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Rockefeller, Warren Propose Legislation To Protect Work and Retiree Pay And Benefits

Reported by: Send eMail Heath Harrison
Reported: Jun. 6, 2014 5:45 PM EDT
Updated: Jun. 6, 2014 6:04 PM EDT
Eyewitness News Photo
Eyewitness News Photo

Washington, D.C.

U.S. Sens. Jay Rockefeller, D-W.Va., and Elizabeth Warren, D-Mass., introduced legislation this week, which they said will protect worker and retiree pay and benefits when companies file for bankruptcy.

Rockefeller and Warren said the The Bankruptcy Fairness and Employee Benefits Protection Act would limit the ability of companies to make reductions or terminate benefits under federal bankruptcy code.

“Americans work hard each and every day under the promise that they will be treated fairly and with dignity,” Rockefeller said in a statement. “Sadly, far too many companies in West Virginia and elsewhere have abandoned the promises they’ve made to their workers through bankruptcy filings and other strategies to avoid paying their obligations. Continuing to allow companies to shift their bankruptcy costs onto the backs of employees and retirees is wrong, and this bill seeks to end this shameful practice by leveling the playing field for our workforce.”

The legislation would require management to prove proposed benefits cuts are absolutely necessary to prevent a company’s liquidation. It would also establish rights for municipal employees and retirees similar to those in corporate bankruptcies.



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