Former Barcalounger workers eligible for federal aid

As many as 140 former Barcalounger plant workers could be eligible for federal cash payments for 2 1/2 years while they are enrolled in paid training for a new career.

The U.S. Department of Labor has approved the company’s application to help the workers transition into other careers under a program known as “Trade Adjustment Assistance.”

In April, an announcement was made that the furniture manufacturing company that has been in the Rocky Mount area since 1964 was closing.

Barcalounger Home, a manufacturer of more than 600 styles of motion furniture such as recliners, had been operating out of a plant at 1450 Atlantic Ave.

The company has entered into a shared services agreement with American of Martinsville.

As a result of the agreement, Barcalounger Home has relocated its manufacturing and corporate headquarters from Edgecombe County to Martinsville, Va. Barcalounger Home and American of Martinsville are both owned by Hancock Park Associates in Los Angeles.

Nationally, about 8,600 workers from companies including Barcalounger were made eligible for the federal assistance in 16 states last week.

“The U.S. Department of Labor is committed to supporting all of the nation’s workers — including those who lost their jobs because their companies relocate abroad,” U.S. Secretary of Labor Hilda L. Solis said in a press release. “Support for individuals pursuing training is one of the ways that we have a direct impact on the future career prospects of workers facing dislocation.”

There are at least two forms of government assistance offered under the program.

People who are being retrained can receive cash payments for 2 1/2 years while they are in school, which also would be paid. The payments are comparable to what the person would have earned on unemployment, said Steve Rogers, the manager of the N.C. Employment Security Commission office in Rocky Mount.

To qualify, the applicants must pass a reading and math assessment test given by that office as well be qualified enough to be admitted into the training program.

“(Applicants) do not automatically qualify,” Rogers said. “There are certain time limits as to how long someone must have worked (at a plant) and things we approve. They are assessed. It’s got to be (a training program) with a reasonable chance of leading to a job at the end of it.”

Another form of assistance under the program benefits people over 50 years old who aren’t interested in going back to school.

Under this assistance, if a worker finds a new job with a salary less than $55,000 annually and less than what he or she was earning, they could be eligible for a salary supplement.

The federal government is offering to pitch in 50 percent of the difference between the employee’s old wage and new wage, up to $12,000, over a two-year period.

Some workers also might receive job-search and relocation allowances as well as Health Coverage Tax Credits, the Department of Labor press release states.

Workers are required to apply for the assistance through the local Employment Security Commission office, which is located at 121 Fairview Road in Rocky Mount.

Rogers said that office will be contacting the Barcalounger workers about their potential eligibility in the program.

More information on the Trade Adjustment Assistance program and other Department of Labor employment and training services can be found at http://www.doleta.gov.