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W. Willard Wirtz,
AN EMPLOYER'S GUIDE TO
DEVE LO PF F/I
T R A I 1", I "C G
IMAN POVVE R
EN A ND
Hugh C. Murphy,
Revised September 1965
AND TRAINING ACT
How You Can Get Federal Assistance
for Training in
The Federal Government, under the provi-
sions of the Manpower Development and Train-
ing Act (MDTA) of 1962, as amended by the
Manpower Act of 1965, is ready to help em-
ployers and related groups with the develop-
ment and cost of on-the-job (OJT) training
On-the-job training may be defined as the
actual performance of the work duties in any oc-
cupation, under the supervision and guidance of
a trained worker or instructor.
The Secretary of Labor has been authorized
to encourage, develop, and secure the adoption
of on-the-job training programs.
The act was created primarily to give job
skills to the unemployed, the underemployed,
and workers whose jobs are endangered by
If you are:
An individual employer who would pro-
vide job entry training to unemployed persons,
or provide skill improvement training, or re-
train workers whose skills have become or are
becoming obsolete .
A labor organization which would pro-
vide preapprenticeship, refresher, upgrading
or skill improvement training for unemployed
or underemployed members and others seeking
to obtain full-time employment or advance-
A trade or industrial association which
would provide or arrange for training of un-
employed persons, or retraining of presently
employed persons, in specific preapprenticeship
or other skills in demand among or by members
of the association or industry or
A government, community, or other pub-
lic or private agency or group which would di-
rectly or indirectly provide job entry or skill
improvement training to unemployed persons
who are to be hired, or to present employees
when approved by the Manpower Administra-
. In any industry such as:
manufacturing or construction
transportation or communications
wholesale and retail trade
government (not Federal)
agriculture or mining
... And you need workers in:
skilled and semiskilled
clerical and sales
scientific and technical
And, you can't find an adequate number
YOU MAY BE ELIGIBLE.
If you are eligible and your proposed pro-
gram meets certain specifications, the Federal
reimburse job instructor fees
pay for materials used in training
pay for instructional supplies
provide consultation and advice on train-
assist in developing training programs
recruit job applicants
arrange for group training for small
arrange for area-wide training programs.
Are you eligible?
Merely contact your nearest:
Bureau of Apprenticeship and Training
(BAT) office of the U.S. Department of Labor
(see appendix)), or State apprenticeship
And obtain a brief one-page form called a
Declaration of Interest (OJT-1) which you
file with BAT.
On this form you indicate the needed type
of occupation or occupations, the number of
unemployed people you would train and hire,
or retrain and retain, and where you conduct
A BAT field representative will visit your
establishment and discuss your prospective needs
and ability to conduct a training program.
The local State employment service will cer-
tify as to the need for trainees in those occupa-
tions listed, based on the lack of people quali-
fied for the job openings in your locality.
If examination shows that your needs meet
the specifications of the act, you file a training
proposal on a form called OJT-3.
The BAT representative will give you every
assistance in filling out this form. It goes into
such necessary details as specific numbers of
trainees occupations hours of train-
ing duration trainees' wages cost
of instructors temporary equipment,
space, and materials payment options.
The proposal you submit must certify that
there is reasonable expectation of employ-
ment upon the trainee's successful comple-
tion of the program.
The BAT representative will iron out these
details with you, help you set up your training
program, negotiate with you on your projected
training costs, and send your proposal to the
Bureau for funding approval.
When funding is approved, a contract (OJT-
2) setting forth the operating standards for
your program will be signed in your locality,
usually with a BAT regional director, for the
Secretary of Labor.
NATIONAL OJT PROJECTS
BAT seeks the active participation of na-
tional and regional associations in business and
industry, as well as large companies and inter-
national unions, to conduct local OJT projects
under national contracts.
The same basic rules regarding provisions
under MDTA apply. There must be a need for
trained workers in a particular industry and
training has not been an integral part of the
BAT signs a prime contract with the associa-
tion, company, or union.
The industry association or multistate com-
pany hires training coordinators (at Govern-
ment expense) to promote,, administer, and
service the individual OJT projects among the
members of the association, the branches, affili-
ates, or dealerships of the company, or locals of
As the coordinators develop an OJT project
with the units of the association, company, or
union, a subcontract with the unit is given rou-
tine approval by the Department of Labor.
