US Department of Labor announces grant exceeding $19 million to assist workers in California affected by automotive industry layoffs

FREMONT, Calif. – Secretary of Labor Hilda L. Solis today announced a $19,042,012 grant to assist some 4,300 workers affected by layoffs at New United Motors Manufacturing Inc. located in Fremont and several of NUMMI's supplier companies. The announcement took place at the NUMMI Re-employment Center.

"NUMMI's closure was not only a blow to the thousands of workers who were employed at the plant but to the region's economy as a whole," said Secretary Solis. "Many of the hard-working Californians impacted by layoffs at NUMMI now will be able to receive training and employment services that will allow them to re-enter the workforce in good jobs."

Awarded to the California Employment Development Department, this grant will be operated by the Alameda County Workforce Investment Board, the Contra Costa County Workforce Development Board, the San Joaquin County Employment and Economic Development Department, the Silicon Valley Workforce Investment Network, Stanislaus Alliance Worknet and the Workforce Investment Board of Solano County.

The grant will provide dislocated workers, many of whom also are certified as eligible for Trade Adjustment Assistance, with access to "wrap-around" and supportive services. These services include dependent care and transportation assistance, which are not available through the TAA program. Any affected workers at supplier companies whose pending TAA petitions are denied will have access to a full array of training and employment-related services under this grant.

On April 1, 2010, NUMMI closed its five million square-foot plant in Fremont, resulting in layoffs. The NUMMI closure also will create a ripple effect of job losses throughout California companies that supply NUMMI, the only automotive plant on the West Coast.

Of the $19,042,012 announced today, $11,082,639 will be released initially. Additional funding up to the amount approved will be made available as the state demonstrates a continued need for assistance.

National Emergency Grants are part of the secretary of labor's discretionary fund and are awarded based on a state's ability to meet specific guidelines. For more information, visit http://www.doleta.gov/NEG/.