagram (Strategic Planning)

• Project impact: 
• wages by skills sets;
• job desirability factors;
• potential for upward mobility;
• measure potential labor supply by projecting age cohort local and regional;
• measure potential labor supply coming from:

• Underemployed
• Non-employed
• Entitlement programs 

 

1. WORKFORCE & ECONOMIC ASSETS AND LEAKAGES
   
   

• Survey Industry Needs for Hiring
• Determine Capacity Support Needs
• Survey Training Needs
• Internal – Training, Staffing Development
• External – Service Providers (apprentice providers and future providers)
• Assess and Evaluate impact of quality and standard of living.  

• SYSTEMS AND STRUCTURES 

• Performance Audit (model after One-Stop Career Center performance audit)
• Impact of Governance Structures & Relationships (cross planning assurances) Apply Collaboration Framework.

• EXTERNAL AND REGIONAL ISSUES 

Other issues related to growth are wages, increase in construction trades training. The group will continue to address the labor impact through several workforce strategies.
 
PROJECTED NEEDS
 
The Guam Department of Labor/Agency for Human Resources Development (GDOL/AHRD) is responsible for promoting, developing and improving the welfare of wage earners on Guam.  The department provides training and education, job placement assistance, outreach and consultation to increase the awareness of employment practices, senior employment programs and alien labor certification.  The department also enforces the prevailing wage schedule, Fair Labor Standards Act, Employment Service Law, Occupational Safety and Health standards and administers workers compensation.  Additionally it oversees labor market and occupational information systems as well as provides statistical information regarding Guam’s manpower and labor situation.  It houses and supervises the Agency for Human Resources Development and the AmeriCorps program.
 
In May 2007, the Guam Workforce Investment Board submitted its modified State plan and plans of work to US Department of Labor, Employment & Training Administration (USDOL ETA).  The Five (5) modified goals and actionable strategies in the accompanying plans of work serves as a guiding piece for workforce funded collaborative programs and their respective planning units.  The goals and objectives provide flexible investment incentives for Guam and businesses to improve both quality and standard of living, provide adequate infrastructure necessary and establish components for firms to invest and grow.  The direct support provided by the Guam Department of Labor through numerous workforce federal grants, ensures planning and implementation of the goals outlined in the State plan.  The department accomplishes the support of this mission through 12 divisions that administers the various local and federal statutes and mandates for which the department is responsible for.  
 
The Guam Department of Labor’s (GDOL) operational needs reflect a renewed emphasis for achieving the goals outlined in the plan.  It also continues the effort to improve the integration of the Department’s objectives with resource requirements.  Over the last three year’s the dedication and professionalism of all the department employees have moved the department forward in realizing successful implementation of the strategies and goals.  The following division personnel, infrastructure and funding plan supports the numerous strategic goals and objectives outlined in this plan to successfully address military growth and sustainability.
 

Click here to download the Labor Subcommittee Comprehensive Plan.