Prime contracts designate an overall number
of trainees, the occupations, and the training
cost in dollars.
The coordinators work with representatives
of their own industry to promote and develop
these subcontracts. The Federal Government
does not step in except for auditing purposes or
to give technical assistance when requested.
An average cost per trainee is established in
the prime contract, as is the wages and other
costs of the training coordinators hired by the
Some Examples of OJT in Action
Here are a few examples of the types of
OJT programs approved by the Manpower
-A national association of laundry owners
hires a small staff of training coordinators
who set up OJT projects among its member
shops under an MDTA allocation covering
the cost of training for 700 persons as well as
the salaries of the training coordinators.
-A large automobile manufacturer, serving as
the prime contractor, hires a training promo-
tion staff to install OJT projects among its
6,500 dealers for 1-year apprentice entry
training for 1,000 unemployed as mechanics
and body repairmen. Each dealer gets his
-A seafood processing firm in Oregon employs
10 women, some on welfare rolls, to learn how
to fillet fish in its plant.
-A labor union in California sets up training
groups on-the-job for 60 unskilled members
to learn a shortage skill as wood, wire and
-A group of fishing vessel owners in Massa-
chusetts forms an association to enable it to
hire 50 part-time dock workers and others to
be trained on their trawlers at the fishing
banks as full-time fishermen.
-A large Texas aircraft company wins a de-
fense contract, advertises for semiskilled and
skilled workers in a 10-State area without
success, and embarks on an on-the-job train-
ing program for 210 new and underemployed
workers to meet its needs for everything from
tool designers and template makers to jig
builders and press punch operators.
1. Does the Federal Government decide on
who an employer must hire as trainees?
A. You can hire anyone you want as an on-the-
job trainee. You have the choice of selecting
trainees from a panel screened and tested for
your open jobs by the local State employment
service, hire people off the street through ads or
other means at your disposal, or from among
those you have previously laid off. The act
specifies, however, that those selected must be
in one of the following categories: (1) unem-
ployed, (2) working below their skill capacities,
(3) working substantially less than full time,
(4) will be working less than full time or will
be unemployed because their skills have become,
or are becoming obsolete, (5) members of farm
families with less than $1,200 annual net family
income, or (6) 16 years old but not yet 22 and
in need of occupational training and further
2. Are there quota systems involving mi-
A. Absolutely not. As a Federal Government
contractor, however, you must hire, train, pro-
mote, transfer or assign positions on the basis of
qualifications alone, without regard to race,
color, creed, sex, or national origin as prescribed
by Executive Order 10925 under regulations is-
sued by the Secretary of Labor. There can be
no differential lines of seniority, no designation
at hiring which identify as to race, creed, color,
sex, or national origin; and no separate facility
3. Will the Government install an MDTA
representative in my plant?
A. No; a BAT representative will make peri-
odic visits to your training site, however. The
first visit will be within 15 days from the start
of training and once every 60 days thereafter,
depending on the length of the training pro-
gram. He will review progress, collect reports
when due, and will provide any assistance you
4. Is there a limit on the length of training
A. The act requires that the occupation be such
that more than 4 weeks training be necessary.
A limit of 104 weeks has been set to complete
5. What kind of records must be kept?
A. Records must be kept to provide information
for three brief reports. They are:
1. A one-page Progress Report (OJT-4),
collected at specific intervals to certify the
progress of the projects.
2. A one-page Characteristics of Trainees
(MT-101), report, describing the vital sta-
tistics of each trainee, his aptitude, education,
and other data to help establish a complete
"picture" of the trainee for research purposes.
3. A one-page Termination of Training
(MT-102) report for each trainee which in-
dicates the starting and finishing date for
each trainee, whether the training was com-
pleted, and the reason for termination.
Books, records, documents, and other evidence
pertaining to costs and expenses must be main-
tained as the basis for reimbursement claims
under the contract. Sample record forms are
available. Trainee attendance records must be
6. Who must stand the cost of time and
manpower required to fill out these forms?
A. This is a negotiable item under training costs.
If the training facility does not have enough
clerical help, MDTA funds would pay for this
help; if the clerical force can handle it, pro-
rated costs would be figured.
7. How does an industrial or trade associa-
tion conduct an OJT program when it does
not have employees of its own?
