[Congressional Record Volume 145, Number 20 (Thursday, February 4, 1999)]
[Extensions of Remarks]
[Page E138]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   EMPLOYEE OWNERSHIP ENHANCEMENT ACT

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                      HON. JAMES A. TRAFICANT, JR.

                                of ohio

                    in the house of representatives

                       Thursday, February 4, 1999

  Mr. TRAFICANT. Mr. Speaker, if our economy is so great, than why are 
American workers losing their jobs? If our economy is so great, than 
why are American workers going bankrupt in record numbers? If our 
economy is so great, who do many families need three jobs just to pay 
their bills? And Mr. Speaker, if our economy is so great, why are so 
many manufacturing plants going out of business?
  On May 31, 1997, something happened in my congressional district that 
deeply affected 70 of my constituents and their families. The Camcar 
Textron Brainard Rivet plant in Girard, Ohio closed its doors and told 
its workers to go home. The workers at this plant, scared for their 
futures and the futures of their families, wanted to work with the 
parent company of Camcar, Textron to negotiate an employee buyout 
through an Employee Stock Ownership Plan (ESOP). Unfortunately, Textron 
did not feel that selling the plant to the employees through an ESOP 
would be in the best interests of the company. I was particularly 
concerned over the fact that Textron has referred 50 former Brainard 
Rivet customers to another non-Textron company. These customers could 
have been the base for an employee-owned company.
  Mr. Speaker, Congress needs to do all it can to encourage ESOPs. That 
is why today I am introducing legislation, the ``Employee Ownership 
Enhancement Act,'' to require that an employer closing a manufacturing 
plant to offer the employees an opportunity to purchase the business 
through an ESOP. This legislation would exempt companies that are 
planning to continue using the assets and/or capital from a closed 
plant at another location or the companies that close a plant but still 
are manufacturing the same product at another plant.
  The current economy presents many challenges for both workers and 
employers. Congress needs to put in place reasonable laws to enable 
hard working Americans a chance to own and operate manufacturing plants 
if the owners don't want to anymore. My bill would apply to only a 
handful of plant closings a year, but would provide hope and 
opportunity to thousands of workers and their families. It is that 
simple.
  I urge all my colleagues to support this very important piece of 
legislation.

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