Waste and misuse of federal on-the-job training funds

This document records the oral and written testimony of witnesses who testified at two Congressional hearings on waste and misuse of federal on-the-job training funds provided through the Job Training Partnership Act (JTPA). Specifically, the hearings focused on the case of the extensive use of on-the-job training funds by American Home Products (AHP) in Puerto Rico. Witnesses, who included representatives of the General Accounting Office, the Department of Labor, the Puerto Rican government, and former employees of American Home Products, pointed out that many companies, especially American Home Products, took advantage of JTPA funds to hire workers they would have hired anyway, to train high school graduates instead of the more disadvantaged persons who were targeted by JTPA, and to use JTPA funds for excessively long training periods for simple jobs. The witnesses also alleged that American Home Products, and many other companies, used JTPA funds to train workers in Puerto Rico so that they could close older plants with more experienced workers. The allegations were denied by the chairman of American Home Products, who also was a witness at the hearings. (KC)