A. Association officials, once they themselves
determine the need for on-the-job training in
their industry or trade, sign a prime contract
for OJT-MDTA. Then, individual OJT pro-
grams are developed by a coordinator selected
by the association among its member firms.
When a particular firm is approved by the as-
sociation to conduct a training program, the
firm signs a subcontract, with all the prelim-
inary work having been accomplished by the
8. How can a labor organization conduct
an OJT program?
A. If a particular trade or skill is undergoing
change and the membership is facing unem-
ployment, or if there is a severe shortage of
certain skills in specific regions, a labor orga-
nization (either a local, a council, a region or
district, or the national) may become a prime
contractor, setting up subcontracts with indus-
trial firms, or training the people themselves
on simulated jobs.
9. There seems to be no limit as to who can
sponsor an OJT program?
A. There is no rule against anyone sponsoring
an OJT-MDTA contract as long as 1) on-the-
job training will be conducted in demand oc-
cupations for unemployed or underemployed
people, and 2) it conforms to the law's intent.
10. Is there a set rate of payment for train-
ing costs paid to employers?
A. Training costs will vary by industry and
occupation, obviously, so no specific figure can
be quoted. In 1964, the average training cost
per trainee to reimburse employers was about
$590. This cost does not include training al-
lowances paid directly to some trainees, or the
moneys paid vocational schools for supplemen-
tary instruction. In 1964, for instance, nearly
$8 million was allotted for training costs; $1.2
million for trainee allowances, and about
$244,000 to educational facilities in the OJT
11. Are Federal funds paid to employers for
training costs subject to Federal or State in-
A. Funds received for on-the-job training
should be treated as income and reflected in the
revenue account. Actual costs would be treated
as business expenses.
12. May a defense contractor participate in
OJT under MDTA?
A. Yes; but he should first discuss his specific
situation with the BAT representative and the
cognizant military auditor for that facility.
13. I have an established training program
in my firm. Is training cost assistance
available under MDTA?
A. Yes; but your established program would
not qualify. Eligible would be any new or ex-
panded training program.
14. May I sell what a trainee produces?
A. Anything a trainee produces during his
training period can be sold in commerce if he is
paid wages meeting Federal standards (if ap-
plicable) while producing the produce, and if it
meets your specifications. If a trainee is not
paid wages and receives a weekly allowance
from the Government (under special circum-
stances) the goods produced are Government
property and cannot be sold.
15. Does an MDTA trainee have special
privileges or special status?
A. A trainee under MDTA is no different than
any other employee or trainee you hire-he is
subject to the same company rules and policies
as anyone else in your establishment. If you
have to let him go before his training is com-
plete, there is no penalty or other loss to you.
Of course, funds allotted for such training
would be prorated.
16. Must I wait until the end of a training
project before training cost reimbursements
A. No; the contract you negotiate will specify
payment procedures, allowing for installment
payments as specified steps in the training are
17. What if there are not enough trainable
workers in my immediate locality?
A. Transportation expenses may be borne by
the Government for reasonable commuting; or
initial transportation may be provided to bring
trainees to the vicinity of the training site, then
subsistence allowances would be paid during the
training period. Presumably, these workers
will move to your location once they are earning
full pay and have a steady job with you.
18. If my company is involved in a strike,
may I obtain OJT-MDTA assistance?
A. No; training agreements are not approved
where abnormal industrial relations conditions
exist at the proposed OJT site.
19. I plan to move my company to a new
location out of State. May I obtain train-
ing assistance for new employees in my new
A. No; but it may be approved for new
branches, affiliates, or subsidiaries of a business
when there is no intent to curtail or close down
any operations of the existing business.
20. If there is a collective bargaining agree-
ment in my plant, how will this affect an
OJT contract proposal or program?
A. The collective bargaining agent must ap-
prove the proposal, first. Whatever provisions
contained in your collective agreement which
apply to new hires and/or trainees w6uld apply
to OJT-MDTA trainees unless special arrange-
ments are agreed upon between management
and labor. OJT-MDTA will not interfere
with or interrupt any labor-management agree-
You should allow several weeks for your pro-
gram to obtain approval from the time you
submit your Declaration of Interest.
