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Durbin Unveils Bill to Change Corporate Bankruptcy Laws to Put Workers, Retirees First

Press Release

Date: Sept. 25, 2007
Location: Washington, DC
Issues: Business and Consumers Employment and Affirmative Action


Durbin Unveils Bill to Change Corporate Bankruptcy Laws to Put Workers, Retirees First

United States Senator Dick Durbin (D-IL) introduced legislation today, which will curb abuses that deprive employees and retirees of their earnings and retirement savings when businesses collapse. The Protecting Employees and Retirees in Business Bankruptcies Act would make several changes to Chapter 11 bankruptcy law, putting workers interests near the top when companies file for bankruptcy.

"American workers and retirees who give their lives to a company are treated like strangers when their employers files bankruptcy," Durbin said. "This bill says that if a company goes bankrupt, employees and retirees won't take a back seat to creditors and executive bonuses."

Sadly, corporate bankruptcies are nothing new to American workers. In too many corporate bankruptcies, workers' claims for compensation and benefits are denied while executives' claims are given preferential treatment. It is time for a more balanced and just approach.

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