September 25, 2007 - The International Association of Machinists and Aerospace Workers (IAM) today joined key lawmakers, the AFL-CIO and other unions at the U.S. Capitol to support the Protecting Employees and Retirees in Business Bankruptcies Act of 2007.
“Our airline members have endured tremendous hardships because of the unfair advantage enjoyed by companies in bankruptcy,” said IAM General Vice President Robert Roach, Jr. “This legislation will ensure labor contract issues, including pensions, will remain a matter of collective bargaining, even when a company is in bankruptcy.”
The legislation is being introduced by U.S. House of Representatives Judiciary Committee Chairman John Conyers (D-MI), U.S. Senate Assistant Majority Leader Richard Durbin (D-IL) and Sen. Edward M. Kennedy (D-MA), Chair of the Senate Health, Education, Labor and Pensions Committee. Current bankruptcy laws were used to extract $8.5 billion from IAM members in the airline industry since 2001.
“While workers made the sacrifices, the airline executives responsible for the bankruptcies rewarded themselves with multi-million dollar bonuses,” said Roach. “Bankruptcy cannot be used as a tool to destroy workers’ lives and stuff executives’ pockets.”