The BAT representative is the man to talk
He can be reached by telephone, under the
U.S. Government list ing, Department of Labor.
Find the office nearest you from the following
list of 161 field offices:
iminha 1931 Ninth Avenue S.,
South Twentieth Building
fle 824 Federal Building
`)otgomery 119 Aronov Building,
474 South Court Street
orage229 Federal Building,
P.O. Box 322
pig Room 2016, 1330 N. Fourth
Street, Federal Building,.
130 South Scott Avenue
Rock 8006 Federal Building,
700 West Capital Avenue
300, N., Loa-Angeles ftreet
M0 'Me PennBilig
to ~Suite A, 2330 4Aubr
206 Moiny Building".
1927 Ffth A;eu
e coRo~om 10457, 450 Gode
830 Equitable Building,
730 17th Street
206 Post Office Building,
Fifth andlMain Streets,:'
Room 21j_,. 8 field
1102 American IndustrialI
Building, 983 Main Street
640 Chapel Street
q bia Room 319, 1I" 145 19th Street,
SRoom 202-203, 801, Washjnf
311 Fidelity Federal Bldg.j,
411 West Adams Street
ROOM 15311,51 SW. First
220 Executive Building,
2520 North Orange Avenue
202 Tallahassee Building,
1309 Thomasville Road:-
324 Federal Building,
Atlanta Room 528, 1371
Columbus 126 Wynnton,,Riul
Savannah 236 Post Offte
P.O. Box' 121,
Honolulu 351 Federal Ruildit
King an& Rlehard,,- ieets.
Boise 435 Post Office Build J'
Pocatello Suite 3,,MacKen'zie'B"1lding,
403 North Main
Chicago 413 Mannheim
Chicago 2510 Dempter Str'eet,'-':%
Chicago 8339 Stony Island"Ave-oue
Peoria 319 First National Adrik"
Rockford 224 Post Office BuilAin'
401 South Main Street
Rock Island 221 Post Office Building,,
211 19th StreA
Springfield 324 U.S. Post 0faeo,4-,,-'b61iA'
Wood River 15 East Fer
Evansville 310 Post Office' Builainti,,
Fort Wayne 365 Fed B ding
Gary 501 Pennsylva-nia, Stret-
Indianapolis 306 Wulsin uildink,,.
2 2 2 E ast Ohio, S t ri"
South Bend 315 Whitcohib-Kefi-.,Alildg-.,
224 West Jeffers6 Jljlvd,
Davenport 312 Federal:,%, d*.'
Des Moines 201 Federal: Office Build*Ing,
5th and Cburt S
Topeka 820 West 33d St
Wichita 923 Beacon" Btuil
114 South'Xta'1n,+,$t"`*, t
Lexington 400 Nunn Building
Louisville Suite 600 Harman"',- 1
.. .. .
K0q~~pa : x
. .. .. .
510 First AventieI
P.O. Box 21S .:
Room 1, Sotith n
2412 Federal Offi._
214 North 17 : ".
Room 2, 2301i,
SU.S. Court, fi ..
". ... : ,. ,.;.. -a;
ick Room 14,96 yar
424 Federal- SJii
405 Federal Buildi
4031 Federal Officei
'Room 4, 413 'No h
406-408 New-^ P.OS
V 314 Post Offe.-BUI.
501 U.S. Cohrt.i
LI. Room 402, 20tiW
Room 424, D4j
211 U.S. P
H house Bid, ..
1010 Chimes ,
'500 S. Sal, r
Charlotte 415 BSR: Bu4di,
S 316 East iM
Greensboro .33-435 P.<
Raleigh R:oom 12'lJ
S.. alisbury 2074 W-S
N: -North. Dakota
Fargo 510 .Fourt 't En:
O.:: :' ::
Akron.. 72 South "rig
:: Canton- 1 0. .. Market
Cleveland -: :386 The Ara4i^
inccinnati 40 U.S. Post
*olumbu' 55455 22
1.. . ,. .*.
701 Twenty-Flive South Main.
Bldg., 25. South Main St.
'7206 Federal Office Building,
284 Summit Street
811 U S. Post OMeie Building
Post Office Building,
Third & North Robinson
917 Petroleum Building
207 Post Ofice Building
307 U.S. Court Howe'.
520 SW. Morrison Street
901 Allen Law Building,
133 North Fifth Street
281 Central Trust Buildingo
1216-18 11th Avenue
316 FedeAl Building,.
Sixth and State, Streets,
1543 Labor,& Industr ]Bldg.,
7h and.Forrester Streets
Fifth loor, UV .PstOf
Nint an~dMarket Streets
1102 New Fe'deral Building
212 1S. Post Office Building,
Fifth. & Washington Sts.
OS US. ostOfflce Building
% Penn State Employment
Service, 734 Wes -Fourth
221 York? Pot Mfe 'Bldg.,
200 goout Gerereet
East Provi dlence Pos.t Office
Room 24B, Sergteant Jasper
901 Sumter Street
:'425 Schuyler Office
Room 407, 513 South Main
12 Federal Building
-R Post Office Bu hiding
'Rom 232, 301 Cumberland
214 Fedek~al Office Building,
167 North Main Street
780 U.S. Court Hous'e,
Salt Lake City
Room 218, 804 Bryan Street
506 Federal Office Building
321 Perlstein Building
112 S.A.B. Building,
420 Taylor Street
Room 1003, 1416 Commerce
Room 214, 218 North Camp-
8605 Court House & Federal
Bldg., 515 Rusk Street
211 Earlee Building,
222-24 East Methrin Street
651 South Main
231 U.S. Post Office and
Room 221, 100 North Uni-
6012 Federal Building,
125 South State Street
P.O. Box 966, Federal Build-
ing, Elmwood Avenue
Room G-4, U.S. Custom
House, 101 East Main St.
Room 10-021, 400 North
2006 Smith Tower,
506 Second Avenue
208 Post Office Building
412 Post Office Building,
P.O. Box 1495
3011 Federal Building,
500 Quarrier Street
211 Post Office Building,
500 West Pike Street
433 Federal Building,
12th & Champline Streets
214 Post Office Building
Room 585, 4802 Sheboygan
Avenue, P.O. Box 5261
Room 160, 819 North Sixth
208 Post Office Building
107 Arcade Building,
429 Main Street
Room 103, 254 North Center
Room 2015, 2120 Capital
Avenue, P.O. Box 1124
Region I-(Connecticut, Maine. Massachusetts, New
Hampshire, Rhode Island, Vermont)
Boston, Massachusetts (02110), Room 501, 18 Oliver
Region II-(New Jersey, New York)
New York City, New York (10001), 906 Parcel Post
Building, 341 Ninth Avenue.
Region III-IV-(Delaware, Maryland, North Carolina,
Pennsylvania, Virginia, West Virginia)
Chambersburg, Pennsylvania (17201), Room 321
Professional Arts Building.
Region V-(Alabama. Florida, Georgia, Mississippi,
South Carolina, Tennessee)
Atlanta, Georgia (30309), Room 525, 1371 Peach-
tree Bldg., 17th and Peachtree St., NE.
Region VI-(Kentucky, Michigan, Ohio)
Cleveland, Ohio (44114), 948 Engineers Building,
1365 Ontario Street.
Region VII-(Illinois, Indiana, Wisconsin)
Chicago, Illinois (60604), 219 S. Dearborn Street.
Region VIII-(Minnesota, North Dakota, South
Minneapolis, Minnesota (55401), 106 Federal
Building, 110 S. 4th Street.
Region IX-(Iowa, Kansas, Missouri, Nebraska)
Kansas City, Missouri (64106), 2811 Federal Office
Building, 911 Walnut Street.
Region X-(Arkansas, Louisiana, New Mexico, Okla-
Dallas, Texas (75202), Room 212, 1114 Commerce
Region XI-(Colorado, Idaho, Montana, Utah, Wy-
Denver, Colorado (80202), Room 832 Equitable
Building, 730 17th Street.
Region XII-(Arizona, California, Nevada, Hawaii)
San Francisco, California (94102), Room 10451, 450
Golden Gate Avenue, P.O. Box 36017.
Region XIII-(Oregon, Washington, Alaska)
Seattle, Washington (98104), 1809 Smith Tower, 506
U.S. DEPARTMENT OF LABOR
Bureau of Apprenticeship and Training
Washington, D.C. 20210
U.S. GOVERNMENT PRINTING OFFICE: 1965---789-302
UNIVERSITY OF FLORIDA
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